Harry Gross: Getting the right insurance

Dear Harry:

My father died recently at the age of 98.

He left his house to me, and it was just transferred to my name. Today, I received a bill for the liability insurance on the house which is due on Jan. 15.

In a letter that came with the bill, the broker said, "The insurer with whom the insurance will be placed is not admitted to transact business in this Commonwealth and is subject to limited regulation by the Insurance Department; and in the event of the insolvency of insurer, losses will not be paid by the Pennsylvania Property and Casualty Insurance Guaranty Association."

I called the broker, and he told me that this was the same situation my father was in for many years.

I feel very uneasy about this. Do you think it's OK?

What Harry says: It may very well be OK, but there is no need for you to take that risk.

Moreover, there is every reason for you to get a homeowner's policy that will cover property damage as well as liability for a premium that's lower than the premium for two separate policies.

Contact the broker again, and insist that he find you a homeowner's policy with a company that is authorized to do business in Pennsylvania. Unless your father had a bad claims history, this should not be difficult.

You should also check out some of the direct writers such as Allstate, Nationwide and State Farm to make certain that you're getting the best deal. *

Write Harry Gross c/o the Daily News, Box 7788, Philadelphia, PA 19101. Harry urges all his readers to give blood - contact the American Red Cross at 800-GIVE LIFE.