Florida Insurance Claim Lawyer Blog

South Florida hasn't reached dry land just yet.

As our Miami hurricane damage lawyers continue to report, October and November have witnessed half of the South Florida hurricane activity during the past century. Wilma, the last major hurricane to strike the region, hit during the last week of October five years ago.

The Treasure Coast Palm reports three low pressure systems in the Atlantic have a better than even chance of becoming tropical cyclones as South Florida enters the month of November.

The National Hurricane Center reports the storms form a triangle between the southern tip of Florida and the coast of Africa. The storms were given a 20-60 percent chance of reaching tropical cyclone strength on the eve of Halloween weekend.

Consequently, forecasters are calling for 6- to 8-foot seas with even higher seas in the Gulf Stream.

So far, the Atlantic Hurricane Season has brought:

June: Hurricane Alex, first category 2 hurricane in June since 1966.

July: Tropical Depression #2 and Tropical Storm Bonnie.

August: Tropical Storm Colin, Tropical Depression #5, Major Hurricane Danielle, Major Hurricane Earl, and Tropical Storm Fiona.

September: Tropical Storm Gaston, Tropical Storm Hermine, Major Hurricane Igor, Major Hurricane Julia, Major Hurricane Karl, Hurricane Lisa, Tropical Storm Matthew and Tropical Storm Nicole.

Continue reading "Three Low Pressure Systems Could Strengthen Into Tropical Storms as South Florida Enters November" »

Coming home to find a busted pipe has flooded your home is one of the biggest disasters a homeowner can face. Being mistreated by your insurance company can add insult to injury and can cost a South Florida homeowner tens of thousands of dollars.

Our Miami insurance dispute lawyers handle busted pipe claims for homeowners. Our attorneys represented insurance companies before 2006, when we opened a firm dedicated to fighting for the rights of consumers. We understand how insurance companies work. And we have the knowledge and experience necessary to represent homeowners in disputes over an insurance claim.

In some cases, an insurance company may try to claim a busted pipe claim is not covered because it falls under flood insurance. In other cases, the insurer may claim negligence, Act of God or any other means at its disposal to deny a claim and discourage a homeowner from re-filing. The reality is that, aside from a fire, hurricane or other disaster, busted pipe claims can be among the most costly for an insurer to pay.

A homeowner's failure to pursue a claim can leave a property in severe distress. Aside from the immediate problems, future mold and mildew issues can even render a house unsellable and can have a devastating impact on the long-term financial well-being of you and your family. Depending on the severity of flooding, it may even compromise a home's foundation or otherwise make it structurally unsound.

In still other cases, a water main or other outdoor pipe may bust, thereby flooding your property. In such cases, an adjacent homeowner, city or municipality may be responsible for making you whole. Such circumstances may not alleviate your homeowner's insurance of responsibility -- the insurer may need to pay your claim and then pursue the at-fault party.

In any of the above circumstances, a bad-faith insurance claim may be brought if it is determined that your insurance company is not treating you fairly and in accordance with its obligations as determined by your insurance policy. If bad-faith on the part of an insurance company is proven, the policy limits can become irrelevant and an insurance company can be liable for the entire amount of damages allowed by law or ordered by a jury verdict.

In theory, the threat of limitless damages under bad-faith law is meant to keep insurance companies honest. In reality, as is so often the case, it only matters if you consult with an attorney who has the knowledge, experience and ability to enforce the law and protect your rights.

Conversely, it is incumbent upon the homeowner to understand policy limits as it relates to water damage, mold contamination and other issues. Frequently, insurers are excluding mold coverage altogether. Often, additional coverage can be purchased for a modest sum if a homeowner takes the time to determine what coverage is needed to protect against such eventualities.

While insurance companies may exclude sewer backups on some standard policies (coverage can be added in most cases for a modest sum), damage caused by broken pipes is typically covered. However, the devil is often in the details. An insurance company may refuse to pay for the pipe repair, citing normal wear and tear or maintenance clauses or exclusions. Damage in a house left unlivable may not be covered to the extent it is caused by a delay in fixing the problem. And, as previously discussed, mold and mildew is an entirely separate issue upon which whole books could be written.

Continue reading "Burst Pipe Insurance Claims Can Be A Nightmare For Miami Homeowners" »

This week marks the five year anniversary of Hurricane Wilma, the last major storm to strike South Florida.

Newspapers as far away as California marked the anniversary, as the Sacramento Bee reported the storm's $10.3 billion in claims have resulted in insurers leaving the state even as Citizen's Property Insurance -- the underfunded state-backed insurer of last resort -- has been forced to step into the gap.

Make no mistake about it: Despite the fact that most of these companies have collected on double-digit premium increases in each of the past five years, claims for the next major storm in South Florida will be best handled by an experienced Miami insurance dispute attorney. Citizens will quickly become insolvent and the private insurers will run for the hills, which likely means delaying and denying claims and generally making it as difficult on homeowners as possible in an effort to avoid paying claims.

Some are claiming a bill vetoed by Gov. Crist earlier this year would have helped return the system to solvency. We don't buy it. The bill would have limited the amount of time for filing claims to three years, from the five years currently permitted by law. The insurance industry is bound to try again this year. It passed lawmakers once. Enough lobbying dollars and campaign contributions will likely see it pass again, thereby eroding just a little bit more of the rights of homeowners.

The bill would also move to regulate discounts homeowners are permitted to get for hurricane resistant construction. The insurance industry is crying foul over this measure, saying homeowners are taking advantage by having inspectors claim phantom improvements. As we reported on our Florida Insurance Lawyer Blog, this entire issue was prompted by the fact that many insurers were not providing basic hurricane deductions available by default on most newly constructed homes. Instead, insurance companies were treating homes as if they were built in the 1950s and 1960s unless a homeowner understood the process well enough to hire an inspector, retrieve a form from the agent, and proactively seek the deductions.

Wilma plowed into Marco Island shortly before dawn on Oct. 25. Flooding in Collier County was the first report of major damage. Heavy damage in Clewiston and the Lake Okeechobee region left thousands without power. By shortly after lunch, the storm was back out in the Atlantic Ocean off the coast of Palm Beach.

Tornadoes touched down as far away as Melbourne.

As South Florida heads deep into the final weeks of hurricane season, it is worth noting that this storm hit the peninsula during the last week of October. As we have reported previously, Florida is not clear of the hurricane threat yet, even as winter tourist season begins. Historically, half of the state's hurricanes have struck South Florida in October and November.

Hurricane season officially ends Oct. 30.

Continue reading "Anniversary of Hurricane Wilma a reminder of the lessons learned in South Florida" »

Florida's previous administration was so concerned about the influence of re-insurers -- those who insure the insurance companies -- that then-Governor Jeb Bush said it could literally come to define who could afford to live in the state.

Our Miami storm damage lawyers frequently report on the issues involved in the high-cost of homeowner's insurance in South Florida. Following the busy 2005 hurricane season, many of the insurance companies left the state. Last month, we reported on our Florida Insurance Lawyer Blog that Citizen's Insurance -- the state-backed property insurer of last resort -- would quickly become insolvent in the event of a major hurricane. The state system has $10.5 billion in cash and $433 billion in exposure; it insures some 1.2 million Florida properties.

The Herald Tribune reported that former Florida Gov. Jeb Bush was so concerned about the issue that he privately urged his brother, President George W. Bush, to create a national public fund that would replace private re-insurance for large natural disasters such as hurricanes, earthquakes or wildfires.

Jeb Bush also reached out to governors in California, Texas and New York to create a pool to backstop property insurers. California Gov. Arnold Schwarzenegger did not personally respond and the Bush White House eventually declared such a plan unsound. Even the other high-risk states considered Florida's hurricane risk too great to get involved.

Reliance on the private system of re-insurers has grown no less costly -- In the last four years, Florida-based home insurers have paid $15 billion to the profit-driven system of re-insurers.

And there have been no storms.

These companies, most of which are overseas, are not regulated by insurance regulators and answer only to Wall Street. Should Florida make it to the beginning of next hurricane season without a major hurricane strike, it will still be out $19 billion paid to re-insurance companies.

It's an issue behind the record increase in premiums in 2006 and 2007 and is making worse the problem of canceled policies and the decision of insurance companies to pull out of the state altogether.

As a consequence, Florida is now saddled with a dubious distinction: It has the highest insurance failure rate in the nation. Just one more reason hiring a Miami insurance dispute attorney is critical to protecting your rights in the wake of a homeowner's insurance claim.

Continue reading "Miami Storm Damage Claims Should be Handled by Attorneys as Solvency of Insurance Companies an Issue Amid Reinsurance Scandal" »

NPR recently reported about the importance of taking extra precautions to protect expensive artwork, jewelry, exotic cars and other valuables in the event of a hurricane in south Florida.

The need has even led to something of a growth industry: Just as the need for extra space led to the boom of the self-storage industry in the 1960s, so has the need to protect exotic valuables from storm damage led to businesses like Museo Vault, a business aimed at protecting high-priced assets like artwork or cars.

Our Miami insurance dispute attorneys encourage you to determine the coverage needs for expensive items in your home and take steps to make sure that you are properly covered in the event of a hurricane. Conversely, if you are dealing with an insurance company that refuses to pay a legitimate claim to which you are entitled, contact our office to discuss your rights.

NPR reports Miami's booming art reputation has led to a cottage industry of art galleries and other businesses that specialize in handling, shipping and storing art. The idea for Museo Vault cane after the busy 2005 hurricane season."The topic of conversation was how to keep artwork safe in this environment where we have five or six months of terrible hurricane storms that come through," said owner David Lombardi.

Museo Vault advertises itself as a facility designed to withstand the 200 mph winds generated by even the most powerful hurricanes. Art is stored at least 35 feet off the ground to protect it from even the most aggressive storm surge.

Art collectors also know that a solid hurricane protection plan can be required by insurance companies.

A similar facility, RoboVault, has also opened up in South Florida. The facility has an area for story wine and seven enclosed garages with a robotic arm that can store and retrieve exotic and antique cars.

That facility also provides storage for gold, silver and other precious metals.

Continue reading "Special accommodations protect artwork, exotic cars, precious metals from hurricane damage in South Florida" »

The Miami Herald reports that the South Florida rainy season has ended a bit early this year and La Nina could bring a dryer than normal dry season.

Many South Florida residents have breathed a sigh of relief this week, as cooler air, lower humidity and nice breezes have ushered in that most glorious time of year between summer's dreadful heat and the arrival of our winter friends and the heavy non-stop traffic that comes with the winter tourist season.

Our Miami insurance dispute attorneys do want to remind you, however, that the area remains a prime target for hurricanes through the end of November. As we reported recently on our Florida Insurance Claim Lawyer Blog, the halfway point of South Florida's hurricane season is Sept. 21 -- with half of the storms to hit the area in the last 160 years coming after that date.

Now is a good time to review your hurricane supplies. Perhaps you have snatched the bottled water over the course of the summer. Maybe the extra propane went into service during the Labor Day cookout. Restocking a few supplies now can save you a big hassle in the event that the area falls into the path of an approaching storm. Shopping with the mobs is never any fun and this "late" in the season you may also find local stores unprepared and understocked.

The National Weather Service said last week that South Florida has entered dry season, officially signaled by falling dewpoints and a dip into the 60s over Lake Okeechobee. It comes two weeks earlier than its Oct. 17 average and the earliest since 1995.

La Nina's warmer sea temperatures in the Pacific Ocean could also make it a drier than normal dry season. Such weather raises wildfire risks and has also been a primary reason for the busy storm season, which finds us naming Tropical Storm Otto, the season's 15th named storm, even as we talk about the beginning of dry season.

South Florida's rainy season fell about 10 percent short of its normal 26.78 inches. The wet season, which usually begins in June, typically produces about 70 percent of South Florida's rainfall.

Again, authorities stressed that the beginning of dry season does not mean the end of hurricane season, which lasts through Nov. 30. Hurricane Wilma, the last storm to hit South Florida, struck in late October 2005. Hurricane Kate struck the Panhandle just before Thanksgiving, 25 years ago this year.

Continue reading "Cooler temperatures over Lake Okeechobee signal beginning of dry season; not end of hurricane season in South Florida" »

An article in the TC Palm tells only part of the story regarding hundreds of thousands of dollars in discounts on homeowner's insurance that are apparently disappearing.

The Palm reports that the state required insurers to offer double discounts for hurricane-safe structures after Wilma battered the area in 2005. And that the law changed after 2008 and 2009 to stem fraud and standardize the state's home insurance discount guidelines. The paper said hundreds of thousands of homeowners hired inspectors to see if they qualified for discounts and after several years of hefty discounts, insurers reported that premiums were no longer keeping up with costs.

In reality, what happened is that the discounts being pushed by the state did prompt homeowners to hire inspectors. But what really drove the discounts was the fact that many insurers wrote policies that, by default, did not provide discounts for very standard features in most newer Florida homes, including fortified roof trusses. As inspection reports began trickling in, newspapers, including The News-Press in Fort Myers, began reporting that insurance premiums were being cut in half in some cases, thereby causing a flood of homeowners to seek inspections and apply for the discounts.

So the glut of discounts was not driven by the state's double-discount after Wilma. But that did prompt inspections, which revealed that many homeowner's policies were being written as if the homes were built in the 50s and 60s. In reality, most Florida homes are less than 20 years old and were eligible for many of the storm-resistant discounts that are almost standard with modern construction.

Having been caught at their own game, insurers began howling that homeowners with the tenacity to apply for the discounts for which they had always been eligible, were now cutting into profits.

In other cases, insurers were claiming that homeowners were fraudulently claiming improvements for discounts. Changes this year make it a crime for inspectors to provide false information about upgrades and require inspectors to include photographs of each qualifying upgrade and the signature of a licensed engineer, architect or contractor to verify accuracy.

The paper reports that other insurers have started going back to verity discounts are legitimate and, in some cases, removing discounts. Our Miami insurance claims attorneys find it ironic that insurers routinely point to staffing issues as the primary reason for lengthy claims resolutions. But now apparently have the staff to sort through thousands of discount claims that they have been forced to deal with by virtue of not notifying homeowners of their eligibility for discounts in the first place.

Continue reading "Insurers tightening guidelines on homeowner's discounts in South Florida " »

News Channel 7 in Panama City is marking the 15-year anniversary of Hurricane Opal this week -- the storm blasted that area in October of 1995, causing nearly $3 billion worth of damage.

Our Miami storm damage attorneys continue to report that the area remains at high risk for tropical storms and hurricanes through October and November. We reported recently on our Florida Insurance Claim Lawyer Blog that nearly half of the state's hurricanes occur after Sept. 21, the official mid-point of South Florida hurricane season.

Risk Management Solutions, a risk modeler used by the insurance industry, notes that the most recent October hurricane was Hurricane Wilma, which struck Florida in October 2005 and caused 11.3 billion in damages, making it the fourth-costliest storm in U.S. history.

RMS notes that both Opal and Wilma occurred during the only two other hurricane seasons that had as much storm activity as we have seen thus far this year.

Most recently, ABC25 in Palm Beach Gardens reports that Tropical Storm Otto has formed in the Atlantic. A week ago, we were dealing with the threat of Tropic Storm Lisa. The alphabetical list of this year's storms means 4 named storms have formed in the Atlantic in the last week. The storm could become a hurricane by the weekend. While it is expected to stay well away from South Florida, heavy rainfall and high winds are possible in the northern Leeward Islands, Puerto Rico and the Virgin Islands.

The hurricane season officially ends on November 30.

Continue reading "Four Named Storms in the Last Week; Risk Managers say Florida's costliest October Hurricanes formed in Similarly Busy Years " »

Rick Scott, the current Republican candidate for Florida Governor, has released his position on the state's insurance company, according to the Miami Herald. Scott is calling for the government run program to be "actuarially sound." He is also declaring that Citizens should be turned into the insurer of last resort in the state and for further deregulation of Florida's insurance markets.

Alex Sink, Scott's opponent, and current Democrat candidate for Florida Governor, also believes that Citizens needs to become financially sound and should also become the insurer of last resort.

Scott's campaign stated that because Citizens is currently on shaky financial ground, a major disaster would place taxpayers at financial risk. However, putting Citizens on solid financial ground may require policy holders to pay greater premiums. Senator Mike Fasano, R-New Port Richey, says he was informed back in 2009 that rates would triple for Citizens' policy holders if the State decided to charge actuarially sound rates.

Sen. Fasano also brought to light a major side effect of making Citizens' financially sound. Foreclosures are likely to increase with higher insurance premiums, especially in this current real estate climate.

Both Scott and Sink each want to reduce insurance fraud. Specific proposals address insurance fraud issues such as programs designed to provide homeowners with incentives for hurricane-proofing improvements.

Scott's plan does have its detractors. Democrats argue that his plan is a giveaway to the insurance industry and that Republican contentions that raising insurance rates will ultimately lead to lower rates is ludicrous.

Ultimately, the system does need some sort of change because a major hurricane could have a devastating effect on not only Citizens insurance, but Florida as a whole.

Continue reading "Florida Gubernatorial Candidates Discuss Private Property Insurance Reform" »