PSLBW Guest Speaker Addresses Florida Property Insurance Market – InsuranceNewsNet
What drives price increases? Post explained that insurance rates are based on shared risk. Insurance companies buy reinsurance, which is insurance for insurers, allowing companies to limit their losses when settling claims by spreading the risk of exposure to a major catastrophe. There have been many global catastrophes in recent years, affecting the cost of reinsurance. The increase in reinsurance costs is then passed on to consumers.
Until a recently passed state law reduced the time to file a claim from three to two years, insurance companies were paying claims dating back to 2017 and 2018, when Hurricane Irma and the Hurricane Michael landed. Repair costs are higher today than when the damage originally occurred, compounded by material shortages.
In addition, there has been a considerable increase in home insurance claims. To better understand what happened and why, watch the
In 2020, 80,000 lawsuits were filed in
“What a lot of people don’t realize is that more than two-thirds of the money awarded in these types of lawsuits goes to attorney fees, not the landlord,” Post said. “It’s a big cost factor,” she added. Message referring to the survey
The predatory practices of roofing companies and other contractors have also taken their toll. “Any contractor or sales representative telling you that you won’t have to pay your insurance deductible is committing fraud,” Post said. “Do not be tempted by such a statement.”
She also warned not to sign any documents regarding an assignment of benefits. She warns that this could disenfranchise you and allow a contractor to sue your insurance company. Instead, she suggested doing a payment directive, where an insurance company pays the contractor directly. For more information, she recommends consulting the website of the
What can a homeowner do to help control the cost of their insurance premiums? Post recommends tracking home maintenance just like you would your car. She noted that you wouldn’t ignore your tires until they frayed or exploded. A car needs regular checkups and scheduled maintenance to make sure it’s in good working order and to spot any problems that need repair.
“Consider replacing a shingle roof if it’s over 15 years old,” Post suggested. Tiles and metal will likely need to be replaced after 25 years.
“Get wind mitigation and a 4-point inspection looking at roofing, electrical, plumbing and HVAC. This is especially important for older homes,” she added. Inspectors will examine circuit breaker boxes, water heaters, exteriors, roofs, driveways, plumbing fixtures, etc., to find any issues that may affect your ability to get coverage. Plus, these inspections can reveal a problem that a homeowner was unaware of, allowing them to fix a problem before it becomes a major expense.
Ask yourself how much you are willing to insure. Premiums can be reduced by adjusting deductibles, coverage limits, endorsements and exclusions. Display warnings to read your policy details carefully. If a premium goes down, find out what is no longer included in your insurance policy. Then talk to your agent.
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