The hurricane season has ended and in Florida, this means a decade of zero hurricanes in spite of the fact that the country has had a few devastating hurricanes since 2000. Florida though has had around 63 subtropical or tropical cyclones from 2000 up to 2013 causing over $64 billion in damages, 69 deaths, and 82 injuries. The strongest hurricane to hit Florida happened in 2004, Hurricane Charley. That hurricane alone cost $5.4 billion in property damages, $285 million in agricultural loss and damages, 24 deaths, and almost 800 injuries. In some areas, about 95% of the buildings were damaged. But that’s all part of Florida’s past and seeing that no hurricane has hit the state at all, it begs the question: Why does Florida have one of the highest rates in home insurance in the country?

Insurance experts have the answer. According to them, insurance providers are pointing the blame on construction materials. They say the cost of repairing or rebuilding has increased dramatically over the years, not even including the cost of labor. There is a domino effect that ends with the consumer paying higher rates.

Based on this logic, other states with few to no hurricanes should also have high insurance rates while states that have been hit by hurricanes in the past 10 years should have higher insurance rates than Florida because of more damages. According to Sean Shaw, a slightly controversial consumer advocate, insurance companies are just using this as an excuse to charge high rates. He adds that the higher rates consumers are paying is all part of corporate earnings especially for top executives. Shaw, who is a lawyer and son of a retired Supreme Court Justice, Leander Shaw ran for representative of the House District 61 but lost to Edwin Narain by a mere 774 votes.

Shaw remains determined to fight for the rights of consumers and whatever reasons insurance companies throw at those who dare complain can all be rebutted be it sink holes (Florida experiences the most number of sinkholes in the country) or insurance fraud.

Let’s look at sinkholes.

According to experts, sinkholes are not increasing but attention to it is growing because of the Internet and the shock value of seeing images of sink holes. In fact, insurance companies in Florida begun questioning claims on sinkhole damages so much so that in 2011, the state’s insurance law was overhauled. The new law actually devalues a property because it shuts the door on certain claims from the “sinkhole alley” of Florida which is Pasco and Hernando counties. This law makes it harder for property owners to qualify for damage claim so property owners are stuck with having to shoulder the cost should any part of their property be damaged by a sinkhole. Other lawyers say it is almost impossible to qualify under sinkhole damage because insurance companies are allowed to pick the engineers who will decide on claims. In addition, sinkhole is a separate insurance from the basic homeowner’s property insurance.

Let’s look at insurance fraud.

The Florida Division of Insurance Fraud gets over 10,000 alleged cases of insurance fraud with about 1,000 cases presented for prosecution. However, even if Florida ranks 3^rd in the country for cases presented for prosecution and second in number of arrests for insurance fraud, the Florida’s Division of Insurance Fraud is highest in recovery of losses from insurance fraud. In 2009, restitution amounted to over $34 million.

Shaw insists, “At a certain point you have to tell the insurance agency we don’t care what the excuse is.” He insists that electing someone who will be pro-consumer is the best way to stop the rates from increasing.

Right now consumers have options to getting lowered insurance rates aside from electing pro-consumer leaders:

1. Ask current state representatives and leaders to get tough on insurance
2. Shop for insurance well in advance so you don’t get stuck with having to make fast decisions just to get it “over and done with”
3. Invest in additional security and hurricane items like roof straps to get additional discounts

If you have an insurance claim or want to have our attorneys review your policy of insurance, please call The Mineo Salcedo Law Firm for a free consultation.  (954) 463-8100.

The hurricane season has ended and in Florida, this means a decade of zero hurricanes in spite of the fact that the country has had a few devastating hurricanes since 2000. Florida though has had around 63 subtropical or tropical cyclones from 2000 up to 2013 causing over $64 billion in damages, 69 deaths, and 82 injuries. The strongest hurricane to hit Florida happened in 2004, Hurricane Charley. That hurricane alone cost $5.4 billion in property damages, $285 million in agricultural loss and damages, 24 deaths, and almost 800 injuries. In some areas, about 95% of the buildings were damaged. But that’s all part of Florida’s past and seeing that no hurricane has hit the state at all, it begs the question: Why does Florida have one of the highest rates in home insurance in the country?

Insurance experts have the answer. According to them, insurance providers are pointing the blame on construction materials. They say the cost of repairing or rebuilding has increased dramatically over the years, not even including the cost of labor. There is a domino effect that ends with the consumer paying higher rates.

Based on this logic, other states with few to no hurricanes should also have high insurance rates while states that have been hit by hurricanes in the past 10 years should have higher insurance rates than Florida because of more damages. According to Sean Shaw, a slightly controversial consumer advocate, insurance companies are just using this as an excuse to charge high rates. He adds that the higher rates consumers are paying is all part of corporate earnings especially for top executives. Shaw, who is a lawyer and son of a retired Supreme Court Justice, Leander Shaw ran for representative of the House District 61 but lost to Edwin Narain by a mere 774 votes.

Shaw remains determined to fight for the rights of consumers and whatever reasons insurance companies throw at those who dare complain can all be rebutted be it sink holes (Florida experiences the most number of sinkholes in the country) or insurance fraud.

Let’s look at sinkholes.

According to experts, sinkholes are not increasing but attention to it is growing because of the Internet and the shock value of seeing images of sink holes. In fact, insurance companies in Florida begun questioning claims on sinkhole damages so much so that in 2011, the state’s insurance law was overhauled. The new law actually devalues a property because it shuts the door on certain claims from the “sinkhole alley” of Florida which is Pasco and Hernando counties. This law makes it harder for property owners to qualify for damage claim so property owners are stuck with having to shoulder the cost should any part of their property be damaged by a sinkhole. Other lawyers say it is almost impossible to qualify under sinkhole damage because insurance companies are allowed to pick the engineers who will decide on claims. In addition, sinkhole is a separate insurance from the basic homeowner’s property insurance.

Let’s look at insurance fraud.

The Florida Division of Insurance Fraud gets over 10,000 alleged cases of insurance fraud with about 1,000 cases presented for prosecution. However, even if Florida ranks 3^rd in the country for cases presented for prosecution and second in number of arrests for insurance fraud, the Florida’s Division of Insurance Fraud is highest in recovery of losses from insurance fraud. In 2009, restitution amounted to over $34 million.

Shaw insists, “At a certain point you have to tell the insurance agency we don’t care what the excuse is.” He insists that electing someone who will be pro-consumer is the best way to stop the rates from increasing.

Right now consumers have options to getting lowered insurance rates aside from electing pro-consumer leaders:

1. Ask current state representatives and leaders to get tough on insurance
2. Shop for insurance well in advance so you don’t get stuck with having to make fast decisions just to get it “over and done with”
3. Invest in additional security and hurricane items like roof straps to get additional discounts

If you have an insurance claim or want to have our attorneys review your policy of insurance, please call The Mineo Salcedo Law Firm for a free consultation.  (954) 463-8100.

The 1957 children’s classic from Dr. Seuss, “How The Grinch Stole Christmas” has heartbreakingly happened in Miami Gardens. Four men broke into a home and stole all the presents under the tree plus family jewels and other valuables.

Police have issued photos of the 4 men who were caught by the family’s surveillance cameras while in the act of being inside the home. The owner of the house, Toni (last name and photo withheld) said she got an alert around 10 in the morning from her ADT alarm while she was at work. The alert notified her that someone had gone into her home. Fortunately, Toni and her husband has the foresight to buy the cameras and install them immediately.

According the police reports and the videos from the surveillance cameras, the men entered the house through a bedroom window. The videos captured the faces and vital details about the men like their face features, what they were wearing, and arm tattoos. One man saw the camera and tried to hide his face.

The valuables that were taken included a necklace and earrings Toni’s husband bought for her which has significant sentimental value and all the Christmas gifts under the tree estimated  to be worth several thousands of dollars. One of the gifts was for her son and was a computer.

Not long after the house alarm sounded, armed police came into the scene with a K-9 unit but the men had already disappeared apparently leaving hurriedly after they saw the surveillance cameras. Toni calls the break-in heartless because it took away Christmas for the family including the presents that had “From Santa” on them. The Miami-Dade Crime Stoppers are offering a reward of $1,000 for any legitimate tip on the men or their whereabouts. Calls can be made to 305-471-TIPS. Callers can stay anonymous and still be eligible for the reward money.

If you have an insurance claim or want to have our attorneys review your policy of insurance, please call The Mineo Salcedo Law Firm for a free consultation.  (954) 463-8100.

The 1957 children’s classic from Dr. Seuss, “How The Grinch Stole Christmas” has heartbreakingly happened in Miami Gardens. Four men broke into a home and stole all the presents under the tree plus family jewels and other valuables.

Police have issued photos of the 4 men who were caught by the family’s surveillance cameras while in the act of being inside the home. The owner of the house, Toni (last name and photo withheld) said she got an alert around 10 in the morning from her ADT alarm while she was at work. The alert notified her that someone had gone into her home. Fortunately, Toni and her husband has the foresight to buy the cameras and install them immediately.

According the police reports and the videos from the surveillance cameras, the men entered the house through a bedroom window. The videos captured the faces and vital details about the men like their face features, what they were wearing, and arm tattoos. One man saw the camera and tried to hide his face.

The valuables that were taken included a necklace and earrings Toni’s husband bought for her which has significant sentimental value and all the Christmas gifts under the tree estimated  to be worth several thousands of dollars. One of the gifts was for her son and was a computer.

Not long after the house alarm sounded, armed police came into the scene with a K-9 unit but the men had already disappeared apparently leaving hurriedly after they saw the surveillance cameras. Toni calls the break-in heartless because it took away Christmas for the family including the presents that had “From Santa” on them. The Miami-Dade Crime Stoppers are offering a reward of $1,000 for any legitimate tip on the men or their whereabouts. Calls can be made to 305-471-TIPS. Callers can stay anonymous and still be eligible for the reward money.

If you have an insurance claim or want to have our attorneys review your policy of insurance, please call The Mineo Salcedo Law Firm for a free consultation.  (954) 463-8100.

Citizens Property Insurance Corporation’s Board of Governors on Wednesday approved a slate of policy changes to bolster oversight of water loss claims while continuing to protect policyholders who need immediate emergency repair to water loss claims, according to a statement from the state-backed insurer. The move was in response to what the company calls “skyrocketing” water loss claims, particularly in South Florida.

By unanimous vote, Citizens board agreed to modify policy language in response to a surge of questionable water loss claims by limiting initial payouts for emergency services and clarifying ambiguous policy language relating to coverages typically affected by water loss claims. The recommended changes will be forwarded to the Florida Office of Insurance Regulation for approval.

The recommended changes are the first steps, board members were told, to better control costs without jeopardizing customer service following a spike in the frequency, severity and litigation of water claims particularly in South Florida, which last year accounted for 72 percent of all water loss claims. Recent data shows that the claim activity is spreading to other regions of the state, according to Citizens.

The board action comes as lawmakers continue discussions to create a framework governing the use of post-loss assignment of benefits to ensure that customers remain in control of their own claims. Citizens’ contract changes would complement these legislative initiatives, the insurer said.

“The bottom line is these policy changes and clarifications are necessary first steps to keep premiums as low as possible while protecting our policyholders who have legitimate claims,” said Barry Gilway, Citizens president, CEO and executive director. “However, they in no way fix the assignment of benefits cost-driver that must be addressed by statute.”

“Without these changes, Citizens would be forced either to take more draconian measures to curb costs or continue to raise rates,” Gilway continued.

Citizens said water loss claims now account for more than half of every premium dollar collected in Miami-Dade County. The issue, though concentrated in South Florida, appears to be spreading throughout the state.

One result of ambiguous language has been an increase in litigated water claims, Citizens said in its statement. In 2014, 38.4 percent of water loss claims in South Florida (Palm Beach, Broward and Miami-Dade) were litigated, more than double the frequency of litigated claims originating in the region in 2010, according to data from the insurer.

On Dec. 8, the board approved changes to:

Limit initial payouts for emergency services and temporary repairs prior to a report of loss to Citizens. Additional coverage for emergency services will be available following Citizens approval.
Exclude coverage of permanent repairs completed prior to a Citizens inspection of the damage.
Require that claims be reported within 72 hours of when policyholder knew or should have known that a loss had occurred.
Set a limit for additional coverage to restore uniformity of appearance by matching repairs with adjacent undamaged areas.
Clarify language relating to the replacement of plumbing systems following collapse, blockage or deterioration.
In 2014, Citizens said 39.2 percent of policyholders filing water loss claims in Palm Beach, Broward and Miami-Dade counties hired attorneys or public adjusters before filing an initial claim with Citizens. Elsewhere in the state, 4.2 percent of policyholders were retaining attorneys or public adjusters before reporting claims to Citizens. More than 98 percent of all litigated water claims initiate in the three county South Florida region.

Costs of litigated claims are nearly three times higher than non-litigated claims. In 2014, the average litigated claims costs $27,631 compared to $9,028 for non-litigated claims. Citizens said it must pay those costs by premiums collected by all policyholders within the territory where the loss occurs.

“With these changes, Citizens is attempting a surgical approach to protect policyholders and contain costs,” Gilway said.

If approved by OIR, the policy language changes would take effect in mid-2016 for new policies and existing Citizens policyholders when they come up for renewal.

Source: Citizens

Source: Insurance Journal: http://www.insurancejournal.com/news/southeast/2015/12/09/391379.htm

Citizens Property Insurance Corporation’s Board of Governors on Wednesday approved a slate of policy changes to bolster oversight of water loss claims while continuing to protect policyholders who need immediate emergency repair to water loss claims, according to a statement from the state-backed insurer. The move was in response to what the company calls “skyrocketing” water loss claims, particularly in South Florida.

By unanimous vote, Citizens board agreed to modify policy language in response to a surge of questionable water loss claims by limiting initial payouts for emergency services and clarifying ambiguous policy language relating to coverages typically affected by water loss claims. The recommended changes will be forwarded to the Florida Office of Insurance Regulation for approval.

The recommended changes are the first steps, board members were told, to better control costs without jeopardizing customer service following a spike in the frequency, severity and litigation of water claims particularly in South Florida, which last year accounted for 72 percent of all water loss claims. Recent data shows that the claim activity is spreading to other regions of the state, according to Citizens.

The board action comes as lawmakers continue discussions to create a framework governing the use of post-loss assignment of benefits to ensure that customers remain in control of their own claims. Citizens’ contract changes would complement these legislative initiatives, the insurer said.

“The bottom line is these policy changes and clarifications are necessary first steps to keep premiums as low as possible while protecting our policyholders who have legitimate claims,” said Barry Gilway, Citizens president, CEO and executive director. “However, they in no way fix the assignment of benefits cost-driver that must be addressed by statute.”

“Without these changes, Citizens would be forced either to take more draconian measures to curb costs or continue to raise rates,” Gilway continued.

Citizens said water loss claims now account for more than half of every premium dollar collected in Miami-Dade County. The issue, though concentrated in South Florida, appears to be spreading throughout the state.

One result of ambiguous language has been an increase in litigated water claims, Citizens said in its statement. In 2014, 38.4 percent of water loss claims in South Florida (Palm Beach, Broward and Miami-Dade) were litigated, more than double the frequency of litigated claims originating in the region in 2010, according to data from the insurer.

On Dec. 8, the board approved changes to:

Limit initial payouts for emergency services and temporary repairs prior to a report of loss to Citizens. Additional coverage for emergency services will be available following Citizens approval.
Exclude coverage of permanent repairs completed prior to a Citizens inspection of the damage.
Require that claims be reported within 72 hours of when policyholder knew or should have known that a loss had occurred.
Set a limit for additional coverage to restore uniformity of appearance by matching repairs with adjacent undamaged areas.
Clarify language relating to the replacement of plumbing systems following collapse, blockage or deterioration.
In 2014, Citizens said 39.2 percent of policyholders filing water loss claims in Palm Beach, Broward and Miami-Dade counties hired attorneys or public adjusters before filing an initial claim with Citizens. Elsewhere in the state, 4.2 percent of policyholders were retaining attorneys or public adjusters before reporting claims to Citizens. More than 98 percent of all litigated water claims initiate in the three county South Florida region.

Costs of litigated claims are nearly three times higher than non-litigated claims. In 2014, the average litigated claims costs $27,631 compared to $9,028 for non-litigated claims. Citizens said it must pay those costs by premiums collected by all policyholders within the territory where the loss occurs.

“With these changes, Citizens is attempting a surgical approach to protect policyholders and contain costs,” Gilway said.

If approved by OIR, the policy language changes would take effect in mid-2016 for new policies and existing Citizens policyholders when they come up for renewal.

Source: Citizens

Source: Insurance Journal: http://www.insurancejournal.com/news/southeast/2015/12/09/391379.htm