Filing an auto insurance claim can be a hassle. Already stressed out from an accident, you’ve got to deal with phone calls, paperwork and claims specialists.

The 2012 U.S. Auto Claims Satisfaction Study, conducted by market research company J.D. Power and Associates, shows overall satisfaction with the claims process in the first three months of 2012 hit a lower level than in the previous three quarters – April through December 2011.

One of the pieces of bad news for insurers: a 19-point drop from the previous year in satisfaction with the first notice of loss, when the customer first contacts the insurer after an accident.

“That’s a really important time for the customer. Twenty-five percent of what the customer thinks of the carrier after the claim is all said and done is a function of those first 10 or 15 minutes,” says Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates.

Bowler says that during this first call, your insurer should answer all of your questions and set your expectations.

Customers surveyed by J.D. Power also complained about having to wait too long to get their vehicles back from the repair shop, along with problems regarding customer service and vehicle appraisals.

Experts say consumers don’t have to sit back and grumble about auto insurance claims. Here are eight things you can do to make the process smoother.

1. Contact your insurer right away.

“The first thing you can do is report that loss as soon as possible, so the insurance company can begin their investigation while the facts are still fresh,” says Tony Noviello, assistant vice president in the claims department at auto insurer Amica Mutual. “Details that you might remember several hours after a loss might not come to mind if you wait a week or two.”

If it’s safe to do so, policyholders should take photographs of the accident scene, the vehicles and road conditions, Noviello says, and should collect witnesses’ names and phone numbers.

2. Find out what you can expect.

The claims handler assigned to your case should explain the claims process to you – but if he or she doesn’t, make a point of asking.

“Ask them for appraisal timeframes, how quickly can you expect your vehicle to be appraised, how quickly after that can you expect payment, what your rental car coverage is – basically, you should ask for a roadmap of the process,” Noviello says.

Bowler agrees: “I would encourage the customer, as well as the carrier, to think of an FAQ – a list of questions you should be asking when you call to report an accident.”

3. Keep detailed records.

In addition to jotting down your claim number and the names and contact information for representatives of your insurer, you should take notes about conversations you have with those representatives.

“If you start to have difficulty and you want to complain higher up in the company, you need to have a clear record of what happened,” says Robert Hunter, director of insurance at the nonprofit Consumer Federation of America. “If you can say, ‘Here are the dates and times I called, here is who I talked to, and I’m not getting any action,’ that’s much stronger than just saying ‘I’m really unhappy.’”

4. Stay calm at all times.

If something goes wrong – the adjuster doesn’t show up or the body shop is taking too long to fix your car – don’t lose your cool.

“Ultimately, you want to get the matter settled – that’s really the goal,” Hunter says. “If you yell at somebody, they’re not going to want to bend over backward to help you. You want to show that you are serious and mature and you have facts that may be troubling to the company – that they’ve taken too long or they’re promising and not delivering – and you’re laying those facts out. When you do that higher up in the company, you will get results.”

5. Keep on top of the repairs.

It might be easy to pick a repair shop the insurer recommends, to drop off your car and not even glance at the repair estimate, but experts say that would be a mistake. Hunter suggests doing “a little research” in picking a good repair shop.

If you do choose a repair shop that has a close relationship with your insurer – which can have benefits, because the repair shop will want to keep the insurer happy – then check to make sure the shop isn’t cutting corners, such as using inferior parts to save money, says Amy Bach, executive director of United Policyholders, a nonprofit consumer advocacy group.

“You could show the (insurer’s) sweetheart body shop’s estimate to an independent shop and say, ‘Hey, what have they cut out here that you feel should be done? They want your business, so they will tell you,” Bach says.

Hunter emphasizes that you — not your insurer — are in charge of deciding where to get your car fixed.

6. Negotiate if an offer seems low.

Experts say that particularly when an older car is totaled, consumers often aren’t happy with the settlement offered by the insurance company. Right away, you should ask how the insurer arrived at the dollar figure.

“Most insurance companies are going to go with the (Kelley) Blue Book value,” Bach says. However, she says, “when it comes to the claims process, a lot more is subject to negotiation than people realize.”

She recommends checking to see what comparable vehicles have sold for in your area, and speaking with the company in a calm, confident manner.

“Know what your objective is in the negotiation before you communicate with the insurance company,” Bach says.

7. File a complaint if you’re dissatisfied.

If your questions aren’t getting answered or you think you’re being treated unfairly and can’t resolve the matter, consider filing a complaint with your state insurance department, Hunter says.

While most state insurance departments can’t or won’t order a company to pay a claim, they can and will get a consumer’s questions answered, Hunter says. That’s important because it forces a company to disclose the reasoning behind its decision – and locks the company into that – and shows the consumer where there might be haziness in the policy language.

“If there’s ambiguity, you’re in a very strong position. If you think there’s ambiguity and they’re still saying no, then going to an attorney is a very good idea,” Hunter says.

8. Consult a lawyer in certain cases.

Consumers who are butting heads with their insurers or who’ve been injured in a crash should contact a lawyer, says Lynette Hoag, a personal injury and insurance attorney who is managing partner of Chicago’s Hoag Law Group LLC.

An attorney can help an injured consumer get medical bills paid and collect money for lost wages, time off from work, and pain and suffering, Hoag says.

“The insurance company wants to limit their loss and make you the shortest offer they can get away with,” Hoag says. “An insurance company is not going to make you a fair offer if you don’t have an attorney, because you don’t know your rights and don’t know what you’re entitled to recover.”

Do you have a life insurance policy? If so, you’re ahead of the game.

According to LIMRA, a trade group for the financial services industry, only 44 percent of Americans have individual life insurance coverage; 30 percent have no coverage at all.

So why are consumers dropping their life insurance policies or not buying coverage in the first place? Deloitte Consulting surveyed more than 2,000 Americans, both policyholders and non-policyholders, to gauge their thoughts on life insurance coverage.

While the survey’s primary goal is to help marketers sell life insurance, the results offer insights that consumers can tap to be smarter about buying life insurance.

Why are fewer people buying life insurance?

In the study, non-buyers cited a range of reasons for not getting life insurance.

1. I don’t need it.

Half of the people surveyed claimed that they didn’t need life insurance because they don’t have children, or that their dependents would be able to support themselves. However, that’s not necessarily a good reason to not pursue coverage, says Bob O’Brien, vice president of Maine insurance agency Noyes Hall & Allen.

“Even people who live alone and have no heirs will leave an estate that will incur final expenses,” O’Brien says. “These may include medical, funeral, cremation or burial. Life insurance provides the estate with funds to pay these expenses, reducing your burden on those left behind.”

2. I think it’s too expensive.

Just over half of the people surveyed said they’d like to buy life insurance but thought it was too expensive.

Deb Newman, chairwoman of the LIFE Foundation, a nonprofit resource for insurance consumers, believes most people don’t have an accurate sense of what life insurance costs. “Life insurance costs much less today than it used to,” she says. “There’s a lack of understanding around this, and we need to do a better job educating consumers.”

In fact, a study co-sponsored by the LIFE Foundation and LIMRA found that less than one-fifth of consumers correctly estimated the cost of a life insurance policy. Survey respondents were asked to estimate the annual cost of a 20-year, $250,000 term life policy for a healthy 30-year-old. The actual cost is roughly $150, but Americans pegged the cost at $400.

3. I don’t trust the industry.

One-fourth of those surveyed cited another motive for not purchasing a policy: They don’t trust insurance agents or companies.

Newman says it’s common for consumers to be cautious about the prospect of being talked into buying insurance policies that they don’t want or need. The best remedy, she says, is educating yourself.

She recommends visiting lifehappens.org and other online resources to analyze your life insurance needs before speaking with a life insurance company or agent.

“Tell an agent, ‘I’ve done some work on my own, and this is what I believe to be my need,’” Newman says.

Typically, the agent’s analysis will be closely aligned with your own. If the cost winds up being much higher than your own estimate, you may want to speak to several other agents to see whether their quotes match up or to find out the reason for the disparity.

4. I don’t have the opportunity.

A final reason given for not buying life insurance is a lack of opportunity. Consumers who don’t gain life insurance benefits through their employers rarely receive offers to buy policies independently, and they’re often confused about the process of purchasing it on their own. Two-thirds of the people surveyed said they’d had no offers to purchase insurance, and one-fourth said the application and purchasing process was too complicated.

Newman thinks insurance agents need to do a better job of reaching out to consumers as their life circumstances change.

“I’ve been in the insurance business for 33 years, and when I started, you could call someone to talk about insurance when they’d just gotten married or had a baby,” she says. “No one is doing that anymore.”

She suspects one factor may be that more people are living together in committed relationships without getting married, and neither agents nor consumers are bringing up the need for life insurance at this point.

Newman says that consumers should take more responsibility, no matter the legal nature of their relationship. “They should look at their circumstances and say, ‘Do I have responsibility to make sure this person will be OK if something happened to me?’”

The downside of group coverage

Often, the decision to purchase life insurance is tied to a new job’s benefits package. Forty-four percent of those surveyed had purchased coverage through an employer.

While group coverage can be a practical option in some cases, it does not always provide coverage if you leave a job. Twenty-two percent of uninsured respondents had lost coverage after losing a job that offered the benefit.

Additionally, O’Brien says, “the amount of insurance is low. Group life insurance face amounts are usually a small multiple of your salary,” often equivalent to little more than one year’s pay, he says. “If you’re like most people, your dependents would need much more money than this to replace your lost income.”

O’Brien recommends that consumers look into buying individual life insurance even if they’re eligible for group policies. In many cases, he says, younger people may pay less for individual policies, since they’d otherwise be lumped in with older co-workers.

More education

Many of the study’s findings point to a need for the insurance industry to do a better job of educating consumers about the role that life insurance should play in their financial planning.

In a notable example, 30 percent of consumers who hoped to buy life insurance in the future said they’d buy less than $50,000 worth of coverage.

Why so little? Newman says there’s a misconception that life insurance’s main purpose is to cover funeral expenses.

“They might only need $10,000 for that, so $50,000 should be plenty, in their minds,” she says. “Most people don’t think of life insurance as a way to protect the future income needs of their families.”

She recommends talking with insurance agents and financial advisers to determine the actual value of your income to your family.

“Your ability to earn an income is your most important asset, so it’s much more important to insure your life value than to insure the things that you own,” she says. “Take personal financial responsibility to ensure that your family is protected.”

Many Americans face financial hardships, so not paying your auto insurance or home insurance premium might seem like a temporary or permanent fix. But should this ever be considered when you’re in a cash crunch?

No way, experts say. Why? First of all, you’re left unprotected in case something bad happens, such as a wreck or a fire. Furthermore, doing so could result in insurance rate increases, denial of coverage or even loss of your driver’s license.

Simply put: If you don’t pay your premium when it’s due, your auto or home insurance policy usually is canceled within 30 days, says John Koch, owner of Koch Financial Group in New Jersey. Plus, depending on the policy terms, unpaid auto or home insurance premiums could be turned over to a collection agency, potentially harming your credit record.

Here are seven tips if you find yourself in a financial bind but want to keep your insurance coverage:

1. Review your policies.

Make sure you’re not paying for duplicate coverage. For instance, many auto insurance policies include coverage of medical benefits for accident injuries. If you have good health insurance coverage, you may be able to reduce the amount of medical coverage on your auto insurance policy or remove it altogether.

2. Raise the deductible for your auto or home insurance.

“It’s not wise to file small claims anyway, because it makes your premium go up,” says Amy Bach, executive director of United Policyholders, a nonprofit consumer advocacy group. “Save your insurance for things you really can’t afford, so that it’s worth carrying a higher deductible.” For example, someone who pays $100 a month for homeowner’s insurance and raises the deductible from $500 to $1,000 could save at least $100 a year. Auto insurance works much the same way.

3. Ditch comprehensive and collision coverage for cars that don’t need it.

Optional comprehensive coverage pays for damage caused by such things as vandalism or fire. Optional collision coverage kicks in when your car hits another object, such as a vehicle or a tree. Dropping the comprehensive and collision coverage and sticking with liability coverage — mandated in 49 states — could make sense if you’re driving an older, less valuable car. Liability coverage pays only for damage you do to other people’s property, such as a car or a fence; damage to your car isn’t covered.

4. Shop around.

Compare quotes from several insurance companies and insurance comparison websites to find savings.

5. Combine policies.

Look into carrying auto and home insurance with the same company for a potential discount. Discounts generally range from 5 percent to 25 percent.

6. Drive safely.

A clean driving record could lead to “safe driver” discounts of hundreds or even thousands of dollars a year.

7. Pay on time.

If you always pay your insurance bill promptly, you may qualify for a “continuous payment” discount.

Uninsured motorists

Despite the potential harm, millions of Americans go without auto insurance.

Even though laws require motorists to carry basic liability insurance in every state except New Hampshire and banks require a certain amount of auto insurance if you’ve got a car loan, roughly one of every seven drivers nationwide lacks coverage, according to a 2011 study by the Insurance Research Council.

“The percentage of uninsured motorists does seem to follow economic conditions, particularly unemployment,” says David Corum, vice president of the Insurance Research Council.

No coverage for your casa

Most mortgage companies require you to carry home insurance as a condition of your home loan; the insurance payment typically is included in your escrow. But if your home is paid off, you’re free to get rid of your home insurance; however, experts recommend against doing that. According to a 2009 study by the Insurance Research Council, 5 percent of homeowners said they had dropped their home insurance as a result of the economic downturn.

If a homeowner stops paying the mortgage (and, with it, the home insurance), the lender can impose “force placed” insurance. The homeowner picks up the tab for this coverage.

“Force-placed insurance is typically far more expensive than homeowner’s coverage purchased by a homeowner — anywhere from two to ten times more costly — yet often provides less protection for the homeowner while protecting the lender’s or investor’s interest in the property,” Benjamin Lawsky, New York state’s superintendent of financial services, says in a news release.

Heading out on the road? Buckle up, drive safe — and be prepared.

About 5.4 million crashes were reported to police in the United States in 2010, according to the National Highway Traffic Safety Administration. As a result of these accidents, 2.2 million injuries and nearly 33,000 deaths occurred.

The total price tag for even a seemingly minor collision can add up – fast.

“Most auto accidents result in damages well in excess of the $500 figure, (which is) the deductible in most auto insurance policies,” says Michael Barry, a spokesman for the nonprofit Insurance Information Institute.

Knowing what steps to take after you’re in a crash can reduce your stress, speed up the auto insurance claims process, and lower the overall price you’ll pay for car repairs and medical treatment.

Here are nine costly mistakes to avoid following a car wreck:

1. Admitting fault. “You don’t know all the circumstances surrounding the crash,” says Shane Fischer, a personal injury attorney in Orlando, Fla. “The other driver could be partially responsible.” If the driver later sues you, claiming you caused the accident, the fact that you didn’t admit fault could prevent or limit that person from collecting money.

2. Not calling the police. If you’re in a crash and don’t let the police know, no one can independently back up your story, Fischer says. Also, if a police report hasn’t been filed, your insurance company may suspect you’re trying to cover up some sort of fraud.

3. Not getting detailed information at the crash scene. It can be easy to overlook key information in the frenzy after a crash; later on, however, you’ll need to know details to fill out insurance claim forms.

Following a crash, gather the following: the names and addresses of all drivers and passengers involved; the make and model of each car; license plate numbers; driver’s license numbers; insurance information for each vehicle, including the company name and policy number; names and phone numbers of any witnesses; and the name and badge number of the police officer who responded.

4. Not taking pictures. A crash can have a greater impact on your vehicle than first meets your eye. For accurate records, take pictures of all four sides of the car, plus the odometer, air bag and general crash scene. Share them with the insurer’s claims adjuster to help assess the damage.

The pictures may help support your side if a claims dispute or lawsuit crops up. If you have a picture of a deployed air bag, you’ll be able to show the impact the accident had on your vehicle. Also, the odometer reading can help settle any confusion over the car’s mileage when negotiating the insurance claim.

5. Avoiding medical help. After a crash – especially a minor one – you may feel fine physically. However, the full effect of an accident often isn’t felt until hours or even days afterward, says Joshua Ketover, a personal injury attorney in Garden City, N.Y. If you wait a few weeks to see a physician, it may be difficult to prove to your insurer that the crash triggered your injury.

Rather than waiting, ask for a medical exam immediately. Your doctor may find an injury you weren’t aware of, and the early detection can speed up the process for receiving medical payments from your insurer.

6. Not notifying your insurance company. “Some policies state a claim must be filed within a certain timeframe of an accident’s occurrence in order to be valid,” Barry says. If you don’t notify your insurer within that specified period, you may not be eligible to receive payment for repairs and injuries.

7. Not getting a copy of the police accident report. Since most insurance companies require a copy of the accident report, ask the police officer how to obtain one. Once you receive it, check it for accuracy and ask to have any errors corrected. If you don’t, a mistaken police report could be used to wrongly find you at fault for the crash.

8. Not knowing where to have the vehicle towed. If your car needs to be towed and you don’t have an auto shop in mind, it may end up at a storage facility, says Dan Young, senior vice president of insurance relations for the Carstar auto body repair group. Daily storage fees can range between $20 and $100; you’ll have to pay for another tow if you move the car to a repair shop.

To save on fees, know which repair shop you’ll want to use, Young says. Then call the shop and ask whether it has a tow service or can refer you to one.

9. Accepting the adjuster’s estimate immediately. After a crash, a claims adjuster will offer an estimate for the cost to repair your car. Before accepting it, get another estimate from the mechanic or auto shop of your choice. Then negotiate a total claim payment that will cover – to your satisfaction – the cost of getting your vehicle fixed and on the road again.

Authorities say a Florida man really rocked the boat when it comes to insurance fraud.

Miami boat captain Robert Figueredo, 49, was arrested May 10 on a charge of first-degree grand theft for allegedly sinking a $1.86 million yacht near the Bahamas in 2009. Detectives from the Florida Department of Financial Services‘ Division of Insurance Fraud nabbed Figueredo.

“There is no such thing as a victimless crime,” Jeff Atwater, Florida’s chief financial officer, says in a news release. “Those who reap the spoils of perpetuating fraud victimize every Florida consumer. Those who cheat their fellow Floridians out of their hard-earned dollars will be captured and put behind bars.”

If convicted, Figueredo could be sentenced to 30 years in prison.

“Fake boat thefts are a whale of a scheme, but often flounder because the fraud sharks can’t get rid of the evidence. A half-sunken boat literally offers a shipload of damning evidence that dry-docks their scheme in court,” says Jim Quiggle, a spokesman for the nonprofit Coalition Against Insurance Fraud.

An ex-girlfriend of Figueredo tipped off authorities about him bragging that he deliberately sank the 80-foot yacht Star One, according to Atwater. The yacht was reported stolen from Key Biscayne, Fla., on May 4, 2009, one day after the sunken vessel was found in an area near the Bahamas known as the “Tongue of the Ocean.”

Figueredo told the yacht’s insurer, Federated Insurance Co., that he didn’t know about the theft and had no idea who would have stolen the boat, Atwater says.

“This case demonstrates the depths to which some people will go to commit fraud and enrich themselves at others’ expense. How appropriate that the vessel was scuttled at the ‘Tongue of the Ocean’ and that it was the suspect’s own loose tongue that led to his arrest,” says Frank Scafidi, a spokesman for the nonprofit National Insurance Crime Bureau.

Katherine Fernandez Rundle, the state attorney for Miami-Dade County, is prosecuting the case.

With hurricane season approaching, Congress is weighing whether to reauthorize a federal program that partially subsidizes flood insurance for homeowners in flood-prone areas.

A U.S. Senate panel held a hearing May 9 to ponder the future of the National Flood Insurance Program (NFIP). The program is set to expire May 31, unless Congress reauthorizes it before then. Several bills have been introduced to extend NFIP funding, but none has passed. The program has received several short-term, last-minute extensions in recent years.

Sen. John Tester, D-Mont., said at the hearing that another short-term extension is likely, as he thinks federal lawmakers will be unable to pass longer-term legislation before May 31. “We’ve been down this road before, and we’ve seen how unproductive and destructive lapses of the program can be,” said Tester, chairman of the subcommittee that held the hearing.

If the program expires, coverage from NFIP no longer would be available. That means homeowners would have to pay for flood-related damages out of pocket. In addition, people who intend to buy or refinance a home in a floodplain wouldn’t be able to do so.

Standard home insurance policies usually do not cover losses from flooding. There’s a 26 percent chance of being hit by a flood during the life of a 30-year mortgage in areas that are a high risk of flooding, according to NFIP. Flood damage to cars may be covered by auto insurance, but only if you have optional comprehensive coverage.

Reauthorization and reform

Todd Klietz, a floodplain administrator from Montana, urged lawmakers to reauthorize the program — with some reforms — to encourage property owners to make improvements to reduce the risk of flood damage.

“The American taxpayer is increasingly unwilling to provide financial support for those who have time and time again received handouts post-flood who then do absolutely nothing to prevent future damages, as they know Uncle Sam will be there — check in hand — to quite literally bail them out again,” Klietz said.

David Sampson, CEO of the Property Casualty Insurers Association of America, a trade group, also advocated for reauthorization as long as the program is revamped.

“The NFIP is both statutorily unable to charge adequate rates and often unwilling to raise prices by even the amount they are allowed, despite their massive accumulated debt. … The NFIP is fiscally unsustainable in its current path and must be reformed,” Sampson said in his testimony.

The history of NFIP

According to the U.S. Government Accountability Office, NFIP owes $18.5 billion to the federal government.

Congress established NFIP in 1968 to allow homeowners, renters and business owners to buy insurance from the government to protect themselves against flood losses.

The Federal Emergency Management Agency (FEMA) administers the program. Participating communities agree to adopt and enforce a floodplain management ordinance to reduce flood risks, and the federal government makes flood insurance available to residents. NFIP paid $709 million in flood insurance claims to homeowners, renters and business owners in 2010.

Federal subsidies

Some policyholders receive government subsidies on their flood insurance premiums; others do not. In the Senate bill that the banking committee approved last year, government subsidies would end for commercial buildings, second and vacation homes, homes with frequent or significant flood damage.

Sampson favors ending government subsidies for NFIP, which would dramatically raise consumers’ insurance premiums.

“Government insurance subsidies can create a moral hazard by encouraging overbuilding and discouraging consumer risk mitigation. This results in greater ultimate costs to taxpayers,” he said.

Jon Jensen, government affairs chairman for the Independent Insurance Agents and Brokers of America trade group, agreed: “Subsidized properties experience as much as five times more flood damage than structures that are charged full-risk rates. Customers that are paying a full actuarial rate have a vested interest to take measures to reduce the economic damages associated with floods.”

The average flood insurance policy costs $600 a year, according to NFIP.

Sarah Murdock, senior policy adviser for the Nature Conservancy, a nonprofit environmental organization, said at the congressional hearing that the subsidies promote building in coastal zones and floodplains, contributing to destruction of ecosystems that provide “a natural defense” for people and property.

The cost of gaps and delays

Gaps or delays in reauthorizing NFIP create extra costs, uncertainty and bureaucracy for homeowners and the housing market.

“Gaps in flood insurance coverage cause significant disruption in the housing markets. Homebuyers in flood zones with a federally backed mortgage are required to purchase flood coverage before the property can be closed on,” Sampson said.

In addition to NFIP, some private insurers offer flood insurance, but that option may not be available in flood-prone areas where coverage is needed most. Fourteen percent of American homeowners had flood insurance in 2011, up from 10 percent the year before, according to the nonprofit Insurance Information Institute.

“Just because most of the United States had dry and mild winter weather doesn’t mean flood risks have altogether disappeared,” says Michael Barry, a spokesman for the Insurance Information Institute. “Largely due to the limited winter snowfall, for the first time in four years, no area of the country faces in 2012 a high risk of major to record spring flooding, according to the federal government. But some states have still been deemed as being at above-normal risk of flooding.”

To some people, pit bulls, Rottweilers and German Shepherds conjure up fear. Others see these dogs as part of the family. The two groups are at odds with one another — so much so that in at one community, government officials are requiring owners of certain breeds to maintain a certain amount of homeowner’s or renter’s insurance.

Pros and cons in New Mexico

The New Mexico resort town of Elephant Butte made headlines after the City Council required owners of pit bulls, Rottweilers and German Shepherds to register those dogs and to prove they carry at least $100,000 worth of liability coverage on their homes or apartments.

Alan Briley, city manager of Elephant Butte, cites statistics from the federal Centers for Disease Control and Prevention indicating that these are the top three breeds “that are more likely to attack people.”

“I know our council wanted to be proactive and make sure that if something like this happens, our public is protected,” Briley says.

Chasity Cervantes, a resident of Elephant Butte and an owner of three pit bulls, says she called every insurance company from Elephant Butte to El Paso in search of coverage. Cervantes said recently that finding affordable insurance had been so difficult that she feared she’d either have to move out of Elephant Butte or euthanize her dogs. She did find one company that might cover her dogs, but she says the cost would have more than doubled what she’d been paying for home insurance.

The ABC’s of coverage for dog owners

Home and renter’s insurance policies typically cover dog-bite liability, says Loretta Worters, a spokeswoman for the nonprofit Insurance Information Institute. Most standard policies provide $100,000 to $300,000 in liability coverage. If the claim exceeds those limits, the dog owner is personally responsible for damages above that amount, including legal expenses.

Liability insurance also provides no-fault medical coverage if a dog bites a friend or neighbor. This enables the dog-bite victim to submit medical bills directly to the homeowner’s or renter’s insurance company. Homeowners and renters generally can get $1,000 to $5,000 worth of this coverage.

“Most dogs are friendly, loving members of the family, but even normally docile dogs may bite when they are frightened or when protecting their puppies, owners or food,” Worters says. “Ultimately, the responsibility for properly training and controlling a dog rests with the owner.”

Most insurance companies will cover homeowners or renters who have dogs, according to Worters. However, once a dog has bitten someone, an insurer may bump up your premium or exclude the dog from coverage. Some companies require dog owners to sign liability waivers for dog bites. Others will cover a dog only if the owner takes the pet to behavior-modification classes.

Furthermore, some companies may charge higher rates for certain breeds because they’ve experienced big claim losses from those breeds, Worters says. Others may not insure certain breeds at all and will write a homeowner’s or renter’s policy only if a certain dog is excluded.

“The reason, of course, is lawsuits,” Worters says. “A single lawsuit — even if won by the dog owner who is being sued — can end up costing hundreds of thousands of dollars in legal fees, which the insurer would pay.”

Is this a trend?

Worters says she hasn’t detected a trend of communities like Elephant Butte requiring homeowners of pit bulls and other breeds to carry a certain amount of liability insurance. In the case of Elephant Butte, she says, it appears town officials “don’t want to shoulder the liability if someone tries to sue” government officials.

Pit bull advocates believe some public officials are profiling and discriminating against certain dog breeds. A handful of pit bull owners interviewed for this story said they hadn’t registered their dogs in their towns because of the insurance issue. Some of the pit bull owners say they haven’t disclosed their dogs’ breed to their home insurance agents for fear of their rates going up.

Ledy Vankavage, senior attorney for Best Friends Animal Society, the country’s largest sanctuary for abused and abandoned animals, owns three pit bulls that are rescue dogs. She has no problem with insurance companies raising rates on homeowners or renters who own dogs that have histories of biting. “However, these homeowner’s insurance policies and dog-specific ordinances profile an entire breed — not a specific dog,” she says.

According to Vankavage, 12 states ban dog profiling: California, Colorado, Florida, Illinois, Maine, Minnesota, New Jersey, New York, Ohio, Oklahoma, Pennsylvania, Texas and Virginia.

Ohio is the most recent state to join that crowd. That’s welcome news for Julie Lyle, chief dog warden of Lucas County, Ohio. “Now, all dogs will be treated equally based on their behavior and not how they look,” she says.

The agents’ viewpoint

Paul Johnson, vice president of Brooks Insurance in Ohio, views it differently. “Insurance companies are going to continue to look at it from a breed standpoint rather than an individual-dog standpoint,” he says.

Dori Einhorn, owner of Einhorn Insurance in California, often receives calls from tearful homeowners who are worried that they’ll have to relocate to another community or euthanize their dogs when towns impose the type of legislation that passed in Ohio.

“I have a Pit Bull Terrier, and so do the agents that work in my office,” Einhorn says. “We are passionate about the breed … . We work with well-known insurance companies and get fair rates for people with breed-specific dogs. People shouldn’t have to pay more because of a specific breed. Many towns and insurance agents don’t know these dogs that they are discriminating against. Each one is different from the next.”

Many adults turn to their mothers for advice, a shoulder to cry on or simply a pep talk. But no matter how close the mother-child relationship, at least one topic rarely comes up: life insurance.

A survey conducted online for InsuranceQuotes.com by Harris Interactive found that many U.S. adults (42 percent) don’t know whether their moms have life insurance – or if they do know, they’re often in the dark about the details.

But experts say that even if it’s difficult, having a conversation with your mom about her life insurance is a financially – and emotionally – smart thing to do.

Unclear about Mom’s life insurance

It can be easy to not think about, avoid or put off talking to your mother – or, on the flip side, your grown children – about life insurance.

“It’s sort of the perfect storm for avoidance and denial,” says Brad Klontz, a clinical psychologist and expert on financial psychology. “Money is a very taboo topic, and death is another one that’s pretty high on the chart.”

Adult children (18 and older) often are beneficiaries on their parents’ policies, but sometimes don’t know it, experts say. “Adult children rarely even know if mom has life insurance,” says Jack Hungelmann, author of “Insurance for Dummies.”

In fact, the results of the recent online survey — conducted in March by Harris Interactive on behalf of InsuranceQuotes.com among more than 2,000 U.S. adults age 18 and older — suggest that many adults haven’t talked to their mothers at all about life insurance. Here are some of the findings:

• Among U.S. adults whose mothers are living, 42 percent say they aren’t sure whether their moms have life insurance.

• Of those U.S. adults who indicate their mothers have life insurance, 37 percent say they aren’t sure whether they are listed as beneficiaries.

• Of those U.S. adults who are named as beneficiaries on their moms’ life insurance policies, 38 percent say they wouldn’t know how to claim the death benefits.

• Among U.S. adults who are mothers themselves but don’t have life insurance, 33 percent listed “I haven’t even thought about it” as the reason for not having coverage.

Lack of info can cause problems

Grown children who stay uninformed about their parents’ life insurance policies – and other estate planning matters – could be setting themselves up for a tough time in the future, experts say. “Not knowing just creates a huge mess for the survivors,” Klontz says.

For one thing, not having life insurance and other information close at hand can lead to confusion, as well as in delays in claiming a death benefit while survivors try to track down the necessary information. And if the beneficiary doesn’t know about the policy or doesn’t know they’re a beneficiary? “It might not be paid for some time,” says Tony Steuer, author of “Questions and Answers on Life Insurance: the Life Insurance Toolbook.”

Or worse, the uninformed beneficiary might never claim the money – which then could become part of as much as roughly $3 billion in life insurance benefits that go unclaimed in the United States.

“The insurance company doesn’t pay out a claim until they’re notified that somebody has passed away,” Steuer says. “They are very diligent about checking the Social Security Death Master File when it comes to paying out annuities, because they want to make sure they don’t pay a dime more than they have to, but not when it comes to life insurance.”

The Death Master File contains information about the deaths of Americans that’s collected by the Social Security Administration.

Lack of clarity about life insurance and other financial matters also can cause tension – and even all-out strife – within a family after a death, experts say.

“Without a parent talking about what they want, what resources they have and what planning they have done, it falls to the children to sort it all out,” Klontz says. “It can be a very dangerous time for families – relationships can be impacted in a really negative way that can last for a lifetime.

Talking to mom about life insurance

Many mothers may be open to talking about life insurance, Klontz says. In fact, in research he has conducted, women tend to express more concern than men do about the effect their death will have on loved ones.

“Your mother may surprise you with how willing she would be to engage in that conversation,” Klontz says. “She’s probably more worried about her death’s effect on you than the actual death itself.”

Still, it can be hard to start such a dialogue. So, here are four tips for talking with your mom about life insurance:

1. Look at the big picture.

Sit down with your mother and ask about life insurance and other financial issues, power of attorney in case of an illness and even funeral plans. “You might say, ‘Mom, have you thought about your wishes for after you pass? Is there any planning you’ve done?’” Klontz says. “It depends on your relationship with your mom, but I wouldn’t just say, ‘Hey, Mom, do you have any life insurance?’”

2. Get life insurance details.

If your mom does have life insurance, experts recommend asking her to share basic information such as the full legal name of the insurance company, the policy number and the beneficiaries. “More details are better,” Steuer says. “But you just need the basic information.”

3. Ask Mom to update her beneficiaries.

Experts recommend designating a primary and contingent beneficiary. If no beneficiary has been named, the life insurance money could go to your mom’s estate and get tied up for months in probate court, Steuer says. Experts say failing to regularly review and update beneficiaries can cause mistakes – such as an ex-spouse getting life insurance money or a late-in-life child getting nothing. “The company has to go by what’s written down,” Steuer says.

4. Find out where she keeps important papers.

If your mother is reluctant to discuss details – for example, she might not want to share amounts or names of beneficiaries – at least make sure she keeps the pertinent information in a safe place. “A lot of parents don’t want to get into specifics – but at least find out, ‘Do they keep their insurance information in a safe or in a safe deposit box. Where do they keep their financial documents?’” Steuer says.

Experts say learning the basics about your mother’s life insurance situation might end up being a relief for you – and her.

Klontz says: “She may actually feel better being able to ease your mind or lessen the negative consequences of her death on you and the rest of the family.”

What you need to know

In summary, here’s what you need to know about your mother’s life insurance, according to Steuer, author of “Questions and Answers on Life Insurance: the Life Insurance Toolbook,” and Hungelmann, author of “Insurance for Dummies”:

• A list of all policies and policy numbers.

• The full legal name of the life insurance company for each policy.

• Contact information for the agent who sold the policy, if there is one, and for the life insurance company or companies.

• A photocopy of the policy’s face page with the policy number and other relevant information.

• The names of the primary and contingent beneficiaries.

• The face value of the life insurance policy.

Survey methodology

The survey was conducted online within the United States by Harris Interactive on behalf of InsuranceQuotes.com from March 23-27, 2012, among 2,220 adults age 18 and older. This online survey is not based on a probability sample and, therefore, no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables, contact John Egan at john.egan@insurancequotes.com.

Rich Americans are receiving a wealth of attention these days, most notably from the Occupy Wall Street movement and the presidential candidacy of millionaire Mitt Romney. Yet many of these well-to-do folks aren’t paying attention to the threat of liability lawsuits — and they often lack the proper insurance in case they’re hauled into court.

Given the current economic uncertainty and the national dialogue about the “1 percent,” more millionaires feel as though they’re targets for legal action, according to Mary Boyd, chief operating officer of ACE Private Risk Services. ACE provides insurance coverage to high-net-worth people.

A recent ACE survey of U.S. households with at least $5 million in investment-worthy assets found:

• 68 percent think public perception of them has become “more negative” since 2008.

• 23 percent think their wealth alone makes them “very much” a target.

• 38 percent think they’re more likely to be sued in the aftermath of the recession.

But even wealthy Americans who are aware of the potential risks fail to recognize the high costs of potential lawsuits and fail to adequately protect themselves with liability insurance, experts say. Some affluent people underestimate how much they could be sued for and don’t always carry enough insurance to cover their exposure, Boyd says.

If damages for injuries exceed liability coverage, an affluent person has a greater likelihood than a middle-class person of a plaintiff continuing to pursue monetary damages that exceed their coverage, says Jeffrey O’Hara, senior equity partner in the Florham Park, N.J., office of law firm Clyde & Co. U.S.

Risky business

For wealthy Americans, the top four situations that cause the most concern about lawsuits, according to the ACE survey, are:

• A victim of an auto accident — 47 percent.

• An injured worker, such as a repairman or household employee — 31 percent.

• An injured visitor in their home — 29 percent.

• Being accused of misdeeds or held liable for incidents related to volunteer work — 22 percent.

Other risks include family disputes, sexual harassment claims by nannies or wrongful termination claims by household employees.

O’Hara says an influx of all civil lawsuits nationwide is driven by the public’s general belief that a wrong entitles an alleged victim to money. Heated disputes about the value of personal injury claims can lengthen the legal process. Civil case filings are at their highest levels in two decades, and media coverage is sensationalized, he says. Coverage of high-profile cases and large verdicts should signal to affluent individuals that the risk is real, he says.

“You’re not protecting against the unknown. You do know. Read the newspaper. Read the (news) ticker on CNN,” O’Hara says.

Chuck Maloney, a principal in the Minneapolis office of private asset management firm Lowry Hill, says media coverage of various lawsuits has prompted his clients to mention the potential for legal action more often than in the past.

“It’s more in the forefront of our clients’ minds,” Maloney says. “Now it’s something that’s talked about and reviewed on a more regular basis. Some clients are deciding, ‘You know, with all that’s going on, I want to increase my coverage.’”

Underestimating your payout

In a worst-case scenario, people questioned for the ACE survey thought $5 million was the highest amount they could be saddled with if they were ordered to pay damages in a civil lawsuit.

“It was surprising that they did not realize they could be the subject of lawsuits or awards that could go into the tens of millions of dollars or more,” Boyd says.

Wealthy Americans may have umbrella policies – or excess coverage – to supplement liability coverage that’s already part of their auto and home insurance policies. Still, that umbrella may not be big enough. The ACE survey found:

• 23 percent of rich Americans carry only $1 million to $4 million worth of umbrella liability coverage.

• 21 percent lack any umbrella coverage.

Standard insurance companies may offer only as much as $5 million in liability insurance, but specialty insurers can provide up to $100 million in umbrella coverage, experts say. The extra layer of coverage may cost only a few hundred dollars a year, O’Hara says.

Having appropriate liability coverage may be low on people’s priority list because they don’t want to think about potential lawsuits.

Another issue holding back some wealthy Americans from obtaining extra coverage: loyalty. Some rich people may be using the same carrier that insured their first car or first home, but that carrier’s representatives may able to satisfy a wealthy person’s need for souped-up liability coverage, according to Boyd. For example, a combination of policies may be necessary to cover risks such as employment practices claims brought by household staff  (31 percent of survey respondents didn’t have this coverage) and claims against members of charitable boards (35 percent didn’t have own directors-and-officers insurance).

Wealthy Americans should never underestimate how easy it is for someone to search public databases to confirm the financial status of an affluent person, O’Hara says. The chances are great that someone filing a claim will conclude that a high-net-worth defendant has more than the shirt on his back, he says.

“Does it increase the likelihood that if they do sue you and get a verdict in excess of your coverage, they will continue to pursue satisfaction of the excess? The answer is, it’s foolish to think otherwise,” O’Hara says.

About half of American renters don’t have insurance. Some of them probably don’t realize that it’s fairly cheap to buy coverage that’ll protect them if their place catches fire, their stuff gets stolen or even if the dog bites a neighbor.

“Renter’s insurance is very inexpensive – it’s about the cost of a pizza every month,” says Carole Walker, executive director of the Rocky Mountain Insurance Information Institute, a nonprofit that helps people understand insurance. “It’s definitely worth the investment.”

Aiming to attract some of those uninsured renters, financial services company Mango Financial introduced an insurance product, RentSafe, that’s linked to Mango’s prepaid debit card. Mango executives say the product, which is backed by insurance giant Chubb, has many advantages, such as simplicity and ease of use – especially for customers who don’t have a bank account or an insurance agent. But consumer advocates say the product isn’t much cheaper, if at all, than traditional renter’s insurance, has low total coverage limits and lacks some important features, such as coverage for liability and alternate living expenses.

When considering any insurance coverage, people must read the fine print, experts say.

“Know what you’re getting,” Walker says. “Even if it seems like an inexpensive investment, if it’s not going to cover you for what you need, then you’re just throwing money away.”

RentSafe: Coverage for property only

Here’s how RentSafe works: The customer, who must be an active Mango Card user, chooses between two plans — one with a $5,000 or one with $10,000 total coverage limit. The premium ranges from about $6.25 to $17.50 a month, depending on the level of coverage, the state and the deductible. The payment is debited from the customer’s Mango Card balance each month. When a customer makes a claim, the company loads the payout directly onto the card.

One benefit of RentSafe, according to Mango Financial, is that it’s simple to understand – a chart on the company’s website spells out coverage and limits. For example, the chart shows that household items such as bedding, glassware, clothing, furniture and major appliances are covered at 100 percent up to the total coverage limit, while items such as art, cameras, jewelry, small appliances and computers are covered only up to certain dollar limits.

“We’ve made an effort to streamline the plans that are available to the consumer to ensure they’re as simple and straightforward as possible,” says J. Scott Aston, director of operations at Mango Financial.

Furthermore, linking the product to a prepaid card makes it more user-friendly for consumers who don’t have bank accounts or don’t have access to mainstream financial services, Aston says. That adds up to about 60 million U.S. residents.

“Integrating the debit card so it’s an integral part of RentSafe makes it easier for a customer without a bank account to get renter’s insurance,” Aston says.

Aston points out that those customers aren’t able to pay premiums through direct withdrawal from a bank account and are less likely to have an insurance agent who can counsel them about coverage.

Mango Financial doesn’t tout RentSafe as comprehensive coverage — it merely offers some property coverage at a relatively low cost.

“Our goal with RentSafe was to build a simple and easy-to-understand insurance program that would protect one of our cardholders’ biggest assets: their household possessions,” Aston says.

RentSafe vs. traditional renter’s insurance

Consumer advocates and insurance agents, though, say traditional renter’s insurance provides several advantages over a product like RentSafe:

You get more property protection for your money. RentSafe can cost about $75 to $210 a year for $5,000 or $10,000 in total property coverage, with a $100 or $250 deductible. Meanwhile, traditional renter’s insurance typically costs about $170 to $190 a year for about $20,000 to $25,000 in total property coverage with a similar deductible, according to Michael Gardner, an agent with the independent BNC Insurance Agency in New York.

It can protect you if you get sued. Unlike RentSafe, traditional renter’s insurance typically includes at least $300,000 to $500,000 in liability coverage. So, if a visitor slips on your rug and gets a concussion, cuts a finger while chopping vegetables or even gets bitten by your dog, you’re covered for legal expenses if you get sued. “The liability insurance is a critical piece – especially when you think about what a litigious society we live in and how easy it is to get sued,” Walker says.

Gardner says traditional policies also typically include several thousand dollars worth of medical coverage – in case, for example, a guest without health insurance gets hurt at your home and doesn’t want to sue you, but needs to go to a hospital for stitches.

It might pay your hotel bill. Some catastrophes that lead to loss of property also force you to find a new place to stay. Traditional renter’s insurance policies typically cover alternate living expenses (ALE) up to a certain amount. For example, Gardner handled a claim for a policyholder who was forced to move into a $3,000-a-month hotel for three months after smoke damaged an apartment building that caught fire.

“It’s really nice to have a policy that gives you ALE,” says Amy Bach, executive director of United Policyholders, a nonprofit advocacy group for insurance consumers. “If for some reason you have to move out, it’s less of a hassle if you don’t have to negotiate something with your landlord.”

You can tailor coverage to fit. Like the RentSafe policy, almost all traditional renter’s insurance policies have coverage caps of $500 to $1,000 or more on certain items – such as jewelry, art and computers. But with a traditional policy, you always can add a “rider” for additional coverage. Gardner says a rider for $15,000 worth of coverage for jewelry might cost an extra $120 or so each year. “Anything above and beyond the limit is going to be added on in a rider – collectibles, antiques, wines – you can pretty much attach anything collectible,” Gardner says.