Hello everyone,
My name is Adam Gurdus and I have been helping a number of people in the South Walton area recently with their insurance needs. I wanted to set up a forum for those who have questions about their personal insurance. Please feel free to ask away and I will do my best to assist and answer your questions. If you would like to reach me personally, I can be reached via email at: adamgurdus@mogil.com[/EMAIL">adamgurdus@mogil.com"]adamgurdus@mogil.com and by phone at 203-661-8126.
Below, please find a few tips for reducing the cost of your homeowner's insurance policy:
1) Increase your deductible- By making the decision to increase your own personal exposure from a $1,000 deductible on your homeowner's policy to a $5,000 deductible, significant savings can be achieved. By making this change, you are saying that in the event of a loss, you will cover the first $5,000 of damage and the insurance company would be responsible for the remainder. Normally, this change will save between 10% and 20% on the annual policy premium.
2) Review your contents coverage- Many times, insurance companies automatically set a value on the contents of the home without actually inquiring with you first. Insurers will normally use 70% of the insured value of the home for the "contents" value on the policy. For a $1,000,000 home, there would be an automatic value of $700,000 of contents. For some, this amount of contents may seem a bit excessive. If that is the case, you have the ability to reduce the amount of contents insurance on your policy. By reducing contents to $350,000 the insured would save at least a few hundred dollars on their policy.
3) Add a Fire & Burglar alarm- By adding a central station fire & burglar alarm, you will take 5%-10% right off the top of the insurance premium. Many times, the savings from having such alarms will be enough to pay for the servicing of the alarm annually.
4) Review your hurricane deductible- BE CAREFUL HERE. By increasing the percentage of your hurricane deductible from say 2% to 5% you can achieve savings on your homeowner's windstorm/hurricane policy. By doing so, you significantly increase the amount of exposure you have. For example, by changing your deductible from 2% to 5% on a $1,000,000 home, the deductible would increase from $20,000 to $50,000. Meaning that you would be responsible for the first $50,000 in a claim situation that arose from a hurricane or windstorm.
Hopefully some of you find this information helpful in reducing your insurance costs.
Replies
68
Beach Lover
I have a couple of questions.
1. Is there a discount on replacing your windows with hurricane resistant impact glass, and if so what is it.
2. We have had 2 years w/ no disasters in FL, while we have been paying astronomical premiums. If we are so lucky to see another few years without catastrophe, should we not see a drastic reduction in premiums.
3. How do insurance companies handle premiums? I heard at one time that each year is treated on it's own, like S-Corp would deal w/ money. That any money on the books at the end of the year is taxed and insurance companies spend it via advertising, bonuses etc to not have it show on their books at the end of a fiscal year.
4. Should'nt there be a separate policy for hurricane insurance, like flood. If you have a house that is high and dry, built like a fortress, and you have taken every step imaginable to insure that it is not damaged in a hurricane, I would think it would only be fair that you have the option to not have insurance for hurricanes?
5. If your answer to #4 is no, then in essence the people that built under the more strict codes and have taken every precaution to assure their homes durability during a hurricane, are subsidising the older houses, and that is socialism, do you agree?
1. Is there a discount on replacing your windows with hurricane resistant impact glass, and if so what is it.
2. We have had 2 years w/ no disasters in FL, while we have been paying astronomical premiums. If we are so lucky to see another few years without catastrophe, should we not see a drastic reduction in premiums.
3. How do insurance companies handle premiums? I heard at one time that each year is treated on it's own, like S-Corp would deal w/ money. That any money on the books at the end of the year is taxed and insurance companies spend it via advertising, bonuses etc to not have it show on their books at the end of a fiscal year.
4. Should'nt there be a separate policy for hurricane insurance, like flood. If you have a house that is high and dry, built like a fortress, and you have taken every step imaginable to insure that it is not damaged in a hurricane, I would think it would only be fair that you have the option to not have insurance for hurricanes?
5. If your answer to #4 is no, then in essence the people that built under the more strict codes and have taken every precaution to assure their homes durability during a hurricane, are subsidising the older houses, and that is socialism, do you agree?
Beach ComberAuthor
1) If you replace all glass and doors with hurricane resistive glass and hurricane resistive doors, you should be eligible for a discount. Although there are many variances from one insurance company to another. Therefore, I cannot speak for all. It would be something that you should inquire with your agent about beforehand to see if it would be beneficial. Although, the peace of mind of having hurricane proof windows and doors can sometimes be beneficial enough.
2) The state of Florida has made a number of changes to its legislature with regard to an insurance company's ability to increase premiums. Therefore, if the next couple of seasons are mellow, you would likely see a decrease in insurance premiums as a result.
3) Insurance companies use premiums in a number of ways. Most importantly, they hold reserves in accounts for large claim situtations. But there is no easy answer to this one as the funds generated by an insurance company can be applied a number of ways within the insurance company.
4) If you have a mortgage, the mortgage company will required you to have the hurricane policy if you are in an area deemed hurricane-prone. Otherwise, if you have no mortgage or other financial interests in your home, you can self insure all you want. Although, in the event of a storm, you may be wishing you had the insurance.
2) The state of Florida has made a number of changes to its legislature with regard to an insurance company's ability to increase premiums. Therefore, if the next couple of seasons are mellow, you would likely see a decrease in insurance premiums as a result.
3) Insurance companies use premiums in a number of ways. Most importantly, they hold reserves in accounts for large claim situtations. But there is no easy answer to this one as the funds generated by an insurance company can be applied a number of ways within the insurance company.
4) If you have a mortgage, the mortgage company will required you to have the hurricane policy if you are in an area deemed hurricane-prone. Otherwise, if you have no mortgage or other financial interests in your home, you can self insure all you want. Although, in the event of a storm, you may be wishing you had the insurance.
SoWal Insider
Adam is our agent and has done a spectacular job for us on our Watersound house.
When I first started getting quotes on insurance for that house they were anywhere from $21,000.00 ~ $25,000.00! I about had a heart attack and did not even bother to tell Flyforfun! He would HAVE HAD a heart attack. Well after meeting Adam our coverage (which is better than the other's I was getting quotes from) for wind and everything we are paying $8,100.00 per year! Yes, that includes wind! I was so excited....OK, that is an understatement!
Adam, tell them about our Hurricane Protection Coverage...you know....the one I like to call our own Swat team.
When I first started getting quotes on insurance for that house they were anywhere from $21,000.00 ~ $25,000.00! I about had a heart attack and did not even bother to tell Flyforfun! He would HAVE HAD a heart attack. Well after meeting Adam our coverage (which is better than the other's I was getting quotes from) for wind and everything we are paying $8,100.00 per year! Yes, that includes wind! I was so excited....OK, that is an understatement!
Adam, tell them about our Hurricane Protection Coverage...you know....the one I like to call our own Swat team.
Edited
SoWal Expert
Good to see that you finally made it on SoWal.com/bb, InsuranceGuru!
Beach ComberAuthor
Adam, tell them about our Hurricane Protection Coverage...you know....the one I like to call our own Swat team.[/quote]
Thanks for bringing that up Beachbummett!!
AIG now offers a program called the "Hurricane Protection Unit" throughout Florida. This program (which is a no-cost benefit on AIG's homeowner's policy) provides back-up generators, tarps, pumps and many other necessary materials after a storm/hurricane. The main idea of this program is to prevent further losses by making such equipment readily available immediately following a storm. The equipment is currently in storage throughout the state. Contractors have already been hired and are obligated to assist AIG's insured's in a hurricane situation.
Thanks for bringing that up Beachbummett!!
AIG now offers a program called the "Hurricane Protection Unit" throughout Florida. This program (which is a no-cost benefit on AIG's homeowner's policy) provides back-up generators, tarps, pumps and many other necessary materials after a storm/hurricane. The main idea of this program is to prevent further losses by making such equipment readily available immediately following a storm. The equipment is currently in storage throughout the state. Contractors have already been hired and are obligated to assist AIG's insured's in a hurricane situation.
Beach Fanatic
Adam: 
to the board. I believe we'll eventually switch to AIG (within a year or so) and it sounds like it will be a good idea. We've spoken by phone and email (you are very quick to respond).
to the board. I believe we'll eventually switch to AIG (within a year or so) and it sounds like it will be a good idea. We've spoken by phone and email (you are very quick to respond).Beach ComberAuthor
Thanks Paula, sounds great. Look forward to hearing from you soon!!
Beach Fanatic
Great to have you on the board. Adam is our insurance agent also. He is a remarkable and knowledgeable young man and is always accessible and quick to return calls and emails. We wholeheartedly recommend him.
Beach Comber
I wonder if you might have any advice: Back in April of 2006 I got lenders placed insurance. I made a terrible assumption that the increase of nearly $300 to escrow was covering the premium. In Sept of 2007 - I found out that the premium that was placed on my house was $25,000 annually. My house appraised for 300K in 2005. This is nuts. I have over $30,000 in escrow debt now. I am lost. It is making my payment (spreading the amount over 4 years max) $700 or more a month. It is killing me. I have tried some government help to no avail. As soon as I found out the premium was so high, I got new insurance. I guess ignorance is not bliss. I actually thought the extra amount going to escrow was doable compared to a lump sum for HOI. I didn't know I could be so royally taken advantage of.... And of course, I feel like an idiot for not researching my own statement (damn automatic payments.)
Do you have any idea if I can do anything about this? It seems incredibly crooked.
Thanks for any adivce you may have....
By the way, my lender is ASC (blood suckers)
Do you have any idea if I can do anything about this? It seems incredibly crooked.
Thanks for any adivce you may have....
By the way, my lender is ASC (blood suckers)
Beach ComberAuthor
Hi BrownDog,
As the premium has already been earned by the insurance company (meaning that the policy term has already expired and the coverage was used) there is very little recourse you have. Other than to find an alternative way of financing the remaining balance, I can't really give you any ideas on this one.
Some of the premiums I have seen for homes valued at less than half a million dollars have been shocking. $30,000 a year to insure a $300,000 home is ABSURD!!!!! Thank goodness the state of Florida has started to take steps in the right direction to prevent the average Floridian from getting blind-sided by insurers.
Best of luck BrownDog!!
As the premium has already been earned by the insurance company (meaning that the policy term has already expired and the coverage was used) there is very little recourse you have. Other than to find an alternative way of financing the remaining balance, I can't really give you any ideas on this one.
Some of the premiums I have seen for homes valued at less than half a million dollars have been shocking. $30,000 a year to insure a $300,000 home is ABSURD!!!!! Thank goodness the state of Florida has started to take steps in the right direction to prevent the average Floridian from getting blind-sided by insurers.
Best of luck BrownDog!!
Beach Comber
I have great news, I got a letter form my mortgage company today that says I owe zero in escrow, and a check refunding what I had paid against the balance. I couldn't believe it. I am so happy. I had filed a formal complaint, and somehow, someway, it worked in my favor!
I just thought I'd share the good news...
I just thought I'd share the good news...Beach ComberAuthor
That is great news BrownDog!! And how coincidental to happen right when you were inquiring about how to get out of the problem? Glad to hear it worked out in your favor!
Beach Fanatic
I just got off the phone with Adam, and although he wasn't able to quote a policy for me he answered a lot of questions! Thanks Adam! It was a very informational call, and in the few minutes I talked with him I learned more than I do when I talk to my own agent. Thanks again Adam for your help!!!
Beach ComberAuthor
Interesting Homeowner's Insurance news.....
Below are a few interesting articles I came across recently. The first one might make some of you feel a little better. It is about coastal towns in Rhode Island which are starting to experience large rate increases due to coastal exposure. The others relate to Florida insurance rate increases and legislation.
http://www.eastbayri.com/story/315298700780591.php
http://story.waltonsun.com/article.display.db.php?a=2266
http://www.wptv.com/news/local/story.aspx?content_id=970e008e-5f7e-4ab4-8f33-7d9c40c4814b
http://www.sptimes.com/2007/11/20/Opinion/Florida_s_insurance_f.shtml
Below are a few interesting articles I came across recently. The first one might make some of you feel a little better. It is about coastal towns in Rhode Island which are starting to experience large rate increases due to coastal exposure. The others relate to Florida insurance rate increases and legislation.
http://www.eastbayri.com/story/315298700780591.php
http://story.waltonsun.com/article.display.db.php?a=2266
http://www.wptv.com/news/local/story.aspx?content_id=970e008e-5f7e-4ab4-8f33-7d9c40c4814b
http://www.sptimes.com/2007/11/20/Opinion/Florida_s_insurance_f.shtml
SoWal Insider
I would have to say the actions of the insurance industry proves the need for state regulation. My insurer won't insure 2nd homes. If my primary were at the beach, they would write it. Makes no sense whatsoever. Premiums are all over the map.
Beach ComberAuthor
The wealthy may have it easier than everyone else when it comes to insurance. The article below explains....
http://money.cnn.com/news/newsfeeds/articles/newstex/IBD-0001-21662477.htm
http://money.cnn.com/news/newsfeeds/articles/newstex/IBD-0001-21662477.htm
Edited
Beach Fanatic
Yes. I recently discovered how this works when my insurer decided to leave Florida. Because my home is older and relatively "low" value, nobody will insure it except Citizens. :angry:
I guess the fact that my house has survived quite a few major storms doesn't count for squat.
If it were a car, it would have been deemed to have passed the crash test.
I guess the fact that my house has survived quite a few major storms doesn't count for squat.
If it were a car, it would have been deemed to have passed the crash test.Beach ComberAuthor
It really is sad how insurer's can have the choice of giving an insured the "boot" when no claims or losses (or only minimal claims) have been experienced. The worst injustice is when the homeowner is left with the only option of placing insurance with a more expensive, less financially-stable competitor. The lack of healthy competition in the smaller home market is certainly something that should be addressed.
SoWal Expert
I would have to say the actions of the insurance industry proves the need for state regulation. My insurer won't insure 2nd homes. If my primary were at the beach, they would write it. Makes no sense whatsoever. Premiums are all over the map.
Why do they differentiate between primary & secondary? Do they figure if it's primary there will be better maintenance and storm prep?
Insurance is such a scam. They can whine about about how much they had to pay out as a justification for screwing folks over w/ the rate hikes and dropped coverages, but I've yet to see the payout compared to the premiums paid over the years. I'm thinking the latter is still a much higher number. :angry:
I know I'd rather take shelter in a 70s block house that has survived many a storm than an untested wood frame house built during the recent frenzy.
Beach Fanatic
It really is sad how insurer's can have the choice of giving an insured the "boot" when no claims or losses (or only minimal claims) have been experienced. The worst injustice is when the homeowner is left with the only option of placing insurance with a more expensive, less financially-stable competitor. The lack of healthy competition in the smaller home market is certainly something that should be addressed.
Yes it should be. i have had Nationwide Insurance for 13 years and they "non-renewed" me this year. This is after my agent told me I was not on the 2008 list.
I was told Nationwide is pulling out of Florida by "firing" all it's agents. The agents are no longer Nationwide employees, but independent insurance agents who can no longer write Nationwide Home Insurance.
I am really screwed because no one will insure my house because it is considered damaged, it's full of mold.
The only storm claim I have ever filed was after hurricane Opal. The mold issue was and is caused by builders defects, so I can't claim anything on my homeowners.
I agree that insurance is a scam in Florida. My premiums were over $5,000.00 per year and have been paid on time every year.
SoWal Insider
Yes it should be. i have had Nationwide Insurance for 13 years and they "non-renewed" me this year. This is after my agent told me I was not on the 2008 list.
I was told Nationwide is pulling out of Florida by "firing" all it's agents. The agents are no longer Nationwide employees, but independent insurance agents who can no longer write Nationwide Home Insurance.
I am really screwed because no one will insure my house because it is considered damaged, it's full of mold.
The only storm claim I have ever filed was after hurricane Opal. The mold issue was and is caused by builders defects, so I can't claim anything on my homeowners.
I agree that insurance is a scam in Florida. My premiums were over $5,000.00 per year and have been paid on time every year.
Do you own the house outright? If not, the lender usually requires you to insure the house.
/
Beach Fanatic
Do you own the house outright? If not, the lender usually requires you to insure the house.
/
No, I don't own it outright, that is where the problem is. I can't get insurance as of March. No one will write a policy on the house. And the house is in litigation.
Unfortunately, the opposing side is content on trying to bankrupt me. I have moved out of the house because of the infestation, as I was very ill after living in it for 2.5 years.
SoWal Insider
No, I don't own it outright, that is where the problem is. I can't get insurance as of March. No one will write a policy on the house. And the house is in litigation.
Unfortunately, the opposing side is content on trying to bankrupt me. I have moved out of the house because of the infestation, as I was very ill after living in it for 2.5 years.
Are you considering making everything the "bank's problem?"
.
SoWal Insider
Why do they differentiate between primary & secondary? Do they figure if it's primary there will be better maintenance and storm prep?I'm guessing that second home exposure in Florida is mostly at the coast. What's crazy is that there are surely some folks who live at the beach, but my insurer won't cover a second home inland.
Insurance is such a scam. They can whine about about how much they had to pay out as a justification for screwing folks over w/ the rate hikes and dropped coverages, but I've yet to see the payout compared to the premiums paid over the years. I'm thinking the latter is still a much higher number. :angry:
I know I'd rather take shelter in a 70s block house that has survived many a storm than an untested wood frame house built during the recent frenzy.
Beach Fanatic
Are you considering making everything the "bank's problem?"
.
No, Shelly. That is not the way I work. I have a wonderful relationship with my bank and I don't want to risk that. The lot is worth more than what I paid for the house, however, I am worried that I may not have the choice.
I can't afford to self insure and I also can't afford to pay off the mortgage.
I am upset at Nationwide insurance. I am a good insurance client. Frankly, I like what i have and will take care of it so if there was a claim, the loss would be minimal. I pay my premiums on time, I adjust the insurance every year to fit the value of the home, I have 5 policies with Nationwide including car, inland marine, liability, etc. I will move everything to another carrier if one would insure my home.
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