INSURANCE IN FLORIDA  ISSUES AND THOUGHTS.

As most of you are probably aware, Governor Crist made insurance reform his number one priority as soon as he took office this year.  After a week long special legislative session we were handed a bill with all sorts of changes to the Florida insurance code.  The biggest impact we should see from this reform is lower insurance rates.  These changes are scheduled to take place on June 1, 2007 when all insurance companies operating in Florida must comply with the new laws.  Unfortunately there is widespread debate over how much of a decrease we are going to see in the premiums.  The press has been reporting that it could be as much as 40% but when we talk with the insurance companies they tell us it's going to be more along the lines of 15%.  The bulk of the discount is going to come from the insurance companies having the ability to purchase their reinsurance coverage from the State of Florida instead of on the private market.  Reinsurance is a policy that insurance companies buy to help pay for losses from claims.  The State of Florida made about $36 billion of reinsurance available for companies to buy at a discounted price and the companies are supposed to pass those savings down to their customers in the form of lower rates. 

 

Citizens Insurance Corporation, the state owned company, has rolled their rates back to what they were on 12/31/06 and then discounted them another 10%.  Clients who purchased or renewed policies between 1/1/07 and 2/15/07 will be receiving refund checks from Citizens, other Citizens clients will see their lower rates upon renewal.  The private insurance companies at this point are saying that they will not be required to send any refunds but will be lowering rates for new and renewal policies effective after 6/1/07.  Clients who want to get a lower premium immediately will most likely need to shop around and purchase a new policy.  Please check with your agent for options.  At Landmark Insurance we have several top rated insurance companies that are offering new policies in Florida, please feel free to call us for a free, no obligation quote.  You can also request a quote on line at www.landmarkpb.com.  One additional note on Citizens; we have been flooded with calls from clients who want to drop their private company and go to Citizens for a potential lower rate.  Per the new laws, clients of private companies are not allowed to be written with Citizens unless the Citizens premium is 25% less that the private company for comparable coverage.

 

Another option to consider to help lower your premiums is to have a windstorm mitigation inspection on your home.  The inspector will look to see if you have items like roof straps or tie downs, approved hurricane shutters, door bracing, etc.  For newer homes this inspection is usually not necessary since the home had  to be be built up to these new codes and you should already be receiving the discounts.  On older homes, generally speaking, homes built prior to 1996, we have seen on numerous occasions where the builder built the home with certain wind mitigation features included that weren't required by the code yet so having this inspection done turns out saving a lot of money on your insurance.  Please try to use an inspector that has a money back guarantee meaning that if they don't find any features on your home that will save you any money then they won't charge you for the inspection.  Please call our office for a list of inspectors that we refer to clients who offer a money back guarantee.    

 

Landmark Insurance is a full service agency specializing in home, auto, business and life insurance.  Please visit us at www.landmarkpb.com or call 561-691-4900. 

 

 

 

Steve Dellapina

www.landmarkpb.com

Ofc. 561.691.4900 x203

Fax. 561.691.4800

Landmark Insurance of the Palm Beaches, Inc.

8409 N. Military Trail, Suite #102

Palm Beach Gardens, FL 33410