Insurance industry officials reported Wednesday that they expect a 10 percent increase in catastrophe back up coverage costs this year in part because of an unusually high number of natural disasters around the world. The increase could have a bigger impact in catastrophe-prone areas like South Florida, where more than half of many policyholders’ premiums go to paying for reinsurance, or catastrophe insurance for insurers. Bob Hartwig, president of the Insurance Information Institute, said at a meeting hosted by the group and Munich Re, one of the world's largest reinsurers, that information he has gleaned from analysts indicates that U.S. reinsurance prices will increase about 10 percent, though there is conflicting information about that. Insurers will know the precise impact in Florida when they negotiate ... Continue reading →

Citizens Property Insurance spent more than $2.4 billion over five years on legal costs for claims. That’s according to information obtained by Rep. Frank Artiles, R-Miami, who criticized the state-run insurer for fighting claims, saying it’s “subsidizing the legal community.” In a letter to the Sun Sentinel, Artiles said that Citizens' should not be spending so much of policyholders' premiums on litigating claims because it's "unsustainable and will bankrupt any private or public company." Artiles said lawmakers should direct Citizens to lower its operating expenses before it implements plans to lower its risk by reducing coverage options and increasing premiums; continues increasing policyholders' premiums based on its higher estimates of the cost to rebuild homes; and moves policies to less regulated insurers under new legislation. ... Continue reading →

Do you think your insurance company revoked legitimate discounts for strengthening your home against hurricanes? You have some recourse. Get and keep copies of documents, including receipts and permits, describing home upgrades and inspections of your house. Some homeowners have reported that the stickers on their doors and windows showing they’re impact-resistant are fading. Take digital photos of the stickers before that happens. Keep Miami-Dade County Notice of Acceptance records and copies of roof and other permits that verify when the upgrades were made and which building code applied. Sandy Teich, of Coconut Creek, reported her insurer has agreed to refund more than $500 this week based on the NOA documents. Compare the new inspection report to the old one. If your first one was ... Continue reading →

It appears Coconut Creek resident Sandy Teich wasn't the only one who hired an inspection firm that said her home upgrades qualified for insurance discounts only to have the very same firm do another inspection at the insurer's expense and take the discounts away. Seven South Floridians called or wrote this week to say they had the same experience, and all but one had the same inspection firm as Teich. Most, like Teich, have coverage with state-backed Citizens Property Insurance, Florida's largest home insurer. Phil Calder of Tamarac wrote: "Citizens hired [a firm] to do my inspection which is the one of the same companies...who gave me a perfect inspection two months earlier!" He said he plans to leave Citizens because the insurer claims it's ... Continue reading →

A local public insurance adjuster and the president of a home inspectors group allege that parts of property insurance laws passed this year and last hurt their industries and are unconstitutional. Public adjuster restrictions In a lawsuit filed this month in Miami-Dade County Circuit Court, Eduardo Rodriguez is suing the state over changes made by a a sweeping law this year that prevent public adjusters who represent state-backed Citizens Property Insurance policyholders from getting paid for their services until the insurer makes an offer. The law also limits what they can charge after that. Public adjusters are hired by policyholders to prepare, file or complete claims. The new law restricts fees for public adjusters representing Citizens policyholders to 10 percent over the original amount the ... Continue reading →

Citizens Property Insurance recently sent an inspector to verify that Sandy Teich was entitled to the discounts she had obtained for protecting her Coconut Creek home against hurricanes.To her surprise, an inspector from the same company she hired two years ago to vouch for the upgrades showed up and contradicted what it verified before."They went against their own report," said Teich, whose premium increased 23 percent to $4,565 after the newest inspection in October. This time, the inspection firm was paid by Citizens. Inspection experts say Teich's situation illustrates several problems with how upgrades are verified: The state has changed what qualifies for discounts in the past few years, less experienced people were allowed to do inspections a few years ago and some got information ... Continue reading →

Citizens Property Insurance should raise rates by more than 10 percent allowed under state law and it should reduce coverage, according to a recent report from Florida State University's storm risk management center. The report comes weeks before the state of the 2012 annual legislative session. Lawmakers have proposed bills to reduce the financial risk to Floridians of state-backed Citizens and are considering other proposals. With 79 private home insurers, Florida has more companies selling residential property insurance than any of the other eight coastal states the report evaluated. It's followed by Texas, which has 69. A few national insurers that sell most homeowners policies nationwide have scaled back from the state, leaving smaller Florida-based insurers to fill the gap, according to the report. "Despite ... Continue reading →

Citizens Property Insurance should raise rates by more than 10 percent allowed under state law and it should reduce coverage, according to a recent report from Florida State University's storm risk management center. The report comes weeks before the state of the 2012 annual legislative session. Lawmakers have proposed bills to reduce the financial risk to Floridians of state-backed Citizens and are considering other proposals. With 79 private home insurers, Florida has more companies selling residential property insurance than any of the other eight coastal states the report evaluated. It's followed by Texas, which has 69. A few national insurers that sell most homeowners policies nationwide have scaled back from the state, leaving smaller Florida-based insurers to fill the gap, according to the report. "Despite ... Continue reading →