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.