Optional Sinkhole Coverage guidelines
Hello again. In a follow-up to last weeks post, I thought we would go into more detail with regards to Optional Sinkhole Coverage. Over the past couple of years, Florida Homeowners may have received a notice from their Florida Insurance Company explaining that sinkhole coverage was being removed from their homeowners insurance policy. This has prompted many consumers to contact their agent with plenty of questions.
You may have been told that there are some Florida Insurance companies who will still offer a Florida Homeowner the Optional Sinkhole Coverage. While this is true, I want to make it clear that there are some requirements that may need to be met if you want this extra coverage. First, the insurance companies offering this coverage will most likely want you to obtain a Sinkhole Screening Property Inspection from SDII Global Corporation. The inspection is conducted by a trained SDII Inspector who gathers data and photos inside the dwelling, outside the dwelling, around the property, and in the surrounding neighborhood.
The inspection is not the problem. The fact that you, as the homeowner wanting the extra coverage, will have to pay approximately $140 from your pocket to have the inspection performed may be the problem. Secondly, it has been my experience as a Florida Insurance Company that most homes will not qualify for the extra coverage after the inspection is completed. The inspection company sends the inspection report to the insurance carrier for review. After review, many companies decline to add the coverage at the homeowners request. Once the underwriter for the insurance company reviews the report and notices any signs of cracking in the driveway or on the exterior wall, or nail pops in any of the rooms of the home, the underwriter will decline to offer this coverage. You may have wasted your time and money in the long run. These are all tips to consider when thinking about signing up for Optional Sinkhole Coverage.
We will do our best to continue to post helpful information and tips every week. Please give Focus Insurance Group a call at 813-712-4191 if you have any questions.
Florida Sinkholes
Hello everyone. With the recent media attention sinkholes have received over the past month or so here in Florida and my experience as with Florida Home Insurance, I thought I’d take a few moments to chat with you about how you might be affected.
First, let me ease any fear you, as a homeowner here in Florida, might have. Most consumers do not know that there are two types of sinkhole coverage. If you have a Homeowners Insurance policy (HO3), you are covered for a catastrophic sinkhole, such as the one seen on TV, in which the house was condemned. Every HO3 policy written by Florida Insurance Companies must have this coverage. The keyword is condemned. In order for this coverage to kick in, the home must be classified as such. The technical insurance term for this coverage is ‘Catastrophic Ground Cover Collapse.’
The second type of sinkhole coverage Florida Home Insurance Companies may have discussed with you is ‘Optional Sinkhole Coverage.’ This is where the confusion often starts because of how the coverage is worded. This coverage is not required and can usually be purchased at an extra cost. This coverage pays for structural damage caused by damage in which the home is not condemned, such as cracking in the homes foundation. When you hear on the news that Florida Insurance Companies are no longer providing sinkhole coverage, this is the optional coverage they are talking about.
If you have any questions or concerns about your policy or want to discuss options for a new Florida Home Insurance Policy, please call Focus Insurance Group at 813-712-4191 to discuss this matter in further detail.
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Senate panel unveils draft bill overhauling property insurance market
The Senate Banking and Insurance Committee released the rough sketches of a bill imposing massive changes on the property insurance market Wednesday, attempting to move as much of the state’s risk into the private sector as possible.
As drafted, the bill:
* reduces the size of the Florida Hurricane Catastrophe Fund,
* allows private companies to share the risk of individual policies with state-run Citizens Property Insurance Corp.,
* prevents Citizens from insuring buildings under construction in coastal regions and from writing new policies covering homes valued at more than $400,000,
* sets up a clearinghouse to shop potential Citizens policies in the private market, and
* increases the cap on Citizens annual rate increases from 10 percent to 15 percent.
“I think that we’ve gone a long way toward giving a thorough analysis to the status of where we are and where we need to be and how to get there,” said committee chairman Sen. David Simmons, R-Maitland.
Although efforts to increase Citizens’ rate cap and make it easier to take policies out of Citizens have failed to get through the Legislature in recent years over fears of steep rate increases, Simmons said he is “cautiously optimistic” this year’s property insurance package won’t meet the same fate.
Other provisions in the bill include allowing private insurers to offer “consent to rate” policies to customers, in which a homeowner can opt to pay a higher premium. Lawmakers on the panel also want Citizens to crack down on policies receiving offers from private companies with rates within 15 percent of Citizens’ rates.
The draft bill is still being worked on by the committee. Simmons said it will get a hearing in two weeks.
The underlying assumption of the effort to move policies out of Citizens and reduce state exposure is that increasing competition among private companies will prevent homeowner rates from skyrocketing. Lawmakers have long wanted to shrink Citizens, which has 1.3 million policies and has about 25 percent of the property insurance market in Florida because its rates are subsidized by potential assessments on all homeowners should there be a cataclysmic hurricane.
Former Republican Sen. Locke Burt, president of Security First Insurance, told the committee Citizens rates in many areas throughout the state are already comparable with the private market, and need not rise as policies are shifted out of Citizens and into private companies. Still, he gave a nod to Florida’s historical property insurance divide pitting coastal lawmakers against inland and North Florida legislators.
“Because we all know at the end of the day, politics is local,” Burt said.
Florida Home Insurance and the Flood Insurance Exclusion
Most Florida Homeowners are unaware that their policies do not cover damages caused by flood. Damage to property caused by flooding are covered through flood policies offered through the National Flood Insurance Program. Focus Insurance Group offers such policies, with rates starting at $129 per year.
Preferred Risk Policies are available to those whose homes are located in moderate-to-low risk areas (B, C, and X Zones). Peferred Risk Policies are available for residential or non-residential buildings also located in these zones, and that meet eligibility requirements based on the building’s entire flood loss history.
Those Florida Homeowners who are in a Special Flood Hazard Area may pay a higher rate for their flood coverage, but that is not always the case. A flood elevation survey could help lower your rates significantly. Regardless of your flood zone, we recommend that every homeowner obtain flood coverage if it is affordable.
Please call Focus Insurance Group for additional information and for a free, no obligation rate quote at 813-712-4191.
Break-ins and what Florida Homeowners can do to stop them (Part 1)
You hear of read about it almost every day. Crime statistics show that a home is broken into almost every 13 seconds. Here are a few things you can do to make sure it doesn’t happen to you.
1. Harden the Target- Lock your doors. As easy as it sounds, some people still keep their doors unlocked. Use a heavy-duty deadbolt with a one inch throw bolt. When you move into a new house or apartment, change the door locks. If you have a sliding glass door, install a wooden dowel or stick into the door track to prevent movement.
2. Install an alarm system- Burglars will usually bypass a home that they believe has a sophisticated burglar alarm. Home security statistics tell us that an audible horn or siren must be part of the system. Not only can this deter a criminal, you may be eligible for discounts on your Florida Home Insurance policy.
Part Two of this post will be uploaded within the next few day. In the meantime, please contact Focus Insurance Group for more information at 813-712-4191.
Florida Homeowners ask, “How do I take inventory of my personal property in the event of a claim?”
Florida Homeowners Insurance
This is one of the most common questions asked of Focus Insurance Group when discussing coverage with a client. Every Florida homeowner asks their Florida Insurance Company, “How do I take inventory of my personal property in the event of a claim?” to make sure they are properly protected in the event of a claim and that their personal property will be replaced with no hassle from their Florida Insurance company.
One of the best ways to properly protect yourself is to take a photo inventory of the belongings in your home. Now, Focus Insurance Group is not telling you to photograph every item in the house. We wouldn’t want you to delete pictures of your children to make room for 400 pictures of every item in your home. What I have done, as a homeowner myself, is take a couple of photos of each room in my home. This does not take up much room on my digital camera, nor did it take me very long. I store my camera in a fire-proof box in my home. Some of my clients also store their photos online, using such websites as Facebook.
For those of you with a concern for a particular item, not only would a photo of the item help, but a receipt for a high value item from a retailer will bring you some piece of mind. Also, if you purchased your item via credit or debit card, your bank will have a record of your purchase for a very long time.
While it is not necessary to keep an inventory of items in your home, a few minutes taking photos could save you time and a headache in the event of a claim. For questions, please call Focus Insurance Group at 813-712-4191.
Florida Homeowners Insurance Rates Rising In The New Year
Sad but True my friends, Homeowner’s Insurance Rates are once again rising. Check out this article from WebWire which gives some reasons and specifics.
Before your policy is renewed, be sure to check out all of your options. Call or email Focus Insurance Group to see how we can help you out.
Phone – (813)712-4191
Email – david@focusinsurancegroup.com
Car Insurance Explained
Many people would like to better understand Car Insurance and the different “types” offered. Here is an excellent article, by Scott P. Swope, J.D. that offers you some additional details:
Florida Car Insurance Explained
There are seven basic kinds of car insurance in Florida: 1) personal injury protection (PIP), 2) property damage liability (PD), 3) bodily injury liability (BI), 4) uninsured motorist (UM), 5) medical payments coverage, 6) collision coverage, and 7) comprehensive coverage. Each kind of insurance is designed to cover different things. PIP, BI, UM, and medical payments coverage are designed to pay for injuries and lost wages. PD, collision, and comprehensive are designed to pay for damage to property. Only PIP and PD are required by Florida law.
Personal injury protection (PIP) insurance is designed to pay for personal injuries to you and your immediate family (and certain other people), regardless of fault. PIP insurance also covers your lost wages. PIP insurance is required by Florida law. Florida Statute 627.736, titled “Florida Motor Vehicle No-Fault Law,” describes the rights and requirements for PIP coverage. No matter who is responsible for causing the accident, your PIP insurance is designed to pay for your injuries and your family’s injuries. PIP insurance used to cover 80% of your medical bills and 60% of your lost wages up to $10,000. However, in the last legislative session, our Florida Legislature changed the PIP law and eliminated your benefits unless you seek treatment within 14 days after an accident. Even if you seek treatment within 14 days, your benefits are reduced to only $2,500 unless you are diagnosed with an “emergency medical condition.” You still have to pay for $10,000 in PIP insurance, but you may receive no benefits or only $2,500 in benefits in many circumstances. This law is terrible for the citizens of Florida, but it’s great for insurance companies. To see which Florida senators voted for this terrible law, click here. To see which Florida representatives voted for this terrible law, click here. Many of the legislators who voted for this law are still in office and should be voted out of office as soon as possible.
Property damage liability (PD) insurance is designed to pay for damage caused by you to other people’s property. PD insurance is required by Florida law. If you cause an accident, then your PD insurance is supposed to protect you by paying for the property damage you caused. The most common property damage is damage to the other person’s car or motorcycle, but it also covers damage to buildings, telephone poles, and anything else that might be damaged in a car accident. Your PD insurance does not pay for damage to your car; it only covers damage to other people’s property. If the other person was at fault for the accident, then his or her PD insurance should pay for the damage to your car. However, as many as 3 out of 10 drivers in Florida do not carry PD insurance, even though it is required by law. To properly protect your car from damage, you should purchase collision insurance.
Bodily injury liability (BI) insurance is designed to pay for injuries caused by you to other people. BI insurance is not required by Florida law under most circumstances. If you cause an accident, then your BI insurance is supposed to protect you by paying for the medical bills, lost wages, and pain and suffering of other people. Unfortunately, most insurance companies do not automatically pay other people for the injuries you cause. Virtually all insurance companies require an injured person to submit a demand (and sign a release) before they are willing to pay for a person’s injuries under BI coverage. This delay tactic by insurance companies usually results in an injured person accumulating a lot of medical bills and out-of-pocket expenses over several months or years. This delay tactic by insurance companies also can cause an injured person to lose their home and their credit because of an inability to work and lost income. Retaining an attorney to pursue appropriate compensation as quickly as possible may avoid a large accumulation of medical bills and lost earnings.
Uninsured motorist (UM) insurance is designed to pay for injuries suffered by you due to the negligence of others. UM insurance is not required by Florida law, but it is the most valuable kind of insurance you can buy. If you are injured in an accident that is not your fault, then your UM insurance is there to protect you by paying for your medical bills, lost wages, and pain and suffering. UM insurance can be “stacked” or “non-stacked.” Stacked UM is better because you are entitled to coverage equal to your base UM coverage multiplied by the number of cars on your policy. UM insurance only pays out if the person who caused the accident had no BI insurance or not enough BI insurance. Virtually all insurance companies require you to submit a demand (and sign a release) before they are willing to pay you for your injuries. This delay tactic by insurance companies usually results in you accumulating a lot of medical bills and out-of-pocket expenses over several months or years. This delay tactic by insurance companies also can cause you to lose your home and your credit because of an inability to work and lost income. Retaining an attorney to pursue appropriate compensation as quickly as possible may avoid a large accumulation of medical bills and lost earnings.
Florida Gov. Scott Troubled by Firings at Citizens Property Insurance
A move by Florida’s largest property insurer to dismiss employees responsible for investigating wrongdoing drew criticism last Thursday from Gov. Rick Scott.
Scott, in a strongly-worded letter to the president of Citizens Property Insurance, called the decision “troubling” because it comes while the governor’s inspector general is reviewing reports of lavish travel expenses by top executives at the company. Scott ordered the probe after news reports detailed expensive hotel stays and flights abroad.
The state-created Citizens has nearly 1.48 million policyholders, including many people who live in the state’s heavily populated coastal areas. Scott and others have pressured the insurer to shrink in size because the company has the power to put a surcharge on insurance bills if it can’t cover claims.
The Tampa Bay Times and Miami Herald first reported earlier last week that Citizens was closing its Office of Corporate Integrity and had given termination notices to those employees working in the office. The office handled complaints of employee fraud or misconduct.
Citizens officials say they are replacing the employees with accountants who are more qualified to detect financial fraud.
The governor wrote in his letter that while he agreed with the need to run an efficient operation, he questioned removing the employees before their replacements have been hired.
“An effective compliance system cannot be achieved without an adequate number of independent, highly trained professionals,” Scott wrote. “To ensure that all necessary safeguards are in place, I urge you to use greater caution with future modifications affecting internal investigations, audits and compliance.”
Christine Turner Ashburn, a spokeswoman for Citizens, said the insurer understood Scott’s concerns and that the company was moving quickly to replace the four employees. Ashburn said other auditors at the company would handle work that had been done by those who were let go.
“We are confident that nothing will fall through the cracks as we make this important transition,” she said in an email response.
Hours before Scott put out his letter, Citizens had put its own release where it contended that the media had mischaracterized the changes.
“We believe these changes strengthen our ability to ensure Citizens employees operate with the highest level of integrity,” said Citizens President Barry Gilway in the release.
The flare-up over Citizens came on the same day that the Office of Insurance Regulation announced that it had approved the removal of up to 100,000 policies from Citizens to two domestic insurance companies. Heritage Property & Casualty Insurance and American Integrity Insurance have agreed to take over the policies. Under Florida law, Citizens policyholders have 30 days to accept or decline the offer.