Property Insurance Changes

Even though we are about to complete the 3rd year in a row with no hurricane activity, expect property insurance rates to rise in FL. Why? http://www.sun-sentinel.com/business/sfl-insure-rate-hike-100109,0,3973673.story This link is a good example of what is going on with rates. 1) Citizens takes a 10% increase starting Jan. 1, 2010 2) Universal P & C has requested an avg. 10% rate increase. They are the 3rd largest property insurer in the state 3) United P & C has already obtained a 10-15% rate increase 4) St Johns has requested the largest increase of all 5) In all - most companies are going to get increases because the st. of FL CAT fund that provides certain reinsurance for companies has not been adequately funded. That has forced companies to buy addit. reinsurance from Intl. Reinsurers which increases their costs on existing policies by 10-15%.

Homeowners Becoming Landlords, Insurance Needs Change

As homeowners can’t sell their home, more and more are becoming landlords.

A growing number of homeowners need to relocate for a multitude of reasons are renting out their homes instead of selling them. At the same time, investors are taking advantage of low prices to buy rental properties.

When you become a landlord, your property goes from a residence to a place of business. The landlord insurance policy is not a home owner policy.

These policies typically cover the building in case it's damaged or destroyed. They also cover the landlord's personal property used by the tenant or used to maintain the house. This could include appliances and landscaping machinery. Landlord policies don't include any protection against flooding ( these policy coverages are available and are purchased separately) or offer compensation for damage to renter property.

More important, the coverage helps protect landlords from liability if someone gets hurt on their property. It also will pay for some or all the medical expenses for people injured on the property if the landlord is found responsible.

Unlike a homeowner's policy, the landlord policy also will compensate for lost rent if the building is uninhabitable because of damage that is covered by the insurance. This is a big deal for a landlord who relies solely on that income, especially if a building is under repairs for a long time.

While flood coverage can be expensive in high flood zones, it could help offset a huge hit if a property is flooded. The average flood claim totaled more than $33,000 over the past 10 years, according to the government, and just a few inches of water can cause damage costing thousands of dollars. And most mortgage lenders require flood protection in a high flood zone.

Renters also can get their own flood insurance from the National Flood Insurance Program to protect their personal belongings. Landlords may want to recommend that tenants buy that and their own renter's insurance since landlord policies don't cover a renter's property. Some of the large national apartment owners require their tenants to buy renter's insurance.

Understanding Your Insurance

This is actually a well written newsletter by the insurance consumer advocate of the State of FL - CFO's office. Hey, credit where credit is due, right....... Check it out....http://www.myfloridacfo.com/ICA/Newsletter/#HO%20Basic%20Steps