Recently, Citizens insurance was given a mouthful by at risk policyholders, if rate hikes are approved. At a hearing, these policyholders explained that they could barely afford their mortgages, and rate hikes could force a foreclosure. The recent Sun Sentinel posting by Julie Patel, Citizens insurance takes a beating over rate hike request, goes into detail regarding not only the hikes but how this might cause home sales not to go through because the mortgages companies are weighting in the cost of these policies. It’s a vicious circle that might only get worse if a major storm hits these properties.
The article explains that this opportunity for Citizens to hear from policyholders is very positive; however, the decision is still a balance of what has to be paid today vs. what all Floridians would need to cover if there’s a deficit.
“At the end of the hearing, Sharon Binnun, Citizens’ chief financial officer, said it was good for her personally and “important for Citizens employees to hear the personal impact of these rate filings.” She said Citizens must balance the impact of rate hikes on policyholders with the cost to nearly all Floridians who would have to pay fees to offset Citizens’ deficits if there’s a major hurricane and it uses up it’s $5 billion in reserves.”
There’s a serious issue here that unfortunately doesn’t get the press it deserves. The key is to stay up to date with the topic. Feel free to call us directly to help make sense of these issues.
As you read the above article you’ll notice a link referring to a complimentary issue of law changes earlier this year, follow the link. In the meantime, here’s a great clipping….
But Sen. Mike Fasano, R-New Port Richey, who led efforts to fight the legislation, said it conflicts with Scott’s goal of avoiding tax increases. “For an administration which vowed not to support new taxes or fees, this bill virtually guarantees [premium increases] for Florida policyholders,” he wrote in a statement. “Insurance companies will only get richer because of this legislation while policyholders will have to pay more of their hard earned money for what will amount to less coverage.”
Sean Shaw, the state’s former insurance consumer advocate who is now an attorney for policyholders in claims disputes with insurers, said it’s possible that Scott signed the bill more than a week before he was required to “avoid more bad press about impending rate hikes in a bad economy.”
Scott received hundreds of emails, letters and calls about the legislation.
The new law makes more than 20 changes. Among other things, it will:
Shorten the time policyholders have to file claims to two years for sinkhole claims and three years for hurricane claims, from the current five years;
Allow insurers to withhold full payment for home damage claims until the work is performed and expenses incurred, except for homes that are destroyed;
Require policyholders to pay up to half of the cost of testing for sinkholes if the insurer denies the claim and its engineer determines there is no sinkhole;
Allow insurers to require an inspection of a property before issuing coverage for sinkholes;
Allow insurers to drop sinkhole coverage for anything other than the main building on a property;
Prevent regulators from urging insurers to charge policyholders less for advertising and agent commissions;
Require Citizens Property Insurance to hire an outside consultant to examine whether the state-run insurer could save money and do a better job if it shifted some work done by full-time employees to contractors;
Require new home insurance companies to have $15 million in reserves starting this year and existing insurers to have $15 million by 2021, with some exceptions;
Bar public insurance adjusters, hired by policyholders in claims disputes with insurers, from advertising with logos that resemble those of a government agency or saying there is “no risk” to a policyholder by filing a claim;
Prohibit public adjusters from charging more than 10 percent of the portion of a claims payment they help recover for Citizens policyholders;
Require public adjusters to provide a copy of their contracts with policyholders to insurers;
Allow insurers that offer policies covering both a home and vehicle to drop coverage if they warn policyholders at least 90 days in advance, a perk intended to draw an unnamed insurer to the state; and
Clarify gray areas of state law to say the Legislature intends to reduce disputes and litigation from sinkhole claims, a standard that might be applied to pending claims disputes.
Public adjusters do not get paid upfront for the work done during the insurance claim process. The overview of how it works is simple, a property owner experiences property damage covered under the insurance policy and the public adjuster steps in to assist the property owner in the claim process to collect what is deserved. The public adjuster is paid based on the collection. Here’s a Youtube video we found with a clear explanation:
In a recent case in Taunton, MA there was a dispute regarding the payment of fees to an adjuster that worked on an insurance claim for the City of Taunton, this was regarding fire damage from arson. Read the full article – Public Adjuster paid in insurance claim.
True, this case didn’t occur in Florida; however, there’s a point that’s important to learn from this event. In the article there were differences of opinion as to the commission fees and whether or not everyone was on the same page with the adjuster and agreed to the details. This point is crucial for both city office and private property owners – get to know your public adjuster and get a clear explanation of the facts.
The communication is key and essential to making sure a property owner gets what they deserve from the insurance claim. The verdict of the Taunton vote ultimately recognized the value of the adjuster’s work and the fact that the City recovered from the claim.
The excerpt below is from the article and highlights the point:
“I know you’re the procurement officer,” Barbour told Crowley, “but I don’t recall meeting the adjuster to discuss the details.”
Barbour at one point accused the mayor of making light of his statements
“You seem to be smiling — there’s nothing funny about $28,000,” he said.
“Who’s smiling?” Crowley countered.
“You’re not now, but I don’t want to bicker,” a clearly frustrated Barbour said.
Deborah Carr cautioned that if the city were to contest the fee it risks spending at least as much as $28,000 in court costs.
Voting in favor of the motion were Carr, Barbour, Sherry Costa Hanlon, David Pottier and Tom Hoye; against were Buffington, Croteau, A.J. Marshall and Ryan Colton.
Susan Barber, the city’s risk manager/litigation paralegal, later said she’ll issue a check to the adjuster from $545,000 listed by the insurance carrier as “extra expense.”
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The confusion would likely have been avoided by familiarity with the adjuster. Stellar Public Adjusting Services is available and recommends meeting and having a consultation regarding your property and coverage. A professional and experienced adjuster from our team will clearly explain the steps during an insurance claim and how to best avoid any pitfalls.
When you find yourself considering filing an insurance claim or in the midst of filing an insurance claim your coverage counts. It’s vital that the insured have a claim, meaning that there existed coverage at the time of the damage. For most people, guidance and professional assistance comes from their insurance broker when they are being sold a policy. The process of purchasing a policy is separate from and distinct to filing a claim.
When a property owner experiences roof damage, water damage, mold, plumbing issues, or other property damages it’s often the case there’s an excited temperament surrounding the potential claim; as opposed to the typical calm sense that exists when evaluating an insurance policy to purchase. It’s interesting to note these to commonly share emotional experiences connected to insurance, because they’re exactly the opposite of what is recommended.
The time a property owner is reviewing insurance policies, is the time to be vigilant and understand exactly the coverage at stake – ask questions, call others for advice, map out possible scenarios, and know what you’re buying. That’s the time to get excited, then if an unfortunate event occurs triggering a claim the insured can relax and proceed with their already established plan. If you know what coverage you have and who’s on your side, it makes handling the claim so much smoother.
In fact, there’s a recent Florida case in which the insured signed a form rejecting uninsured motorist coverage. The man claimed it was the insurance companies fault because he relied on the insurance agent comment that it wasn’t really needed. The court found that the insured had the responsibility to understand the coverage and that since he signed a form rejecting certain coverage the insurance agent was not at fault. The specifics of this case are not that important to understanding the main point of the matter – when purchasing insurance get a handle on the details and consult a professional insurance claims adjuster.
2010 was an exciting year and many successful insurance claims have been achieved for our clients. We’re looking forward to continuing to work together and to meet new property owners that would like to have us on their side. It’s always a privilege to meet new people in the area and surrounding community. We work with many residential and commercial properties – always with the same professionalism and communication.
Hope each of you have a safe and healthy new year. We’ll be connecting again soon.
Thanks for following our blog and look for more updates in 2011. Remember to also visit us on Facebook and Twitter.
Stellar Adjusting Services is the most reliable, professional, and results orientated public adjusting company in South Florida. They always work together with skilled roofers, plumbers, and many other contractors and sub-contractors. The team at Stellar are experts in identifying property damage and recommends the best companies to fix the damages they find. If you believe that your company is a perfect match for Stellar Adjusting Services, contact us today.
Stay tuned for upcoming postings about substantive insurance issues and case studies. We’re excited to give policy holders a place to find the answers to their questions and for companies to give input in our case studies on damages and repair.
Radey Thomas Yon & Clark is an AV-rated firm located in Tallahassee, Florida. On their website, the firm hosts a blog that updates the public with relevant legal information, with a focus on insurance and employment issues. Recently there was an update posted by Travis Miller on the topic of Condo Insurance law and changes that will take place beginning July 1, 2010 – related mostly to Chapter Law 2010-174. We all recognize that South Florida is home to many condos in Boca Raton, Ft. Lauderdale, Plantation, West Palm Beach, Delray Beach, Aventura, Hallandale, Bal Harbour, Miami Beach, and the surrounding areas, this makes changes to condominium associations and unit owners’ policies particularly relevant to residents in our area.
Mr. Miller points out three essential areas of change: Loss Assessment Coverage, Adequate “Property” Insurance, Unit Owners’ Coverage.
Loss Assessment Coverage:
“…The statute continues existing law by requiring unit owners’ policies to provide at least $2000 in property loss assessment coverage.”
Adequate “Property” Insurance:
“…A reference to determining the “full insurable value” of condominium property every three years is being updated to require the “replacement cost” to be determined every three years.”
Unit Owners’ Coverage:
“…Under existing law, the association policy excludes personal property within the unit or limited common areas, and floor, wall, and ceiling coverings, electrical fixtures, appliances, water heaters, water filters, built-in cabinets and countertops, and window treatments including curtains, drapes, blinds, hardware and similar window treatment components. The new law clarifies these items are the insurance responsibility of the unit owner to the extent they are within the boundaries of the unit and serve only the unit.”
Read Mr. Miller’s full blog post for a few more changes regarding unit owner’s coverage. There are several other areas that are vital for South Florida condo owners, in Broward and Dade, to understand. Rami Boaziz, Public Adjuster, will guide you through this process and make sure you understand the new changes taking place.
The Florida real estate market is a hot topic that is always relevant in our communities. Recently, Governor Crist vetoed a property insurance reform bill, there were pros and cons to the bill. Ultimately, the bill was vetoed in the consumers’ best interest. There are always several sides to a claim, but the State should value the side of the residents in their communities. Insurance claims are complex and each requires specific time to evaluate the full extent of the damage.
Here’s a few paragraphs from a recent article on this matter – read the full article – Florida Property Insurance
William Stander, assistant vice president and regional manager for the Property Casualty Insurers of America (PCI), said in a statement that the group was “disappointed” by the veto of “common-sense solutions” to protect consumers and control costs.
“This legislation would have been a step toward bringing private marketplace solutions to Florida,” Stander said. “Without the bill, we continue to confront the problem of a huge and growing financial risk that Floridians face from the next storm.”
The bill included provisions to make it an unfair and deceptive trade practice for public adjusters to make misleading statements; set caps on public adjusters’ fees; created a website for consumers to shop and buy coverage; and set requirements for properties being repaired so future storms would not cause as much damage.
“While we are disappointed that these provisions did not become law, we recognize that many of us want the same thing: a healthy, stable and competitive insurance market that delivers economic security and peace of mind to consumers. We are all in this together,” Stander said.
Let’s test your basic knowledge of condominium insurance coverage. In the following situations, does the association’s insurance policy cover the loss?
The toilet tank in the bathroom of the upstairs unit cracks, causing water to flood the downstairs, completely ruining your expensive computer and office equipment;
An elderly aunt paying her annual visit trips on your oriental carpet and breaks her hip;
Your hot water heater fails, flooding the your unit and the unit downstairs;
Your cleaning lady falls off the stepstool in your kitchen, breaking her arm;
You forget about dinner cooking on the stove, as it catches fire. In a panic, you fling the pan on the floor, burning a 2-foot by 2-foot scorch hole in your new linoleum.
If you answered “Yes” to any of the above, you need a quick lesson in condominium association insurance coverage. [By the way, these are all actual examples!]
If you think insurance for your condominium unit is covered by your monthly association fees, think again. Typically, your monthly condo fees are used to fund a building insurance policy and almost never provides protection to any of the betterments, improvements or personal property located inside your condominium unit. A condominium association’s insurance policy is purchased to provide coverage for all commonly owned property, such as the buildings and grounds, and generally extends to the interior of the units insofar as perimeter and partition walls, master plumbing and electrical lines and ceilings and floor below the floor coverings.
If you look about your home, you will quickly see that a lot of personal property, as well as a great deal of the unit itself, is not covered under the association’s policy. This includes all wall finishes (paint, wallpaper, paneling, window treatments, mirrors, etc.), floor coverings (tile, carpet, linoleum, etc.), and any and all personal property such as furnishings, clothing, computer and electronic equipment, appliances, vanities, cabinents and upgraded plumbing and electrical fixtures which may not be covered.
It is important to know what type of insurance product is designed to protect your form of ownership or living situation. Most unit protection policies combine property and liability on one policy. Endorsements can be made to tailor a policy to fit your particular needs.
Your Situation
Type of Insurance Policy
If you own & live in your unit
HO 6
If you own & rent your unit to others
HO 6 with rental
If you rent your unit from someone else
HO 4
These policies cover your household contents and personal property against the perils included in the homeowners insurance and, like a homeowner’s policy, provides protection against injury to others or destruction of others’ property, and includes coverage for additional living expenses, should you be forced to live elsewhere while your unit is being restored.
Before making your final decision regarding your personal condominium policy, be sure to determine the extent of property coverage held by your association. You can find out your association’s coverage responsibilities from your condominium manager, your association’s insurance agent or broker, or from your association’s Master Deed. Your goal is to purchase an all-risk form that complements the coverage provided by the association policy, reducing the potential for gaps in coverage, and that offers a combined limit for personal property, improvements and betterments as well as decorating. A good insurance agent should be able to guide you through this process and recommend the best policy for your needs.
Some additional items to think about when obtaining condominiun insurance coverage are:
* Actual Cash Value (ACV) vs. Replacement Cost Value (RCV)
You can insurance your personal possessions for either the actual cash value or their replacement cost value. With actual cash value coverage, you receive the value of the item minus depreciation, while replacement value pays the current cost to replace the item. I strongly recommend going with an RCV policy.
* Coverage Floaters
Most policies set limits for items like jewelry, collectibles, and computers. If you own expensive items, you can pay extra premiums to have those items fully insured under what is called a floater. Without a floater, a policy will cover such items only under general categories and offer reimbursement up to a maximum of only a few thousand dollars (limits vary).
As most of you already know, the Atlantic Hurricane Season starts on June 1. Many predictions this year call for a very active season with at least two major storms. Although most major storms usually hit later in the season, it’s never too early to start getting prepared.
One of the most important items that should be on your check list is to make sure that you are properly insured in case a Hurricane hits us here in South Florida. Now is the time to pull out your insurance policy and have it professionally reviewed to make sure you are properly and thoroughly covered. If you do not have windstorm insurance included in your policy or a separate windstorm policy, you should definitely start shopping around to make sure you have the proper coverage.
Insurance Policies are pretty complicated with all sorts of legal and technical language that confuses the average consumer. For this reason, it is crucial to have your Insurance Policy reviewed and analyzed by an industry professional.
It is important to remember that not all insurance policies are the same. The technical language that is included in these policies can limit or exclude coverage for normal everyday occurrences. You need to allow a professional to assist you through this process and make sure that you have the proper coverage.
Make the call today to Rami Boaziz of Stellar Adjusting Services at (305) 467-5645. He can help you become better prepared before Hurricane Season and is also offering his services to assist our readers with any other Insurance Claim requests.
Are you seeking a Aventura, Ft. Lauderdale, Miami, Dade and Broward County Florida Public Insurance Adjuster to represent you as a property owner against your insurance company claims?
A South Florida Public Adjuster serves an extremely important purpose during the insurance claim process. Everyone knows that their South Florida insurance companies have an adjuster representing them on a claim, it is vital for the owner to have a professional and experienced insurance adjuster on their side. A Public Adjuster makes sure that the South Florida homeowner is properly compensated for the loss in accordance with the terms and conditions of the insurance policy in Dade or Broward County. An insurance company can be quick to deny a claim or minimize the damages, a public adjuster works diligently own you side throughout Ft. Lauderdale, Miami, and the surrounding areas to ensure that the Florida property owner is receiving maximum compensation.
Stellar Adjusting Services can represent property owners in all types of property claims, including, Flood, A/C leaks, Dishwasher Leaks, Air Conditioning Leaks, Hot Water Heater Leaks, Hurricane Damage, Mold Damage, Broken Pipes, Plumbing Damage, Sink Holes, Smoke Damage, Storm Damage, Vandalism, Water Damage, Wind Damage, Roof Leaks, Fire Damage, and other damages that can occur to property owners in Dade and Broward county. Additionally, we represent residential property owners as well as commercial property, with an emphasis on representing condominium associations in large claims where experienced legal guidance is needed. This is certainly an important service for the many Aventura condominium associations and those condominium associations all over South Florida.
Rami Boaziz of Stellar Adjusting Services would like to offer his services to Dade County, Broward County, Aventura, Sunny Isles Beach, Golden Beach, Hallandale, Bal Harbour, and the surrounding Florida areas. If you or anyone you know has property damage and is filing an insurance claim in Florida, please let him know. He is a true professional that will be the advocate you are searching for today.
Based on our research, we have discovered that some Public Adjusters have success in re-opening old claims for Hurricane Wilma. I guess it might not be too late to act and have a Public Adjuster investigate your claim. They might be able to re-open the file and obtain additional monies for your claim. Remember a Public Adjuster is employed by you and must place your best interest first. Simply, most property owners think that the insurance company is on their side and will work to protect the property owner’s interest; however, this is not the case. The property owner must have a professional Public Insurance Adjuster to best protect their claim. This is a delicate matter and best suited for those experienced in this business.
We welcome Rami Boaziz of Stellar Adjusting Services as a feature business in South Florida. Be sure to follow his future updates on the blog.
