Bill could bring higher insurance rates for property owners - MiamiHerald.com

TALLAHASSEE -- A bill brimming with enticements for the private property insurance industry — and forcing homeowners to pay higher rates to reinvigorate a tepid market — passed its first committee in the Florida Legislature on Thursday.

The proposal, SPB 7018, is a massive insurance reform effort that targets state-run Citizens Property Insurance Corp., but also includes costly side effects for homeowners with private insurers.

Sen. David Simmons, R-Altamonte Springs, who chairs the Banking and Insurance Committee and is backing the bill, said it went a long way toward reducing Florida's exposure and shrinking government-run insurance.

"No longer will Citizens be undercutting private insurers in the state of Florida," he said.

Consumer advocates — who say the bill will certainly hike rates on Florida's homeowners — complained that the committee took only a few minutes of public comment before voting on the massive bill.

Bill Newton, executive director of the Tampa-based Florida Consumer Action Network, said he was "appalled" by the most anti-consumer process he's seen in many years of lobbying in Tallahassee.

"If we were getting heard that would be one thing," Newton said. "But you don't even get a chance to talk. Hardly anybody did."

Several proposals within the bill allow insurance companies to jack up rates higher and faster, while giving them access to Citizens' $6 billion cash surplus and the company's most lucrative policyholders, who would be kicked out of state-run insurance.

The following proposals in the 78-page bill could hit homeowners' pocketbooks when they renew their insurance policies in 2013 and 2014:

•  Citizens rates "must be actuarially sound, include an appropriate risk load factor and not compete with the private market." Each of those three measures could translate into higher rates for Citizens' customers, who are currently protected by a 10 percent cap on rate increases.

•  Insurance companies may charge higher rates to cover additional reinsurance purchased for a potential catastrophic hurricane. For Citizens' customers, this could mean an additional 3-percent rate hike (about $65 extra per year), in exchange for the promise of a slightly smaller post-storm "assessment" if a major hurricane occurred.

•  Citizens can loan some of its $6 billion surplus to private companies who agree to take over some of its policies, a move that would leave the insurer with fewer resources in the case of a major hurricane and possibly lead to higher rates for those customers who remain with Citizens after a take-out.

•  Rates for certain homes valued above $300,000, second-home residences and new policyholders at Citizens must be higher than the rate charged by the top 20 private insurance companies, leading to large premium hikes for thousands of homeowners.

•  Any homeowner with a Citizens policy will be kicked out of the company at renewal if a private insurer offers a policy that is up to 15 percent more expensive than Citizens.

•  Citizens' cap on rates would apply by territory and not by policy, meaning rate hikes could go up much faster for some homeowners.

The bill passed 11-1, with Sen. Jeff Clemens, D-Lake Worth, opposing the measure.

The vote showed rare agreement on what has been a contentious issue in the past. Insurance reform proposals are politically difficult in the Florida Legislature, where Democrats and coastal Republicans have joined together in recent years to kill proposals that would raise insurance rates on vocal voters.

The proposal still must navigate its way through both the Senate and the House before reaching Gov. Rick Scott's desk.

Scott said he had not read the bill, but railed against Citizens' top management for giving out large pay hikes and inappropriate spending with the corporate credit card.

"They need to be held accountable," he said. "Right now, I'm very disappointed in what they've done."

Tampa Bay Times reporter Jeff Harrington contributed to this article. Toluse Olorunnipa can be reached at tolorunnipa@MiamiHerald.com.

North Carolina Approves 7% Home Insurance Rate Increase - Insurance Journal

North Carolina's top state insurance regulator has signed an agreement allowing companies to raise homeowner's insurance policies by a statewide average of 7 percent a year starting in July.

Insurance Commissioner Wayne Goodwin agreed to a rate increase for less than the 17.7 percent the North Carolina Rate Bureau requested in October. Goodwin said two weeks before the November election that decided whether he kept his job that companies would have to justify their request, which insurers had wanted to take effect in June.

"Homeowners insurance is a very complex issue. We face a great challenge in making sure that it is not only affordable, but available, to consumers across the state," Goodwin said in a statement. "I feel this settlement helps strike that balance, and I am pleased that the increase will be significantly smaller than what insurers originally requested."

The last homeowner's insurance rate increase took effect in 2009. The insurance companies had sought a 19.5 percent statewide average increase, but settled for 4 percent.

Home insurance rates this year will be allowed to increase by as little as 1 percent in Winston-Salem and Greensboro. Charlotte homeowners could see their costs climb by 8.4 percent, raising the premium on a $150,000 frame home by $45 to $574 for a yearly policy. Durham and Raleigh rates would be allowed to climb by 2.8 percent, pushing premiums to $682 for a $150,000 home.

But homes along the beach in Brunswick, Carteret, New Hanover, Onslow and Pender counties could be hit by a premium of as much 19.8 percent. Beach homes in Currituck, Dare and Hyde counties could see a 17 percent rate increase.

State insurance regulators determined much higher rate increases for beach homes were appropriate because insurers faced higher costs of backing hurricane risks, Goodwin's office said, and out of concern about companies dropping coverage and making it less available along the coast.

The settlement eliminates the need for a June hearing where the companies and Insurance Department staffers were scheduled to present arguments for and against the industry's October increase request.

Copyright 2013 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Homeowners concerned about sinkhole insurance - WJXT Jacksonville

TALLAHASSEE, Fla. -

Residents in a Tampa area neighborhood where a sinkhole swallowed a man and destroyed a house are worried after a second sinkhole was found nearby.

The tragedy has homeowners concerned about who will pay if their house is damaged.

What's called "sinkhole insurance" can be misleading because residents don't need it if their house is swallowed up by a sinkhole.

What homeowners need to know is if they have a policy and their house is swallowed up, they're covered under what is known as catastrophic ground collapse coverage. It used to pay for smaller damages caused by sinkholes, but at the state Capitol in 2011, lawmakers changed that.

State Rep. Mike Fasano, R-Pasco County, was one of the biggest opponents of the changes.

"If you have property insurance, then you are going to be covered because that is a catastrophic ground cover collapse," Fasano said. "However, many of those homeowners throughout the Tampa Bay area no longer have property insurance because they can't afford it."

Now if homeowners want coverage for minor damage caused by sinkholes, they need to purchase extra coverage, coverage that's getting more and more expensive.

"Many of those who want sinkhole coverage now with the 10 percent deductible, premiums going up 30 to 40 percent, if you want sinkhole coverage, homeowners just can't afford that," Fasano said. "There's no way our senior citizens, our working families can afford to come up with that kind of money."

Florida has more sinkholes than any other state in the nation, which means insurance issues surrounding the coverage will remain a hot topic in Tallahassee for years to come.

The extra sinkhole coverage fluctuates depending on where residents live. There was an outcry last year when Citizens Insurance explored raising sinkhole insurance rates more than 100 percent in some areas.

Outer Banks homeowners insurance could rise 17% - The Virginian-Pilot

By Emery P. Dalesio
The Associated Press
© March 5, 2013

RALEIGH, N.C.

North Carolina's top state insurance regulator signed an agreement Tuesday allowing companies to raise homeowners insurance policies by a statewide average of 7 percent a year starting in July, but Outer Banks homes could see significantly higher rates.

Insurance Commissioner Wayne Goodwin agreed to a rate increase for less than the 17.7 percent the North Carolina Rate Bureau requested in October. Goodwin said two weeks before the November election that decided whether he kept his job that companies would have to justify their request, which insurers had wanted to take effect in June.

"Homeowners insurance is a very complex issue. We face a great challenge in making sure that it is not only affordable, but available, to consumers across the state," Goodwin said in a statement. "I feel this settlement helps strike that balance, and I am pleased that the increase will be significantly smaller than what insurers originally requested."

The last homeowners insurance rate increase took effect in 2009. The insurance companies had sought a 19.5 percent statewide average increase, but settled for 4 percent.

Homeowners insurance rates this year will be allowed to increase by as little as 1 percent in Winston-Salem and Greensboro. Charlotte homeowners could see their costs climb by 8.4 percent, raising the premium on a $150,000 frame home by $45 to $574 for a yearly policy. Durham and Raleigh rates would be allowed to climb by 2.8 percent, pushing premiums to $682 for a $150,000 home.

But homes along the beach in Brunswick, Carteret, New Hanover, Onslow and Pender counties could be hit by a premium of as much 19.8 percent. Beach homes in Currituck, Dare and Hyde counties could see a 17 percent rate increase.

State insurance regulators determined that much higher rate increases for beach homes were appropriate because insurers faced higher costs of backing hurricane risks, Goodwin's office said, and out of concern about companies dropping coverage and making it less available along the coast.

The settlement eliminates the need for a June hearing where the companies and Insurance department staffers were scheduled to present arguments for and against the industry's October increase request.

Insurance When Your Home's a Piece of History - Fox Business

A home in Massachusetts has been in the same family since it was built in the 1600s -- less than 20 years after the Mayflower landed. Though nearly four centuries have passed, one room in the home remains just as it was in the 1600s, with the same hand-hewn floorboards.

There are special -- and more expensive -- historic-home insurance policies to protect houses such as this. But they vary in what they'll pay for. You might be able to replace 1775 windows with something close to the real thing, or just historic look-alikes.

You may be able to get by with just a standard homeowners policy for your little piece of history, as long as you understand what that policy will and won't provide if the home is damaged. Replacement materials might be limited to whatever is affordable at a home improvement store.

Your home doesn't have to date back to the Revolutionary War or earlier to have some history, so protect it by asking these four questions as you shop for the right insurance.

Is my home historic?

If your house is within an official local or state historic district and you've agreed to include it in the designation, any repairs or changes generally require the approval of the preservation group that oversees the district, says Richard Standring, a regional manager with Fireman's Fund Insurance Co., which insures the Massachusetts house from the 1600s.

The preservationists may require you to replace 18th-century windows with the real thing, or match paint colors to those used at the time the house was built. And the potential for those sorts of demands can increase your insurance needs -- and costs.

Given the requirements, some insurers will, in fact, cancel standard coverage for homes in historic districts, forcing owners to buy the special historic-home insurance whether they want it or not, says Ann Gonya, a vice president with National Trust Insurance Services, a Baltimore company affiliated with the National Trust for Historic Preservation.

You could opt for special coverage even if your home isn't officially "historic."

To insurers who may have to replace and restore hard-to-find features, "historic" generally means 1940 construction or earlier, because the building materials used are more difficult to replace, the construction methods are more dated and insurers will want to know more details about wiring and plumbing, says Gonya.

And a house that's newer could still be considered historic if you've built it with reclaimed, vintage features such as now-extinct chestnut or other specialty woods from an older home, she says.

What does historic-home insurance cost?

Historic-home insurance policies cost about 20% more than your standard homeowners insurance, says Loretta Worters, a spokeswoman with the Insurance Information Institute, a New York-based trade group. The price depends on the size of your home and its historic features.

As with a conventional homeowners policy, the higher the deductible, the lower the premium. Some customers carry $50,000 deductibles, Gonya says.

Premiums also depend on your home's location, including its proximity to a fire station, hydrants and water sources, and whether you've installed alarms or other systems that monitor for signs of trouble.

In the 17th-century Massachusetts home, for example, Fireman's recommended additional heat detectors in the attic and a water flow monitor throughout the house -- because water causes more insurance losses than fire.

What do I want the policy to do?

Be careful about cutting coverage to hold down costs. Your biggest decision revolves around the issue of replacement coverage if there's a fire or flood.

Most owners assume that standard home insurance will replace everything just the way it was, so if a fire damages their wide-plank floorboards from the 1860s, they can hunt down similar 1860s flooring and their insurance will pay for it.

But that's not usually the case. With a regular homeowners policy, you'll get new flooring, all right, but it'll be ordinary stuff from a local supplier.

Historic-home insurance can offer "guaranteed replacement coverage with restoration," considered the best option for the owner of a vintage home, say insurance experts. It means the insurer will replace the original material with the same thing, if it's available -- called "like-kind replacement."

But the policies don't come cheap because materials are tough to find and costly. And they'd need to be installed by craftsmen who know how to use centuries-old construction techniques.

Where do you find historic-home insurance?

Contact your local and state historic preservation offices to find these policies.

Tracking down and buying adequate historic-home insurance is worth the effort when your home is a gem that has stood the test of time, like the Massachusetts house old enough to have hosted some of the Pilgrims.

"You have over 300 years of ownership in one little house," Standring says. "The house is a living museum."

Copyright 2013, Bankrate Inc.

Beaumont property owners could get lower insurance premiums - Beaumont Enterprise

Beaumont home and business owners could save up to 20 percent on their insurance premiums, according to at least one insurance agent, due to recent improvements to the city's fire and water departments.

In August 2012, the Insurance Service Office, which creates a statewide standard for insurance companies to gauge home insurance premiums, re-evaluated the city's fire department, water supply and fire engines.

Evaluations are not done annually, but at the request of the cities.

Classifications - listed on a scale of 1-10 (1 for best and 10 for worst) - were given for the fire department's dispatch center, the department's response time and the amount of water available to fight a fire.

Previously rated a Class 4, Beaumont's overall rating improved to a Class 2, making it one of 151 cities in the state with that classification.

"That should cut the insurance rates tremendously," said Chris Mabry, owner of Mabry Insurance.

Jessie Williams, public protection oversight officer with the State Fire Marshal's Office, said Port Arthur and Orange are each rated Class 3 and Jasper is rated a Class 5.

Beaumont was nine points away from receiving a Class 1 rating, Williams said. Only 14 cities in Texas are a Class 1.

Mabry advised Beaumont home and business owners to contact their insurance agents regarding the change in classification - even those with premiums that are not up for renewal.

IMakris@beaumontenterprise.com

Twitter.com/imakris

Toffoli, Ruiz And Jones Join Access Home Insurance Company - PR Newswire (press release)

BATON ROUGE, La., March 2, 2013 /PRNewswire/ -- Access Home Insurance Company (Access Home) announced today that Michael Toffoli , Rusty Ruiz and Kerri Jones have joined the company as Executive Vice President, Louisiana Marketing Representative and South Carolina Marketing Representative, respectively.

Hale Campbell , President of Access Home commented, "We are extremely fortunate to add these three very talented individuals to our team.  They have a great track record of building strong company-agency relationships, increasing production and improving profitability.  Having them on board will heighten Access Home's ability to continue its concentration on providing quality products and service while enhancing its growth potential."

Access Home is a Louisiana-domiciled property and casualty carrier offering homeowners and dwelling fire coverage in Louisiana, with plans to expand to South Carolina later this year.

 

SOURCE Access Home Insurance Company

RELATED LINKS
http://accesshomeinsurance.com/

Red flags that your homeowners insurance needs updating - Yahoo! News (blog)

(Photo credit: Thinkstock)If you own a home, you have homeowners insurance. What you may not know is that, like your home, your insurance policy needs maintenance and updating. Failing to update your homeowners insurance policy could cost you big bucks in the long run.

But how do you know when it's time to update your insurance policy? Generally speaking, significant upgrades to your home or changes in your life mean it's time to do an audit of your insurance coverage. Here are some situations where taking another look at your insurance policy is necessary:

1. You want to remodel your home.

Think remodeling your 5-by-8-foot powder room is no big deal? Think again. Even a small renovation like this can have a big impact on your homeowners insurance. Consider this: If your contractor and subcontractors don't have worker's compensation policies, they could sue you if they're hurt on your property. That means you could end up footing the bill for medical expenses, any necessary rehabilitation and wages lost while out of work.

Be sure to verify the insurance coverage of any and all contractors working in your home. The folks at Travelers Insurance say you should contact your insurance company if you find your contractors' coverage is insufficient. Ask them about extending the limits of the liability portion of your homeowners' insurance policy to cover you if someone is hurt on the job.

Homeowners insurance liability limits generally start at about $100,000, but some experts recommend that you purchase at least $300,000 worth of protection. If you want even more, consider purchasing an umbrella insurance policy, which provides broader coverage and higher liability limits. In many cases, you'll save money on the coverage by purchasing an umbrella policy, "regular" policy and auto or life insurance from the same agency.

[Think you might need more homeowners insurance? Click to compare rates now.]

If you're putting on an addition or making significant upgrades to your home, be sure to contact your provider before beginning the project. If that new addition burns to the ground before you've increased your coverage, you could be on the hook for the cost of rebuilding it.

2. You've gotten married – or divorced.

According to the Insurance Information Institute, these are two big life changes that warrant changes in homeowners insurance – albeit for different reasons.

If you're getting married, you'll be combining two households' worth of stuff, including potentially valuable personal belongings. You may also get some pretty expensive wedding gifts, which could necessitate more coverage. Take a detailed home inventory of your belongings, and discuss it with your agent. This inventory will give you an idea of how much coverage you will need as you embark on your new life together. (One thing to consider: The single policy will probably be less expensive than paying for homeowners insurance for two separate homes.)

This inventory is also helpful in the event of a divorce, since you can revisit it to determine the appropriate division of property. If your marriage ends, be sure to contact your provider for help unwinding auto, homeowners and life insurance policies.

A standard homeowners insurance policy includes coverage for your personal belongings, both on and off the premises (unless you've decided against off-premises coverage). Most companies provide coverage for 50 to 70 percent of the amount of insurance you have on the structure of your home, the Insurance Information Institute says. That means that if you have $100,000 worth of insurance on the structure of your home, you have $50,000 to $70,000 worth of coverage for your belongings.

An inventory of your belongings will help you decide if this coverage is enough. Keep in mind that expensive items, like jewelry or high-end heirlooms, might be covered only up to a certain amount. Once you've taken an inventory of your belongings, contact your insurance provider to decide whether or not you need additional personal property coverage based on the cost of your belongings.

[Think a home insurance update is in order? Click to compare quotes now.]

3. There's a new (furry) addition to the family.

Bringing a new puppy home is exciting, but Fido could be a financial threat if you're not adequately covered. According to Insurance Information Institute data, dog bites accounted for more than a third of all homeowners liability claim dollars in 2011 – the latest data available – for a total of $479 million.

Typically, homeowners insurance policies cover dog-bite liability as part of the standard coverage. But if your limit is $100,000 and the claim costs you $300,000, you're responsible for that $200,000 – whether it's legal fees or damages.

Since the personal liability coverage available through a standard homeowners policy isn't always enough, the institute advises dog owners to consider purchasing a personal excess liability policy, otherwise known as a personal umbrella policy – or PUP. This policy, which, according to Allstate, can cost as little as $1 per day based on the state you live in, kicks in when your regular insurance hits its coverage ceiling.

If you're bringing home a dog, it's worth it to discuss getting a PUP, too – it could save you thousands of dollars if Fido bites one of the neighbors.

These aren't all the scenarios which should prompt an insurance audit. As a general rule, it's worth looking over your policy once a year – even if you haven't gone through any huge life changes. When in doubt, contact your provider to discuss your coverage options.

Ilyce Glink is an award-winning, nationally syndicated real estate columnist, blogger and radio talk show host, and managing editor of the Equifax Finance Blog. Follow her on Twitter @Glink.

Home Insurance Rates Could Drop Due to Fire Dept. Rating - WPMI Local 15 News

MOBILE, Ala. (WPMI) You may soon be able to save a little bit on your homeowners insurance and it's all because of our local fire department.  An increase in firefighters and fire houses, along with a decrease in response times adds up to a new insurance safety score which translates into a savings for you.

"Most of that is due to the firefighters you see here, and the entire mobile fire-rescue department and the fine job they've been doing," said Mobile mayor Sam Jones.

 A big announcement from Mobile mayor Sam Jones and fire chief Stephen Dean.  Mobile now has a new ISO score that can lower your insurance rate.

"We've gone from an ISO rating, from a 4 to a 3, I understand from the chief, and headed toward 2," said Jones.

ISO is an independent agency that serves insurance companies, fire departments, and insurance regulators.  It determines fire safety risks.  The rating goes from one to 10, one being exemplary.  The reason for the better score, 45 new firefighters have been added to the force and two new fire stations.

"Surprisingly, we almost got to a two, we have more points than the city's ever had in its history," said fire chief Stephen Dean.

There are more plans to add new fire stations to fill in the "holes" places where first responders can get a fire truck in someone's yard within 6 minutes or less.  Homeowners you'll have to contact your insurance agency to see if you qualify for these reduction benefits.

Citizens named in class-action suit - Sun-Sentinel

Claiming a controversial home reinspection program was unfair, attorneys filed a class-action lawsuit in Broward Circuit Court on behalf of nearly 270,000 Florida homeowners denied rebates by Citizens Property Insurance Corp.

Those homeowners, including Hollywood Commissioner Patricia Asseff, are entitled to $190 million in discounts on their policies, according to the lawsuit announced Thursday.

Asseff, the lead plaintiff, wound up losing $8,200 in discounts on her annual premium. Asseff's policy on her East Hollywood home, which at the time was valued at $690,000, went from $4,500 to $12,700 in one year after credits for her roof were revoked.

The roof had not changed in any significant way, said attorney Todd Stabinski. After she asked for another inspection, Citizens granted Asseff $500 more in mitigation discounts, he said.

Seventy-four percent of Citizens policyholders subjected to reinspections lost the credits Citizens previously had granted them for wind-mitigation improvements made to their homes when inspectors showed up beginning in 2010 using a new form to evaluate their properties, according to plaintiff attorneys.

"We feel that is just changing the rules in the middle of the game," said plaintiff attorney Gary Farmer of Fort Lauderdale.

In an email Thursday, Citizens spokesman Michael Peltier wrote, "Our position is Citizens' reinspections were conducted under statutory authority afforded any insurer to verify, at the insurer's expense, the accuracy of inspection reports submitted for a mitigation discount."

He added: "Citizens used the mitigation form in effect at the time of the reinspection as adopted by the Financial Services Commission. Criteria established in 2007 was revised in 2010 and 2012. Since a new form had been adopted by the FSC, the earlier version was replaced and not valid for the full five years as stated in the complaint."

The attorneys who filed the lawsuit said Citizens' actions were motivated by its desire to increase revenues, and the timing of adopting the new form reflected that — and also represented a breach in contract.

The form at issue, the 2007 version of Citizen's Mitigation Form, provided in writing for a five-year discount, Farmer said.

"Nobody held a gun to their heads for Citizens to institute this [new] reinspection form," said Farmer. "They decided to apply it proactively."

Citizens' revamped its reinspection program late last year after months of public outcry. Subsequently, nearly half of the homeowners contesting the reversals on discounts succeeded in having some or all of them restored. At the end of 2012,  Citizens had completed 479,969 reinspections statewide, said spokesman Peltier. He estimated about 12,000 remain and should be completed soon

The move comes as the Florida Legislature gets underway next week and lawmakers gear up once again try to reform the state's large property insurer with 1.3 million policies, Citizens insures 191,092 properties in Broward and 133,589 in Palm Beach.

According to Karen Watson Polivka, Regional Director of the Florida Association for Insurance Reform (FAIR), the nonprofit, nonpartisan advocate for balanced insurance policies sought a meeting with Citizens to discuss problems with the reinspection program. After canceling a meeting scheduled for Sept. 20, 2012, Citizens failed to meet with FAIR.

"Citizens had every opportunity to respond and take action to fix this program," Polivka said. "The policy holders wronged by this program now look to the courts for redress."