Please call Lee at Acentria Insurance at 954-351-1960 or my cell at 954-270-7966 for free quotes on Home Insurance, Auto, Flood, Private Flood, Car, Business & Commercial, & Life, group & Financial products as well.

HOUSE ENACTS AOB REFORM

 

The Florida House of representatives passed HB 7015 by Representative Trumble and sent it to the Senate in the first week of the legislative session. While not a perfect solution, the bill makes significant changes to the way property repair vendors are restricted in their use of an “assignment of benefits” or “AOB.”   The House bill requires disclosures be provided to insured’s before entering into an AOB. It also moves to a “loser pays” attorney fee system. The House legislation provides the insured with an opportunity to rescind the assignment within 7 days of entering into the contract with the vendor. Further, the bill increases consumer protections and required vendors to provide written estimates of the work to be completed and required the assignee to notify the insurer of the assignment within 3 days of it being executed.   While NAIFA Florida supports eliminating attorneys’ fees to repair vendors altogether, this bill is an improvement over the current system.

 

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Please call Lee at Acentria Insurance at 954-351-1960 or my cell at 954-270-7966 for free quotes on Home Insurance, Auto, Flood, Private Flood, Car, Business & Commercial & Life, group & Financial as well.

In the wake of Hurricanes Harvey, Irma, and Maria, the 2017 hurricane season is projected to be the most expensive in history, with total estimated economic losses exceeding $200 billion.

According to a new report from MacKinsey & Company, each of these three major hurricanes are expected to rank among the 10 most costly insured natural catastrophes on record globally.

Based on their research, McKinsey & Company anticipates that these record-breaking disasters will have a number of effects on the insurance industry.

Here are the key effects of 2017’s historic hurricane season, as outlined by McKinsey & Company researchers:

        • These disasters will, for most insurers and reinsurers, be a story of earnings volatility and not of capital due to the record-high surplus of the U.S. property and casualty industry.
        • Personal-auto and business-interruption insurance will be the biggest unexpected losses, given that flooding is typically not covered in homeowners’ contracts.
        • These consecutive disasters will stress insurance operations, including large-volume claim management and loss creeps, due to spikes in adjustment expense.
        • In the coming months, insurers will likely face a significant consumer experience and public relations risk. Insurers need to go into crisis-management mode and deliberately and proactively address the risk, starting now.
        • The long-term impact on premium rates will depend on the willingness of investors to recapitalize and continue to invest. If investors get scared by a new trend of increased losses in the wake of natural disasters, rate increases may be substantial and contribute to the ending of a prolonged soft cycle.
      • Please read the full article below;
      • http://www.propertycasualty360.com/2018/01/09/lessons-and-consequences-of-the-record-setting-201?eNL=5a5633b1140ba01a4996dd35&utm_source=PC360_PersonalLinesPro&utm_medium=EMC-Email_editorial&utm_campaign=01102018

Please call Lee from Acentria Insurance at 954-351-1960 or my cell at 954-270-7966 for free quotes on Home Insurance, Auto, Flood, Private Flood, Car, Business & Commercial & Life, group & Financial products as well.

The Federal Emergency Management Agency (FEMA) has completed a reinsurance placement with 28 private reinsurers to help the National Flood Insurance Program (NFIP) recover losses it may have to pay in 2018.

Expanding on its first private reinsurance placement last year of $1.042 billion, the 2018 deal calls for FEMA to transfer up to $1.46 billion of the NFIP’s financial risk to the private reinsurance market. This new reinsurance agreement is effective from January 1, 2018, to January 1, 2019.

Please enjoy the full article below;

https://www.insurancejournal.com/news/national/2018/01/08/476500.htm

Please call Lee from Acentria Insurance at 954-351-1960 or my cell at 954-270-7966 for free quotes on Home Insurance, Auto, Flood, Private Flood, Car, Business & Commercial & Life, group & Financial products as well.

Ross Hancock sold his four-bedroom house in Coral Gables, a city of pastel luxury at the edge of Miami, because he was worried that sea-level rise would eventually hurt his property’s value. He and his wife, Darlene, downsized to a small condo on Biscayne Bay, perched atop one of the highest coral ridges in the area. There, he presumed, they would be safer.

Then Hurricane Irma hit.

The September storm pushed water onshore with such force that it penetrated the seams of Hancock’s building, defeating stormproof windows and damaging a third of the units. It knocked out the elevators, ruined the generator, and flooded the parking lot. Months later the park next door remains strewn with mangled yachts hurled from from the ocean.

Hancock’s unit was spared, but he’s facing a potential $60,000 bill from the condo association for his share of what insurance won’t cover. Now, four years after leaving Coral Gables, he and his wife want to move again—this time, out of Florida. But more than two months after listing their property, they haven’t found a buyer.

“It’s not the greatest time to be showing it,” Hancock said, noting the damage to the building. Still, Irma convinced him that it doesn’t make sense to wait. “At some point, we won’t be able to sell.”

Decisions by people such as Hancock to sell their homes demonstrate that one of the great mysteries of climate change isn’t scientific but psychological: When will the growing risks associated with rising seas and more severe storms begin to affect home values in otherwise desirable coastal markets?

Nowhere is that question more pressing than South Florida, which has some of the country’s priciest properties—and some of the most vulnerable. A state built on real estate speculation, whose chief attribute was proximity to the water, now faces a whole new problem: There’s not enough land, high enough above the water, for its residents to pull back from the rising seas. By the end of the century, database company Zillow Group estimates, almost a half-million Miami homes could be—literally—underwater. That’s more than anywhere else in the country.

In a working paper posted this month on Social Science Research Network, an online repository of academic research, professors from the University of Colorado at Boulder and Pennsylvania State University found that homes exposed to sea-level rise sell at a 7 percent discount compared with equivalent but unexposed properties.

Please enjoy the full article below;

https://www.insurancejournal.com/news/southeast/2018/01/02/475789.htm

Please remember to contact Lee at 954-351-1960 or 954-270-7966 for free quotes on Home Insurance, Auto, Flood, Private Flood, Car, Business & Commercial & Life & Financial and Group Health quotes as well.

What is MAAC-Market accountability Advisory Committee. This is a committee of 9 people appointed from various associations in Florida including FAR and FAMB. What Citizens Insurance is doing, should be doing and how to improve what Citizens does is our role. We make recommendations to the actual board of Directors of citizens of which there are also 9 people, but they are appointed by the house, senate, Governor and others who have final say as to Citizens policy including rates. Since I have only attended my first meeting on 12/12/17, my information will grow over time. What I have learned and soon more will is that Citizens is changing and it looks for the better for the consumer. Training on programs like the new managed repair program & AOB are now mandatory for all appointed agents and not doing required training will mean you cannot do business with Citizens. Also, some agents intentionally misquote policies in several ways which can hurt a consumer and make the shopping for Insurance process more complicated, this will soon be rectified as a warning system which can take away the ability to do business with Citizens. These are all steps in the correct path and need to be expedited as more is coming. For Homeowners who currently have homes built from 1979-1994, you may have Poly Pipes in your home which Citizens has been accepting if the home is 30 years or less in age. That program will cease by the spring of 2018 which will make the sale and purchase of those homes more complicated. Lastly was the topic of reinsurance. This is very complicated, but Critical for Florida as most of our Florida based Carriers do not have the money to pay for a Hurricane Irma , Andrew or Wilma and reinsurance picks up the tab. This cost is currently about 60% of your total premium so it is huge. The carriers will now be required to keep more reinsurance and the new assumption could be ,” what if Irma hit Dade county and came up through the middle of the state, what would be the financial impact”. Understanding this and knowing that not only will each carrier need more reinsurance, but the costs are also increasing after the last 2 years, means that Home Insurance rates will also be rising and it could be very significant. It is so important for every Homeowner to shop Insurance rates each year to find the best coverage you can at the best rate and in that order. if you do not have the correct coverage then your claim will not be paid properly. I know the costs are sometimes high and tough, but remember that if you cannot afford the premium, you cannot afford the claim if it happens to you. Please be smart, and safe and feel free to contact me with any questions.

 

Thank you,

 

Lee

Please call Lee from Acentria Insurance at 954-351-1960 or  954-270-7966  for free quotes on Home Insurance, Auto, Flood, Private Flood, Car, Business & Commercial policies and Life & Financial products as well.

The Federal Emergency Management Agency (FEMA) is seeking to recover the full $1.042 billion of its reinsurance coverage to help pay the federal flood insurance program’s losses from Hurricane Harvey. Those paid losses exceeded the minimum threshold for the NFIP’s reinsurance coverage.

Earlier this year, the National Flood Insurance Program (NFIP) transferred $1.042 billion of the NFIP’s financial risk to the private reinsurance markets, marking a key step towards a stronger and more resilient program.

In January 2017, FEMA executed the 2017 reinsurance agreement with 25 reinsurance markets representing some of the largest insurance and reinsurance groups around the globe. The 2017 placement of reinsurance will cover a portion of NFIP losses above $4 billion arising from Hurricane Harvey, saving taxpayers almost $1 billion.

Under the 2017 reinsurance agreement, reinsurers agreed to indemnify FEMA for flood claims on an occurrence basis. It is structured to cover 26 percent of losses between $4 billion and $8 billion, up to a maximum of $1.042 billion. FEMA paid a total premium of $150 million for the coverage.

On November 6, 2017, FEMA surpassed $4 billion in paid claims to insured flood survivors of Hurricane Harvey, triggering the NFIP reinsurance placement. While FEMA is working diligently to understand the full extent of losses to the 2017 NFIP, loss estimates range between $8.5 billion and $9.5 billion, which would mean that FEMA will recover the entire $1.042 billion in reinsurance. FEMA sent initial bills to reinsurers today.

Thus far, the trifecta of Hurricanes Harvey, Irma and Maria generated more than 120,000 NFIP claims, marking the second largest claims year in NFIP history. NFIP said it has paid over $6.687 billion in claims so far, with processing ongoing.

FEMA’s 2017 reinsurance placement was part of a strategy promoting private sector participation in flood-risk management. FEMA is in the process of securing a new reinsurance placement for 2018.

Please enjoy the full article below;

https://www.insurancejournal.com/news/national/2017/12/06/473261.htm

Please call Lee from Acentria Insurance at 954-351-1960 or 954-270-7966 for free quotes on Home Insurance, Auto, Flood, Private Flood, Car, Business & Commercial, & Life & Financial products as well.

An estimated 23 percent of residential and commercial properties in the U.S. are at high or moderate risk of flooding but are outside of designated Special Flood Hazard Areas (SFHA) as identified by the Federal Emergency Management Agency (FEMA), according to data analysis from CoreLogic.

Property owners living within SFHA zones must have flood insurance if there is a federally insured mortgage, while those living outside SFHA zones are not required to have flood insurance. Many property owners choose not to carry flood insurance if it is not required even though their property may still be at risk of flood.

Nationally, more than 29 million properties (29,437,151), or 23 percent, are outside a designated SFHA despite being at what CoreLogic rates as high or moderate risk of flooding. At the state level:

  • Florida has the highest number of properties in this category at 5,055,821, or 54 percent of total properties.
  • Texas has 3,292,082 properties, or 31 percent, and California has 3,114,462 properties, or 29 percent.
  • Looking at only the percentage of properties outside an SFHA, which are at high or moderate risk, Arizona has the highest at 68 percent, followed by Florida at 54 percent and Louisiana at 49 percent.

Please enjoy the full article below;

https://www.insurancejournal.com/news/national/2017/12/06/473276.htm