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| Homeowners insurance helps pay to repair or rebuild your home and replace personal property due to a covered loss. Although Florida law does not require homeowners' insurance, some cities and counties require liability insurance coverage for your home if you own certain pets or a swimming pool. Liability insurance coverage pays for non-automobile related injuries to other people, or damage to their property, for which you are legally responsible. | |||
| For mortgaged homes, the lending institution will require full homeowners insurance coverage on the structure, including flood (if located in special zone), fire, liability, windstorm, etc. Some developments and subdivisions may also require homeowners insurance. | |||
| There are various types of residential insurance including homeowner insurance, condominium insurance, renters insurance and mobile home insurance. All of these types of insurance provide property and liability coverage. The property coverage insures against perils such as fire, wind, hail, vandalism, and theft. The perils covered depend on the type of homeowners' insurance policy that you purchase. | |||
| Keep in mind that your homeowner insurance policy does not include coverage for flood. | |||
| At Insurance Awaits You we have insurance offices in West Palm Beach, Fl and Stuart, Fl. to service all of your insurance needs from Auto Insurance and Homeowners Insurance to Worker's Compensation Insurance and Life Insurance. We do not work for any particular insurance company. This allows us to shop all of your policies with different insurance carriers to find the best company to fit all of your insurance needs. Some of our clients are interested in the best price while others have a particular insurance company that they prefer to do business with. We can offer you insurance quotes from several companies and will break down the pros and cons of each insurance carrier. No matter what your insurance needs are, we are here to help you. Contact us today to receive an insurance quote from several top rated insurance carriers. | |||
Basic Homeowners' Insurance Coverage Available in West Palm Beach, FL |
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| Depending on which company you choose, you may obtain one of several basic packages of homeowners' insurance in Florida to protect your home and belongings. Each package protects against a specified number of perils, or events that cause damage to property, such as fire, windstorm or theft. | |||
| Four categories apply to covered perils: | |||
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| The first three are defined as “property.” | |||
Property |
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| Property coverage helps pay for damage by covering perils to your home, the contents of your home and other personal belongings owned by you or family members who live with you. In some cases, it helps pay for damage to other structures, such as tool sheds, detached garages, small boats, guest houses andtheir contents. Your insurance agent or company can point out the items covered in a given policy. Your policy provides limited coverage for some personal property, such as antiques, firearms, jewelry, furs and electronics. You may need additional coverage as an endorsement, or addition, to your insurance policy, to modify itsoriginal terms for an additional premium. | |||
Additional Living Expense (ALE) |
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| Homeowners' policies provide additional living expense coverage that will pay some extra expenses if damage to your home prevents you from living there while it is being repaired.Most policies also will provide this coverage when a civil authority (law enforcement agency, emergency management service, etc.) prohibits the use of a residence due to direct damage to neighboring homes by a covered threat. The items typically covered - above and beyond normal expenses - include extra costs for food, housing, telephone, transportation (to and from work or school), relocation and storage, utility installation and furniture rental for a temporary residence. Be sure to check your policy to find out what is specifically covered. This coverage applies only to differences in expenses. For example, it would apply to the cost of restaurant meals minus normal food expenses. It does not cover your mortgage, groceries and utilities or the monthly cost of a telephone in a rented space (since you normally pay for the telephone in your house). Your policy may designate limited coverage for additional living expenses (ALE), but your policy does not obligate your company to pay this amount up front or in full if you suffer a total or partial loss. For this reason, you must keep receipts for additional living expenses and submit these to your company for reimbursement. Additional living expense coverage does not apply to your dependent children while they are away at college. It applies only to the primary insured structure in the event of a loss. Policies generally offer ALE coverage without any deductible. Flood insurance policies, however, don't provide this coverage. For more information, contact your insurance agent or company. Two additional types of coverage are known as personal liability and medical payments. | |||
Personal Liability |
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| This coverage protects you against a claim or lawsuit resulting from (non-auto) bodily injury or property damage to others. For example,if a neighbor slips and falls in your house and sues you, and a jury finds you legally liable, this coverage would pay that claim plus legal fees up to the policy limits. This coverage applies to you and all family members who live with you. It does not cover intentional damage or harm caused by you or family members who live with you. Check your policy for exclusions and discuss them with your agent. | |||
Medical Payments |
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| Regardless of fault, this coverage pays formedical expenses, up to the medical payment limits, of persons accidentally injured at your home. It does not apply to your injuries or those of anyone living with you or to activities involving an at-home business | |||
| Notes: Your homeowners' insurance policy may also cover your dependent children's belongings while they attend college, whether they live on or off campus. Check with your agent or company representative concerning coverage for children living away from home. You may need a separate policy. | |||
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Replacement Cost Versus Actual Cash Value |
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| Some companies offer guaranteed replacement cost dwelling insurance - an option that costs only a few dollars more, and insures your home for an increased amount, even if it exceeds policy limits. Many companies will not offer guaranteed replacement benefits for older homes. | |||
Inflation Guard |
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| Inflation or room additions can increase the replacement cost of your home and its contents, while the actual cash value of your home may decrease over time. An inflationguard endorsement gradually increases your dwelling's coverage limit annually to keep your insurance coverage up-to-date with current prices and inflation. It also may keep the policy value in line with increases in local building costs per square foot. If your policy lacks this endorsement, you are responsible for periodically updating your coverage with your insurance agent or company.No matter how you insure your home, you should keep track of its replacement cost evaluation. Check with your agent or company once a year to make sure your policy provides adequate coverage. When buying coverage, you may insure your property and belongings for actual cash value or replacement cost. | |||
Replacement Cost |
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| Replacement cost is the amount needed to replace or repair your damaged property with materials of similar kind and quality, without deducting for depreciation (the decrease in the value of your home or personal property due to normal wear and tear). | |||
Actual Cash Value |
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| Actual cash value is the amount needed to repair or replace damage to your home after depreciation. For example, your insurance company would deduct for the age and condition of a 17-year-old roof with a 20-year life expectancy.Here is how the two types of coverage work in practice. Let's say you bought a new $700 television in 2000. In 2005, a lightning strike destroys the TV. A policy for actual cash value will only pay an amount that reflects the TV's current value - say, $300.A replacement cost policy, however, would cover the entire cost of a new TV of the same type - say, $900. Legislation passed in 2005 requires full payment without a depreciation hold-back for personal residential policies in some cases. Your agent must offer you replacement cost coverage for your dwelling. If you reject this coverage, you must sign a statement on the application form indicating that you don't want it. Standard replacement cost depends upon the dwelling limit stated on your policy. Insurance companies design most homeowners' policies to require the policyholder to insure the dwelling for at least 80 percent of its replacement cost. And, while it is rare, you can insure your home for less than 80 percent. If you do so, you will be charged a co-payment penalty, in addition to your deductible, when you file a claim. | |||
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Hurricane Deductibles and Your Homeowners Insurance Policy |
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| The Hurricane Insurance Affordability and Availability Act offers homeowners a broader selection of deductible amounts. These deductibles depend on the value of the insured property and apply only to hurricane claims (i.e., resulting from a hurricane declared by the National Weather Service). Consequently, you may owe extra out-ofpocket costs for damage that occurs: | |||
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| New legislation passed following the 2004 hurricane season - when many homeowners had damage from multiple storms and faced multiple deductible payments - limits the number of times a hurricane deductible must be paid to once per calendar year, per insurance company. (If you change companies, you could pay two deductibles.) Once the hurricane deductible has been met, subsequent hurricane losses are subject to the "other perils" deductible. | |||
| Recent legislation eliminates maximum allowable deductibles, but requires a written statement, approved by the mortgage holder, if the deductible requested is in excess of 10 percent for a home valued at less than $500,000. This legislation also requires insurers to allow the insured to exclude windstorm coverage. Again, a written statement is required from the insured that is approved by the mortgage holder. | |||
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Windstorm Coverage and Your Homeowners Insurance Policy |
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| Most homeowners' policies cover damage caused by windstorms, hurricanes and hail, but insurance companies may exclude this coverage in some high-risk areas. The Citizens Property Insurance Corporation provides homeowners with insurance in high risk situations (like a home on the beach), and to consumers who can't find coverage in the private market. The Citizens policy may have special coverage restrictions during hurricanes for lawn furniture, grills, fences and other such items. | |||
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Ground Collapse and Sinkholes and Your Homeowners Insurance Policy |
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| Recent legislation does not require Florida insurance companies to include sinkholecoverage on new homeowners' insurance policies. However, they are required toinform homeowners that sinkhole coverage is available as an additional coverage, at an additional premium. Also, legislation passed in 2007 requires insurance companies to include "catastrophic ground collapse" coverage in all homeowners' policies. Catastrophic ground collapse is defined as ".geological activity that results in.the abrupt collapse of the ground cover; a depression in the ground cover clearly visible to the naked eye; structural damage to the building, including the foundation; and the insured structure being condemned and ordered to be vacated by the governmental agency authorized by law to issue such an order for that structure." | |||
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How Much Homeowners Insurance Should You Buy? |
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| Do not rely on the purchase price of thehome, the amount of the mortgage loan, or the amount set by the property tax appraiser or insurance agent. In order to be adequately covered, your home must be insured for the amount it will take to rebuild the home at current prices for building materials and labor costs, including the amount necessary to bring it into compliance with current building codes. Please contact your insurance agent, and consult a licensed contractor or certified property appraiser who will provide you with a detailed estimate. This is the only way to ensure that you have adequate coverage at the time of a loss.If your home is underinsured at the time of a loss, there may be a penalty or reduction in the amount the insurance company will pay for the loss. | |||
| Please ask your agent about limits and exclusions. | |||
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Homeowners Insurance Packages |
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| The following overview explains the basic insurance packages available to Florida homeowners, condominium-unit owners, mobile home owners and renters. The basic homeowners' policy is a package policy that may be modified. But dwellings, adjacent structures, contents, liability and medicalpayments usually cannot be eliminated from the basic package. | |||
Homeowners' Insurance |
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| The three packages offered most frequently to owner-occupied, single-family homes include Broad Form HO-2, Special Form HO-3 and Modified Coverage Form HO-8. These policies insure your home and belongings against a number of perils (examples listed below are not inclusive), and the more perils your policy covers, the more you will pay for it. Perils may include: | |||
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| Florida Statute also requires insurers to make available to policyholders the option to exclude coverage for contents (your personal property inside the dwelling), if the policyholder personally writes a statement that he does not want such coverage. | |||
| Homeowners' policies vary in their broad coverage; they may also differ in price and customer service between companies. It is your agent or company representative and compare them to the coverage offered before making a decision. | |||
| Special Form (HO-3), the most popular, and most comprehensive homeowners' form, covers the home for everything not specifically excluded. | |||
| All homeowners' policies provide liability coverage. | |||
Renters' Insurance |
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| Renters' or tenants' insurance (HO-4) insures your household contents against the perils included in the Broad Form (HO-2). It also includes personal liability coverage. | |||
Condominium Insurance |
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| Condominium-Unit Owners' Form (HO-6) covers property and certain items not insured by the association's policy against the perils included in Broad Form (HO-2). It also includes personal liability coverage. A condominium association may choose to cover some items in its policy, so make sure you are thoroughly familiar with its bylaws and policy to know what the association is responsible for. If you have difficulty obtaining copies of these documents, call the Florida Department of Business and Professional Regulation, Division of Florida Land Sales, Condominiums and Mobile Homes, at (850) 488-1122. | |||
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| Condo associations can also require unit owners to insure items such as front doors and screened porches. In addition, unit owners should continue to insure interior additions or upgrades which are not the same kind or quality as the original building items. If an item is covered by both policies, the association's and unit owner's policy, then the association's policy pays first. This change also affects the amount of coverage needed for the building under the unit owner's policy, so it is important to review your existing policy with your agent to make sure you are adequately covered. Condo associations may assess individual unit owners for damages to the commonly owned areas that are not covered by the association's policy. Your unit-owner's policy may provide limited coverage for such a "loss assessment." An assessment by the condo association for the association's policy deductible isn't covered by your unit-owner's policy. The extent and amount of "loss assessment" coverage varies by insurance company, so you should review your coverage with your agent or insurance company. | |||
Mobile Home Insurance |
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| Typical mobile home policies provide basically the same coverage as Broad Form (HO-2) or Special Form (HO-3) policies. Check your individual policy for any exclusions. If you own a mobile home, there are three coverage forms (which are still subject to the limits of your policy) to insure your dwelling: | |||
| A stated amount policy specifies that you will recover the policy's face amount in the event of a total loss, based upon the agreement made in your application. Insurance companies usually offer this type of policy for newer-model homes. | |||
| An actual cash value policy will pay the amount needed to repair a home after depreciation. These policies usually feature lower premiums. | |||
| A replacement cost policy will pay for the replacement of a damaged or destroyed home without deducting for depreciation. | |||
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Other Factors to Consider for Your Homeowners Insurance Policy! |
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| Because policies vary, some additional factors should be considered when determining your coverage needs. Please check with your agent. Additional factors include: | |||
Coverage Availability When Storms Threaten |
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| You cannot obtain immediate coverage when a tropical storm or hurricane reaches a certain distance from Florida. Insurance companies generally refer to this as the storm being "in the box." This applies to new applications or requests to increase coverage. Don't wait until the last minute to buy your policy, especially during hurricane season (June 1 through Nov. 30), when several storms can form simultaneously. | |||
Flood Insurance |
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| Typically, homeowners' policies exclude flood damage (rising water). Depending on your home's location, however, you may qualify for flood insurance through the National Flood Insurance Program. You also may qualify for a discount if you include a special elevation report with your application. For more information, contact the National Flood Insurance Program at 1-888-FLOOD29 (1-888-356-6329) or your local agent. The coverage involves a 30-day waiting period before the policy becomes effective, unless flood coverage is purchased at the same time you buy your home. Some insurance companies also offer flood insurance. Generally, you will get separate coverage for your home and personal property. Your insurance agent or company can assist you with application forms for flood coverage. | |||
Home Rental or Dwelling Insurance |
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| If you rent your home to others, insurance companies offer landlord coverage to suit your situation. If you rent a room or a portion of your home, ask your agent what coverage you may need. Most companies write up to four rentals on personal dwelling fire policies. | |||
Building Materials |
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| The building materials used in the construction of your home can affect the cost to insure it. For example, it's more expensive to insure a frame house than a brick one. | |||
Home-Warranty Plans |
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| Homeowners' insurance can protect your home from losses due to fire, theft and other perils. A home-warranty plan, though, offers a service contract that can pay for unexpected repairs to the home's plumbing, electrical system, appliances, etc., during the warranty period, which typically ranges from one to 10 years. Such plans offer no substitute for homeowners' insurance or a lack of quality construction for a new home. Carefully research your insurance needs and the qualifications of your homebuilder. Also read and understand any home warranty plan under consideration. Read the exclusion section of the warranty. | |||
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Force-Placed Homeowners' Insurance |
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| If you fail to obtain homeowners' insurance, your lending institution may buy it for you, since loan contracts usually require it. This is called "force-placed" insurance. Warning: The premium for this coverage is very costly. Such a policy will usually only cover the structure and not your personal property, or the policy may only cover the loan's outstanding balance. | |||
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What About Private Mortgage Insurance for my Home? |
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| Most homeowners know this type of coverage by its initials: PMI. This insurance helps protect lending institutions from default by borrowers. The mortgage company may require this type of insurance if you pay for a mortgage on a high-ratio loan. This is when your mortgage down payment is less than 20 percent of your property's value. This insurance allows you to qualify for a larger mortgage than is otherwise available with a small down payment. | |||
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Mortgage Life Insurance to Protect My Home |
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| This insurance pays off your home in the event of your death. The cost depends upon the mortgage amount, payoff time and a special calculation table. The loan principle and mortgage interest decrease with each monthly payment. Your mortgage-insurance amount may exceed your mortgage amount | |||
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What About Building a New Home- what kind of insurance should I get? |
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| It pays to know about builders' risk coverage, if you plan to build your own home or hire a contractor to build one for you. | |||
| A typical builders' risk policy is in effect from the beginning of construction, remodeling or alteration to the completion of the project. Insurance companies offer coverage for items such as a home under construction, lumber and other materials, machinery, equipment, permanent fixtures, debris removal, pollutant cleanup, plans, blueprints, valuable records or papers, landscaping and so on. This coverage can help ensure that you or your contractor can obtain funds to repair or rebuild in case of loss. In addition, the insurance company may assume risk for certain legal actions taken due to the negligence of anyone connected with the construction. This may require a special endorsement to your policy. Before you begin any home-construction project, find out whether you or your contractor need this type of coverage. Potential homeowners often require contractors to obtain such coverage as part of construction contracts. Also, you may be able to buy a permanent homeowners' policy that covers the building during construction. | |||
| Before you obtain a policy, find out if it includes any exclusions for faulty or improper workmanship, or other factors that could increase your construction costs or risks. Some insurance companies will add builders' risk coverage to a policy for an additional premium - with no need for a separate policy. Contact your insurance agent or company for more information. | |||
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In Case of a Loss to Your Home |
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| Immediately report property damage to your agent and insurance company. Your agent should provide claim forms if required, and report your loss to the insurance company. The company will arrange for an insurance adjuster to visit your property and assess the damage. | |||
| Take precautions if the damages require you to leave your home. Secure your property. Remove valuable items. Lock windows and doors. Contact your agent or insurance company and leave a phone number and address where you can be reached. Florida Statute requires property insurers to pay or deny a claim within 90 days of the receipt of the claim, unless the failure to pay the claim is caused by factors beyond the control of the insurer that reasonably prevent payment. | |||
| Make emergency repairs and document them – keeping a file with all of your receipts. Your policy requires such repairs to prevent further weather-related damage to your home and its contents. | |||
| Keep all receipts and take photographs of the damages - before and after temporary repairs – to submit with your claim. Your insurer should reimburse these costs later. Don't make extensive repairs before the claims adjuster arrives or throw out damaged furniture and other expensive items; the adjuster will want to see them. Make a list of everything you want to show the adjuster when he or she arrives. | |||
Adjusters |
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| An adjuster is a person professionally trained to determine the amount of any claim, loss or damage payable under an insurance contract. An adjuster often participates in the settlement of the claim, loss or damage. Insurance adjusters must be properly licensed by DFS to work in Florida. All insurance adjusters are required to adjust claims strictly in accordance with your insurance contract, and in compliance with the Florida Insurance Code. In addition, all adjusters must comply with the Adjusters' Code of Ethics to maintain their licensure. | |||
| There are three kinds of adjusters: | |||
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| Most public adjusters are self-employed,
or work in association with public
adjusting firms.
Public adjusters contract with the policyholders to help them settle their claims with insurance companies. You have the right to negotiate an agreed-upon fee should you elect to use the services of a public adjuster. This means that if you use a public adjuster, you must share a negotiated portion of your settlement with that public adjuster. Public adjusting fees are set by the state. For example, during the 2004 hurricane season, an emergency order capped adjuster fees at 10 percent of the insurance settlement. For non-hurricane claims begining Oct. 1, 2008, the fees are capped at 20 percent. No matter which type of adjuster you use, be sure he or she is properly licensed to conduct business in Florida. Ask to see license information and personal identification. Also be sure to write down contact information, including phone numbers and addresses for the adjuster and the firm he or she may work for. |
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Policy Termination |
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| Licensed insurance companies can take up to 90 days to decide whether you meet their underwriting guidelines. Within this 90-day period, a company must give you a 20-day notice if it intends to cancel the policy, except for nonpayment of premiums, which requires a 10-day notice. After 90 days, your company may cancel your policy if: | |||
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| For reasons other than nonpayment of premiums,
the company must provide a 90-day notice before it
may cancel your policy.
Companies can always opt for non-renewal of your policy. This process also requires a 90-day notice. However, recent legislation requires an insurer that issues a Notice of Non-Renewal which becomes effective between June 1st and November 30th, to issue that Notice of Non-Renewal 180 days prior to the effective policy termination date, or June 1st if the policy has been in effect for five years or more. If the policy has been in effect for less than five years, the Notice of Non-Renewal shall be issued 100 days prior to the effective policy termination date, or by June 1st. This legislation is only effective for personal or commercial residential insurance policies. You may cancel your policy at any time. You will receive a refund of unearned premiums, usually minus a 10-percent penalty. However, canceling your insurance may violate the terms of your mortgage contract. If you are changing insurance policies or companies, make sure that previous insurance does not expire and leave a gap before the new policy takes effect. |
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Your Rights and Responsibilities |
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Special Issues regarding homeowner's insurance |
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Homeowner's Insurance Tips: |
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What does your homeowners' insurance policy cover and exclude? |
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| Standard homeowners' policies usually limit coverage
on valuables such as jewelry, silverware, guns, antiques,
boats and other items. Check your policy and contact your
insurance agent or company with questions or to request
additional coverage. This is why your inventory is so important - it helps you realize the value of your belongings. |
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Replacement cost versus actual cash value |
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| When buying coverage, you may insure your property and belongings for actual cash value or replacement cost. | |||
Replacement Cost |
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| Replacement cost is the amount needed to replace or repair your damaged property with materials of similar kind and quality, without deducting for depreciation (the decrease in the value of your home or personal property due to normal wear and tear). | |||
Actual Cash Value |
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| Actual cash value is the amount needed to repair or
replace damage to your home after depreciation. For
example, your insurance company would deduct for the
age and condition of a 17-year-old roof with a 20-year life
expectancy. Here is how the two types of coverage work in practice. Let's say you bought a new television in 1994 for $700. In 2005, a lightning strike destroys the TV. A policy for actual cash value will only pay an amount that reflects the TV's current value - say $300. A replacement cost policy would cover the entire cost of a new TV of the same type - say $900. Legislation passed in 2005 requires full payment without a depreciation hold-back for personal residential policies. Call the Consumer Helpline at 1-877-MY-FL-CFO (1-877-693-5236) for further information. Your agent must offer you replacement cost coverage for your dwelling. If you reject this coverage, you must sign a statement on the application form indicating that you don't want it. Standard replacement cost depends upon the dwelling limit stated on your policy. Insurance companies design most homeowners policies to require the policyholder to insure the dwelling for at least 80 percent of its replacement cost. While it is rare, you can insure your home for less than 80 percent. If you do so, you will be charged a copayment penalty, in addition to your deductible, when you file a claim. Some companies offer guaranteed replacement cost dwelling insurance - an option that costs only a few dollars more, and insures your home for an increased amount, even if it exceeds policy limits. Many companies will not offer guaranteed replacement benefits for older homes. |
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Windstorm coverage |
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| Most homeowners' insurance policies cover damage caused by windstorms, hurricanes and hail, unless your dwelling is in the high-risk area known as the Wind-Pool Zone. If your dwelling is in this area, it is likely that windstorm coverage will be excluded and you will need a separate policy for this coverage. If you have a mortgage, your mortgage company can require that you secure this specialized coverage or they will apply force-placed coverage, which can be more costly. | |||
Additional Living Expense |
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| Homeowners' packages provide additional living expense
(ALE) coverage that will pay some extra expenses if
damage to your home prevents you from living there while
it is being repaired. Most policies also will provide this
coverage when a civil authority (law enforcement agency,
emergency management service, etc.) prohibits the use of
a residence due to direct damage to neighboring homes by
a covered threat. The items typically covered - above and beyond normal expenses - include extra costs for food, housing, telephone, transportation (to and from work or school), relocation and storage, utility installation and furniture rental for a temporary residence. Be sure to check your policy to find out what is specifically covered. This coverage applies only to differences in expenses. For example, it would apply to the cost of restaurant meals minus normal food expenses. It does not cover your mortgage, groceries and utilities or the monthly cost of a telephone in a rented space (since you normally pay for the telephone in your house). Your policy may designate a limit of coverage for additional living expenses, but your policy does not obligate your company to pay this amount up front or in full if you suffer a total or partial loss. For this reason, you must keep receipts for additional living expenses and submit these to your company for reimbursement. Additional living expense coverage does not apply to your dependent children while they are away at college. It applies only to the primary insured structure in the event of a loss. Policies generally offer ALE coverage without any deductible. |
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Biological Deterioration (mold and fungi) |
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| Typically, mold that results from a covered peril is a
covered claim through your personal residential property
insurance (homeowners') policy. An example would be
a sudden and accidental discharge of water - like a
burst pipe or other plumbing failure, or claims that arise
from water damage due to hurricanes or flooding. Please
refer to your policy provisions for details of specific mold
coverage and limitations. Most insurers now offer limited levels of mold-related property damage coverage within the basic policy. Many insurers offer $10,000 of limited coverage, with an opportunity to purchase additional coverage for an additional premium. Other insurers exclude mold-related property damage entirely, but offer coverage in amounts of $10,000, $15,000, $25,000, $50,000 and policy limits, for an additional premium. |
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Ordinance or Law Exclusion |
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| If a local building ordinance or law increases the cost
of repairing or replacing your dwelling, the insurance
company will not pay that extra amount, unless you have
added ordinance or law coverage to your policy.
This is how it works: Your home was built in 1982 and the
building code called for construction at least five feet off the
ground. In 2001, the building code was changed to call for
the same construction at least 10 feet above ground.
Complying with this code will require a change in design
and building materials; thus, you will pay more to repair or
rebuild your home, if necessary. If you have a claim that is
covered by your homeowners policy, and have ordinance
or law excluded, the insurance company will not pay the
cost of bringing the repaired home up to current building
requirements Your agent must offer you ordinance or law coverage. If you do not wish to buy this coverage, you must sign a form stating that you reject it. Some companies automatically include the coverage in their policies. |
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Flood Insurance |
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| Typically, homeowners' policies exclude flood damage
(rising water). Depending on your home's location,
however, you may qualify for flood insurance through the
National Flood Insurance Program. You also may qualify
for a discount if you include a special elevation report
with your application. For more information, contact the
National Flood Insurance Program at 1-888-FLOOD29
(1-888-356-6329). The coverage involves a 30-day waiting period before the policy becomes effective; unless the policy is purchased at the same time you buy your home. Some insurance companies also offer flood insurance. Generally, you will get separate coverage for your home and personal property. Your insurance agent or company can assist you with application forms for flood coverage. |
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Sinkholes and Catastrophic Ground Collapse |
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| Florida insurance companies are not required to include
sinkhole coverage on new or existing homeowners'
insurance policies. However, they are required to inform
homeowners that sinkhole coverage is available as
an extra coverage - usually in the form of a rider, or
addendum. A law passed in 2007 requires that insurance companies now include "catastrophic ground cover collapse" that results in an order to evacuate, and the insured structure being condemned by the governmental agency authorized by law to issue such an order for that structure. Surplus lines insurers are not required to offer sinkhole coverage, but many do. Ask your agent for details. |
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Property Inventory Guides: |
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The Department of Financial Services recommends
conducting a room-by-room inventory so that if you have a
claim caused by any of the covered perils in your insurance
policy, you will be able to file an accurate claim and get
better claims results.
The following pages include the main rooms of the house, but don't forget other areas such as closets, basement, attic, garage, porch, patio, workroom or shed. When checking these areas, be sure to check all items. It's also a good idea to photograph your personal property. Pictures add details to your inventory that written documents can't. Also be sure to include the year of purchase, price and brand name. Once you've completed your home inventory, compare the estimated value of your items to the amount of insurance coverage your current policy has. Also, you may want to check with your insurance agent or company to determine if you have any items that are underinsured, or if you need any additional coverage. It's very important to update your inventory at least once a year. Remember, your claim settlement depends on you supplying accurate, documented information. |
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Personal Asset Inventory |
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| For each of the following categories, write down all the
items that apply. Use separate sheets of paper for each if
necessary. TIP: If possible, take photographs or video of your property and store all records in a safe, dry place. TIP: When dealing with a homeowners' insurance claim, never give original inventories or documents to anyone. If the original document is damaged, there is no way to reproduce a replacement. Living Room Dining Room Kitchen Family Room (Den) Bedrooms Bathrooms Other Disclaimer: This manual may not be complete, do not omit any item from your inventory |
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The Claims Process |
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| Once you have determined that the claim exceeds your
policy deductible, immediately report property damage
to your agent and insurance company. The company will
arrange for an insurance adjuster to visit your property and
begin the claim. Make emergency repairs and document them - keeping a file with all of your receipts, as well as any photos or video of the damage, to submit with your claim. Don't make extensive repairs before the claims adjuster arrives or throw out damaged furniture and other expensive items; the adjuster will want to see them. Make sure your adjuster is properly licensed to conduct business in Florida, and be sure to write down contact information including phone numbers and addresses for the adjuster and firm he or she may work for. If you have any questions about the license status of an adjuster, or the way your claim was handled, call the DFS Consumer Helpline toll-free at 1-877-My-FL-CFO (1-877-693-5236). Keep a record of the date, time, and name of all people you speak to regarding the claim. Also keep a copy of anything you sign, as well as any photos, receipts, and other documentary evidence. Note about mediation: In this free, informal process, a trained, neutral mediator tries to help resolve the dispute without dictating the outcome. However, it is important to remember that mediation is nonbinding. To find out if you qualify, call the DFS Consumer Helpline toll-free at 1-877-My-FL-CFO (1-877-693-5236). If you and your company representative cannot reach a satisfactory settlement together, you may hire an appraiser to reach a compromise figure. You and the company split the cost. If you both still disagree, you may hire a second appraiser, called an umpire. The decision of any two of these people is binding. |
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Adjuster Information and Contact Log |
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| When you submit a claim for damage from a hurricane, your
insurance company will schedule an evaluation conducted by
an adjuster. Adjusters must be licensed in the state of Florida.
There are three types of adjusters who are authorized to
estimate damages following a disaster: Company Adjusters
work for your insurance company and are paid by them
to estimate your damage and submit a report that will be
used as the basis of the claim settlement. You do not pay
this adjuster. These adjusters must be licensed in Florida.
Emergency adjusters are temporarily licensed adjusters hired
by insurance companies to assist with a large volume of
claims, usually as a result of a disaster. Independent adjusters usually work as employees of an independent adjusting firm that has been hired by an insurance company to handle the company's claims. Independent adjusters obtain and submit the claim information to the insurance company. The insurance company makes the final decision regarding benefits paid. Public adjusters are self-employed and do not work for insurance companies or independent adjusting firms. They may work in a public adjusting firm. Public adjusters are hired to settle claims with the insurance company on your behalf. Generally their payment fee is a contracted percentage of the total claim settlement amount, but cannot exceed 20%.. Public adjuster's fees aren't set by the state, although in the event of a state of emergency declared by the Governor of Florida, a 10% cap applies to all claims as a result of the state of emergency for a period of one (1) year. an emergency order may be issued limiting the percentage of the fee that may be charged for adjusting hurricane claims.In either case, the public adjuster can only collect fees on the portion of the settlement that is actually attributed to the work of the public adjuster. You negotiate and agree on the fee you pay for their services. The Department of Financial Services has no regulatory authority over contractual provisions between the public adjuster and the insured. In the event you need to file a claim, you will deal with an insurance adjuster. Keep this person's name and contact information handy at all times to facilitate evaluation of the loss and to handle any dispute. Also, use this space to record information from your contacts with the adjuster and the insurance company - include dates, the information discussed, and the names and phone numbers of the people you talk to. This log will help in the event of a claim dispute |
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Before the Storm |
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Hurricane preparedness tips |
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| Have a plan of evacuation, including a list of people to contact in the event you need to leave your home. | |||
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Medical Information |
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List evacuation route options. |
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| Route One:
Route Two: Storm Shelters First Choice: Second Choice: |
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Legal and Financial Document Checklist |
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| Collect the following documents and place a check by each one you have. If you are unsure where to obtain them, see the list of sources at the end of this list. These documents will assist if you need to file for government disaster assistance, tax assistance, etc. | |||
Insurance Policies |
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| Call the claims numbers on your insurance policies to verify that the policy numbers are correct. Review your coverage to be sure that they it is adequate for your current circumstances. | |||
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Financial Information |
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Tax Information |
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| Tax returns from the previous year may be required to apply for new loans and to verify qualification for incomebased assistance. | |||
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Sources of Income/Assets |
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| Having proof of your income sources will be important if you are confronted with an event that interrupts your income. | |||
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Special Note About Security Concerns |
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In addition, electronic payments, credit/debit cards and software programs for taxes and other finances require a password, PIN (Personal Identification Number) or personal security questions as an extra measure of protection. It is important to keep these access codes secure. DO NOT include a list of passwords and PINs in your documents. Choosing secure passwords is one of the most important things you can do to keep your accounts safe and avoid the headaches and potential suffering caused by security breaches. Be sure to select a password or PIN that is something you will be able to remember, but that is NOT something easily associated with you, such as a birth date, phone number, nickname or other reference someone could easily discover. Never write your password down or store it in an unencrypted file. And NEVER give out a password or PIN for any account to anyone, no matter who the person is or claims to be. No customer service representative, systems administrator or corporate security officer should ever ask you for your password or PIN. If someone is authorized to access your account, he or she does not need your password to get access. |
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Vital Account Information |
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| The following information will be of the most importance immediately after a storm and will help expedite the filing of claims. Be sure to know what your insurance policies cover. It is a good idea to perform an annual review of the type and amount of coverage you have, to make sure you are adequately protected in the event of a loss. | |||
Insurance |
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Property Insurance |
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Rental Insurance |
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Auto Insurance |
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Health Insurance |
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Life Insurance |
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| Other Insurance (Boat, Windstorm, Flood, etc.) | |||
Checklist Hints |
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| These helpful hints provide direction in identifying the best resources for gathering the documents listed on the Checklist of Important Legal Documents and Financial Statements. | |||
How to get important documents |
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| You can obtain copies of birth, death, marriage, divorce
and adoption certificates from your state health or social
services administrations for a minimal fee. The IRS says U.S. Citizens who receive income are required to have an SSN. Call your local social security office for assistance in obtaining new/replacement cards, or refer to the SSN FAQ Web page http://www.cpsr.org/cpsr/ privacy/ssn/ssn.faq.html for further assistance. A copy of your passport will expedite obtaining a replacement passport if needed. Information about obtaining a passport is available at http://travel.state.gov/ passport/. Information on U.S. Citizenship and Immigration Services is available at http://uscis.gov/graphics/formsfee/forms/ Naturalization documents are the only acceptable proof of citizenship for individuals not born in the United States. A Will is an extremely helpful document that can help reduce family conflicts, probate, time and expenses during the stressful time of losing a loved one. A Short Form Will, an uncomplicated will used to give all assets equally to one or more heirs, can generally be obtained for less than $10. Most financial planners can help you with this or you can contact your local legal aid offices. A Power of Attorney is a legal document that authorizes another person to act on your behalf. That person does not have to be an attorney, just someone you trust to make decisions for you if you cannot make them yourself. A power of attorney can grant complete authority or can be limited to certain acts and/or for certain periods of time. If you need a copy of your mortgage or deed of trust, contact your lending institution. Proof of home ownership may be required in order to receive federal disaster assistance. If you do not have your car ownership papers, you should be able to get a reissued vehicle title or registration from your local Department of Motor Vehicles. |
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Financial Obligations |
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| Having a record of your financial obligations can be extremely important to demonstrate your discretionary income and to qualify for income-based assistance following a disaster. If you do not have a lease, having proof of utility payments is very important to demonstrate residence in the home. | |||
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Financial Account Information |
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| Name of institution: Address: Phone Number: Account Number: Web Site: |
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Mortgage Information |
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| If your home is mortgages, any insurance claim settlement will be made out to you and the mortgage holder. You will need to keep the mortgage holder informed of the process and arrange a schedule of release of funds for repairs. | |||
| Name of institution: Address: Phone Number: Account Number: Web Site: Additional Accounts (Utility companies, cell phone provider, etc.) |
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Sinkhole Information and your homeowners' insurance- What every West Palm Beach, Floridian should know: |
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If You're Buying A Home |
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What Every Floridian Should Know |
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| Florida has more sinkholes than any other
state in the nation. A recent change in Florida
law requires authorized insurers to cover
"catastrophic ground cover collapse," but
damage caused by a sinkhole may not be
covered by your policy. That's because the law defines catastrophic ground cover collapse differently from sinkholes. Florida law defines a sinkhole as "a land form created by subsidence of soil, sediment, or rock as underlying strata are dissolved by groundwater. A sinkhole may form by collapse into subterranean voids created by dissolution (the dissolving) of limestone or dolostone or by the subsidence as these strata are dissolved." "Catastrophic ground cover collapse" is defined as "geological activity that results in all of the following: 1). The abrupt collapse of the ground cover; 2). A depression in the ground cover clearly visible to the naked eye; 3). Structural damage to the building including the foundation; and 4). The insured structure being condemned and ordered to be vacated by the government agency authorized by law to issue such an order for that structure." This means that if your home is damaged by sinkhole activity, but does not meet all four criteria for catastrophic ground cover collapse - for instance, you may have foundation cracks, but the home is still livable - your insurance may not pay for the damage if you do not have sinkhole coverage. All insurance companies licensed to do business must offer sinkhole coverage, usually as an addendum or rider to an existing policy, and for an additional premium charge. |
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If You Have a Sinkhole Claim |
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| Here are some immediate steps you should take if a sinkhole has appeared on your property, or if a portion of your home has shifted or sunk due to ground cover collapse: | |||
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Other Information To Keep In Mind |
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Is a reverse mortgage right for you? |
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| A reverse mortgage can help turn the equity from your home into cash you need, and unlike a home equity loan, you don't have to pay back the money as long as you remain in your home. But before you borrow, you should carefully consider whether it's right for you. | |||
How They Work |
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| Reverse mortgages are not repaid until the last living borrower dies, sells the home or permanently moves away - at which point the loan, including interest and other fees, becomes due. Because you make no monthly payments, the amount owed grows larger over time, while the amount of cash left after selling and paying off the loan generally grows smaller. But you can never owe more than your home's value at the time the loan is repaid. Since reverse mortgage borrowers continue to own their homes, they must pay for property taxes, insurance and repairs. If they don't, the full loan may become due. Reverse mortgages offered by state and local governments are called "public sector" loans and generally must be used for specific purposes, such as home repairs or property taxes. "Private sector" reverse mortgages offered by banks or other institutions can be used for any purpose. | |||
Who's Eligible? |
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| Borrowers must usually be at least 62 years old and list the home as a principal residence. All owners of the home, whether they are residents or family members, must sign the loan papers. | |||
Before accepting a Reverse Mortgage you should ask: |
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| Do you really need a reverse mortgage, and is
the need enough to justify the high total cost?
Generally, reverse mortgages should not be
used to purchase anything other than needed
home improvements, property taxes or health
care costs. How expensive is the loan? Compound interest increases the payout each month, and high upfront administrative costs make selling the house in the first few years expensive. Would a home equity loan be more appropriate? What if you have to face future emergencies like home repairs or relocation to an assisted living facility? How will paying off the loan affect my estate? Speak to family members, your attorney, and your financial institution to be sure a reverse mortgage is the right solution for you. |
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TIE-DOWNS for Manufactured Homes and Mobile homes- can they save you money on your homeowners insurance? |
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| Tie-downs can help prevent damage to your manufactured or mobile home during a storm. Isn't that a sobering thought? They can save you money on insurance, and they're required by Florida law. Tie-downs are just plain good sense. | |||
| Over-the-roof tie-downs keep your home from being overturned by side winds. Frame tie-downs prevent your home from rising off its supports due to the uplift created by straight-line winds. If you don't have tie-downs, your home is in harm's way. All manufactured and mobile homes are required by Florida law to have tie-downs. A new home must have them installed to the manufacturer's specifications. Tie-downs for a used home can be installed to the manufacturer's specs, if available, or in compliance with state standards. If you can provide proof of inspection of your tie-downs, your insurer may provide a discount of up to 10 percent of your annual premium, according to Florida law. Insurance companies usually include the discount in their premiums, so you could face a premium increase if you can't provide proof that you have proper tie-downs. Florida law requires that tie-downs be installed by either a licensed installer or a manufactured home retailer. These professionals will ensure that the proper tie-downs for your home are used. To find out more about tie-downs and inspections, or to make sure that an installer is licensed, contact the Florida Department of Highway Safety and Motor Vehicles, Bureau of Mobile Home/RV Construction, at (850) 413-7600. | |||
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Mold and your Homeowners Insurance Policy: In the event of unexpected water intrusion: Know your rights and responsibilities: |
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| Mold can adversely affect homes in Florida's humid climate. As an insured homeowner, you must take appropriate and swift action to minimize damage from unexpected water intrusion, and prevent further problems caused by mold. Molds, scientifically known as fungi, are microscopic organisms found almost anywhere. For molds to grow, they need a food source - any organic material such as leaves, wood, paper or cloth - and moisture. As the mold digests its food source, damage results. Mold growth can be seen on surfaces as discolored spots and detected as an earthy, mildewy odor. Water damage that can cause mold may come from a burst pipe, a failed appliance or an automatic fi re sprinkler. Water can also enter your home from storm damage to a roof or window, or rising water from a fl ood. Regardless of the source, insurance coverage for water and mold damage varies with individual policies. | |||
| Typically, mold that results from a covered peril is a covered claim in personal residential property insurance (homeowners) policies in the event of a sudden and accidental discharge of water - like a burst pipe or other plumbing failure. Claims may also arise from water damage due to hurricanes or flooding. Please refer to your policy provisions for details of specific mold coverage and limitations. Most insurers now offer limited levels of mold-related property damage coverage within the basic policy. Many insurers offer $10,000 of limited coverage with the opportunity to purchase additional coverage for an additional premium. Other insurers exclude mold related property damage entirely, but offer coverage in amounts of $10,000, $15,000, $25,000, $50,000 and policy limits for an additional premium. Any changes in mold-related property damage coverage must be approved by the Florida Office of Insurance Regulation. | |||
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How can I prevent water damage and mold in my home? |
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| Moisture control is the key. Inspect your home regularly for indications of potential water leaks and establish a maintenance schedule to check the following regularly: | |||
| WATER HEATERS – Check for rust and deterioration. Make sure drain lines are not clogged. Drain and clean as recommended by the manufacturer. | |||
| A/C DRAIN LINES – Drain lines can become clogged and cause overflow from the drip pan. Periodically check the drip pan and service it annually. | |||
| A/C DRAIN LINES – Drain lines can become clogged and cause overflow from the drip pan. Periodically check the drip pan and service it annually. | |||
| APPLIANCE HOSES – Regularly inspect hoses and fi ttings on washing machines, ice makers and dishwashers, and replace washing machine hoses every two years | |||
| SHOWERS, TUBS, SINKS AND TOILETS – Check for a watertight seal around all bathroom fixtures. Reseal as needed. | |||
| VISIBLE PIPING – Routinely check piping under cabinets and sinks for leaks, rust and evidence of deterioration. | |||
| WASTE/GARBAGE DISPOSAL SYSTEMS – Routinely check for leaks. | |||
| CAULKING AROUND WINDOWS AND DOORS – Keep a continuous bead of caulk or weather proofing to seal the interior from the weather. Reseal as needed. | |||
| ATTICS AND CEILINGS – Routinely check for wet insulation and water stains. | |||
| WALLPAPER – Routinely check for bubbling, peeling or stains. | |||
| ROOFS – Keep roofs free of debris. Promptly repair any damage and seal cracks or replace flashing around chimneys, skylights and vents. | |||
| LANDSCAPE – Yards should slope away from the house to prevent puddles near the foundation. | |||
| SPRINKLERS AND IRRIGATION SYSTEMS – Do not allow sprinklers to soak the exterior of your home. | |||
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I have a water damage claim.What should I do? |
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| Most policies indicate that you should take the necessary steps to prevent further damage, including: | |||
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| Be sure to keep an accurate record of all repairs and expenses, including receipts. Contact your agent or insurer and give verbal and written notice of the facts relating to the damage. Ask what is required of you. Begin the process of determining if your loss is covered and to what extent. Timely notification to the insurance company is critical. | |||
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What should I expect from my insurance company if I report water damage? |
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| Water damage does not always cause mold. There is
a direct correlation between the timeliness of response
to water damage and the prospect for mold damage,
so take all reasonable steps to mitigate water damage
and stop the growth of mold. Water damage claims that include active mold growth often involve significantly higher costs than claims without mold. |
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If I must move out of my home,what can I except from my homeowners policy? |
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| For covered water damage claims, homeowners policies provide "additional living expense" (ALE) coverage to pay some extra expenses if damage to your home prevents you from living there. This typically covers extra costs for food, housing, telephone, transportation to work or school, relocation and storage, and utility installation and furniture rental for a temporary residence. Refer to your individual policy for specific information. ALE costs, due to mold, will be applied to the mold limit. | |||
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How can I ensure the mold remediation is handed correctly? |
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| At this time there are no standards or certification for mold remediation specialists. As you choose a company to repair the damage, you should: | |||
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| You may also wish to contact your local Better Business Bureau to learn whether any of the contractors you are considering have had complaints filed against them. | |||
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What can I do if I believe my insurance company is not being responsive? |
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Surplus lines: |
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| Marie Jones lives in a house built on the beach that overlooks the Gulf of Mexico. Hector Sanchez owns a $200,000 sports car in Tampa. JoAnn Decker operates a home childcare business in Orlando. | |||
| What do all of these Florida residents have in common? They all have insurance needs that may be uninsurable in the standard insurance market. That is where surplus lines insurance can help. Surplus lines insurance companies write policies for high-risk situations that other insurance companies will not cover. Whether someone needs homeowners insurance for a dangerously exposed home, property and liability coverage for an expensive car or boat, or even liability insurance for a high-risk business, there is a need and a place for surplus lines insurance in Florida. | |||
What Is Surplus Lines Insurance? |
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| Surplus lines insurance is an alternative type of insurance coverage for consumers who cannot get coverage in the standard or "admitted" market. Standard companies will not write policies for unusual, high-risk situations. This may include extremely old homes located in coastal areas, expensive boats and cars, day-care centers' liability needs, or medical malpractice needs. The surplus lines market also provides coverage for very high risks, such as professional athletes who insure their bodies or consumers looking to insure the vacant home of a recently deceased relative until after probate or the legal processing of the will. | |||
What Are the Benefits of Surplus Lines Insurance? |
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| Freedom from some regulation, such as filing forms and rates, allows surplus lines companies to tailor a policy to meet a specific risk, as opposed to being confined to the coverages listed on a standard form. This tailor-made fit makes the surplus lines market a viable option for some consumers. | |||
| What Are Some Other Differences With Surplus Lines Insurance? | |||
| The Florida Insurance Guaranty Association (FIGA) does not guarantee the claims of surplus lines companies, which means if a company selling surplus lines products goes bankrupt, FIGA will not pay the policyholder's claims. Regulation of the surplus lines insurance industry is maintained through the licensing of surplus lines insurance agents. | |||
| Some policies have a minimum earned premium requirement. This means that regardless of the length of time you have the coverage, you will owe the minimum amount. The amount should be noted on your declarations page, the front page of your policy. The cost of surplus lines coverages can be more expensive than those sold in the standard market. There is usually a service fee and premium receipts tax assessed with the premium charged. | |||
| Service Fees and Taxes The service fees and taxes are collected by the Florida Surplus Lines Service Office (FSLSO). FSLSO is a self-regulating, not-for-profit organization, created by the Florida Legislature to oversee the surplus lines industry in this state. The law requires the FSLSO to enhance insurance availability to consumers, provide advice and counsel for the benefit of consumers, agents, companies and government agencies, and to protect the revenues of this state. Currently, a service fee of 0.25 percent is applicable for all surplus lines policies with an effective date after April 1, 2004 to be collected by the agent at the time the policy is purchased. The service fee should be shown separately on the declaration page. The agent forwards the fee to the surplus lines agent. The surplus lines agent is required to send all collected fees to the FSLSO at the end of each month. In addition to the service fee, a premium receipts tax of 5 percent is also assessed on the premium charged for surplus lines coverage. (If the premium were $1,000, the receipts tax would be $50.) Your agent is required to collect this amount, along with the premium at the time of delivery of the policy. This tax must be presented as a separate charge on the declarations page, and may not be waived or paid by your agent. This tax is then paid to the Florida Department of Financial Services. Most surplus lines policies also include a nonrefundable policy fee. This fee helps to cover the administrative cost of the policy. Applicable Assessments In 2002, the Florida Legislature passed a law establishing the Citizens Property Insurance Corporation (Citizens). Citizens provides insurance to, and serves the needs of, homeowners in high-risk areas and others who cannot find coverage in the standard voluntary insurance market. Citizens may impact the insurance industry by charging an assessment (fee) to financially recover from an operational deficit. Assessment charges and time periods are determined by Citizens. This would impact both the admitted and nonadmitted insurance markets. FSLSO has the responsibility for collecting any assessments, levied by Citizens, on surplus lines transactions. Florida law also provides the Florida Hurricane Catastrophe (CAT) Fund with the ability to assess surplus lines policyholders to pay emergency assessments in the event the CAT Fund board determines a deficit exists. FSLSO is responsible for identifying surplus lines premiums subject to the assessments, as well as verifying and collecting such assessments through the surplus lines agents. Penalty Fees Surplus lines policies may vary from those of the standard market. Carefully read the terms and agreements of your policy upon receipt. You are not provided a "free look period;" therefore, your policy is binding at the time indicated on your application receipt and/or policy. If you should cancel your policy before the expiration date, you could be charged a penalty fee of up to 25 percent of your premium. |
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How Do I Purchase Surplus Lines Insurance? |
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| Surplus lines coverage is sold by licensed surplus lines agents. The Department of Financial Services issues licenses to general lines agents to become surplus lines agents after they have completed training and passed the required examinations. You may call the Department's Consumer Helpline toll-free at 1-800-342-2762 to verify whether a particular agent is licensed to sell surplus lines insurance in Florida. General lines insurance agents who become surplus lines agents automatically become members of the FSLSO. The general lines agent, who is not a surplus lines agent and cannot obtain coverage for a consumer in the standard market, can locate a Florida surplus lines agent to find the coverage the consumer needs. Once coverage has been purchased, the surplus lines agent will issue a receipt or a binder, beginning coverage immediately. Please note, however, before choosing a surplus lines company as an option, the law requires the agent to first receive three rejections from licensed insurers in the standard market. After the sales transaction, the policy information is provided by surplus lines agents to the FSLSO, which then prepares activity reports for review by the Department of Financial Services. Purchasing a Policy Without a Florida Licensed Surplus Lines Agent When there is no Florida agent involved in an insurance transaction, and the policyholders or their representatives purchase coverage from unauthorized insurers, this is called Independently Procured Coverage, or IPC. In IPC transactions, the policyholders or their representatives must report the premium to the FSLSO so that they can pay the appropriate premium receipts tax, as well as the service fee. Policyholders or their representatives must report the premium via the Internet, by going to www.FSLSO.com and selecting the "IPC" link, to submit their names and e-mail addresses. Once the submission is received, an e-mail containing a link to a secure Web server will be sent to the filer, enabling them to provide information pertaining to the policy and receive the proper figures for taxes and fees that must be paid to both the Department of Financial Services and the FSLSO. Policyholders whose information is not filed or filed incorrectly may be subject to civil action by the Florida Department of Financial Services and may have to pay interest on any past due amounts. |
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How Do I File a Claim? |
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| Make sure your agent is listed on the declarations page of your policy. You may contact your agent directly to file a claim. If you are unable t o c o n t a c t yo u r a ge n t , contact your company. If you cannot contact either, call the FSLSO. It will assist you in contacting the surplus lines agent. If your company is located outside of the country (an alien company), the FSLSO will assist you in contacting an agent or the company. If you have difficulty getting your claim resolved, contact the Florida Department of Financial Services Consumer Helpline toll-free at 1-800-342-2762 for assistance. | |||
Your Rights and Responsibilities When Buying Surplus Lines Insurance |
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| When you buy surplus lines insurance you have certain rights and responsibilities. You are responsible for evaluating your needs and making sure the insurance company and policy you choose can meet those needs. You are responsible for verifying licenses. To verify the license of a surplus lines agent, general lines agent or company, call the Florida Department of Financial Services Consumer Helpline at 1-800-342-2762. You have the right to a fair quote for coverage, and to a refund if your agent quoted your premium incorrectly and you paid too much for your policy. You are responsible, however, for paying any additional premium amount if your agent quoted your premium too low and you still want to continue your coverage. You are responsible for ensuring the accuracy and completeness of information on your application, and for not signing any blank, incomplete or inaccurate forms. In addition, you have the right to receive copies of all forms and applications signed by you or your agent You are responsible for getting a receipt of proof of coverage from the agent once you sign the application and pay for coverage. You have the right to a proper and timely investigation of your claim. |
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Termination of Coverage |
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| There are various reasons why a company may refuse to renew or cancel a policy. There is also a process a company must follow if a policy is being canceled or nonrenewed. The provisions a company must follow are listed below: | |||
| Notice of Nonrenewal If the company issuing a surplus lines policy decides not to renew that policy, it must notify the consumer in writing at least 45 days before the policy expires. The notice must state the reason(s) why the policy is not being renewed. |
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| Notice of Cancellation If the company cancels or terminates the policy within the first 90 days the policy is in force, for any reason other than nonpayment of premium, the company must provide the consumer with 20 days written notice However, if the reason for termination is nonpayment of premium, the company must provide only 10 days written notice of cancellation. If false information is provided on an application, or the consumer fails to comply with the company's underwriting requirements, no notice of cancellation is required. The policy may be canceled immediately. |
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