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Posted on Thursday, April 5th, 2012 at 5:34 pm | Filed under UncategorizedWhy Can’t I Have What I want?
Even with no hurricanes this year the Homeowners insurance markets in Florida have tightened yet again. Insureds and consumer groups are yelling fowl and accusing even Citizens Property Insurance Company of making too much money. Have you seen their financial statements?
With the markets getting tight and other losses (other than windstorm) such a “Sinkhole” draining the coffers of the insurance companies the Insureds frustration build, almost, rage.
My personal homeowners coverage “doubled.” I almost threw up when I received the renewal. We are collectively between the proverbial rock and the hard place. Daily our agents are doing our best to explain the reasoning and rationale of the price increases and companies dropping insureds.
The number one question that we get is, “Why can’t I just have enough homeowners to cover my mortgage.” The insureds of the state of Florida are looking for “Burger King ®” insurance and unfortunately it does not exist.
Our agents pride ourselves on doing our best to explain insurance. In 1997 I wrote the book “Demystifying Insurance. The Family Insurance Guide into the new millennium.”
I took on this very issue and so we will revisit it yet again, why can’t I have the insurance I want. First everyone get your policy!
Both commercial property insurance policies and personal lines policies have a coinsurance provision. The Homeowners Policy has a section, usually section 3 under conditions, for those of you who have your policy in hand, called “Loss Settlement”. To copy from the ISO version, Insurance Service Office, the most used form:
Buildings under Coverage A or B at replacement cost without deduction for depreciation, subject to the following: (1) If, at the time of loss, the amount of insurance in this policy on the damaged
building is 80% or more of the full replacement cost of the building immediately before the loss, we will pay the cost to repair or replace, after application of deductible and without deduction for depreciation, but not more than the least of the following amounts:
(a) The limit of liability under this policy that applies to the building;
(b) The replacement cost of that part of the building damaged for like construction
and use on the same premises; or
(c) The necessary amount to repair or replace the damaged building.
(2) If, at the time of loss, the amount of insurance in this policy on the damaged
building is less than 80% of the full replacement cost of the building
immediately before the loss, we will pay the greater of the following amounts, but
not more than the limit of liability under this policy that applies to the building:
(a) The actual cash value of that part of the building damaged; or
(b)That proportion of the cost to repair or replace, after application of deductible
and without deduction for depreciation, that part of the building damaged, which the total amount of insurance in this policy on the damaged building bears to 80% of the replacement cost
of the building.
Yes, I know your eyes have just glazed over. In this version there are two possible outcomes.
Outcome 1 (using 80%)
You have $100,000 Coverage. The value of the dwelling “AT LOSS” is $120,000. You have a small kitchen fire, the adjuster estimates
$10,000, Actual Cash Value (The cost to repair less depreciation) OR
$21,000, Replacement Cost
The verbiage is saying $120,000 X .8 = $96,000 defines your Threshold. Since you have MORE than $100,000 in force the company will pay the $21,000 (less any deductibles) for your loss.
Outcome 2
You have $60,000 Coverage Just to cover your mortgage. The value of the dwelling “AT LOSS” is $120,000. You have a small kitchen fire, the adjuster estimates
$10,000, Actual Cash Value (The cost to repair less depreciation) OR
$21,000, Replacement Cost
The verbiage is saying $120,000 X .8 = $96,000 defines your Threshold. Since you have LESS than $100,000 in force the company will pay the $10,000 (less any deductibles) for your loss. You are not happy.
The second part of the verbiage is “Coinsurance” it says this
Take the amount of coverage you have $60,000 divide it by the Value at loss $120,000 Multiply that fraction by your loss that will equal your recovery.
$60,000/$120,000 = ½ X 10,000 (ACV) = $5,000 ; still happy?
Fortunately, the company will pay the GREATER of the amount.
Those of you who own commercial property there is no first option – you will be paid on the second more severe “Coinsurance” calculation.
Commercial or Residential your mortgage company will certainly not be happy. Now read your mortgage, have fun doing that, you thought the insurance policy was bad. They insist you have or at replacement.
NexisLexis on 06/22/2010 Published its Annual Guide To State Litigation Climates Shows Most Litigious States are according to Foundation for Fair Civil Justice FFCJ the top 10 most litigious states are New Jersey, New York, Florida, Illinois, Pennsylvania, Missouri, Montana, Michigan, Connecticut and California. Florida is number three.
Knowing this, along with knowing that not only can the insured sue the company and the insurance agent. All admitted companies doing business in Florida insist that your policy is written to replacement value.
If you are able to pay off your mortgage then you may “Self Insure.” But it is the philosophy of NuSurance to retain property risk but purchase as much liability as you can afford. Bottom line always have liability on your policy.
More Questions?
Call us 813 514 6982 or email us at info@nusurance.com
Posted on Friday, October 28th, 2011 at 8:17 pm | Filed under UncategorizedMost of the questions we get either by phone or email is about the New Florida Sinkhole Law. Do I have Sinkhole coverage or not?
A recent change in Florida law requires authorized insurers to cover “catastrophic ground cover collapse,” but damage caused by a sinkhole may not be covered by your policy. More Confused? – Let me see if I can explain. If you have a Homeowners policy in the state of Florida (issued by an admitted authorized carrier) you have coverage for “Catastrophic ground cover collapse.” That is “geological activity that results in ALL of the following:
All of the above conditions must be met including the “Condemnation” of your home to “Trigger” coverage.
The next question is what is NOT covered?
If your damage does not result in the above, including “condemnation” but does “cosmetic” damage the policy will not respond unless you purchase “Sinkhole” Coverage.
Some companies do not offer “Sinkhole” Coverage, others do but require and inspection. Some companies will charge you for the inspection some will not, in either case you will not have any coverage until the company inspection is completed and coverage is “bound” by the company.
More Questions?
Call us 813 514 6982 or email us at info@nusurance.com
Important Florida Sinkhole information – Click here for Download Link
Posted on Saturday, August 6th, 2011 at 9:53 pm | Filed under Homeowners InsuranceOK folks, here we go again. June 1, 2011 stared another Wind Storm season. Most media outlets, TV Stations and newspapers are distributing Hurricane Preparedness List and Tracking maps. Go out today to pick one up and do what they tell you.
Stock up on food, water, and batteries; make sure you have at least a 30 day supply of your prescription. My personal favorite, always make sure you have a hand cranked can opener. But I want to address a few things that are not listed in those publications.
If you have to evacuate make sure you take the right things. Your jewelry, your computer, big screen TV and sound systems are things that will be covered by your insurance. What you need to keep safe are your memories like wedding pictures, art work (if not specifically added on your policy) and keepsakes.
Things that need to be done prior to the storms hitting include:
First, Digitize your photographs, scanners are only a few dollars, spend a weekend scanning all your pictures into your computer. A Back-up/off site program such as Carbonite or Mosi will cost you less than $50 per year, well worth the money.
Second, Open a Gmail or Yahoo Email account. Remember to use a strong password. Scan your important document and store them on you online account. As long as you use a strong password it would be secure.
Third, Purchase a strong plastic storage box; the ones with the locking top are best. Should you have to evaluate take your pictures and keepsakes put them in the box, put your name and a contact number inside, snap it shut and then duct tape the top in place. The duct tape will make the storage box water tight. If it is lost chances are it will stay intact until someone finds and opens it.
Please be vigilant, remember for less than $15 you can purchase a weather band radio. Let’s hope we have a very un-eventful hurricane season.
For information or to review your insurance please call us at 800 604 7249 or drop us a note.
Christopher Kazor, CIC – NuSurance
Posted on Wednesday, June 29th, 2011 at 1:31 am | Filed under Homeowners Insurance, RiskywireRiskywire, A newsletter of the Nusurance Agencies
So you are getting ready to go on vacation, you have stopped the mail, stopped the daily newspaper, put the dogs in the vet and asked a neighbor to pick up any packages and any of those pesky free weekly newspapers.
Excited about vacation, sure so now both you and your kids post on your face book page that you will be visiting grandma for the next two weeks. To make matters worse you keep every one posted on your progress and what you see on your twitter account and pictures of were you are 1000 miles away.
No problem right. – Well before you go on vacation we want you to check out http://robmenow.com. What a great source. For thieves! When you tell the folks on Twitter you are on vacation you “have told the world.”
Other Tips –
Questions? Contact us.
To sign up for The Riskywire Newsletters Click Here
Christopher Kazor, CIC. Lutcf
Nusurance
Is it true that if I ask my employee to do an errand and they are in an at fault accident that my business could be held libel?
Absolutely, anytime you ask someone to do something you become vicariously libel for their actions. Check with your agent to endorse your Business Owner Policy or General Liability policy with “Hired and Non-Owned Auto” or if you have a commercial auto policy make sure your policy has Liability , symbol 1 “Any Auto”. Of course you can contact us.
Christoher Kazor, CIC
Nusurance
813.514.6982
Does my pip cover my treatment for an accident that happened in someone else’s vehicle while we were driving in another state?
Thomas F – Melbourne FL
Thomas – the answer is NO! – “Out of State, Out of YOUR Car, you are out of Luck”.
In other words If you were in YOUR “Owned” Florida registered auto and you were out of state then you and “Resident Relatives” will have PIP coverage.
If a Florida Auto is out of state, and that owner has, an optional coverage called Medical payments, the medical payments will be given to EVERY passenger. In addition if you are the one in the out of state auto and you purchased Medical Payments coverage we usually recommend either $2,000 or $5,000 then you would have that coverage in addition you the owners medical.
Posted on Tuesday, February 15th, 2011 at 4:52 pm | Filed under Auto InsuranceTags: Florida Auto Insurance, No Fault, PIP
We feel like we are getting ripped off, my insurance agent wants me to insure my home for more than we paid for it. Can you help?
Probably not. It is imperative that agents and companies take the time to insure “your” property to the correct value. It was not long ago that I was fighting with loan officers wanting us to insure a home with a replacement value of $285,000 for $550,000. This would have been “over insured”.
The good news- in Florida and many other states, banks and mortgage companies are forbidden to force a client (on a residential property) to over insure. But now the “Market values” have changed where the cost of “Repairing or Replacing” the home has either stayed the same or in some cases increased.
The insurance contract for homeowners obligates the insurance company to “Repair or Replace” your home with “like and kind” materials. Strangely enough in some cases the cost to repair part of the home may be close to the cost of a new home.
In today’s market the companies use very sophisticated tools to help establish the value of your home. In defense of the agents, they have little or no control over the outcome of the number.
The systems are married with the tax records and with the exception of asking, do you have a pool cage? the system establishes the value.
If you have further questions, please call us at 813.514.6982. It is our pleasure to assist you.
Posted on Friday, January 7th, 2011 at 3:50 pm | Filed under Homeowners InsuranceQ: I have a company vehicle that is assigned to me – I and the company are covered in this vehicle when it is being used for business purposes but what coverage do I need if I happen to be running a personal errand in the company owned vehicle – is it Non-Owned and will it cover property damage, liability and collision????
Carolyn – Gainesville, FL
A: We would add “Extended Non Owned Auto” to YOUR auto policy -
Chris Kazor -
Nusurance
The real simple answer is it is the Law, Florida requires it. States are either a “Tort” State or a “No Fault” State (A/K/A PIP State). I prefer to call No Fault, PIP which means “Personal Injury Protection.
In 1994 the majority of the states were “No Fault, PIP” States however today there are only a hand full of stares who employ a “PIP or No Fault” Law,
“No Fault” is a misnomer, the only thing that is paid whether you are at fault or not is each individual’s medical bills, capped at $10,000. Actually to be more accurate 80% of your Medical, 60% of your work loss, any of your household services you are unable to perform because of the car accident. In addition should you be killed there is a $5,000 death benefit, but that is subject to a maximum per person of $10,000.
It is only after the first $10,000 do we look to the at fault driver, at which the “Guilty” parties Liability Coverage will take in effect.
NOTE that in Florida PIP (No Fault) only covers each individual’s bodily injury and has nothing to do with paying for any property damage.
Please call us at 813.514.6982, we will be happy to explain further.
Posted on Wednesday, November 10th, 2010 at 4:05 pm | Filed under Auto InsuranceTags: Florida Auto Insurance, No Fault, PIP
