Florida Insurance Claim Lawyer Blog

A Florida Congresswoman is among those supporting a five-year extension of federal flood insurance in an effort to return some stability to the volatile coastal insurance markets.

Congresswoman Ileana Ros-Lehtinen supports the Flood Insurance Reform Priorities Act, which would extend federal flood insurance for five years. Recently, the act has been extended for just a few months at a time, causing much instability in coastal housing markets.

The issue of flood insurance can leave South Florida homeowner's with huge headaches. Homes determined to be in a flood plain are required to have flood insurance in addition to a regular homeowner's insurance policy. FEMA flood maps, which were recently updated, appear to have been drawn by a drunken surveyor instead of the state-of-the-art surveying equipment available to the government. And now the government is making the required insurance available only in sporadic fits and starts due to the usual political merry-go-round in Washington.

But where homeowners are frequently hurt is when an insurance company attempts to blame storm damage on flooding, thereby relieving themselves of the obligation to pay. This was common after Hurricane Katrina, when insurance companies decided they would pay for missing roofs, but not homes destroyed by the resulting water damage. A Miami insurance claims lawyer should always be called to handle significant damage claims. Accepting partial claims and signing waivers or other paperwork are just two ways a homeowner can quickly find themselves in trouble when dealing with an insurance company.

About 90 percent of all flood insurance nationwide is provided through the government's program and nearly half of those policies are held in Florida. The gaps in coverage have left Florida homeowners unable to close sales on properties, the Sun-Sentinel reported.

"Prospective homebuyers must be given the assurance that they can buy and sell without worrying about the unpredictability of availability of flood insurance," said Ros-Lehtinen. "This bill presents a positive step in regaining confidence in South Florida's beleaguered housing market."

In some cases, those with existing policies have also been unable to renew their coverage during recent lapses in the government's insurance program. The 5-year extension has passed the House and moves on to the Senate, where its fate remains uncertain.

In all, the government's flood insurance program covers 5.6 million properties valued at $1.2 trillion.

Continue reading "Flood insurance Critical in South Florida Coastal Regions but can Complicate Claims " »

The insurance industry hopes to gain enough support to pass a new law that will make it easier to hike property insurance rates, according to media reports.

Last week, our Florida Insurance Lawyer Blog reported a request by Citizens Property Insurance for a double-digit rate increase. And Allstate is requesting regulators to permit rate hikes by an average of 18 to 33 percent, the Sun-Sentinel reported.

But the real goal is to do away with the regulatory process that requires the companies to go through the Office of Insurance Regulation when requesting rate hikes. Gov. Charlie Crist vetoed a bill that would have permitted property insurance companies to raise rates up to a certain percentage without a full review by the Office of Insurance Regulation.

With Crist running for the U.S. Senate, Florida will have a new governor in January.

"The governor that vetoed the measure won't be here next year, so I think that we have a good shot," Sen. Garrett Richter, R-Naples, said Tuesday. He sponsored the bill last session and will likely again carry the proposal.

This legislation would be a major win for insurance companies and a major slap in the face for homeowners. As our Miami insurance dispute attorneys have reported, property insurance companies are already pushing double-digit increases past regulators, despite no major storm damage in the last five years and plummeting property values. Still, companies are claiming rates are not high enough to match risk and pay claims.

Only the governor's veto prevented the measure from becoming law; it actually had the support of Insurance Commissioner Kevin McCarty. Of the current candidates for governor, only Alex Sink is on the record as likely opposing the idea. "We should not have deregulation in the insurance market, the role of the insurance commissioner is critical," Sink has said.

Neither Rick Scott nor Bill McCollum has addressed the issue.

Perhaps you are thinking that our representatives would no more pass such a law than they would limit the number of hours of care nursing homes are required to provide. Or limit the ability of customers to collect damages when injured by negligent conditions at big box stores and other accidents on business property.

In fact lawmakers passed both those measures during the last legislative session.

Continue reading "Miami Homeowner's Insurance Premiums Could Rise Dramatically if Lawmakers Pass Deregulation" »

Tropical Storm Bonnie earned respect when she earned her name on Thursday night. Tropical depressions, or areas of intense thunderstorms that gather in the tropics, become named tropical storms when they reach sustained wind speeds of 39 mph.

Understanding how storms are characterized can assist homeowners in knowing what to expect. However, our Miami hurricane damage lawyers caution homeowners against becoming complacent in cases where a tropical storm fails to become a hurricane, or when a hurricane fails to climb the charts.

The act of rating a storm can actually be dangerous when it leads to such complacency. The storm-classification system is designed to assist South Florida residents in understanding what to expect -- as long as they understand that, in all cases, a storm carries the risk of serious property damage and the potential for serious or fatal injury when residents fail to take the proper safety precautions.

Tropical storms, such as Bonnie, have wind speeds of 39 to 73 miles an hour and are associated with torrential rains, localized flooding, downed trees and power lines and the possibility of structural damage, particularly to older buildings or mobile homes.

A tropical storm reaches hurricane strength when winds climb above 74 miles an hour and are categorized on a scale of 1 to 5 until the winds reach roughly twice that speed. Anything with sustained winds of more than 155 mph is considered a Category 5 hurricane. Katrina was a Category 5 storm when it hit New Orleans and Andrew was a Category 5 storm when it devastated South Florida in 1992.

Florida Today provides a nice graphic illustration.

Category 1: Minimal Hurricane
Winds: 74 to 95 miles per hour
Storm surge: Up to 5 feet
Damage: Some trees and power lines may be down; damage caused by flying debris; localized flooding; those in mobile and modular homes are at greatest risk.

Category 2: Moderate Hurricane
Winds: 96 to 110 miles per hour.
Storm Surge: 6 to 8 feet.
Damage: Downed trees and power lines; some flooding; debris damages; structural damage possible, particularly in older homes. Mobile and modular homes at great risk.

Category 3: Extensive Hurricane
Winds: 111 to 130 mph
Storm Surge: 9 to 12 feet
Damage: Widespread flooding possible. Significant structural damage to homes and buildings possible. Downed trees and power lines. Probable destruction of mobile and modular homes.

Category 4: Extreme Hurricane
Winds: 131 to 155 mph
Storm Surge: 12 to 18 feet
Damage: Widespread destruction of homes and buildings, structural damages and roof loss are common, significant flooding and storm surge risk, higher likelihood of significant time without power.

Category 5: Catastrophic Hurricane
Winds: Greater than 155 miles per hour
Storm Surge: 18 feet
Damage: Widespread destruction

The important thing to keep in mind when considering a storm's rating is that all of these storms can cause significant property damage and can lead to the risk of serious or fatal injuries. This weekend's tropical storm, with winds of 40 miles per hour, is roughly twice as powerful as our typical violent summer weather. A minimal category 1 hurricane is four times as powerful as a typical summer storm.

Continue reading "Bonnie Earns Respect with her Name; Dangers of Severe Weather Present Regardless of Storm's Rating" »

Tropical Storm Bonnie's center made landfall in Cutler Bay, about 20 miles south of Miami, at about 11 a.m. today. The storm was characterized mostly by strong winds and heavy rain for most of the morning, and early afternoon.

The worst of the storm has now passed Miami, and the storm will soon enter the Gulf of Mexico. The storm is expected to strengthen as it moves into the Gulf of Mexico.

All tropical storm warnings for South Florida, the Florida Keys, and the Bahamas, have been lifted. At Virginia Key, sustained winds were measured at 41 mph with gusts as high as 58 mph according to the National Weather Service in Miami.

While this storm proved to be a non-event for South Florida, it did allow us to ensure that we are prepared for hurricane season. This hurricane season promises to be an active one, and Miami was recently listed as to the top city in the country that is long overdue for a major hurricane strike. Miami has not been hit by a major hurricane since 1992 when Hurricane Andrew made landfall, and has not been hit by any hurricane since Hurricane Wilma made landfall in October of 2005. Therefore, it is important to be prepared during hurricane season.

Our Miami insurance dispute attorneys encourage residents to review whether or not they are prepared for the hurricane season. While South Florida has gotten a pass thus far this summer, serious storms, including the threat of tropical storms or hurricanes, will become soon become commonplace in the months ahead. And while Tropical Storm Bonnie was mostly a non-event causing little to no damage, the same may not be the case for the next storm.

A tropical storm is expected to bring heavy winds and rains to the Florida Keys and across parts of South Florida through the weekend but authorities thus far have not announced any mandatory evacuations, the Miami Herald reported.

Our Miami insurance dispute attorneys encourage residents to use news of this storm to review whether or not they are prepared for the hurricane season. While South Florida has gotten a pass thus far this summer, serious storms, including the threat of tropical storms or hurricanes, will become commonplace through the remainder of summer and well into the fall.

We recently published tips for hurricane preparation on our Florida Insurance Lawyer Blog, including the need to store food, water, prescription drugs, cooking fuel, batteries and First Aid items. This is also a good time to make sure all of your important documents -- including your homeowner's insurance policy -- are gathered together in a waterproof container.

Chances are good this will just be one of those South Florida summer storms with which we are all familiar. But it is a good time to prepare for the more serious storms that can damage or destroy property and lead to life-threatening conditions. Mild storms can quickly turn dangerous once in the warm waters of the Gulf -- Katrina passed over South Florida as a Category 1 hurricane before fueling itself in the Gulf's warm waters and slamming into New Orleans as a Category 5 monster.

And even relatively mild storms can down trees and power lines and cause other property damage for which an insurance claim will need to be filed.

The depression formed Thursday over the Bahamas and hurricane forecasters say it could become a tropical storm. A tropical storm warning is in effect for the Florida Keys but the Monroe County Emergency Management Agency said no mandatory evacuation is expected. As a precaution, storm shelters will be opened for tourists and for residents who live on boats or have other special needs.

The storm is moving toward the Florida Peninsula with maximum sustained winds of 35 mph. When it comes to summer storms in South Florida, it is always best to hope for the best ... but plan for the worst.

Continue reading "South Florida Braces for First Tropical Storm of the Season" »

Citizens Property Insurance Corp. is taking the steps necessary to raise homeowner's insurance rate by up to 11.3 percent in parts of South Florida, the Sun-Sentinel reported.

Wilma in 2005, was the last hurricane to strike South Florida. Still, five years later, property insurers are seeking double-digit rate increases. The availability of Citizen's Property Insurance is particularly critical for coastal homeowners. The state-run insurer is the insurance company of last resort for homeowners in high-risk areas who otherwise may not be able to get insurance.

On that note, there is some good news. Citizens is proposing a decrease in the average rates in Miami Beach and along the coast in Broward and Palm Beach counties.

Statewide, Citizens proposed an average increase of 9.4 percent for policies that cover homes, condominiums, renters, mobile homes and vacation or rental property. Condominium buildings would see an average increase of 12 percent in parts of Broward, Palm Beach and Miami-Dade counties.

Meanwhile, the company reports that rates in parts of Broward, Palm Beach, Miami-Dade and Orange counties should be as much as 120 percent higher -- or more than twice the current rate. However, a 2009 state law limits annual increases to 10 percent.

Our Miami insurance claims attorneys question the need to increase rates more than 10 percent, never mind the assertion that rates should be twice as high as current rates. Citizens has had few claims in the absence of hurricanes and, in most cases, the properties it insures are worth just a fraction of their value several years ago, thanks to South Florida's plummeting real estate values.

Since the company is backed by the state, we have little question that the state will approve the rate increase. And we will stand ready to ensure that Citizens' customers, and the customers of other Florida insurers, are treated fairly and paid in a timely manner in the event the area is hit by another storm this year.

After years of skyrocketing home insurance rates in South Florida, it's an obligation we intend to see that these companies fulfill on behalf of our clients.

Continue reading "Citizens Property Insurance Requests Rate Increase as South Florida Braces for another Hurricane Season" »