Homeowner's Insurance -Questions Forum

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.

I'm assuming the bank has more equity tied up in your home than you do (assuming that the bank holds the note, which is doubtful). If you can't get insurance, and the loan documents specifically state you've gotta insure the property (which I'm sure it does) then they should assist in helping you track some down--granted, you might not like the rate--if you've got a wonderful relationship with them, take the insurance problem to them.




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I'm assuming the bank has more equity tied up in your home than you do (assuming that the bank holds the note, which is doubtful). If you can't get insurance, and the loan documents specifically state you've gotta insure the property (which I'm sure it does) then they should assist in helping you track some down--granted, you might not like the rate--if you've got a wonderful relationship with them, take the insurance problem to them.




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Already there. We are working on it. Shelly, the bank holds my note. Why would you say it is doubtful? And why would you say the bank has more equity than I do? It is my home, I bought it 13 years ago and have equity in the house. The bank doesn't have the equity, they don't own the house.

A question for the Insurance Guru -- is there any advise you can give people looking to buy a home in the area regarding the cost of insurance on various properties? The cost of insuring a house is almost as important as the cost of the house itself, but I feel like we can only make wild guesses about what that number would be. It makes it almost impossible to compare houses, because really the cost of owning a home is the price of the house + the price of insuring the house, and we can only know one of those numbers.

Yippie, Citizens won't insure it either? I thought they were required to insure properties that nobody else would.

What a mess. Wish I knew how to help.

Yippie, Citizens won't insure it either? I thought they were required to insure properties that nobody else would.

What a mess. Wish I knew how to help.

Yes, it is a mess. The property is considered damaged. No one will insure a damaged structure. Especially when it is vacant.

Hey Yippie,

The bank should be able to obtain insurance for you, although the premium is guaranteed to be significantly more than your Nationwide policy. When was the mold issue first recognized? And, it has been confirmed to be a result of contractor error?

A question for the Insurance Guru -- is there any advise you can give people looking to buy a home in the area regarding the cost of insurance on various properties? The cost of insuring a house is almost as important as the cost of the house itself, but I feel like we can only make wild guesses about what that number would be. It makes it almost impossible to compare houses, because really the cost of owning a home is the price of the house + the price of insuring the house, and we can only know one of those numbers.

Hi Rapunzel,

The major factors that determine the insurability of a home are the age, type of construction, distance to water, elevation, and general security.

If you could provide a few details on the houses I would be able to provide some rough estimates for you. My contact info can be found in the first post, please feel free to contact me at your convenience.

Why do they differentiate between primary & secondary? Do they figure if it's primary there will be better maintenance and storm prep?

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.

The major differentiantion for secondary residences is who is occupying the dwelling (or in many secondary home cases, who isn't). No insurance company really wants to insure a vacant property. The risk of a claim on a vacant property is significantly higher as the time to respond can be delayed if no one is around to witness the damage. Therefore, some companies choose not to insure them. Although, you can see if moving other policies to the insurer (i.e. collections, umbrella, yacht, auto) might entice them to try and assist you.

The specifications of the home may also prevent the insurer from taking your insurance on. If your primary was built in 1999 but the secondary was built in 1978, the Ins Co figures that the quality of construction of the 1978 home is mediocre (even though it may have survived 10 storms) due to the changes in Florida's construction codes over the years.

Hey Yippie,

The bank should be able to obtain insurance for you, although the premium is guaranteed to be significantly more than your Nationwide policy. When was the mold issue first recognized? And, it has been confirmed to be a result of contractor error?

The bank can get insurance on the mortgage, but not the structure. It insures them, but if the house blew down, they would come looking for me.

The mold issue was first recognized after hurricane Dennis, July 2005. It was reported to the builder then.

The house is in litigation. Nationwide will not pay a claim, they do not cover contractors errors. Since the house is now in court, everyone is denying everything and trying to blame, for example a new roof that was put on the house 4 months after I reported the mold. It's just a nightmare.

The major differentiantion for secondary residences is who is occupying the dwelling (or in many secondary home cases, who isn't). No insurance company really wants to insure a vacant property. The risk of a claim on a vacant property is significantly higher as the time to respond can be delayed if no one is around to witness the damage. Therefore, some companies choose not to insure them. Although, you can see if moving other policies to the insurer (i.e. collections, umbrella, yacht, auto) might entice them to try and assist you.

Could you skirt this by having a full-time "caretaker" who sublets?

Could you skirt this by having a full-time "caretaker" who sublets?

It changes the situation around a little. The house is now considered "occupied" and most importantly not designated as "vacant". Although, the property is not "owner occuped" which has a different rating that companies are more inclined to write Having a full-time occupant could change the rating around enough to make the difference in your insurer's ability to write the policy.

Extra security measures in place at the home (back-up generator; superior construction; hurricane doors windows, etc.) can also help your cause so be sure to inform the agent.

Current State of Affairs in FL Home Insurance

Please find the following articles regarding the state of affairs of homeowner's insurance in Florida:

http://www.bizjournals.com/tampabay/stories/2008/01/07/daily36.html

http://www.news-press.com/apps/pbcs.dll/article?AID=/20080109/SS04/801090375/1075

http://www.orlandosentinel.com/business/orl-insure0708jan07,0,1787810.story

This one I am sure a couple of you can relate to:

http://insurancenewsnet.com/article.asp?a=top_lh&neID=200801061180.3.165_7f000000001f346d

We were notified last week that State Farm will no longer insure our home in Sandestin. We were told that we will be picked up by Citizen's and the premium will be about the same. Anyone else insure with State Farm?

Recent Articles on Homeonwer's Insurance in Florida

Below, please find a couple articles which detail the ongoing legislative hearing involving ALLSTATE and a few other insurance carriers:

http://www.nytimes.com/2008/02/05/us/05hurricane.html?ref=business

http://www.tallahassee.com/apps/pbcs.dll/article?AID=/20080205/CAPITOLNEWS/802050327/1010

The article below gives some information on how to improve the ability of your home to withstand hurricanes:

http://www.tcpalm.com/news/2008/jan/31/30my-safe-florida-home-forum-shows-you-how-to-a/

Florida Insurance- Informative News Articles

Please find a few interesting insurance articles I have come across recently:

http://www.sun-sentinel.com/business/sfl-flzinsure0323sbmar23,0,7995609.story

http://www.winknews.com/news/top/16759426.html

http://www.orlandosentinel.com/business/orl-bizdropped04030408mar04,0,5015282.story

http://www.businesswire.com/portal/site/google/?ndmViewId=news_view&newsId=20080304005642&newsLang=en

http://www.tallahassee.com/apps/pbcs.dll/article?AID=/20080323/OPINION05/803230307/1006/OPINION

http://www.heraldtribune.com/article/20080321/COLUMNIST13/803210578/-1/newssitemap

Florida Insurance- News Articles

Please find a few articles below that relate to Florida Homeowner's insurance:

http://www.miamiherald.com/actionline/story/591274.html
(Review your flood insurance!! Make sure your policies are current and in effect!)


http://www.chicagotribune.com/business/yourmoney/chi-ym-coverage-0615jun15,0,6778043.story
(Review your Homeowner's policies for accuracy, make sure limits are up-to-date and reflect the actual rebuilding cost of the home)


Feel free to contact me with any insurance questions you may have.

ADAM GURDUS
InsuranceGuru
adamgurdus@mogil.com
THE MOGIL ORGANIZATION
203-661-8126 Ph
212-252-7100 Ph

STATEFARM request Rate-hike in Florida
http://www.northfloridanewsdaily.com/News/2008/0721/top_news/185.html

Some fed-up Floridians will voice thier anger through voting
(Some of the comments below the article are great!)
http://www.tampabay.com/news/politics/state/article717605.ece

Ideas to stop a failing insurance market
(Again, the comments below the article are interesting)
http://www.tampabay.com/opinion/editorials/article706188.ece

ALL-RISK Insurance policy??
(An all-peril/ all-risk policy is an interesting concept. AIG actually includes flood coverage in non-flood-prone areas. Additionally, sinkhole coverage is included on their policies in Florida.)

http://www.sun-sentinel.com/news/opinion/sfl-mccarty13forumsbjul13,0,6475865.story




ADAM GURDUS
InsuranceGuru
adamgurdus@mogil.com
THE MOGIL ORGANIZATION
203-661-8126 Ph
212-252-7100 Ph

How come you haven't talked about the Florida Wind Mitigation credits these people can get? I have saved my insureds an average of 30% off their premium just by getting this form filled out. If their house was built after 2001 they can save more than that because the Florida building codes changed then. Also if their houses are older and they have installed/upgraded the windows and doors they can save a nice sum off their insurance rates. Also, insurance companies in Florida will not give credit for these improvements without these forms. I also noticed in one of your posts that you gave an example of a $350,000 house with a premium of $30,000, I've been writing insurance for a lot of years and I live here (not in New York) and I've never seen ANY premium that high. That lady that your wrote and her premium was $8000. I still think that's too high. I'm got my own house insured for $250,000 (with a reputable company) and I'm only paying $2000 per year and that INCLUDES WIND. However, thing that's happening in Florida is that people are getting what I call hurricane amnesia. They have forgotten the headache, heartbreak along with the damage and destruction that goes with a hurricane. They have now started shopping for cheap. I've lived through hurricanes and flooding here. I don't want cheap, I want good insurance. Once you find good insurance with a company that will be there, then go for cheap with that company. Our last really bad hurricane here was Opal in 1995. Most of these people that own houses in South Walton weren't here and that whole area wasn't here then either. Hwy 98 was a two lane road with nothing out there. Then during the 2004 and 2005 season, I was out there helping my clients with their claims and dealing with claims adjusters I'm not trying to take your customers or mess up what you've got going but you sound like the kind of agent who is selling price, not quality. So I ask you, when we have a hurricane, are you going to come down here and go to these people's houses and help them file a claim and be there to help them through the process? If you are, then you're better than I thought. Forgive me for being cynical but I'm just tired of agents and companies coming into Florida, writing all this business then leaving and leaving everyone high and dry. Hell, look at Poe Financial. They came in wrote all this business, made millions, then "filed bankruptcy" took their millions and left the state. At least they're getting prosecuted, but do you think that the insureds will see any of that. No. Matter of fact, I was in Orlando and there are still houses with blue tarps for roofs down there. So, I stopped on one and knocked on the door and asked who their insurance company was... Citizens was their answer. The guy's house I stopped at got his roof blown off in 2005 during Hurricane Wilma and Citizens still hasn't paid and he doesn't have $30000 for a new roof. I came home and told my office staff to not write another Citizens policy. That is OUTRAGEOUS!!! Anyway, if anyone has anymore questions especially insurance guru. Please ask... I will do my best to get you an honest answer I'm just tired of the BS...

Trees....trees....trees

Two dead trees behind my fence that belong to a condo association. I sent them a letter two weeks ago stating that the trees represented a danger to my property. Need I say more. One fell last week and took out five chain link sections including posts and destroyed a panel in a picked fence. An aopple tree and sereral smaller trees and plants are gone. The second tree fell and is being held up by a section of chain link. It has a 30' foot section hanging over my garden.

My insurance company says that their responsibility is to cut the tree but not remove it. Fine. But exactly what do they mean? Cut to make repairs? Assess damage? Their adjustor will be down Monday. I will also get estimates on repair of fence and tree removal. I have a $500 deductable.
I also hand delivered a letter to the cono association stating current conditions and danger and have not heard from them. My insurance agent says it would be in their best interests to contact you and pay for all work rather than even filing a claim.

I have a bad feeling about all of this. In the past I've had to fight insurance companies over even minor auto issues. The condo association appears in a hear no evil see no evil mode.

This is in Massachusetts. ( I have a condo in Ft. Myers).Any suggestions? Any experiences?

Unfortunatly in Florida, even if a tree is on your neighbor's property and it falls on your property, your insurance has to pay. I think it's messed up but that's the rules. I'll give you an example, our family has on condo on Panama City Beach and the up stairs neighbor's toilet started running and ran for two weeks flooding our unit. Our insurance company had to pay for our damage. Then after they paid, they cancelled us for excessive claim history. Even us insurance agents are immune to the BS from insurance companies. I just wrote the policy with another carrier. Then we got surcharged for the claim.
Now, as far as the removal of the trees that all depends on how your policy reads about debris removal. The companies I represent include debris removal. Now I did notice that you said the trees were dead. In Florida something has to cause the trees to fall for them to be a covered peril. If it just falls for no reason, most companies won't cover them. The trees at least needs to be blown over during a storm or something. I wouldn't tell the adjuster "they just fell". What they mean by cut the trees but not remove is to basically get them off your fence and on the ground but they won't haul them away. Your fence should be covered under additional structures on your policy. This is how Florida works I'm not licenced in Massachusetts but it should be similar. Hope this helps.
Casey

Ty

One more thing.

I would seriously think about even filing a claim. Remember in my example about the neighbor's toilet? They might cancel you or surcharge you for the claim for the next 3 years or so which could be more than what it would cost just to get the trees removed and the fence fixed. Just my 2 cents

Good Luck,

Casey

I would seriously think about even filing a claim. Remember in my example about the neighbor's toilet? They might cancel you or surcharge you for the claim for the next 3 years or so which could be more than what it would cost just to get the trees removed and the fence fixed. Just my 2 cents

Good Luck,

Casey

I've never heard of a company "surcharging" for a covered claim--do you mean they're surcharging you for the deductable or surcharging you for the their cost of covering the claim.

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Being that you pay higher premiums if you file a claim, they are not charging you for either one really... what they are doing is seeing you as a higher risk and charging you higher rates because of it. If your claim is over $5000 or you have a water damage claim no matter what the cost, what will happen is your company will cancel you at renewal (unless you have a good company) but then again that goes back to everyone wanting cheaper not better. I'm basing what I'm saying on those companies out there that fall into the cheapest category. Sorry I get offtrack.. anyway if you have a claim over $5000 or a water damage claim. The insurance company will most likely cancel you then you have to either go with Citizens and pay an outrageous rates or go with what's called an HO-8 policy (if you can find a company that writes those). An HO-8 policy is for higher risk homes (older homes, home built on stilts, homes with high claim history, etc...) and generally doesn't have coverage as good as a standard HO-3 policy. Weather realated claims generally aren't held against you although I have one company that does hold them against you. I proabably shouldn't have used the word "surcharge", that's a word I tend to use when you pay more for something after you have filed a claim because a claim stays on your record for 3 years so you have to disclose that on future insurance policies. What I'm trying to get across is to be careful when filing a claim. Talk it over with your agent and don't just go file claim for every little thing that happens because it can and probably will come back to bite you. I've had several times over the years where insureds come into my office and want to file a claim for a tv or computer that was hit by lightning or someone spilling paint on the carpet or something small like that. Then when I try to talk them out of filing a claim, they tell me that that's why the bought insurance. They don't think about the ramifications of that down the road. I buy insurance for catastrophies and I have needed it on one occaision about 10 years ago. Other than that, I haven't filed a claim. Well, I hope this answered your questions. Again, I appologize for using the word "surcharge" it's actually worse than that LOL. If you or anyone has any in depth questions please call me at my office: 850-215-4637.
Thanks,
Casey

I buy insurance for catastrophies and I have needed it on one occaision about 10 years ago. Other than that, I haven't filed a claim.

Was your "leaking condo toilet" incident 10 years ago?

I'll give you an example, our family has on condo on Panama City Beach and the up stairs neighbor's toilet started running and ran for two weeks flooding our unit. Our insurance company had to pay for our damage. Then after they paid, they cancelled us for excessive claim history. Even us insurance agents are immune to the BS from insurance companies.

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