Hurricane Updates


Please call Lee from Acentria Insurance at 954-270-7966 for free quotes on Home Insurance, Auto, Flood, private Flood, Car, Business & Commercial Insurance as well as Life , Health and all group benefits large & small

This article talks about coverage being available for most carriers, but not about prices. Reinsurance carriers suffering losses will raise rates to the carriers who will trickle it down to the consumer. The hope is that non renewal letters do not go out, putting many back into Citizens Insurance where they are not wanted or welcome, but may have to be???

 

Losses to the insurance industry from Hurricane Michael, a Category 4 storm that hit the Florida Panhandle before continuing a path of destruction through several other Southeast states, will be substantial but not enough to cause problems for insurers or a pullback in capacity, experts say.

Ohio-based ratings firm Demotech, which rates 52 Florida-based insurers as well as others in surrounding states affected by Michael, said these companies are well positioned to handle losses. “Demotech believes that each of the carriers that we review and rate that are exposed to loss and LAE from Hurricane Michael have in place a rigorous and vigorous catastrophe reinsurance program,” Demotech President Joseph L. Petrelli told Insurance Journal.

Others agree that Florida’s heavily-reinsured domestic insurers and an overall well-capitalized insurance industry should be able to handle Michael’s losses without major disruption.

A report by A.M. Best said depending on the severity of losses, primary insurers will likely share the loss burden with traditional reinsurers and alternative capital providers. Reinsurers with an outsize concentration in Florida will be more vulnerable than those with globally diversified catastrophe exposures, Moody’s said.

Please enjoy the full article below;

https://www.insurancejournal.com/news/southeast/2018/10/15/504465.htm

Advertisements

Please call Lee from Acentria Insurance at 954-270-7966 for free quotes on Home Insurance, Auto, Flood, Private Flood, Car, Business & Commercial & Life, Health Group and all financial products

In a significant turn of events in the insurance industry’s fight against Florida assignment of benefits (AOB) abuse, Florida’s Fourth District Court of Appeal (DCA) has ruled that an insurer’s anti-assignment provision was not prohibited.

But the battle isn’t over yet as it is likely this decision will be brought to the Florida Supreme Court.

The Fourth DCA ruling came on Sept. 5, 2018 in the case of Restoration of Port St. Lucie, a/a/o, John and Liza Squitieri v. Ark Royal Insurance Co., in which the court disagreed with a decision by the Fifth DCA in Dec. 2017 prohibiting any such conditions.

The Fourth DCA found that a homeowner’s insurance policy may contain a restriction requiring the consent of all of the insured and the mortgagees before a valid assignment of benefits. The ruling could allow insurers to seek to use these restrictions to stem the rise of fake or exaggerated claims and allow parties with valid, vested interests in a property to have a say in the assignment. The ruling could be a turning point in stemming abuse of AOBs that is leading to increased homeowner insurance rates statewide.

Please enjoy the full article below;

https://www.insurancejournal.com/news/southeast/2018/09/20/501785.htm

Please call Lee from Acentria Insurance at 954-270-7966 for fee quotes on Home Insurance, Car, Flood, Private Flood, Auto, Business & Commercial & Life, Health & group benefits of all types.

Evacuations, already affecting more than 1 million people in and around North Carolina, start the clock ticking on business-interruption insurance policies, which help replace lost income for companies when natural disasters strike. Hartford Financial Services Group Inc. and FM Global are among insurers with exposure in the region that are sending staff to help with anticipated claims.

“You’d have to expect, just based on the forecast, that it’s going to be a significant impact to businesses,” including prolonged disruptions, said Rick Miller, head of the U.S. property practice at Aon Plc. “Certainly businesses that take a direct hit, their facilities could be impacted for months.”

Making matters worse for insurers, forecasters say that Florence may stall over land, potentially dumping rain for days and causing power failures. The storm, expected to make landfall late Thursday or early Friday, may trigger “catastrophic flash flooding,” the National Weather Service said. Companies from agricultural firm Cargill Inc. to carmaker Daimler AG suspended operations in Florence’s path.

Florence could become the most powerful storm to hit the area in more than 60 years if its intensity continues. One estimate pegged the potential total costs of the storm at $30 billion.

Please enjoy the full article below

https://www.insurancejournal.com/news/southeast/2018/09/12/500783.htm

Please call Lee from Acentria Insurance at 954-270-7966 for free quotes on Home Insurance, Auto, Flood, Private Flood, Car, Business & Commercial & Life, Health & all group products.

“I think the number one thing the insurance industry can do is link AOB (assignment of benefits) to the impact that it’s having on the individual consumer and the huge impact it’s having on the premiums that the consumer’s paying,” Barry Gilway, president, CEO and executive director of Citizens Property Insurance Corp. told attendees in a recent Insurance Journal webinar on Florida AOB abuse

Education, education, education, Gilway said, will be critical to slowing the Florida AOB epidemic that is leading to higher insurance rates, reduced coverage and a potential insurance market crisis in the state.

Gilway was one of a panel of four experts participating in the “Florida AOB Crisis: Where Does the Industry Go from Here?” webinar conducted by Insurance Journal on June 26.

Logan McFaddin, regional representative for the Property Casualty Insurers Association (PCI), Paul Huszar, CEO of remediation contracting company VetCor, and Patrick Wraight, director of the Insurance Journal Academy of Insurance, joined Gilway in discussing the AOB situation in Florida and ways to rein in what they all agreed is runaway abuse.

The AOB problem in Florida stems from unlicensed water remediation and roofing contractors who have homeowners sign over their insurance policy rights in exchange for needed repairs to their homes. The contractors, typically working with an attorney, file inflated or fake claims, and then pursue lawsuits against insurers when those claims are disputed or denied. Because of Florida’s one-way attorney fee statute, insurers are left footing the bill for the inflated claims and the attorney fees if the insurer is found to have underpaid the claim by any amount.

Carriers across the state have seen an increase in litigation because of these inflated claims. According to the Florida Department of Financial Services, there were 405 AOB lawsuits across all 67 Florida counties in 2006, and by 2016 that number had risen to 28,200.

But Citizens, the state-run insurer of last resort, has borne the brunt of the abuse. It reported in its 2019 rate hearing in June that it would spend $70 million this year defending AOB-related litigation – equal to 17 percent of its total premium.

Please enjoy the full article below;

https://www.insurancejournal.com/news/southeast/2018/07/19/495520.htm

Please call Lee from Acentria Insurance  at 954-270-7966 for free quotes on Home Insurance, Auto, Flood, Private Flood, Car, Business & Commercial & life , Health & all types of group & business products.

On the official start of the 2018 Hurricane Season, Florida Chief Financial Officer (CFO) Jimmy Patronis reminds Floridians of the importance of financial preparedness before the next storm. CFO Patronis warns that homeowners insurance policies contain limitations and exclusions and it is important to review your policy to understand your coverages.

“Last year, Hurricane Irma alone resulted in more than $8 billion in insured losses. If you haven’t already, now is the time to financially prepare for the 2018 Hurricane Season,” said CFO Jimmy Patronis. “Understanding your insurance coverage is a vital part of the hurricane preparedness process. Check your homeowners insurance policy and understand what is covered and what is excluded so that you have adequate coverage.”

Homeowner’s insurance policies vary from company to company. Here are eight insurance coverages you may consider for hurricane season:

Windstorm Coverage (if not included in your current homeowners policy).
Windstorm coverage may be excluded if you live in a wind pool area (generally within 1,000 – 1,500 feet of a body of water, such as the gulf or the ocean).

Flood Insurance (if not included in your current homeowners policy).
Flood coverage may be included in your current homeowners policy by endorsement, or a separate policy may be issued. This coverage is important to have even if you are not in a designated flood zone.

Food Spoilage.
Food spoilage is not always covered by most policies; however, if the coverage is included, most companies cover food spoilage due to a power outage caused by direct physical damage on the insured premises.

Sinkhole Coverage.
This covers sinkhole losses on any structure, including personal property. Coverage may be restricted to the principal building, as defined in the policy.

Additional Living Expenses/Loss of Use.
This provides for the “additional” expenses of living elsewhere due to a loss to the insured residence by covered damage.

Inflation Guard Endorsement.
This endorsement may be added to most policies and provides for an automatic percentage increase in coverage amounts to help keep your coverage aligned with current construction costs.

Replacement Cost Endorsement.
This pays up to the limits for the replacement of a damaged or destroyed home or property, without deducting depreciation. This is different from Actual Cash Value, which pays for the actual value of damaged items and does not consider depreciation.

Law and Ordinance.
This pays an additional amount to apply towards the cost to rebuild or repair damages due to the enforcement of any ordinance or law regarding construction, repair, or demolition.

Consumers should speak with their insurance agent or company to confirm the coverages on their policy as soon as possible. Once a storm develops, their insurance company may be under binding restrictions, and they may be unable to obtain a separate policy or add these important coverages to their current policy. Consumers should keep in mind that some property insurance companies offer flood coverage as an endorsement to the homeowners’ policy, and typically there is a 30-day waiting period to obtain coverage through the National Flood Insurance Program (NFIP).

Please call Lee from Acentria Insurance at 954-270-7966 for free quotes on Home Insurance, Auto, Flood, Private Flood, Car, Business & Commercial & Life Health & group benefits as well.

“You can run the models all day,” said panelist Steven Kelner, managing director and head of U.S./Canada Analytics at Guy Carpenter & Company LLC. “But when you go down to Houston and look at neighborhoods, there were huge neighborhoods where the whole neighborhood was deemed not flood exposed. And the whole neighborhood but a house or two was flooded, because the maps weren’t accurate; because the data wasn’t up-to-date.”

With this in mind, the industry will need to rethink its approach to cat modeling as it continues learning from recent natural disasters including hurricanes and wildfires, panelists agreed.

“There’s a lot of complexity in getting a cat model to run accurately,” Kelner said. “For example, I can turn [GPS] mapping software on, and it will tell me how long it will take to get from Trenton to Philadelphia at 5 p.m. But the mapping software doesn’t realize that at 5:45 p.m., there’s always a backup. So we need to still have common sense in our day-to-day.”

Panelist John Langione, chief risk officer at QBE North America, agreed, adding that “models are great, but they’re part of the process.”

The challenge for the insurance industry comes in recognizing the importance of using modeling software for pricing, while not becoming overly reliant on the models themselves and looking instead to historical elements to understand exposure and risk, said panelist Bruce Jones, executive vice president and chief risk officer at The Travelers Companies Inc.

“You have this sort of tug-of-war between actual experience and models and trying to make sure that as you’re thinking about it both from a pricing perspective and from a capital perspective, you do have a total view of what’s going on,” he said

Please enjoy the full article below;

https://www.insurancejournal.com/news/national/2018/07/16/495213.htm

Please call Lee from Acentria Insurance at 954-270-7966 for free quotes on Home Insurance, Auto, Flood, Private Flood, Car, Business & Commercial Policies and Life, Health & group products as well.

 

Scientists at Colorado State University’s Tropical Meteorology Project have decreased their forecast and now believe that 2018 hurricane season will have below-average activity.

According to the forecasters, the tropical and subtropical Atlantic is currently much colder than normal, and the odds of a weak El Niño developing in the next several months have increased.

With the decrease in the forecast, the probability for major hurricanes making landfall along the United States coastline and in the Caribbean has decreased as well, report Philip J. Klotzbach and Michael M. Bell.

The Colorado team now estimates that the rest of 2018 will see additional 4 hurricanes (median is 6.5), 10 named storms (median is 12.0), 41.50 named storm days (median is 60.1), 15 hurricane days (median is 21.3), 1 major (Category 3-4-5) hurricane (median is 2.0) and 2 major hurricane days (median is 3.9).

The forecast cites a 22 percent probability of a direct hit to the eastern United States; the average is 31 percent.

Please enjoy the full article below;

 

https://www.insurancejournal.com/news/national/2018/07/05/494264.htm

Next Page »