Flood Insurance Update

It looks like the hope of  a rollback of flood rates is quickly dying.  Congress has yet to put forth a Bill .

 

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Efforts to delay implementation of changes in the federal flood insurance program have run into roadblocks on both sides of Capitol Hill.
The leaders of the House Financial Services Committee say they are standing behind last year’s bipartisan legislation to put the flood insurance program on sounder financial footing even as the implementation of the law has sparked a chorus of complaints from constituents fearing spikes in premiums and plummeting home values.

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Flood Insruance and Real Estate

There has been alot of press and news about flood insurance rates and the negative impact on the real estate market.  The Biggert-Waters Flood Insurance Reform Act of 2012 authorized the National Flood Insurance Program for 5 years until Septemeber 2017.  The Act itself is quite extensive.  In summary the major changes  affecting Florida properties are  as follows;
1. removal of subsidized rates(pre-FIRM Rates) Built Before Decemebr 31, 1974 by 25% a year until actuarial rates are acheived.
a.any residential property that is not the primary residence of the individual
b. any property with severe repetitive losses
c. any business property
d.any new policy or lapsed policy

2. Increase the limit of annual rate increases from 10 to 20 percent.

3. New flood mapping

The residential properties we are seeing being severly affected are those that are built before 1975 that are below the base flood elevation.  On average we are seeing homes in areas with a base flood elevation of 10 feet that are actually built 1- 1.5 feet below the base elevation. Premiums are increasing from $1500 a year to $3500 plus a year.  (Loss of subsidies and base flood requirement)

Many coastal and beach front homes built prior to 1975 are on average 1-2 feet below the base flood elevation. In addition to alot of these properties being used as secondary and rental homes property owners are being hit with a double whammy.

It is my recommendation that you consult with a licensed insurance agent prior to purchasing a property in Florida.

Their are alot of good deals on older properties.   While you may pay less for an older property at time of purchase..the insurancecost could kill you later. 

Matt Lehn
Lehn and Vogt Insurance Group
2980 S Mccall Rd
Englewood, FL 34224
941 698 8876

New Flood Insurance Rules

http://www.youtube.com/watch?v=tpeqSQr3ngY&list=UUHMck7Qh7gAf7o4qnPu84IA&index=2

Good video on history of flood insurance and upcoming changes.

Rates are going up!

Home Insurance Exclusions

Home Insurance Exclusions:  

It’s important for every homeowner to know the ins and outs of his or her home insurance policy, but sometimes knowing what isn’t covered can be just as important as knowing what is.  

1. Mold Damage

Most home insurance companies exclude mold damage from their policies. Unlike a fire or tornado, insurers see mold damage as a problem that grows over time, and homeowners are expected to take preventive measures to prevent mold spores from spreading throughout the home. If left unchecked, mold can cause structural damage to the home as well as serious health issues for residents.

2. Floods, Earthquakes, Landslides

As many homeowners found out in the aftermath of Hurricane Katrina, flood insurance is not covered under a standard home insurance policy. For protection against flood damage, you’ll need to purchase a separate flood insurance policy.

Earthquake and landslide damage are also notable home insurance exclusions. You will need separate coverage for damage caused by these perils.

3. Aggressive Dog Breeds

If your pet is a poodle or a Chihuahua, your home insurance company probably won’t bat an eye. Owning a pit bull, Rottweiler or other dangerous breed, however, may make it difficult—in some cases, impossible—to find home insurance coverage. Depending on your location, insurer and other factors, home insurance exlusions may apply to the following dog breeds:

 •Pit bulls

•Staffordshire Terriers

•Doberman Pinschers

•Rottweilers

•Chows

•Akitas

•Presa Canarios

•Wolf-hybrids

If you own a "blacklisted" breed, you may be charged more for coverage or denied a policy altogether; you can ask your insurer to exclude your dog, in which case you’ll be financially responsible for any damage it causes.

4. Neglect

Insurers expect homeowners to care for their homes and repair minor problems. This includes sealing cracks, minimizing water damage, fixing damaged pipes, scheduling regular inspections and more.

For example, if a storm causes your tree to fall onto your home, you’re probably covered. However, if your tree collapses onto your home because of a termite infection that went unchecked, you may be responsible for the resulting damage.

5. Sewage Backup

Infamous home insurance exclusions include sewer damage. For instance, if a toilet overflows and you have to hire a professional crew to mop up the mess, you’ll probably be left footing the bill. Sewage backup usually isn’t covered by home insurance unless you’ve purchased a separate rider.

6. Luxury Items

If you keep especially valuable items in your home, you probably need to purchase additional theft liability coverage. According to the Insurance Information Institute, most standard home insurance policies only cover up to $1,500 for damage or theft. Items that may require additional coverage include:

•Jewelry

•Antiques

•High-end electronics

•Collectibles

Contact your home insurance agent if you have items that requires additional coverage.

7. Power Outages

The most common and expensive damage occurs when power is restored and a surge of electricity floods the home’s circuits. These blasts of electricity can cause computers to lose information, electronic devices to overheat and large appliances to malfunction. In addition to making use of surge protectors, home insurance companies expect homeowners to unplug all sensitive electronic appliances and leave them unplugged until power is restored.

8. Intentional Damage by a Resident

Intentional damage caused by a resident of the home is not covered by home insurance. For instance, if your teenage daughter purposely sets fire to your home after a heated argument, you’re on your own to cover the losses.

9. War, Terrorism, Nuclear Attacks

If your home is destroyed in a riot, you’re probably covered for the damages. But if a foreign army, terrorist attack or nuclear meltdown damages or destroys your home, your home insurance policy won’t cover you.

10. Trampolines

Insurance companies consider trampolines to be an extreme risk to personal safety—and a lawsuit waiting to happen if a neighbor is injured while jumping on your trampoline. That’s why many home insurance companies refuse to extend coverage to trampolines, and your current insurer may threaten to cancel your policy if you purchase one.

11. Maintenance and Inherent Vice Exclusions

Termite or rodent damage, rust and rot, mold, general wear and tear and other property damage caused by neglect or improper maintenance is not covered under your standard homeowners policy. Damage from power outages, such as spoiled food, is also excluded. Poorly made or defective products are not covered, based on the inherent vice exclusion, which means external factors did not cause the loss.

Proposed PPACA Reporting Rules Obama Care

IRS Releases Proposed PPACA Reporting Rules

 

On Sept. 5, 2013 the Internal Revenue Service (IRS) released the long awaited rules that describe the reporting that plans, employers and insurers will need to provide in support of the individual shared-responsibility and employer shared-responsibility requirements of the Patient Protection and Affordable Care Act (PPACA).  The rules are proposed, so some changes may occur when the rules are finalized.

Separate reporting will be needed with respect to providing minimum essential coverage (which affects both the individual shared-responsibility requirement/individual mandate and the "offer" part of the employer shared-responsibility/play or pay requirement) and offering affordable, minimum value coverage (which affects the "adequacy" part of the play or pay requirement and individuals' eligibility for a premium subsidy.)  The reporting will occur with the same timing as W-2/W-3 reporting - the individual's report will be first due Jan. 31, 2016 based on 2015 coverage and the employer "roll-up" report will be due by Feb. 28 (or March 31 if filed electronically).

The minimum essential coverage report (which is sometimes called the 6055 requirement) will be prepared by the insurer for insured plans and the plan sponsor for self-funded plans.  (A plan sponsor generally is the employer for employer-provided coverage and the board of trustees or committee for a multiemployer plan.)  6055 reporting is only required on individuals who actually elect coverage.  The insurer or plan sponsor will need to report:

• The insurer's or plan sponsor's name, address and employer identification number;
• The name, address and Social Security Number of the named insured;
• The name and Social Security Number (or date of birth if a Social Security Number is not available) of each covered spouse and dependent;
• The number of months each covered person was covered for at least one day;
• The name, address and EIN of an employer sponsoring the plan;
• Whether coverage is through a SHOP exchange, and if so the SHOP's unique identifier.

The minimum value/affordable coverage report (which is sometimes called the 6056 requirement) must be filed by all large employers. (An employer is considered "large" if it has 50 or more full-time or full-time equivalent employees.)  All employers in a controlled or affiliated service group are combined for purposes of deciding if the employer is "large," but each employer in the group will file the 6056 report separately.

Each large employer will need to report:

• The employer's name, address and EIN;
• The name and telephone number of a contact person;
• The calendar year for which the information is being reported (even non-calendar year plans must report on a calendar year basis);
• A certification, by calendar month, as to whether minimum essential coverage was offered to employees (and dependents);
• The number of full-time employees for each month;
• For each full-time employee:
• The months during the year that minimum value coverage was offered;
• The employee's share of the cost of self-only coverage for the least expensive minimum value plan offered to the employee, by calendar month;
• The employee's name, address and Social Security Number and the number of months, if any, that the employee was actually covered

In addition, it is likely that employers will be required to use a series of codes to indicate:

• Whether the offered coverage meets minimum value (60 percent);
• Whether the employee's spouse and/or children are eligible for coverage;
• If a full-time employee was not offered coverage, whether the employee was excluded due to a permissible waiting period, because the employee was not full-time for the month, because the person was not employed for the month, or for another reason;
• If coverage was offered to an employee who is not full-time;
• Whether the coverage met an affordability safe harbor;
• The total number of employees, by calendar month;
• If the employer was not conducting business in any month(s);
• If a member of a controlled or affiliated service group, the name and EIN of all other employers in the group;
• If a member of a controlled or affiliated service group, if the employer expects to remain in the group the next year;
• The name, address and EIN of anyone filing on behalf of the employer;
• If a contributing employer to a multiemployer plan, whether the employee is eligible for that plan because of the employer's contributions, and the name, address and EIN of the administrator of the multiemployer plan.

The IRS has proposed several safe harbors to reduce or eliminate the 6056 reporting, but as it seems unlikely that many employers will be able to meet the criteria, the proposed safe harbors will not be discussed in this Alert.

Interested parties may file comments on the proposed rules until Nov. 8, 2013. Public hearings are scheduled for Nov. 18.  Final rules likely will be published in late 2013 or early 2014.  The proposed rules are here:

Proposed Minimum Essential 6055 Rule.pdf
Proposed Large Employer 6056 Rule.pdf

Obama Care for Business

Highlights of the SHOP Exchange

PPACA requires that a Small Business Health Options Program (SHOP) exchange/marketplace be established in each state for small employers. For 2014, all states will use 50 employees as the cut-off for small employer status.* Beginning in 2016, all states must use 100 employees as the cut-off. The SHOP exchanges/marketplaces will operate similarly to the individual exchange/marketplace, as they will provide a place for small employers to compare and enroll in available health insurance options.

To participate in the SHOP, the employer must offer coverage to all full-time (30 or more hours per week) employees. The employer will determine the amount of its contribution towards coverage. (The regulations do not require that the employer make a contribution, but carriers may impose contribution requirements.) For 2014 in all federally facilitated SHOP exchanges (FF-SHOPS) and a few state-run exchanges, the employer will choose the health plan (QHP) it will offer its employees. Beginning in 2015 in all exchanges the "employee choice" option will be effective. With employee choice the employer will select a specific level or "tier" of coverage--bronze, silver, gold, or platinum--and each employee will select a QHP within that tier. Some state-run exchanges will offer employee choice for 2014. The SHOP will provide an aggregate bill to the employer.

The employer may either offer coverage to all eligible employees through the SHOP serving the area in which the employer has its principal business address or offer coverage through a SHOP in each place the employer has a location. Retirees and COBRA participants may be covered through the SHOP exchange if the employer makes its standard contribution. Sole proprietors are considered individuals and will purchase through the individual exchange, not through a SHOP.

Coverage through a SHOP is considered employer-sponsored coverage, so premiums may be paid on a pre-tax basis if the employer adopts a Section 125 plan.

Both the employer and employee will complete applications to purchase coverage in the SHOP exchange. The FF-SHOP employer application may be found at http://www.cms.gov/CCIIO/Resources/Forms-Reports-and-Other-Resources/Downloads/shop-employer-application-6-12-2013.pdf. The FF-SHOP employee application may be found at http://www.cms.gov/CCIIO/Resources/Forms-Reports-and-Other-Resources/Downloads/shop-employee-application-6-12-2013.pdf. State-run SHOPs may use these applications, or they may design their own.

Small employers may enroll in the SHOP at any time during the year, for a 12-month coverage year. If an employer cannot meet the carrier's participation requirements, which in many states will be 70 percent, it can be required to wait until the annual small employer open enrollment, which will be November 15 to December 15 in all states. Coverage will be effective January 1. Carriers may impose participation requirements at renewal. In many states, employees with coverage through another employer plan, Medicare, Medicaid, the military, or veterans' programs will not be included in the participation calculation, and employees who have purchased individual coverage will be included in that calculation.

Plans in the SHOP exchange will be required to provide the 10 essential health benefits. Deductible limits (generally $2,000 per individual and $4,000 per family) and out-of-pocket maximums ($6,350 per individual and $12,700 per family) will apply.

Small employers that have fewer than the equivalent of 25 full-time workers, an average annual employee wage below $50,000, and cover at least 50 percent of the cost of health insurance coverage for employees may be eligible for a small business premium tax credit when they offer health coverage. Starting in 2014, the maximum tax credit increases to 50 percent, but is available only to small employers who purchase coverage through the SHOP. Nonprofit employers meeting the eligibility criteria can receive credits for 25 percent of the employer's share of premium costs through 2013 and, beginning in 2014, 35 percent of these premium costs for coverage purchased through a SHOP. Additional information on the small business tax credit is available in our Highlights of the Small Employer Tax Credit.
* The FF-SHOPs will use the same method of counting full-time and full-time equivalent employees as is used to determine "large" employer status under the employer shared responsibility/play or pay rules. State-run exchanges may use the state's current definition of employee until 2016.

9/18/2013

Citizens to Raise Rates

Even with reisnurance rates going down, Citizens and many carriers are raising rates. 
http://politics.heraldtribune.com/2013/08/21/citizens-seeks-higher-rates/

Why Sinkholes Form in Florida

Sections of a building at a resort near Orlando’s theme park district collapsed into a sinkhole on Aug. 12, forcing the evacuation of 105 guests in the structure and also dozens of visitors staying in two adjacent three-story buildings.
Sinkholes are as much a part of the Florida landscape as palm trees and alligators. Florida has more of them than any state in the nation. Earlier this year, a man near Tampa died when a sinkhole opened up underneath his bedroom.

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The McGowan Companies consist of: McGowan Program Administrators, a MGU for highly-specialized programs of insurance; McGowan Excess & Casualty, a MGU that specializes in Commercial Umbrella and Excess Liability; and McGowan, Donnelly & Oberheu, LLC, a Wholesale Insurance Broker specializing in Professional and Management Liability.

Experts say sinkholes aren’t occurring at a greater rate than usual but that the high-profile nature of recent one in populated areas has drawn attention to them. There also has been a rise in sinkhole claims in Florida, but insurance officials believe some of those claims are questionable. Here are some answers about why sinkholes form and their costs.

Why Are There Sinkholes in Florida?
Florida’s peninsula is made up of porous carbonate rocks such as limestone that store and help move groundwater. Dirt, sand and clay sit on top of the carbonate rock. Over time, these rocks can dissolve from an acid created from oxygen in water, creating a void underneath the limestone roof. When the dirt, clay or sand gets too heavy for the limestone roof, it can collapse and form a sinkhole. Sinkholes are caused naturally but they can be triggered by outside events.
What Triggers Sinkholes?
Although sinkholes are formed naturally, they can be triggered by heavy rainfall, drought followed by heavy rainfall, tropical storms and human activity. The most common actions by humans that cause sinkholes are heavy pumping of groundwater to spray on oranges and strawberries during freezes to keep them from being damaged, well drilling, excavating, creating landfills, leaking broken water lines and pounding or blasting from construction.
Where Are Sinkholes Most Common in Florida?
Three counties in the Tampa region are known as “sinkhole alley.” Two-thirds of the sinkhole damage claims reported to the state Office of Insurance Regulation from 2006 to 2010 came from Hernando, Hillsborough and Pasco counties. Sinkholes are less common in South Florida, home to the state’s two most populous counties — Broward and Miami-Dade.
How Many Sinkholes Occur in Florida?
The state Office of Insurance Regulation says reported claims from sinkholes have risen in recent years. More than 2,300 claims were reported in Florida in 2006 but that figure jumped to almost 6,700 claims in 2010. There is no geological explanation for the rise and state insurance officials believe many claims are questionable. There must be structural damage to a home for a policyholder to claim a loss from a sinkhole, but insurance officials say claims are often paid without that proof.
How Much Damage Do Sinkholes Do?
The state Office of Insurance Regulation says sinkhole claims in Florida cost insurers $1.4 billion from 2006 to 2010.
Sources: Florida Department of Environmental Protection and Florida Senate report.

Why aren't Property Rates Falling

Florida’s insurance regulator, in response to questions why lower reinsurance costs have not translated into reduced homeowners rates, said insurers have significant leeway in how they incorporate those costs into rates and any changes can take a significant amount of time to implement.
Insurance Commissioner Kevin McCarty, in a letter, sought to explain the role reinsurance costs play in the homeowners market after Chief Financial Officer Jeff Atwater questioned why there has not been a corresponding drop in homeowners’ premiums as prices for reinsurance has come down.

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“If insurance companies can justifiably raise rates on Florida families because the reinsurance market drives the cost up, they can certainly lower the cost for Florida families when reinsurance prices fall,” said Atwater in a letter to McCarty last week.
In a letter responding to Atwater, McCarty said there are a number of reasons homeowners may not be seeing any premium reductions due to decreases in reinsurance costs. The reasons, McCarty said extend from both from the requirements and limitations of state regulations and the fact that each individual insurer has different reinsurance needs.
Florida has no firm rule that insurers must follow when calculating their reinsurance needs. It is up to each individual insurer to decide how much reinsurance to purchase, an amount that can vary from insurer to insurer based on its hurricane exposure, available capital, and other factors.
For example, lower reinsurance costs may give an insurer the ability to purchase additional coverage, thus improving its financial position when it comes to its catastrophic exposure. Financial rating firms such as A.M. Best may also require an insurer to purchase a certain level of coverage to secure or retain a financial rating.
“Several Florida property insurance companies are being required by their rating agency to buy more reinsurance than they initially planned to purchase,” stated McCarty. “This is likely to keep rates up and move addition premium and exposure to reinsurers.”
McCarty said that those factors and others explain why not every individual insurer will see a reduction in their overall reinsurance costs. He also said that even if an insurer sees a reinsurance cost reduction, it may have a minor effect on policyholders’ premiums.
“It is important to remember reinsurance costs make up only a portion of the total homeowners premiums and a reduction in reinsurance costs does not translate into a one-to-one reduction in premium,” wrote McCarty.
Another major reason that reduced reinsurance costs may not be felt by consumers is the amount of time it takes for those costs to be incorporated in policies. The majority of property reinsurance contracts in Florida are timed to begin with the start of the hurricane season on June 1 and expire on May 31 of the following year. Once those contracts are finalized, insurers must conduct an actuarial review to see if any rate changes are warranted on a statewide or territorial area, a process that McCarty said is “time-consuming.”
McCarty said that once that process is complete most insurers seek prior regulatory approval of the rates. Any changes must be filed with the Office of Insurance Regulation at least 90 days before their effective date. State law then requires insurers to give policyholders notice of the new rates at least 45 days before their renewal date.
McCarty did say that his office is working to get a better picture of insurers’ reinsurance expenses. For one, regulators have requested that in their recent rate filings insurers include the specific costs of their 2013/2014 reinsurance contracts.
Even with the complexity of the role of reinsurance within Florida’s market, McCarty pledged that regulators would continue to keep consumers’ interests in the forefront.
“I agree that it is necessary to provide economic relief to Florida families,” wrote McCarty to Atwater. “The OIR will remain vigilant in its review of rate filings in accordance with Florida law to ensure all possibilities for such relief are identified and passed along to consumers.”
A copy of the letter can be found here.

Insurers Continue to Improve Their Home Valuations, Says MSB

The insurance industry is doing a better job adequately valuing residential construction, according to Marshall & Swift/Boeckh (MSB), a provider of building cost information.
MSB’s 2013 Insurance to Value (ITV) Index report for 2013 shows 60 percent of homes in the U.S. are undervalued by an average of 17 percent. These figures represent an improvement from last year’s numbers of 61 percent of homes being undervalued by 18 percent.
The ITV Index has improved dramatically since the 1990s, when nearly 73 percent of homes were undervalued by 35 percent. Insurance companies that have not instituted new underwriting procedures to carefully value coverage limits at the time policies are first written and at the time policies renew still see 73/35 as their statistical norm, according to MSB.
But that is changing.
“A critical mass of carriers are moving to more sophisticated by-peril pricing models,” said Steven Brewer, senior vice president, Underwriting Solutions for MSB. “This is motivating homeowners carriers to validate and archive detailed property characteristic profiles on their legacy books of business.”
Brewer said these updated profiles not only fuel better pricing segmentation, but also allow carriers to identify and update undervalued homes. “This enables them to generate risk-adequate premium on each property in the book, while properly protecting the policyholder,” said Brewer.
Since the movement to by-peril rating sophistication has gained broad acceptance, home insurance writers have begun a more diligent review of their legacy books of business, netting the current 60 percent/17 percent statistic. Along the way, the industry improved coverage and premium adequacy, with nearly $9 billion in lost premiums recovered annually from recalculating the base with more adequate protection for policyholders.
Increased use of modern “component-based” estimating programs has also improved coverage adequacy, since true replacement cost values are now calculated on a risk-specific basis.
The current ITV Index update represents the national average trend for homeowners insurance written in the U.S., according to MSB.
Originally published in Insurance Journal

Lehn Insurance is MOVING

Effective August 1, 2013 our new location will be
2980 S McCall RD
Englewood, FL 34224
https://maps.google.com/maps?q=2980+S+McCall+Rd,+Englewood,+FL&ie=UTF-8&hq=&hnear=0x88c4a98c215ebc9d:0x15d51c541738917c,2980+S+McCall+Rd,+Englewood,+FL+34224&gl=us&ei=o1LpUZ7bIo3g8wSf9IGoAQ&ved=0CC0Q8gEwAA

Flood Insurance

Floods can happen any time and any place, and they can happen fast! Whether you live near the water or not, you should always be ready. Here are some important things you can do to prepare.

4 April 2012

Everyone Lives in a Flood Zone

Did you know that most homeowners policies do not cover flood damage? However, you can purchase flood insurance as a separate policy from your insurance agent.
But do you need flood insurance? In a word, "YES!"
Floods can happen anywhere, anytime. Even an inch of water in your home can cause extensive--and expensive--damage. Consider the following....

• Floods are the most common and costly natural disaster, according to the Federal Emergency Management Agency (FEMA).
• In the past several years, about 60 percent of all declared disasters involved flooding.
• Floods are caused by storms, hurricanes, water backup due to inadequate or overloaded drainage systems, as well as broken water mains. In Florida especially, slow-moving tropical storms can result in significant inland flooding.
• You do not need to live near water to be flooded. Some of the most damaging and costly floods occur hundreds of miles from coasts and river banks.
• Nearly one-third of flood insurance claims come from low-to-moderate risk areas. In areas with the greatest risk of flooding, Special Flood Hazard Areas (SFHAs), a building has a 26 percent chance of being flooded during a 30-year mortgage. Sources: FEMA and the National Flood Insurance Program (NFIP)

What Does a Flood Insurance Policy Cover?

A standard flood policy covers the home's structure (building) for up to $250,000 and its contents up to $100,000. In addition to the building, the structure portion of the policy will typically cover furnace, water heater and air conditioner damage; flood debris clean up; and flood surface damage such as to installed carpeting and tile. The contents portion will typically cover furniture, clothing, electronics, and valuables such as jewelry and art.
If you need an additional amount of coverage based on the value of your home and contents, excess flood policies are available. Check with your insurance agent to learn more about flood policy options and which type of coverage best meets your individual needs. For renters, flood insurance is available for contents coverage up to $100,000. Flood insurance is also available for business owners (nonresidential property owners); standard coverage includes up to $500,000 each for a building and its contents.

If You Wait, It May Be Too Late

Flood insurance is typically subject to a 30-day waiting period, meaning that it will not cover losses incurred within 30 days after the policy effective date. So don't wait until a hurricane is forecast in your area to purchase a flood policy--or it will be too late to have coverage for that storm. If a policy is purchased in connection with a mortgage, the 30-day waiting period does not apply.

Be Prepared Before a Flood

Floods can happen any time and any place, and they can happen fast! Whether you live near the water or not, you should always be ready. Here are some important things you can do to prepare.

• Copy your most important documents (i.e., mortgage papers, deed, passport, insurance policies, bank information). Keep copies in your home above ground level, and store originals in a secure place outside the home, such as a safe deposit box.
• Complete a household inventory ahead of time. The more comprehensive you make the list, the better.
• Take photos of your most valuable possessions (i.e., furniture, musical instruments, electronic equipment) and keep the photos with copies of your important documents. With the photos be sure to include receipts, so that you have proof of the original cost, purchase date, manufacturer, model number, and other details that will help expedite repairs or replacement.
• Have an emergency plan in place for your family. Keep at least a 3-day supply of nonperishable food and bottled water on hand, plus an emergency kit that includes a battery-powered radio.
• Be sure to review your policy coverages with your insurance agent annually, to be sure you have adequate coverage. Between policy reviews contact your agent to discuss any important changes, such as remodeling or new valuables, to confirm you have the coverage you need.

Be Safe During a Flood

Hopefully, you will never have to experience a flood firsthand. But if you do, there are a few things you can do to help stay safe:

• Closely monitor weather advisories, and evacuate if ordered to do so.
• Keep away from downed power lines and any other electrical wires. Electrocution is often a major cause of death in floods.
• Do not walk through a flooded area.
• Just six inches of moving water can knock you down.
• Do not drive through a flooded area. Just two feet of water can lift and move a car, even an SUV. More people drown in their cars than anywhere else during a flood.

Check Out these Helpful Website

• FloodSmart.gov, the official site of the National Flood Insurance Program (NFIP), includes helpful information about the causes of flooding and flood risk scenarios. The website also includes an interactive tool that shows the potential damage and cost a flood could cause to your home. Tips on preparing before a flood and recovering after one are also provided.
• FloridaDisaster.org provides tips on developing an emergency plan for your family. There is even a section for the youngest family members to get involved, "Kids Get a Plan."
• NOAA.gov, the National Oceanic and Atmospheric Administration's website, also includes tips on flood safety and awareness.

Report any property damage to your insurance agent or company representative immediately, and make temporary repairs to prevent further damage. For information about filing an insurance claim after a disaster, contact: Tower Hill Insurance Group Customer Service at 800.342.3407.

“Courtesy of Tower Hill Insurance”  www.THIG.com 

Hurricane Deductibles

The Florida statute makes it clear that the trigger for applying these deductibles is the National Hurricane Center. Any claim for wind damage that results from the time a hurricane watch or warning is issued for any part of Florida, up to 72 hours after a watch or warning ends and anytime hurricane conditions exist throughout the State will be subject to these deductibles.
The actual application of these deductibles is based on a percentage amount of the insured value in the property policy. For example: If the homeowner (this also applies to commercial policies if they have hurricane coverage with percentage deductibles) insures their home for $250,000.00 and elects a 5% hurricane deductible, the deductible that will apply to the loss will be $12,500.00. This is the amount the homeowner will have to pay assuming there are no other exclusions or limitations such as exterior paint damage or other non-covered items or events in a loss that the insured will have to pay out-of-pocket before their insurance begins to pay for the loss. It should be clear that a wind loss from a wind storm not declared a hurricane by the National Hurricane Center may result in a standard deductible which in most cases would be a great deal less.

Don't Text and Drive

Here’s a scary statistic:
If you text and drive, you’re 23 times more likely to have a car crash.

Texting while driving has become the number one driving distraction for many people. Drivers need to be aware of the dangers and keep their attention on the road, not on their cell phones or other mobile devices. Parkview Trauma Centers have developed the Don’t Text & Drive campaign to help educate communities and stop preventable tragedies.

Educate yourself. Take the pledge. Share the message. Don’t Text & Drive.

Florida PIP Changes

Florida, your insurance coverage just changed

Posted

12/20/2012 4:10:00 PM

Referenced Stocks:

Question: In Florida, what changes are there to the PIP coverage? I've heard a lot of talk about changes in 2013, but I don't know the details.
Answer: Even with changes to Florida's no-fault insurance , car owners here are still required to purchase $10,000 worth of personal injury protection (PIP) coverage. PIP will continue pay out 80 percent of medical expenses that are found to be necessary and reasonable , regardless of fault.
However, starting in Jan. 1, 2013, there are changes in Florida concerning how quickly you must receive medical treatment for your injuries and who can treat them. How much you can be paid will depend upon your medical condition -- if your injury isn't declared serious, then you can only receive up to $2,500 in PIP benefits.
Under the revisions to Florida's no-fault law (Florida Statute 627.736 ), you must initialize medical services and care within 14 days of the accident in order for to be eligible for benefits. The law is also strict about who can see you for your initial medical treatment.
Starting in 2013, your initial medical care must be:

• provided by emergency medical services personnel, or
• provided in a hospital, or
• in a facility that owns or is wholly owned by a hospital, or
• provided by a medical doctor, an osteopath, a dentist, or chiropractor.

For follow-up medical treatment to be covered under your PIP benefits, it must be based on a referral from the approved healthcare professional that provided you the initial medical care. Follow up services may be provided by a:

• Hospital
• Ambulatory surgery center
• Medical doctor
• Osteopath
• Dentist
• Chiropractor
• Physician's assistant
• Advanced registered nurse practitioner (ARNP)
• Physical therapist
• Certain health care clinics

Under the changes to the no-fault coverage, massage therapy and acupuncture won't be covered, even if an authorized physician prescribes it.
If the appropriate health-care professional determines that you suffered from an emergency medical condition, then you can receive reimbursement for all medical services and care up to your $10,000 PIP limit. If, instead, you're found to have a non-emergency medical condition, then your PIP benefits are limited to only $2,500.
Florida statute 627.732(16) defines an emergency medical condition as a medical condition manifesting itself by acute symptoms of sufficient severity, which may include severe pain. Without seeking immediate medical attention, your medical condition could result in any of the following:

• Serious jeopardy to your health;
• Serious impairment to bodily functions;
• Serious dysfunction of any bodily organ or part.

A provision in the no-fault law now also allows that after a claim has been made for PIP benefits, an auto insurance company can request that the insured submit to a mental or physical examination by a physician (paid for by the insurer) to verify the initial medical findings.
PIP will continue to pay 100 percent for necessary for reasonable replacement services that may be required due to your injuries and 60 percent of work loss -- up to your limit. Death benefits are capped at $5,000 but are in addition your $10,000 medical and work loss benefits.
All portions of your Florida PIP, except the death benefit, will continue to be subjected to the deductible you selected.

Why the changes?

Florida is trying to curtail the rampant insurance fraud that has taken place under the no-fault system.
The Florida Office of the Insurance Regulation (FLOIR) says that the state established a no-fault system of car insurance to speed up payment for injured drivers and limit lawsuits. However, in recent years the amount of motor vehicle accidents has remained relatively the same in Florida but PIP claims have skyrocketed - nearly 50 percent of fraud investigations are in regards to PIP.
Lawmakers also hoped the PIP reforms would lower car insurance rates in Florida, but thus far the rate filings show the savings to be minimal at best. The state's insurance commissioner says that it appears the PIP revisions are mitigating rate increases instead of producing rate reductions.
The best way to save is to shop around for the cheapest car insurance rates for your coverage needs. Comparison shopping for auto insurance can result in a savings of hundreds of dollars, if not much more. (See "Pocket $1,102 just by shopping around")

Rear-End Drivers at Fault????

Florida Court Allows Drivers to Rebut Presumption of Fault in Rear-End Crashes

Florida’s high court has ruled that drivers that cause an automobile accident by striking another car from behind can still sue the other driver for damages depending on the circumstances of the accident and the other driver’s actions.
The Florida Supreme Court recently ruled [Cevallos v. Rideout No. SC09-2238] in a case that clarified several conflicting lower court rulings on the matter. At issue is to what degree can a presumption that the driver causing a rear-end automobile accident is solely responsible for damages be rebutted under Florida’s tort system.
The case originated in a 2005 accident whereby Maria Cevallos struck the back of an automobile driven by Kerri Anne Rideout. Cevallos claimed that she had been driving four car lengths behind Rideout and slowed her speed to 35 miles-per-hour, but nonetheless eventually could not help making contact with Rideout’s car.
Rideout’s car was stationary after she abruptly “slammed” into another vehicle while driving 45 miles-per-hour and talking on her cellphone.
Florida’s Fourth District Court of Appeals had affirmed a trial court’s ruling that barred Cevallos from suing Rideout based on the presumption that as the driver initiating the rear-end collision Cevallos had no standing in court.
The Supreme Court, however, pointed out that the Fourth District Court’s decision ran counter to other district courts that said the presumption could be rebutted under certain circumstances.
“The presumption of negligence that attaches to a rear driver in a rear-end motor vehicle collision can be rebutted or avoided by the production of evidence from which a jury could find negligence on the part of the front driver that contributed to bring about the injury-production collision,” wrote Judge Jorge Labarga.
Labarga said that given Rideout’s actions there is enough evidence to present to a jury to decide to what degree Rideout might be responsible for the accident and damages suffered by Cevallos.
The court’s reasoning behind the Cevallos decision is based on a similar case in Birge v. Charron No. SC10-1755. In that case, the court laid out the interaction of the presumption that the driver of the car initiating a rear-end accident is solely at fault with Florida’s tort system that is governed by the standards of comparative negligence.
Labarga noted that the presumption is less a legal standard than a method of resolving a legal claim when there is not enough evidence to say which driver may be at fault.
“The rear-end presumption is an evidentiary tool to facilitate a particular type of negligence case where there is an absence of a jury question on the issue of comparative fault,” wrote Labarga.
In cases where the presumption can be rebutted, the cases are then adjudicated under Florida’s comparative negligence system where a jury can decide the degree to which any driver is at fault.
“Florida’s comparative negligence system dictates that recovery be apportioned and diminished based on the comparative fault of all individuals whose negligence contributed to cause and injury,” wrote Labarga.