When the economy takes a down turn, insurance agents usually see an increase in the number of theft claims reported. While we wish that no one had to experience a robbery, here are some tips to make your claim go more smoothly.

-Know your coverage! In most cases a standard Homeowners policy only includes a minimal amount of coverage for commonly stolen items such as fine arts, electronics, and jewelry. You might need to schedule these types of belongings for a specific amount of coverage. Or you may have to insure them on their own policy if they can't be covered on your Homeowners insurance.
-File a police report immediately. This is going to be required by the insurance company to document the theft. 
-Take pictures of any damage to the building before you have it repaired. Your first instinct is to secure your home against future break-ins, but before you have the window replaced or the door repaired, document the damage. You can then submit them with the receipt to the claims adjustor to be included in the claim.
- Although it may be impossible to know everything that was taken, try to give the police an itemized list for the police report. You may even have to file an amended report after you have time to take a full inventory. The reason behind this is that he list of items that you present to the insurance company should match the items listed on the police report. For example, if your list says "movies," but the police report says "video games," the insurance company may refuse to pay for movies.

-Include as much detail as you can. Instead of the police report indicating "various games and movies" were stolen, give the police the number of games/movies that are missing, and the names and titles of as many of them as you can remember. The more information you can provide to the claims adjustor, the more likely he will be able to reimburse you.
-Catalog your personal property! Whether its by taking pictures of your household items, or by scanning digital copies of receipts, the more the better. Because insurance fraud is a growing problem in Florida, insurance companies want to see proof of ownership before they can include it in a claim. Do you have pictures of yourself wearing the missing jewelry? Do you have the original packaging for your gaming system or laptop? Do you have the jewel cases for DVD's and video games? Did you keep the instruction manual for the digital camera? Keep these types of things together in a safe place. If you take pictures you can email them to yourself so you can access them from another location (don't just keep them on the laptop in case that is taken in the burglary.) Or bring them to your insurance agent and see if they will keep them in your file.
Claims are never enjoyable since they start out with damage or theft to your property. But with some planning, you can help to make the claims process less painful so you can get back to normal faster.

The 2011 hurricane season is starting, and we urge all of our friends and neighbors to be prepared. You can review Hillsborough County's 2011 Hurricane Guide at http://www.tbrpc.org/tampabaydisaster/hurricane_guide2011/HG_2011.html

It is common knowledge that homeowners have seen the market values of their properties drop drastically in recent years. Homes in the same neighborhood are selling at a fraction of the price for which they were purchased. With everyone tightening their budget, it is no wonder that we frequently get calls to lower Homeowners Insurance coverage to match the decreased value of the home. Many people are suprised to find out that this isn't always possible to do.

A typical Homeowners policy (HO3) automatically covers the dwelling for "Replacement Cost." Although your home may not be 'worth' much on the market, you depend on your insurance policy to replace your home with new materials in the event of a claim.  This means that the insurance company has to take into consideration the worst case scenario in which the existing structure has to be torn down, the debris removed, and a new house built with brand new matierals.  Insurance companies rely on cost estimating programs to determine the approximate replacement value of each home. Despite the drop in market value, most of the values for the cost estimators haven't changed. You might think that since the economy is so slow and there are so many contractors out of work, the cost of new construction would be cheaper than it was in years past. But keep in mind that a major storm event could dramatically increase demand and reduce supply. Even though many people feel the current replacement cost estimates are unfairly inflated, they could find themselves under-insured in the aftermath of a category 5 hurricane that wiped out the local lumber yards and home improvement stores.

If you truly feel you are over-insured, you can ask your agent to do an updated replacement cost estimate of your home. However, don't expect the result to mirror the current market value of your home. After all, the market value is affected by age, condition, and location. The Homeowners policy is designed to replace the home with a new one.

 Having a claim is already a stressful situation. Running into problems along the way only makes matters worse. The best thing that you can do to avoid extra frustration is to review your policy BEFORE a claim and make sure the information on it is correct.

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.  

 

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. 

 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