June 2016


Please call L & S Insurance at 1-888-244-7400 for free quotes on Home Insurance, Auto, Flood, Private Flood, Business & Commercial & Life & Financial Services as well.

Citizens Board of Governors has approved recommended rates for 2017 that equal an average rate increase of nearly 7 percent statewide. The company said the increase is a necessary response to rising non-weather water losses and assignment of benefit (AOB) abuse that is now affecting all regions of the state.

By unanimous vote, board members recommended the 6.8 percent statewide increases for personal lines policyholders, reversing a recent trend of lower rates for all but South Florida customers. Citizens said in a statement that the increase reflects the negative effects the company is experiencing from water losses, AOB abuse and increased litigation that has begun to spread across the state. Citizens’ rate package now goes to the Florida Office of Insurance Regulation (OIR) for approval.

 

Please read the full story below, but most carriers besides Citizens will do increases even larger than this. Beware to shop your rates at L & S Insurance S. Florida!!!

http://www.insurancejournal.com/news/southeast/2016/06/23/418122.htm

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Please call L & S Insurance at 1-888-244-7400 for free quotes on Home, Auto, Flood, Private Flood, Business & Commercial & Life & Financial products as well.

New Updates!!! we have 2 carriers who will also now take Poly Pipes, but not provide coverage for water damage claims. Not a great scenario, but another option to help your closings happen.

Poly Pipes which are grey and look like White PVC, but are Grey have been a huge problem since 2012. No company would accept them and they are a problem for any homeowner. Buyers need to beware that they can and will burst with water damage claims and then they can be 2-3 in a  year once it starts. sellers need to know that a buyer will need to replace them at some point so prices should be adjusted when a home is sold or purchased.

Citizens Insurance will now write a policy on a home that is less than 30 years of age and no history of any water damage claims!!! The claim issue is a huge one since the computers called CLUE will verify a claim has occurred and will cause issues after the policy is issued and after closing. I know most of you do not want issues with your deals and clients so please be careful. The pipes were used in the years 1080-1994 and 30 years old is 1986 and newer which covers most of those years!! The pipes still need to be dealt with, but at least most closings can now happen as long as the pipes are fully disclosed and the cost of repairs is reflected in the sales price. I hope this helps most of you and please remember to give us a call. Please call L & S at 1-888-244-7400 for quotes on Home, Flood, Auto, Business & Commercial, & Life & Financial products as well. Please come to one of my Insurance lunch and learn classes soon or let me know if you have interest in having me do a class at your office.

Thank you and happy selling!!
Lee the HomeInsuranceGuru!!

Please call L & S Insurance at 1-888-244-7400 for free quotes on Home, Flood, Auto, Private flood, Business & Commercial & Life & Financial Insurance products as well.

The frequency and severity of water loss claims in Florida have increased every year since 2010, according to data call results from the Florida Office of Insurance Regulation (OIR). During the same period, there has been a 10 percent increase in severity for claims with an assignment of benefits, (AOB).

The data call was ordered by OIR last October in response to what some in Florida are calling a troubling trend with AOB claims for water losses. OIR then analyzed the data in an effort to shed light on if the AOB provision is being misused in the state.

OIR examined 259,742 water claims – damage that resulted from water pipes bursting, leaks from appliances, etc. – from the top 25 insurers in the state. The reporting insurers, which make up 80.5 percent of the Florida homeowners market, submitted detailed claims information for homeowners (HO3) and dwelling fire (DF) policies in force as of June 30, 2015. The claims were to have closed between Jan. 1, 2010 and Sept. 30, 2015.

Insurers were also asked to include summary information by county for closed claims during that same period for all other perils (AOP), excluding hurricane and sinkhole, as well as open claims as of Oct. 1, 2015 for both AOP and water/roof claims.

The report said that, based on the analyzed data, the frequency of water loss claims has increased by 46 percent since 2010, equaling an average annual increase in frequency of 8.3 percent each year. The severity of water claims has increased 28 percent since 2010, representing an annual increase of 5.4 percent.

OIR’s report states that the combined impact of changes in frequency and severity result in an average increase in water losses of 14.2 percent each year.

State-backed Citizens Property Insurance Corp. has claimed that the increase in losses has been especially significant in Southeast Florida, but that it is starting to be felt in other regions as well. OIR’s data backed up this claim, saying Southeast Florida experienced a 43 percent increase in water claim frequency and a 39 percent increase in claim severity.

Statewide, claims frequency and severity was not as high but the frequency still increased by double-digits for all regions. Severity increased by double-digits in all regions as well, except for North Central Florida and Northeast Florida, which only saw single-digit increases.

“If there were no other perils covered under the policy and no changes in expenses from year to year, an insurer may need to increase its rates by 10 percent or more each year (depending on the insurer’s expenses) just to break even due to the increase in water losses,” OIR said.

Please enjoy the full article below.

http://www.insurancejournal.com/news/southeast/2016/03/02/400663.htm