It’s that time of year, hurricane season, time to pull out the insurance policy and review your coverage. Are you with a financially strong company, a company that can pay a claim in case of a disaster? Although, insurance companies allow changes, some, such a change in deductibles can be done only at renewal time.
The Florida insurance industry changed considerably after the hurricanes of 2004-2005. Many large companies were replaced by smaller ones. But, are these companies financially strong? How quickly will they pay after a claim is filed? Can they pay at all? Today, an insurance company's financial strength is rated on the several different rating scales. The Demo Tech system rates companies on a more lenient system than the AM Best and Weiss system. Companies that used to be rated D, E & F may now show up with an A rating on the Demo Tech system. So, be careful. Do some research. Online you can find a list of strongest and weakest insurance companies.
Call your insurance agent. Ask them to go over your policy with you. Check your coverage. It is based on replacement cost to rebuild, not on the market value of the property. Check you deductibles, including the separate hurricane deductible. Do you have a separate flood policy?
If you decide to shift from one company to another, find out if your wind mitigation inspection discounts will apply with a different company. Typically, the inspections are good for 5 years. But, find out for sure. Some companies are requiring new mitigation inspections for discounts, Some are spot checking past inspections for validity, due to the high incidence of fraud in South Florida.
This is also a good time to catalog the items in your house. Take pictures of your valuables and write down the serial numbers. Video taping your home is a great way of capturing the property, while describing your furnishings in detail. Be sure to store the pictures and video tape away from the property, in a safe place, like a safe deposit box. Don’t store them in a home safe. In a fire items can melt inside the safe.
Sandy Shores Realtor, Melbourne FL Real Estate
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Today, Reviewing and maintaining insurance is an all out necessity...
From the sun drenched State of Washington!
Paul
Sandy
Very timely advice, thanks for taking the time to share the information.
Good luck and success.
Lou Ludwig
Hi Sandy, very timely information for your consumers. How many hurricanes have you been through?
This is constantly on our minds here, as you know. The new criteria for inspections re: Wind Mitigation are becoming cumbersome for many and are sure to cost substantially more shortly if not already. The level of risk seems to take on a whole new meaning in Florida, or any state for that matter mired in prior natural disasters. SORRY, THAT'S NOT COVERED! is a favorite mantra.
Hi Sandy, Very valuable information here and I did not know that items would melt in my fireproof safe, either.
Great reminder. We all need to review our insurance policies every so often so it is there when we need it.
Sandy, great post. I would also recommend that all Floridians change their auto insurance if it's the same carrier that cancels their home insurance.
Oompa: There are so many ways we can eliminate insurance. It is a hoarding of money. Errrg, grrr, pbbbb!
All excellent points, Sandy! I'm reminded that a close friend of mine in Bay St. Charles, Mississippi, had her home destroyed by Katrina. Only to be told by her insurance company that it wasn't the hurricane, but flood waters that caused the destruction, and she didn't have flood insurance. So checking the consummer credibility of insurance companies is also important. My friend had watched the hurricane winds destroy the house. . .and then came the surge of water.
Sandy ~ What a great post to remind people. I was one of those that waited until the last minute and luckly there was not too much damage.
Paul, You are right - it is a necessity - and sometimes it's downright difficult too.
Lou, Well you know that we are right in the middle of storm season - so it's a great time to think about insurance.
Bruce, It's so important here in Florida to know what your policy covers. I have been through 3 hurricanes, David in the 90's and Frances and Jeanne. Frances and Jeanne were scary because they were within weeks of each other - and some of us suffered serious damage in the first one and still had blue tarps on our tattered roofs when Jeanne hit. It wasn't pretty. It's the tornadoes that come with the storms that do so much damage. And have been through 2 major tropical storms, Irene and Fay. Irene brought us 30 inches of rain in 24 hours - and the rain had no place to go - it was awful.
Kevin, Yes, we are hearing that in many instances the wind mitigation inspections are becoming a necessity. And 4 point inspections are being required on homes anywhere from 30 to 50 years old.
Mary, It can be scary stuff. We have friends whose inlaws lost everything in a fire. They even lost their entire expensive coin collection and all of their documents that they had safely locked in their fireproof safe. It was devastating. I suppose you'd have to check what the fire rating is on the safe ( I really don't know anything about that at all).
Marguerite, We should review our insurance policies on a regular basis. No one wants to be caught in a disaster without proper insurance.
Gabe, That's an interesting point, and one that is quite well taken. I'll have to check into that. Thanks for the tip.
Hi TOTO, Yes it is a great hoarding of money, but dare I ask how we get around it? I know for sure that you will have the answer.
Myrl, That's terrible. We have heard of numerous similar stories. It's unbelievable, isn't it? There always seems to be some kind of loophole.
June, Uh-oh, that can be a mistake, thank goodness it all worked out well for you in the end.