Florida Home & Flood Insurance Rates on The Rise

The property and flood insurance market in Florida is in a bit of an upheaval.  With an uptick in roof claims, Assignment of Benefits, Lawsuits  and fraud we see rates climbing. Most carriers have filed for a minimum of 15% rate increase and some up to 50%.  Citizens, the State Insurer of last resort I being inundated with policies.(It is beyond capacity in my opinion) While many carriers have stop writing coverage, closed up or limited capacity we see a few that have a solid plan for surviving.  Your carrier ASI/ Progressive has been losing money the last few years and inevitably will take another rate increase albeit they are still quite solvent.  Tower Hill is one of the oldest property insurers in Florida at 50 years old.  They will be converting to a subscriber owned insurance exchange as of 2022 and are extremely well capitalized and managed.   Flood insurance will also see a large rate increase in the coming years. The new FEMA Risk Rating method has driven up rates for preferred homes and high risk homes.  The Private market such as ASI, Tower Hill and Neptune will also see rates rise but will have a more conservative appetite for new business.
Companies like State Farm and Allstate that fled the property market 15 years ago are slowing coming back (SLOWLY). They are also non renewing customers and raising rates. All admitted carriers in Florida are backed by The Florida Guarantee Fund.  In the event of the insolvency of a carrier they will pay up to $300,000 for a loss.  With all that said, what carriers in Florida are capitalized?  ASI/Progressive, and Tower Hill,  are well capitalized and well managed. 

Lehn & Vogt Now Offering Tax and Payroll

 We are happy to announce we have partnered with Magnolia Tax Associates to offer tax preparation and payroll service.  Visit  www.magnoliataxassociates.com for more information.

Lehn Vogt Insurance Mobile Home Insurance

What Does your Home Insurance Policy Cover?

Your homeowner’s insurance policy is designed cover you for losses and damages to an individual residence, along with furnishings and other assets of the home. Homeowners insurance also provides liability coverage against accidents in the home or on the property. home. However, not all policies are the same, and coverages can vary from carrier to carrier. Knowing what your policy says about specific circumstances and risks, and what to expect in case of a loss, can help you make an informed decision about your coverage.

In the language of the homeowner’s insurance industry, “perils” are the circumstances which can cause a loss. HO3 policies can either cover damage caused by Named Perils only, which means that only circumstances specifically outlined in the policy are covered, or All Risk, meaning all circumstances are covered except for those specifically excluded in the policy.

Named Perils

For most Floridians, a standard (HO3) homeowners policy covers a range of Named Perils which typically include:

·       Weather events: lightning, windstorms, hailstorms, and named storms or hurricanes

·       Other events: explosions, falling objects, fire, smoke, or volcanic eruption

·       Acts committed by others: theft, vandalism, malicious mischief, riot, or civil commotion

·       Damage caused by vehicles: cars, aircraft, unmanned drones

Unless specifically named as covered, losses from all other situations are assumed to be not covered.

All Risk

An All-Risk policy will usually have higher premiums, but can cover an even wider range of perils, including:

·       Damages typically not covered without an endorsement or rider: flood, sewer backup, sump pump failure, or personal property damage caused by wind-driven rain

·       Situations related to construction: building ordinance or law stipulations for repair or rebuilding after a loss, or theft of building materials and supplies  

·       Changes to terrain: earth movement, earthquakes, or sinkholes

·       Losses due to off-premises utility service interruption: refrigerated items such as food or other perishables

An alternative to an expensive All-Risk policy is to add a comprehensive rider to a Named Peril policy. Many Companies offers optional endorsements to provide additional coverage.

Deductibles

There are two types of HO3 policy deductibles – one for hurricanes, and another for All Other Perils. Deductibles for All Other Perils can vary depending on a wide range of factors but can usually be lowered by increasing the monthly premium. Conversely, premiums can often be lowered by accepting a higher AOP deductible.

Hurricane deductibles are typically set at 2% of the insured value of the home. A home with an insured value of $350,000 would carry a $7,000 deductible. Many Companies  offers flat rate $500 and $1,000 hurricane deductibles as an option for Florida homeowners, reducing their risk of a high out-of-pocket cost in case of a catastrophic weather event.

Ask your agent at Lehn & Vogt Insurance about what perils are covered under your HO3 policy, what endorsements are available, and how to adjust your deductibles and premiums to find the right balance of coverage and cost for your family.

                                                              

Lehn & Vogt Insurance

2980 S McCall Rd E

Englewood, FL 34223

 941-698-8877

www.lehnandvogt.com

Providing Homeowners Insurance throughout the State of

Water Damage Tip

COVID Insurance Update 4/9/2020

Florida Hurricane Resource Page

Hurricane season is June 1 – November 30 and we urge all Floridians to review their insurance policies, understand their coverages, and protect their homes from the threat of flooding. Florida has one of the highest exposures and levels of risk to tropical weather events in the United States. Since 2016, Florida has experienced three consecutive Atlantic Hurricane Seasons with at least one hurricane making landfall during each season accounting for a combined total of more than $17 billion in estimated insured losses. The resources included below will help you become financially prepared for severe weather and we encourage you to continue monitoring this page for important updates throughout the storm season.Florida Hurricane Resource Page