The Home Insurance Guru

Prices are heading up and Mitigation discounts are the largest cause of this. There will be a  bill before the Florida Congress this next session to have these discounts reduced and even removed in some cases. Every company wants this reviewed even the biggest company, State farm, wants to see this happen.  There are lot’s of issues including Fraud that will have an impact. Citizens Insurance and many companies are reviewing the  current inspections with ones they are doing on their own and this will all  be presented to Congress in Tall. with the new  session starting in March. Please read the full story below;

http://www.articlecoop.com/Art/6655/226/The-Cost-of-Florida-Home-Insurance-is-Going-Up-Again.html

Florida Home Insurance is never easy and always complicated. This situation seems to be the best scenario we have seen so far.Edison currently has 25,000 poliices that will be taken over by Florida Peninsula and customer service will be handled by them as well. The policies will remain in tact until the renewal and then renewed under the new company name. This is as easy as it can get. All that needs to be done by the agent  is to  shop for the best rates using all available discounts including the Mitigation inspection whenever possible.Please read the full article below;

http://www.insurancejournal.com/news/southeast/2010/01/27/106888.htm

There is lot’s to learn about all Home Insurance companies writing business in Florida.Prices, losses, reserves and investments are all issues. Even companies like State farm are doing what they are doing(Raising prices) to survive in Florida. Perhaps price is not an issue, but the financial stability??? Even if this was true and even getting all discounts including Mitigation credits and more, price wil always be an issue for most of us. Obviously, you want good service and the correct coverage’s  with the best overall pricing, but price always has been and probabaly will be  more important for most. Please read the full article below;

http://www.myartsubmit.com/31521

Inspection Depot was hired by Citizens Insurance for 400,000 inspections to be redone and this was to be the only company! There was no competitive bidding for this contract as they tried to bypass this problem. They did this because they are giving over 700 million in discounts for Florida Homeowner’s and   Hurricane inspections and they were in a hurry to get them done. A law suit was filed and CFO Alex sink agrees, so this process is now open for bidding.Please read the full story below and see how citizens is abusing your money and not giving the best customer service with you in mind!

http://weblogs.sun-sentinel.com/business/realestate/housekeys/blog/2010/01/citizens_property_insurance_ba.html

Despite 3 years of  no Hurricanes we still have the following issues;

Insurance companies  are in financial trouble.Companies are dropping  hundreds and thousands of people including State Farm who will drop 125K homes starting August  this year. We have price increases averging 15% on a state wide average which means 25-35% here in S. Florida. Insurance companies will restrict the amount of business they will accept and discounts including Wind mitigation discounts could be reduced which causes more  increased premiums. As if this was not enough, the Citizens Property  Insurance company is also re-inspecting 500K  homes to see if the discounts they give ar accurate and if not, you will be charged for an increased premium for the new year and the prior as well. Please read the full artiucle below;

http://www.journaland.com/Art/84090/226/More-Problems-Ahead-This-Year-for-Florida-Home-Insurance.html

With the Lgislative session only a  few months  away and a  huge need for a Viable H0me Insurance market here in Florida, Deregulation is a big topic planned by many! Of the 73 private companies in Florida, 44 of them have underwriting losses  and sharp declines in surplus in 2009.On top of this, 12 companies have been put out of business or are under financial watch over the last 12-18 months.This is a disturbing developement since we have not had a Hurricane hit Florida since Hurricane Wilma in October over 4 years ago.Senate bill 876 and House bill 477  would eliminate rate requests and everyone could charge what they want for the Insurance they sell. Hopefully, the market place and a competitive environment would allow more Insurance companies to start writing business here in Florida. Companies like State Farm, Allstate, Nationwide and many other large comapnies may choose to re enter the marketplace. We still have lot’s of issues besides this like Mitigation Inspections and discounts, Citizens Insurance as a company of last resort  and other issues to be sure. Please read the full article below;

http://www.bradenton.com/business/story/1974188.html

Florida based Home Insurance carriers are loosing money and 2 have gone under, while 2 others  are on the verge. There are only 4  carriers that are truly financially sound in Florida  because pricing is controlled by the state of Florida and the office of Insurance regulation.”This is a perilious situation for Insurer’s, insured’s and agents alike” said Jeff Grady President  of the FAIA.What is needed is the insurer’s ability to charge what they need to run a profitable business like any other. All of the regulations in place make this nearly  impossible.They also support mitigation credits for protectiong your home from Hurricane damages to be lowered as they are causing a lot of the problems and bringing prices way too low. State Farm has been asking for this as well and having this happen before another Hurricane season would certainly be helpful. Please read the full article below.

http://www.insurancejournal.com/news/southeast/2010/01/13/106601.htm

19.1% increase  for all those people in Louisiana means 40% to some! This at a time when most people cannot even afford the homes they live in without this issue occuring. Obviously they are trying to make up Katrina costs among other issues, but I am sure this will not help most people. State Farm did an increase in Florida for about the same and they also took away all discounts as well. On top of this, they are trying to remove or reduce mitigation discounts from all Florida policyholders, but that has yet to be approved by the State of Florida. Mitigation discounts can be a huge savings for most if the home is better protected from Hurricane  claims and other issues.All in all in Florida, State farm policy holder’s that are not dropped, could see increases betweeen 50-100% in some cases.Please read the full story below;

http://www.insurancejournal.com/news/southcentral/2010/01/11/106524.htm

Do you need a HO3,4,6,8 or a DP 1,2,or 3.  Your agent should know what to do, but you should as well. Here is your chance to get educated so you can learn to truly help yourself.There are lot’s of people who simply want to sell and have no care or concern for the client only making a sale. Do you want or need Flood Insurance, Jewlery rider’s called floater policies, or Umbrella policies. What is covered or what should be covered? Do all companies cover the same thing or are some companies like Citizens,Sate Farm and other’s giving less coverage for the same or more money most of the time. Lastly, why do some companies give bigger mitigation discounts than other’s which affects which company a  client should choose from when the agent sells many companies from the  1 agency. Please read the full story below;

http://en.wikipedia.org/wiki/Home_insurance

Please read the full article below;

http://www.insurancejournal.com/news/southeast/2010/01/05/106382.htm