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Sinkhole Legislation-Senate Bill 408 I am opposed to Senate Bill 408. As the owner of an Independent Insurance Agency, I would like to see a more competitive market. My business as well as my residence is located in Pasco County and have been relegated to being insured by Citizens as well as writing insurance through Citizens. I have seen the premiums, for sinkhole coverage, skyrocket over the past few years, making sinkhole coverage unaffordable for most homeowners. Most of my customers have elected to drop important sinkhole coverage to save on their premium. I understand the need for reform. I understand the concerns of the Insurance Companies over frivolous claims, however I have also had clients with very legitimate claims and am concerned, as Senator Fasano is concerned, that these customers will not be protected with the pending legislation, or that they will not be able to afford to contribute, by paying for testing, in the case that the insurance company fails to find a sinkhole. Also, wouldn’t insurance companies be inclined to use experts that would be inclined to err on the side of the insurance company. It seems that this already goes on with insurance company expert’s findings, being far different from the consumer’s representation’s expert’s findings. As Senator Fasano so aptly retorted, to your Senator Richter's comment about homeowners putting “some skin in the game”; “Isn’t a homeowner already putting their sink in the game by paying premiums?” Another issue, is that Lenders require full coverage on a home. They all require sinkhole coverage, though most are not aware of the difference between, catastrophic sinkhole coverage and the sinkhole coverage that some lawmakers want to make almost impossible for homeowners to afford, or collect on. What will happen to those, that have lenders that are more savvy to what is going on in Florida? Will the lenders “force place” sinkhole coverage on those individuals that cannot afford, or not given the option, to buy sinkhole coverage? Please contact these legislators as soon as you can to tell them that you oppose Senate Bill 408. In addition, please tell Representative Nelson that you oppose any companion bill filed in the House. Florida Senate Senator Garrett Richter Chair, Committee on Banking & Insurance 322 Senate Office Building 404 South Monroe Street Tallahassee, Florida 32399-1100 Phone: (850) 488-2023 Email: richter.garrett.web@flsenate.gov Florida House of Representatives Representative Bryan Nelson Chair, Insurance & Banking Subcommittee 204 House Office Building 402 South Monroe Street Tallahassee, Florida 32399-1300 Phone: (850) 487-5124 Email: myfloridahouse.gov \| \| Posted Wednesday, January 26 2011 10:03 AM View / Post Comments
Citizens Property Insurance Citizens Property Insurance rates to rise By Nirvi Shah nshah@miamiherald.com Insurance premiums for homeowners covered by Citizens will rise an average of 10.3 percent statewide next year, the Florida Office of Insurance Regulation said Thursday, giving the state-run insurer a slightly larger increase than it had requested in August. The new rate schedule, however, means some Broward, Miami-Dade and Monroe homeowners will actually see their premiums drop. Policyholders will be notified by mail. Citizens Property Insurance wanted an overall 9.7 percent average increase in homeowners rates. The insurer is limited to requesting rate hikes of 10 percent each year, but the increase approved by Insurance Commissioner Kevin McCarty also includes additional premium increases that will be used to infuse cash into the Florida Hurricane Catastrophe Fund. That fund provides back-up coverage for private insurers as well as Citizens. Citizens' mobile home policies will rise by an average of 9.2 percent statewide. At a hearing earlier this month, Citizens' staff said they need to raise rates even higher based on their risk exposure. New rates for homeowners with wind-only policies go into effect in February. For those with multiperil policies, the new rates take effect in January. This is the second increase in two years for Citizens customers following a three-year rate freeze that ended in 2009. Citizens is the state's largest property insurer, with about 1.2 million policies. One of the factors that contributed to Citizens' request for a rate increase was a dramatic rise in sinkhole claims. The insurer paid about $97 million in claims in 2009 but collected $19.7 million in premiums. In his order, McCarty said in the next three months Citizens must file for a change in the way it provides sinkhole coverage for new and existing policyholders. Homeowners who want coverage would need to have their properties inspected. If inspections are unacceptable, sinkhole coverage for anything but a catastrophic loss will not be provided. At the rate hearing this month, Paul Palumbo, Citizens' senior vice president of underwriting, said no sinkhole claims in the insurer's history have been for a catastrophic loss. Read more: http://www.miamiherald.com/2010/09/24/1839685/citizens-homeowners-rates-to-rise.html#ixzz11W2JfWy5 \| \| Posted Tuesday, October 05 2010 3:04 PM View / Post Comments
Flood Insurance Most people don't really understand Flood Insurance. They think that their Homeowner's Insurance Policy will cover them if there was water damage, to their property. In a case of a burst pipe, or water damage due to Wind tearing off a roof and water coming into their home, coverage may be afforded under their Homeowner's Insurance Policy. Hazard policies do not cover damage due to rising water. Most Flood Insurance is written for homes as a part of the National Flood Insurance Program. This agency is administered and regulated by the Federal Emergency Mangement Agency (FEMA). Flood Insurance is sold through Insurance Agencies, but it is not uncommon, for the private insurer whose name appears on the policy, and from whom the insured purchased the insurance, to have nothing to do with the policy or claims handling. Benefits paid by the private insurance companies on flood claims under the flood policy are reimbursed by FEMA, from the U.S. Treasury. Flood policies generally cover damage to real and personal property arising from flood water. Coverage generally includes repair and replacement of damaged property, clean up and remediation of any resulting mold, mildew or fungus. You should make an informed decision about whether or not to buy Flood Insurance. In most cases, if you are in a flood prone area, and you have a lienholder, they will force you to buy Flood Insurance to protect their financial interest in the property. You should check in locally available flood zone maps, to see if you are in a flood prone area. If you call a reputable insurance agent that understands and writes flood insurance, they should, in most cases run a Flood Zone Determination for you, right away. Never assume that that your home is not at risk for flood damage, just because you aren't legally required to buy it, or because you are not in a flood prone area. Acording to FEMA, 25% of all claims, come in from "non flood prone areas". If you happen to be in an area that is not designated as a Flood Zone, the price of the coverage goes down with the lower risk. If you decide to buy flood insurance, you should make sure that you are buying adequate coverage. The coverage amounts are usually for a fixed dollar amount for the dwelling and the contenst coverage. Your coverage should be sufficient to replace your dwelling and contents. Your insurance agent should help you determine that. If you currently have flood insurance coverage, make sure that you have adjusted your coverage upward to stay in step with the rising costs of replacing your property. For more information visit www.fema.gov \| \| Posted Monday, October 04 2010 2:55 PM View / Post Comments
Saving money on Insurance. In today's tough economic climate, we are all looking for ways to trim the fat in our household budgets. Unlike Washington politicians that believe they could spend their way out of debt, real people, especially business owners, understand that if your expenses are exceeding your income, you either have to produce more income or cut back on your expenses. Many of us have already found creative ways to cut back on our expenses. Cutting back insurance coverage however may not prove to be a financially sound decision. It is extremely important, that before you cut back on your insurance coverage that you talk to an agent that cares enough to go over your policy coverage with you, so that you understand how each coverage protects you. Premiums are based on the risk the insurer takes. You may be willing to assume some of that risk yourself in terms of lower coverage or higher deductibles. The more risk you are willing to take, the less your premiums will be.You may want to consider talking to a financial advisor, before eliminating coverage completely. It is also important that you stay in contact with your agent. Insurance companies are constantly changing their underwriting guidelines, which in turn affect their rating factors. You may also have had a couple of little 'blips' in your driving record, which caused an increase in your premium. Just because your agent found a competative quote with the company you are currently with, doesn't mean that they are still the most competative, especially if there were changes made during your policy period. Changes such as adding teenagers to your policy,(some companies are more family freindly than others), or adding more expensive or higher risk vehicles to your policy. Talk to your agent at renewal time and ask if they can requote you with other companies to make sure you are getting the best premium. Make sure, however that before you just "jump ship" for a lower premium, that you consider the companies financial stability and claim paying experience. Your agent should know about the companies they represent, but the Internet has a wealth of information at your fingertips. At Safeguard Insurance Group, we strive to educate our clients and always present them with the best alternatives to properly protect their assets and still save money in the process. Livio Gasparini Owner/Agent \| \| Posted Saturday, March 07 2009 11:16 AM View / Post Comments