by Zoltan Hovanyecz | Jun 4, 2015 | Florida Insurance
For the 2015 Atlantic hurricane season, the National Hurricane Center has predicted a below normal season for hurricane activity and although there have been no Atlantic hurricanes yet, we are already on our second named storm of the year (both in the Pacific).
If you have not already begun preparing, this would be a good time to make sure you are prepared for the upcoming 2015 hurricane season because it only takes one hurricane to change your life. It is important to make sure your home and your family are prepared for a hurricane before it arrives.
The National Hurricane Center has a very informative page on preparing for hurricane season that can be read here National Hurricane Center Preparedness Week.
Feel free to give us a call if you would like to know more about how to prepare your home for the hurricane season.
by Zoltan Hovanyecz | Apr 21, 2015 | Florida Homeowners Insurance
Universal Property & Casualty Insurance reported record profits of
$17 million the second quarter of 2013. These are Universal’s highest net earnings since 2007. Compared to Universal’s profit of $7.8 million for the same quarter last year, Universal more than doubled their profits. Universal’s CEO, Sean Downes, stated that with “underwriting margins continuing to improve and a significantly better investment portfolio performance, we were able to more than double earnings over the second quarter of last year. With first half EPS growth of nearly 66 percent, we believe Universal is well positioned to continue implementing our strategic business plan.”What is Universal’s strategic business plan? Is it simply increasing homeowner insurance premiums by over 14% in February, or engaging in improper claims practices (discussed in our prior blog post
here) resulting in substantial windfalls to Universal? Either way, when you are making $17 million a quarter utilizing a “strategic business plan,” a $1.3 million dollar fine is pocket change.A link to Universal Property & Casualty’s official press release can be found
here.
by Zoltan Hovanyecz | Apr 21, 2015 | Florida Insurance
Recent statutory changes prompted by Florida House Bill 909 take effect today, July 1, 2013, containing changes that will affect Citizens Property Insurance Corporation and Florida Public Adjusters. Some of the major changes effect the financial operations of Citizens Property Insurance Corporation but it also provide for some significant changes in how Florida Public Adjusters handle claims with Citizens.One of the most anticipated provisions of the bill is the change to the statutory fee cap for Public Adjusters handling claims for Citizens Property Insurance Corporation policy holders. As of July 1, 2013, Public Adjusters may now represent consumers insured by Citizens at a rate of 20% on both new and supplemental claims. In addition, some changes were made to the Florida Hurricane Catastrophe Fund, rate filings, and rate standards.A brief summary of the Florida statutes that govern Public Adjusters and which include the July 1, 2013 amendments can be found
here.
The lengthy, complicated and official version of the statutory changes can be found here.
by Zoltan Hovanyecz | Apr 21, 2015 | Florida Insurance
Citizens Property Insurance Corporation approved a statewide average rate increase for their homeowners insurance policies in the amount of 7.5%. Rate increases to wind only policies and sink hole policies are expected to be even higher. Although this rate increase must still be approved by Florida’s Office of Insurance Regulation, consumers insured with Citizens will likely see a notable increase in their homeowners insurance premiums as a result of the rate increases. However, it is important for the consumer to understand the difference between insurance rates and insurance premiums in order to understand how rate increases will affect how much you pay for homeowners insurance in Florida.Insurance rates and insurance premiums are different. An insurance rate is the insurance company’s base charge per dollar of insurance coverage. Rates differ based on a number of factors including the age of home and the geographic location. For example, a home located closer to the coastline will generally have higher rates than a home further from the coastline. The rate establishes the foundation on which your premium is based. An insurance premium is the total cost of your insurance coverage. A premium includes all factors of your insurance policy including limits of coverages, the amount of your deductible, any discounts, etc. So, a 7.5% increase in insurance rates does not equal a 7.5% increase in insurance premiums. Nevertheless, Citizens policy holders should expect to pay more for their homeowners insurance coverage.
A direct link to the Citizens Property Insurance Corporation press release can be found here.
by Zoltan Hovanyecz | Apr 21, 2015 | Florida Insurance
Recently, Citizens insurance policies held by South Florida residents are being assumed by a small group of untested insurers. These companies include Heritage Property and Casualty and Weston Insurance., both of which have only been licensed by Florida for less than a year. The concerns are that these upstart insurers may not be able to withstand the financial burden of an active or destructive storm season in Florida. As a result, it is imperative that consumers understand the consequences of their policies being taken out by new upstarts.
Unfortunately, the way the take out system works provides customers with very little consumers protection. When a consumer is targeted for take out, they are sent notification that their Citizens insurance policy will be assumed by another insurer. If the consumer does not respond to the initial letter within 30 days, they receives a Notice of Assumption allowing the consumer another 30 days to respond. So unless the consumer takes action to opt out of the assumption, the consumer’s insurance policy will be taken out by the prospective insurer. Any consumer’s currently insured by Citizens should be on the look out for correspondence regarding a take out of their policy so they can act quickly within the required time period.
A link to Citizens Property Insurance Corporation’s guidelines on take outs can be found here.
