Brief History of Insurance and why we need it.

Why Does Insurance Matter Today? A Brief History and Why We Need Coverage

Insurance is really all about risk. Despite all the complexity built into some different types of insurance policies offered by different insurance agencies, it really just comes down to being protected against risk in its various forms. But to understand why insurance is now a big part of our daily lives, it’s important to know a little bit about the history of insurance and how it came to be so integral to many actions and transactions we take part in during our lives, from driving a car each day to buying a history

A Short History of Insurance and How it Developed

Believe it or not, insurance can trace its roots back to the dawn of civilization, at least in the basic sense of ‘spreading risk’. Early hunters spread risk by hunting in groups and later on insurance was even built into ancient law codes such as in the Code of Hammurabi. For those living in Mesopotamia during the time of the Babylonian King Hammurabi, basic insurance was granted for debtors who, for some really good reason such as a flood or other personal catastrophe, could not possibly pay back a loan.
The middle ages saw a transformation of insurance, mainly in the maritime environment, as separate insurance contracts allowed investments to be separated from insurance. Later on in 1666, property insurance developed following the Great Fire of London which left 13,000 Londoners homeless and many people understanding the great need for insurance against such catastrophes as fire. This desire for property insurance following the Great Fire of London led to a significant increase in insurance businesses. Still in London not too long after, the Lloyd’s of London insurance marketplace emerged out of the need to underwrite business ventures involving shipping. Interestingly enough, Lloyd’s of London is still in existence today after three centuries and still runs as an insurance marketplace made up of corporate and individual ‘members’ which write a wide range of coverage policies, including ‘specialty’ policies such as for satellites, kidnapping, fine art, and even body parts to name just a few of the more unique coverage areas.
In the 18th century and later on we begin to see new types of insurance emerge, mainly as a response to the new risks coming out of the industrial revolution and advancements in technology. Perhaps one of the most useful examples of this can be seen in the creation of auto insurance following the invention of the automobile, with (according to the Ohio Historical Society) the first automobile insurance policy being issued in Dayton, Ohio in 1897. But unlike some other forms of coverage, car insurance later became not just a good idea, but also a requirement.

The Need for Compulsory Insurance for Cars as a Great Example

As much as some people don’t like it, some types of insurance are absolutely necessary if we want to live in a modern society. One of the best examples of this need can be seen with car insurance. After the invention and increased popularity of the automobile, it was only a matter of time before accidents began to increase and the arguments of financial responsibility began to cause headaches for all involved. During the time before compulsory car insurance, it became apparent that even though fault was given following an accident, there was no way of ensuring the party responsible for the car accident would pay up for the damages. States such as Massachusetts and Connecticut responded to the problem in the 1920s by passing financial responsibility and laws which required any driver involved in an accident to prove financial responsibility to satisfy any damage claims over $100.
Not too long after, other states began to adopt compulsory automotive coverage requirements, with some differences among states when it came to the enforcement of policy requirements. Nowadays, it would seem strange to live in a world where there was no car insurance and you’d be at risk of paying all the high (and sometimes unbelievably high) costs following a car accident. But thankfully, with a car policy being a requirement, the world is a lot less messy for us and the risks are greatly minimized each time we get behind the wheel.
As we can see from the car example, having coverage matters a great deal as each and every day we face great risks which, without the proper protection, could threaten our financial future and ability to prosper. From car to property insurance, thanks to risk underwriters our lives are simply much less risky and we have the ability to bounce back much faster following a serious setback such as a fire in the home or a bad car accident. Well so much for the History of Insurance from us,
To learn more about insurance and how we can keep you safe, simply browse through or give us a call today at 1-800-364-7112.

Homeowners Insurance from the Ed Cuellar Insurance Agency

Why You Need Home Insurance in San Antonio

San Antonio residents are all too familiar with the elements, whether it’s golf ball-sized hail during a ferocious thunderstorm or the occasional tornado threat. That’s where homeowner’s insurance comes in. With home insurance, San Antonio residents can protect themselves from these inevitable seasonal perils. Residents can also protect themselves from the unexpected, such as fires or theft. When disaster strikes, a solid home insurance policy can help pay to replace personal property, repair damage done to the home, or pay for a stay in a hotel if temporarily displaced. Insurance in San Antonio also includes liability; in the unfortunate event that someone is injured on your property, you’ll have help paying any ensuing medical or legal bills, regardless of who was at fault.

Cost of Insurance in Texas

Given the high risk for devastating weather statewide in Texas, from the hurricane-prone Gulf Coast to destructive storms and tornadoes, insurance in Texas can be pricey. According to an Insurance Information Institute report from 2011, Texas has one of the highest premiums in the country. At $1,578, it is nearly double the national average of $978. Despite the higher average insurance cost, not having the proper insurance can prove to be much costlier, especially if the home is damaged by weather, fire, or if another unfortunate event occurs in the home, such as in the case of burglary.

Factors of Home Insurance Rates in San Antonio

Coverage and rates are determined based on several factors involving the home and its surroundings. According to the Texas Department of Insurance, these factors include your home’s age and condition, replacement cost, and construction materials used. Generally, older homes are charged more for premiums, while those in very poor condition may even be refused coverage. The more it costs to replace your home, the more your insurance premiums in San Antonio will be. When it comes to construction materials, homes constructed primarily of brick are less expensive to insure than frame homes, which are less durable.
The location of your home also helps to determine your insurance premiums in San Antonio. For instance, homes that have access to fire protection, such as nearby fire departments and fire hydrants, generally have lower premiums than homes that don’t.

How Crime Can Affect Your San Antonio Home Insurance Rates

Crime is another major factor which can affect your insurance premiums. If your neighborhood has high incidences of theft, your home may cost more to insure given the greater risk posed. In San Antonio, you may be able to receive a discount on your homeowner’s premium if your home qualifies following a Basic Home Security Survey. During the survey, which is free to the public, a San Antonio Police Department official inspects your locks, doors, windows, lighting, and fencing, and suggests ways to improve your home security. To get an idea of crime in San Antonio, refer to the following chart (from
Robbery Burglary Larceny-theft
2013 2,192 14,850 58,567
2012 1,864 15,668 60,633
2011 1,785 15,334 59,644

Other Factors Affecting Home Insurance
Other factors that are used to determine your premiums are more personal. An agency may refer to your claims history and credit report when determining your rate. If you have a history of filing claims or bad credit, then you may be charged higher premiums.

Finding the best deal on Homeowners Insurance

Getting the Best Deal in Homeowner’s Insurance

For homeowners, their home is more than the roof over their head; it’s often their number one financial investment. Properly insuring this investment (including that roof!) is crucial. While no one wants to suffer the risks of being underinsured, that doesn’t mean you need the most expensive policy either.

Four ways to make sure you’re getting the best policy for your buck:

Re-Evaluate Your Plan

Every few years, ask your insurance company for a updated or customized estimate of your home’s replacement cost. Be sure you purchase an extended-coverage rider, which adds up to 30 percent to your replacement value limit to protect against the surge in the price of materials and labor that can follow a natural disaster. There’s also a law-endorsement rider which covers any extra expense of rebuilding your house to comply with the current local building codes you’ll want to cover as well.

And have you tapped into all your potential discounts? Most insurers offer discounts for deadbolt locks, smoke alarms, and burglar alarms which can cut 5 percent from your premium.

Still don’t like how those numbers are adding up?

Shop Around

You don’t know if there’s a better price elsewhere if you don’t ask. Consider online shopping sites such as,, and or find an agent who sells insurance from multiple carriers at the website of the Independent Agents and Brokers of America. You can also see if your state insurance department publishes online rate comparisons.

And if you’re looking to switch companies why not look at your auto insurance supplier? When you use the same company for both home and auto it can cut costs. Check with your auto and home carriers to see what savings each can offer by consolidating your insurance needs with the best one.

Raise your Deductible

Insurance should be called on to cover bigger losses and not the smaller expenses. Keep a designate savings account for minor repairs and go with a higher deductive to reduce your annual premium.

Reduce Risks for Loss

Take preventive measures to protect your home. It’s better than paying out your higher deductible and risking an increased premium after a claim. You can protect your home with both safety features as well as safety practices.

Features that will increase the safety of your home include reinforced washing machine hoses instead of the standard rubber ones. This small change could avoid the average $5,300 claim for water damage if the hose blows when no one is home.

You can also protect against roof damage from hail and debris with impact resistant roofing. Storm shutters and doors as well as hurricane resistant siding are important upgrades especially if you live in an area commonly in the path of such storms. If earthquakes are the bigger risk in your area, make sure your home’s frame is properly secured to its foundation.

In practicing safety remember never to leave pots a hot stove unattended. This is a major cause of home fires. Also be sure to have a fire extinguisher handy and show its location to anyone who may use the stove. Also don’t place radial heaters to close to a flame-able source in your house and don’t overload electrical plugs.

Buying a home is an important step, but protecting your investment is also important part of the homeowner’s journey. Be sure to stay on top of your home owner’s policy so you aren’t wasting money on too-high premiums, but don’t sacrifice proper coverage and running the risk of being hit harder, further down the road.
This blog was inspired by a Yahoo article

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