Florida Insurance Claim Lawyer Blog

Our society has become very dependent on technology. We often turn to our cell phones, smart phones, tablets, laptops, desktops, and other such devices to find out the latest news, current events, and other pertinent information. Therefore, it stands to reason that if a hurricane were to strike South Florida that we would all turn to our many devices for the latest news and information.

All that reliance on technology begs the question whether or not our infrastructure is set up to handle all that demand should a storm strike South Florida. To handle that load, wireless carriers are turning to time-tested disaster plans - but on an exponential scale.

But will it be enough to handle the 600,000 South Florida households without land lines, plus the seemingly endless appetite to Tweet, Facebook and upload video of the broken trees, gasoline lines, and broken roadways? No one will know for sure until storm hits.

However, the ravaging storms, and tornadoes, that ripped through the Midwest earlier this year provided a sneak preview of what we can expect here in South Florida should a hurricane strike us.

In that part of the country, Facebook became a critical channel to finding lost family members and asking for help. Moreover, with Internet connections down for several days, many in that part of the country turned to wireless telephones for news. Many more also turned to Twitter to spread the word of where to find supplies and emergency stations. The tweets involving emergency stations even included areas where folks could recharge their wireless devices, including cell phones.

It should also be noted that with hurricane season upon us, and should a hurricane strike South Florida, many South Floridians will turn to many new apps for purposes of both tracking the storm and dealing with the storm's aftermath. But that obviously means that many of us will rely on technology more so today than we did in years past. In fact, cell phones are often times the only form of communication immediately after a hurricane strikes.

To prepare for that anticipated heavy usage, major wireless carriers say they have tested equipment and run simulations in South Florida. But while all the wireless carriers state that they are prepared in the event that a major hurricane strikes South Florida, only time will truly tell.

Nonetheless, and in the event that a major hurricane does strike South Florida, the best advice that the major carriers offer is to use your wireless technology sparingly and only when necessary.

Simply put, go ahead and post something short on Facebook or Twitter send a text message, and then get off the phone.

Continue reading "Will Your Wireless Devices Work During and After a Hurricane Strike?" »

With hurricane season upon us, now is the time for all businesses throughout South Florida to properly plan for hurricane season.

It is vital for every business owner or professional to have a disaster plan in place that includes knowing how to assess damage, understanding how to properly file an insurance claim, and make the required repairs to get back to work as quickly as possible. Taking the wrong approach, or simply mishandling your potential insurance claim, could cost you a lot of money with respect to any claim that may ultimately be submitted to your insurance company.

In an effort to aid your hurricane season preparation, here are some suggestions that could assist you during this upcoming hurricane season's adequately prepare.

• Make sure to copy and safely store your pertinent documents. For instance, make sure you have a copy of your property and casualty, as well as a copy of your business interruption insurance policy, and a copy of your lease agreement. You should maintain hard copies of these important documents in the event of a long-term power outage, but you should also store these documents digitally and off-site in a secure electronic environment. You should also safely store these documents in a manner that will allow you to gain very quick access to them in the event of a catastrophe.

• You should also safely make the appropriate arrangements to have copies of your last four years of income tax returns, and the last six months of your profit and loss statements safely secured. You'll need the financial data in the event that you have to make a business interruption claim, and you will need physical copies of these documents should you not be able to gain access to them electronically.

• Keep an updated account of your inventory, and print that out as well. Be sure to inventory all of your office supplies such as computers, desk, chairs and paper since you can recover those losses. You should photograph all of these items as well.

• If you rent space, then it is imperative that you keep a copy of your lease agreement in a safe place along with all of the aforementioned other documents.

• Make sure to take photographs and/or video of your entire workspace, including your inventory and office supplies.

• Make sure to collect emergency contact information for all of your employees, suppliers, and vendors.

• Work with your senior staff to prepare a plan for a storm, fire, flood or other emergency. What are the contingencies that will allow you to get back to work quickly, and what are the variables that will prompt a long term shut down. Who will be in charge of getting your network back up? Who will be in charge of contacting your major clients? Who will be in charge of handling your insurance claim? Assigning these responsibilities in a calm environment prior to a storm striking will only aid the smooth transition to get back to work after a storm strikes South Florida.

• If you own the property, hire a licensed inspector or contractor to examine the roof, interior and other structural components in advance to the store. You do not want the insurance company to deny your claim by saying that your property had pre-existing damage. The best way to combat that argument is to conduct the appropriate inspection today.

• Prepare a list of preferred contractors that you can call on for all necessary repairs. Don't wait for the insurance company to find someone. If the storm was a catastrophe, then that aid will be difficult to come by. Indeed, it will be incumbent upon you to repair your damages, and the best way to do that is to contact a contractor today and make arrangements to insure prompt repairs after a storm strikes out Florida.

Continue reading "Is Your Business Ready for Hurricane Season? " »

Some climatologists are pointing to "La Nina" for what has been one of the most deadly and devastating spring-weather seasons in recorded history.

La Nina, whose literal translation is "the girl", is a weather phenomenon that can be traced to the waters of the Pacific Ocean. The waters in the Pacific experience cooler-than-normal sea-surface temperatures, which in turn cause a chain reaction that alters weather patterns around the world.

The result has been eight separate billion-dollar weather events in the form of tornadoes, massive flooding, and wildfires the size of New York. For example, the recent tornado in Joplin, Mo. is expected to be the most costly tornado in U.S. history.

What La Nina essentially does is create a pattern of drier-than-average conditions across the southern part of the United States. The result is a very dry, stronger jet stream that mixes with warm, humid air at lover levels of the atmosphere and cooler air at the upper levels. This concoction is the perfect recipe for supercell thunder storms, which have the ability to spawn some of the most violent and destructive tornadoes. To date, 525 people have been killed by tornadoes this spring, which is the most in recorded history.

So while La Nina is responsible for very wet conditions in some parts of the country, it is also responsible for creating widespread drought across the states. For example, West Palm Beach has recorded its driest water-year since 1850 going from 33.09 inches on average during this season to a depressing 10.39 inches.

The good news? According to climatologist, the effects of La Nina seem to be waning down. This is great news for us in South Florida because La Nina tends to amplify the number and ferocity of Atlantic hurricanes. However, only time will tell whether this "wild and weird" weather season is done wreaking havoc on our nation.

But it should be noted that atmospheric pressures are likely to pull in more hurricanes this season. Such unusual weather patterns are the reasons behind recent predictions calling for a very active hurricane season. As such, now is the time to be get prepared for hurricane season.

That is particularly true since history suggests that South Florida is due for a hurricane strike. Therefore, this is certainly not the season to take lightly. We've been spared the last few years, but this could be the year where we are hit by another hurricane. Hurricanes are a fact of life living in South Florida. Although inevitable, they are not surprises like earthquakes or tsunamis. You can prepare and be ready for a hurricane.

Considering the increased odds of South Florida getting hit by a storm you should take the necessary steps to safeguard your property and family. One exercise that is a must is a review of your insurance policy to determine what is covered, and excluded, from your policy. Most importantly, review what you're supposed to do in the event your property is damaged in a windstorm. You should also check the financial strength of your insurance company, and stock up on food supplies.

In the past few weeks, we have seen homes destroyed throughout the country due to the recent ravaging rage of tornado strikes.

Unfortunately, many of those homeowners will soon discover that their insurance won't cover all of their rebuilding cost. The good news, however, is that the typical homeowners insurance policy does cover tornado damage. But as will be discussed below, it may not be enough. And that should serve as a cautionary tale for all of us residing in Florida as hurricane season gets under way while also serving as a reminder to check our insurance policy now, while also checking on the financial strength of the insurance company providing insurance coverage.

Other natural disasters, such as slides and earthquakes, are not typically covered under the standard insurance policy. But while 96% of homeowners have insurance, 64% of homes are undervalued for insurance purposes.

Therefore, with hurricane season upon us, it is critical that all homeowners in the state of Florida review their insurance policies for purposes of understanding exactly what coverages they have purchased. A typical homeowners policy will generally provide coverage that falls into the following three categories.

Replacement cost. This covers the cost of repairing or replacing your home, based on a set dollar amount. However, one of the problems with this coverage is that it often times does not reflect the increase in the cost of construction and labor since you took out your policy in your community. If your community is destroyed by a natural disaster, then that means that there could be higher demand for such construction and labor needs, and that will inevitably push up the cost of repairing and replacing your home.

Extended replacement cost. Here, the insurance company agrees to pay a certain percentage above the replacement cost to account for inflation. So, for instance, if your replacement cost coverage is $250,000, extended replacement cost coverage will pay up to 120% of that, or $300,000. However, even with that additional percentage of coverage afforded for purposes of assisting and paying for the replacement cost, if you have not adjusted your numbers in sometime, you may still fall short in the event of a catastrophic disaster.

Guaranteed Replacement Cost. This coverage will pay the total cost of replacing your home no matter how much prices have increased since you took out the insurance policy. However, not only of this type of coverage more expensive, it is also very difficult to fix your from an insurance company. The reason being is that insurance companies want to control their cost, and this type of coverage may permit the cost to spiral out of control. Paying for your lost or damaged items.

Replacing Your Stuff. Most insurance policies cover lost or damaged items. Typical coverage ranges from 50% to 70% of the amount of insurance you have on the structure of your home.

For instance, if your insurance policy provides up to $250,000 to rebuild your home, you can get an additional $125,000-$175,000 to replace your belongings. Moreover, you can also insure your belongings for the actual cash value, or the replacement cost.

The actual cash value coverage means that if you lost your 10 -year-old TV to a natural disaster, then you will be compensated the amount of money that your 10 -year-old TV set is worth today.

On the other hand, replacement coverage, while generally more expensive, is often times worth the additional premium cost. The reason being that if you lost your 10 year old TV then you would be entitled to receive new money today that would allow you to purchase a new TV today.

Last year was the third busiest hurricane season on record. However, and while that was the third busiest hurricane season on record, the United States was spared a direct strike by any storm last year.

Part of the reason why the United States was spared a direct strike last year was because the United States was protected from major storm damage by a trough, or an elongated area of low pressure, that helped keep all the hurricanes and all but one tropical storm from striking the United States.

However, and as this hurricane season gets underway, that same trough is setting up across the Mississippi Valley. And if it stays there, many are predicting that the trough is going to act like a magnet and pull many storms into the southeastern United States or mid-Atlantic region.

Other factors are also working in favor of an active hurricane season. For instance, the position of this year's Bermuda-High, a semipermanent area of high pressure over the North Atlantic, may also drive storms closer to the United States.

As such, we will be faced with a much higher threat of a land-falling hurricane this upcoming hurricane season.

Indeed, history suggests that South Florida is due for a hurricane strike. Therefore, this is certainly not the season to take lightly. We've been spared the last few years, but this could be the year where we are hit by another hurricane. Hurricanes are a fact of life living in South Florida. Although inevitable, they are not surprises like earthquakes or tsunamis. You can prepare and be ready for a hurricane.

Considering the increased odds of South Florida getting hit by a storm you should take the necessary steps to safeguard your property and family. One exercise that is a must is a review of your insurance policy to determine what is excluded from your policy. Most importantly, review what you're supposed to do in the event your property is damaged in a windstorm. You should also check the financial strength of your insurance company, and stock up on food supplies.

Continue reading "Atmospheric Pressures are Likely to Pull in More Hurricanes this Season" »

The last time a major hurricane struck the United States was during the record storm year of 2005. The United States has never gone six years with out a major strike.

In 2005 we saw 15 hurricanes and seven major storms of category 3 or higher, including Hurricane Katrina which struck New Orleans, killing at least 1,836 people. Moreover, hurricane Katrina and Rita caused $91 billion in damages, destroyed 115 energy platforms in the golf and shut down 95% of gulf oil production and almost 30% of US refining capacity.

As this hurricane season gets underway, forecasters are predicting an above normal hurricane season. The last hurricane that hit the United States was hurricane Ike, a category 2 storm back in 2008. There has not been a three-year period without a US hurricane strike since the 1860s.

Hurricanes are the Planet's worst storms.

Hurricanes are the most powerful and destructive storms on the planet. Between 1990 and 2009 hurricanes inflicted $152.4 billion in insured losses in the United States, and accounted for 45.2% of the country's catastrophic losses during that same time period.

This year, the insurance industry may be under greater strain because of large losses infected by record-setting tornadoes that have killed more than 500 people and destroyed at least $3 billion to $ 6.5 billion of insured property.

Continue reading "Hurricanes are the Planet's Worst Storms and they Cause a Lot of Damage" »

Forecasters are predicting another above normal hurricane season in the region. Therefore, it is critical to be prepared as this year's hurricane season gets underway.

The National Oceanic and Atmospheric Administration's (NOAA) forecast for the Atlantic, Caribbean Sea and Gulf of Mexico is calling for 12 to 18 named storms. They predict that 6 to 10 of these named storms will become hurricanes. It is also predicted that 3 to 6 of these will become major hurricanes.

The forecasters believe that unusually warm water in the Atlantic Ocean is the major reason why we should expect a busy hurricane season. The impact of the La Nina climate pattern may also contribute to the hectic season.

We should give credence to this forecast because it is similar to an earlier prediction coming out of Colorado State University that calls for 16 storms in the Atlantic basin. Also, NOAA forecasts for named storms have been on point in 6 out of the last 11 years.

Luckily, hurricanes are not surprises like tornadoes, earthquakes and volcanic eruptions. Because of this, we have ample time to prepare. Don't become complacent and prepare for a hurricane, especially since its predicted to be a busy season. Preparation will help protect your family and home from danger.

Indeed, history suggests that South Florida is due for a hurricane strike. Therefore, this is certainly not the season to take lightly. We've been spared the last few years, but this could be the year where we are hit by another hurricane. Hurricanes are a fact of life living in South Florida. Although inevitable, they are not surprises like earthquakes or tsunamis. You can prepare and be ready for a hurricane.

Considering the increased odds of South Florida getting hit by a storm you should take the necessary steps to safeguard your property and family. One exercise that is a must is a review of your insurance policy to determine what is excluded from your policy. Most importantly, review what you're supposed to do in the event your property is damaged in a windstorm. You should also check the financial strength of your insurance company, and stock up on food supplies.

Continue reading "Federal Forecasters are Predicting that the 2011 Hurricane Season will be an Active One" »

A new study has revealed that strong hurricanes lose power just before making landfall in the Gulf Coast. This finding, according to N.O.A.A., could assist scientists in coming up with a better forecast for storms during this year's hurricane season.

The reason for this phenomenon is attributable to the fact that the waters bordering the U.S. in the Gulf Coast are much cooler. As the hurricane approaches land, high surface winds tend to mix cooler water up to the surface, which can lessen a storm's intensity.

Another factor that plays an intricate part in the weakening of powerful hurricanes is the strong upper-level winds that storms come into contact with as they approach the Gulf Coast.

However, when the hurricane is over the center of the Gulf, the depth and warmth of the water acts as a perfect combination to both fuel and strengthens hurricanes. As a result, a hurricane such as Hurricane Katrina could have much been worse than it actually was when it made landfall in August of 2005.

The study looked at each and every storm - from hurricanes to tropical depressions - that made landfall on the U.S. Gulf Coast from 1979-2008. Ed Rappaport, the lead author of the study and deputy director of the National Hurricane Center in Miami, found that the stronger hurricanes lost power before making landfall, but the smaller hurricanes intensified. This suggests that the above two factors have more of an impact on large hurricanes and little, to no effect, on smaller hurricanes.

Nonetheless, atmospheric and oceanic conditions can still come together to allow large hurricanes to keep their intensity - or even strengthen - as it draws near to land. The result of this study is great news for forecasters, but it does not change the fact that we live in an area that is constantly under the threat of dangerous storms during this hurricane season. Accordingly, it is imperative that all the proper steps are taken to ensure the safety of you and your loved ones during this anticipated busy hurricane season.

Indeed, history suggests that South Florida is due for a hurricane strike. Therefore, this is certainly not the season to take lightly. We've been spared the last few years, but this could be the year where we are hit by another hurricane. Hurricanes are a fact of life living in South Florida. Although inevitable, they are not surprises like earthquakes or tsunamis. You can prepare and be ready for a hurricane.

Considering the increased odds of South Florida getting hit by a storm you should take the necessary steps to safeguard your property and family. One exercise that is a must is a review of your insurance policy to determine what is excluded from your policy. Most importantly, review what you're supposed to do in the event your property is damaged in a windstorm. You should also check the financial strength of your insurance company, and stock up on food supplies.

Continue reading "Study Reveals Some Hurricanes Lose Strength Just Before Making Landfall in the Gulf Coast" »

Florida's streak of good luck may come to an end this hurricane season. The odds are simply not in our favor. History simply tells us that South Florida is due.

Statistics show that the coastline from Key West all the way to Palm Beach County averages a category 1 hurricane every four to five years. With Mother Nature sparing us the last 5 years, we are at a great risk of being struck by a storm.

Most preseason forecasts predict a slower season than 2010. However, this should not comfort anyone because 2010 had 19 named storms which is tied for third-highest number on record. However, the number of storms doesn't matter. What matters most is the path a hurricane will take.

This is certainly not the season to take lightly. We've been spared the last few years, but this could be the year where we are hit by another hurricane. Hurricanes are a fact of life living in South Florida. Although inevitable, they are not surprises like earthquakes or tsunamis. You can prepare and be ready for a hurricane.

Considering the increased odds of South Florida getting hit by a storm you should take the necessary steps to safeguard your property and family. One exercise that is a must is a review of your insurance policy to determine what is excluded from your policy. Most importantly, review what you're supposed to do in the event your property is damaged in a windstorm. You should also check the financial strength of your insurance company, and stock up on food supplies.

Even though you may prepare to file a potential claim, it doesn't guarantee your insurance company is going to treat you fairly. They could outright deny coverage for no good reason or even try to skimp on what they are supposed to pay out.

Don't let an insurance company pull a fast one on you. If they do, don't hesitate to contact Alvarez & Barbara, LLP, for help. We successfully handle insurance claims on a daily basis and achieve favorable results on their behalves.

Continue reading "History Suggests that South Florida's Run Without a Hurricane Strike May End This Hurricane Season" »

In the post Hurricane Wilma world in South Florida, many homes and many grocery stores now have generators installed that make a power outage following a significant hurricane a mere inconvenience.

If you recall, long power outages lasted throughout South Florida, and there were long lines at any gas stations, and grocery stores, where many individuals were forced to buy basic supplies such as water, ice, and food, following Hurricane Wilma.

One of the main lessons learned from Hurricane Wilma is to be adequately prepared in the event that a significant storm strikes the region.

That is one reason why many commercial establishments have invested money, and resources, over the past few years installing generators in the event that a storm strikes South Florida.

Nonetheless, and despite the presence of an increased number of generators in both homes and commercial establishments, now is the time to get ready for the 2011 hurricane season.

And one of the most important things to do in preparation for the upcoming hurricane season is to ensure that you have an adequate plan to make sure that you have all the available food and supplies on hand in the event that a hurricane does strike South Florida.

It is recommended that one start with seven days worth of food and water for your family. One gallon of portable water per person per day is required for drinking and cooking, and you should have on hand a 7 day supply of water.

It is also important to secure a certain amount of food your family is going to eat during those days following a hurricane. As for food, it is also very important to secure food items that your family will actually want to eat, because your family will get very bored of tuna sandwiches after a few days.

Also, be sure to stock up on all the food groups. For instance, you will need to stock up on foods that contains the necessary proteins (peanut butter, nuts, chili beans, vienna sausages etc.), dairy (canned milk, pasteurized processed cheese spreads, etc.), starch (canned, corn, vanilla wafer, graham crackers, pretzels, bread, etc.), as well as fruits and vegetables.

Of course, you're also going to need to stock up on supplies to eat all that food. So make sure to also stock up on aluminum foil as well as disposable paper towels, aluminum pans, plates and silverware. Damp wipes, and garbage bags, will also come in handy.

And of course, don't forget that can opener and bottle opener!

Continue reading "Stock Up on Food Supplies in Preparation for Hurricane Season" »

With hurricane season upon us, it is important to check to the financial strength of your property insurer. The reason for that is because a major storm could wipe out more than your home - it could wipe out an insurance company too.

Weiss Ratings, a company which studies the financial strength of property insurers in Florida, released its grades for property and casualty insurers. Weiss rated 29 Florida insurers as having a low financial strength rating. This means that about a quarter of the state's private insures are in danger of being wiped out by a major hurricane.

One of the companies that received a low rating was State Farm Florida Insurance Co. State Farm is the state's second largest insurer with $888 million in homeowner premiums. However, in 2010 it lost $66.2 million. The third-largest insurer, Universal Property and Casualty, was also given a low rating.

Currently, Florida law mandates that property and casualty insurers keep at least $5 million in capital. The recently passed insurance reform law will raise that requirement to $10 million in 2016 and $15 million in 2021.

However, hurricane season has already started. So take the time to look at your property insurer to determine whether your insurer is in good financial health. In the event of major storm, you don't want to be stuck with an insurance company that is going broke as it will negatively impact your claim. Worse, it could leave you in a position where you will be unable to fully recover money for repairs that you are entitled to receive despite the fact that you paid your premiums.

Continue reading "Florida's Property Insurers are on Shaky Financial Ground as Hurricane Season Gets Underway" »

Governor Rick Scott recently signed into law a piece of legislation that changes many aspects of property damage claims, and that also makes it easier for insurance companies to raise your property insurance rates in the years to come.

Below is a summary of Senate Bill 408 that was signed into law by Florida's Governor recently.

Time Limits for Claims and Statute of Limitations

The bill places time limits for bringing a hurricane or sinkhole claim and also creates a statute of limitations for bringing a breach of contract property insurance action in court. A claim, supplemental claim, or reopened windstorm or hurricane claim must be given to the insurer within 3 years after the hurricane first makes landfall or the windstorm causes covered damage. An initial, supplemental or reopened sinkhole claim must be given to the insurer within 2 years after the policyholder knew or reasonably should have known about the sinkhole loss. The bill also enacts a 5 year statute of limitations for bringing an action for the breach of a property insurance contract that runs from the date of loss.

Public Adjusters

The bill limits public adjuster fees related to reopened or supplemental claims to a maximum of 20 percent of the reopened or supplemental claim payment. The bill also limits public adjuster fees to 20 percent of an insurance claim payment made by the insurer more than one year after events that are the subject of a declaration of a state of emergency by the governor. A public adjuster fee related to a policy issued by Citizens Property Insurance Corporation may not exceed 10 percent of the additional amount actually paid in excess of the amount originally offered by Citizens on the claim.

Public adjusters are prohibited from making deceptive or misleading advertisements or solicitations. Written solicitations must include a disclaimer notifying the consumer that a solicitation is being made. A public adjuster contract related to a property and casualty insurance claim must contain the full name of the public adjuster and public adjusting firm, the business address, license number, and other specified information.

Public adjusters must give prompt notice of a property loss claim to the insurer and include with the notice the public adjuster's employment contract. The public adjuster must also ensure that the insurer has access to inspect the property, can interview the insured directly about the loss and claim, and allow the insurer to obtain information necessary to investigate and respond to the claim. The insurance company's adjuster or other persons acting on the insurer's behalf must provide at least 48 hours notice before scheduling an inspection of the property or a meeting with the claimant. The insurer also must allow the public adjuster to be present during the insurer's in person meetings with the insured.

The bill requires licensed contractors to be licensed as a public adjuster in order to adjust a claim on behalf of the insured.

Continue reading "Summary of Property Insurance Reform in Florida" »