As you probably know by now, the Florida Property Insurance marketplace has seen its share of troubles recently. Floridians have seen five hurricanes make landfall in the last five years, and along with those storms have come an extraordinary number of claims…and that is only the beginning. Fees that lawyers are allowed to collect when filing insurance claims are helping push an already precarious property insurance system in Florida to the brink, causing rates to skyrocket and companies in Florida to tighten their appetite for more risk.
As hurricane season is once again upon us, Shepherd Insurance wants to provide you with four insurance-related inquiries for you to consider. Being prepared prior to a claim can save you thousands of dollars in the long run.
First, and probably most importantly, check the financial stability ratings of your insurance carrier. Much of this information can be found very easily on www.demotech.com. Pay particular attention to the most recent date that Demotech affirmed the stability rating of your carrier. In Florida in 2021-2022, a number of companies went into receivership, putting further stress on the funds designed to help in catastrophe situations.
Secondly, check your hurricane deductible on your policy. Many carriers have a minimum of a 2% hurricane deductible. On a home valued at $300,000, you could be looking at a $6,000 threshold before any storm damage is paid. In my almost 20 years of insuring homes in Florida, far too often I have seen policies written with 5% hurricane deductibles…so that same $300,000 house would now have a $15,000 threshold! Of course, there are also some carriers that will insure with a lower hurricane deductible (1% or even a flat number…like $1,000). It is prudent to ask your agent what YOUR exposure is.
Have a pool? Most carriers do not cover the pool cage (or any screened enclosure). Screened enclosures are defined as “screened enclosures made of walls of screened material and framing of aluminum or other like product with a roofline that is substantially different than that of the main dwelling.” So, go out to your screened-in porch and look up—if the ceiling of that area is not under the same truss line of your home, you need a separate endorsement on your insurance policy!
One last thing to consider is the peril of wind-driven rain. Some policies will exclude interior water damage unless there is discernible physical damage to the exterior of the structure. So, if water is blown in through a dryer vent, don’t assume that it is covered!
One of the benefits of having a network of agents nationwide is knowing that you will never be without someone to talk to. Our phones will ring even if the power goes out.
At Shepherd Insurance, our licensed and qualified agents are available to review your policies free of charge. Call or text us at 239-254-6373 or email me at dherrenbruck@shepherdins.com to schedule your complimentary review today!
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