By now, most people have heard about Chinese drywall but may not understand what the fuss is all about. It could end up affecting many Homeowners since thousands of homes were built between 2002-2006 when the defective drywall was prevalent. The situation can be summarized easily. Due to a record home building boom and a shortage of materials, drywall was imported from China in order to keep up.  The product emits high levels of hydrogen sulfide gas which in turns corrodes metals and causes irritation to eyes, sinuses, and respitory systems. A recent report by the Consumer Product Safety Commission and the Department of Housing and Urban Development recommends removing the drywall and other affected systems (i.e. electrical wiring, alarm systems, gas supply lines, etc.) So what is the problem? Just put a claim into the Homeowners Insurance company and have the repairs made, right? Unfortunately, defective construction or materials is a peril that is excluded from the standard Homeowners policy. As Florida Insurance Commissioner Kevin McCarty noted in 2009, the damage caused by Chinese drywall is "a malfunction based upon a defective material that was installed in the building. And that historically has been excluded from a homeowner’s policy."

The cost to remove and replace all of the drywall in a standard home could be staggering. Those who have been hit hard by the poor economy and can't afford to make the repairs could ultimately face a nonrenewal by their insurance company. Although the drywall isn't a covered peril, leaving it unrepaired could increase the likelihood of a fire or other damage depending on the extent of the corrosion to wires and pipes. In another scenario, clients who have moved out because of the health problems caused by the drywall might face cancellation due to vacancy. Needless to say, everyone is watching to see how the story with Chinese drywall unfolds.

(If you suspect your home was built with Chinese Drywall, you can find more information at: http://www.cdc.gov/nceh/drywall/ )

With the Department of Financial Services inspecting more and more insurance companies for solvency and with the threat of the hurricane season upon us, what are we suppose to do?

It is FDFS's  responsibility to be certain that  the insurance companies are sound and practice good underwriting guidelines which assures the policyholder that the company will have enough money to pay claims if a disaster occurs.

One of the areas that you, the homeowner, can control is the maintanence of your property.  Because more and more insurance comanies required periodic inspections of the property they insure, it is important to repair any damage that compromises your home, such as  rotted wood, loose gutters and broken windows and doors.  

 

 Late Model Ford

If you have jewelry, furs, fine arts, custom golf clubs or other specialty items, you may be surprised to know your Homeowners policy may not be covering you fully. 

Trees are beautiful and we love the shade they provide.  But what happens if a tree falls on your car?  Who pays the damage?

It doesn't matter who owns the tree.  If the tree falls on your car, the damage is paid through your auto policy under Comprehensive coverage. 
With the hurricane season upon us, you may want to check the cost of Comprehensive coverage and add it to your auto policy.

 WHAT ARE 3 WAYS TO REDUCE YOUR HOMEOWNER PREMIUM?

   With homeowner rates on the rise, there are some ways to help make it more affordable.  Be sure to consider carefully how your choices affect the processing of a claim.

              1.  Increase your deductibles
              2.  Remove the replacement cost on contents
              3.  Have a wind mitigation inspection (roof inspection) done

Huffington Post Pictures - Tennessee Flood

"I DON'T NEED FLOOD INSURANCE.  I'm not in a flood zone."  While this is a common thought, EVERYONE is in a flood zone.  Some are considered lower risk than others, but FEMA reports 1 in 4 flood claims are from areas classified as low or moderate risk.  Even if you area hasn't flooded before, development in the past 10 years has the potential to change the landscape significantly and increase the amount of runoff.

Many insurance companies are now EXCLUDING partial sinkhole losses on your Homeowner Insurance and including Catastrophic Ground Cover Collapse instead.  You may have the option to buy the sinkhole coverage back.