For those who may not already know it's not a good idea to make too many claims on your homeowners insurance policy. The reason is simple... your insurer could raise your rates and even worse drop you entirely. Insurance companies have a typical method to evaluate the risks in providing coverage to you. If you are not considered a high-risk individual, you will pay a lower premium. It is possible that filing a claim may also make your home unmarketable. What's more, you could find your home's value damaged or if it is on the market a sale could be jeopardized even if a previous owner made a claim, and not you! More and more insurers are using a huge industry database, called the Comprehensive Loss Underwriting Exchange, or CLUE, to drop or deny coverage based on a home's history of claims or damage reports. Insurance companies fear the rising costs of claims being made for water and mold damage. One reporting of such a claim may be enough for an insurance company to drop you. The name of the company that operates CLUE, ChoicePoint of Alpharetta, Ga., said that the database collects damage reports as well as claims. The information stays in the database for up to five years. Previously, insurers used the CLUE database largely to watch for fraud and for consumers who had a history of filing numerous claims. Most recently insurance companies have become more aggressive about screening for other risks -- including damaged homes that could spawn future claims. While there are no guarantees, there are a few steps that may help you avoid higher rates resulting from a claim. Contact your insurance company directly and inform them about the event resulting in your claim. You will typically forms for filing claims in the back of your policy that is mailed to you. Read the form carefully, you want to be sure to fill out these forms correctly. If you are filing a claim for homeowners insurance make sure you do not alter the condition of the home after the event until the inspector has seen it. Only opt for emergency repairs to avoid further damage. Take photos whenever possible. Assess whether the damage done is worth filing a claim. Sometimes, not filing small claims would work in your favor. If you have a history of filing claims, your rates will certainly increase. Collect estimates of the repairs and keep your records updated. Consider if the deductible exceeds the claim amount before filing the claim. Finally, take advice from a reliable adjuster to file an insurance claim without having rates go up. They may be able to suggest the best ways to deal with specific situations.

 

 In May of 2007 Allstate Floridian reached an agreement with Royal Palm Insurance Co., a new property insurer in the state, to offer Allstate Floridian customers and Florida consumers property insurance coverage. Allstate did this with the knowledge that they would be non-renewing the vast majority of the 120,000 Allstate Floridian policyholders as their current policies expire they will be offered homeowners coverage from Royal Palm Insurance. In early May Royal Palm Insurance Company, had arranged to take over the vast majority of nearly 120,000 state-wide policyholders that Allstate Floridian declined to renew. Many of these policyholders are on barrier islands and will have an impact on the insurance market in coastal areas such as Brevard County.

  

Highmark Insurance has an alternative to Royal Palm. We have companies that will write your home even if it is directly on the beach, and you will not need a separate wind policy as wind will be included. We have great relationships with our carriers and they want to write on the barrier islands. We find the rates with these companies to be very competitive. We have empowered our clients to check these companies by giving them the number to the Department of Financial Services to check out our carriers and Royal Palm. The feedback has been staggering as our clients have stated that Royal Palm has had over 150 complaints in the past 365 days. Imagine if we would have had a hurricane???

State Farm cancellations grow...
By Paige St. John
Florida Capital Bureau

"TALLAHASSEE -- State Farm agents, customers and even state regulators are surprised to hear the insurer is canceling thousands more home policies than previously announced.The St. Petersburg Times has reported that State Farm says it will drop 74,000 policies in the coming year as it pulls away from Florida's coast. The biggest hit is in Brevard County, where more than 12,600 policies are to be "non-renewed." According to regulators, State Farm has just 38,000 home policies in the Atlantic Coast county."

 Several of the quotes I have given over the last couple weeks at Highmark Insurance, have been due to State Farm sending out their now infamous "non-renewal letters". Perspective clients call in stating they have been with their current company 15, 20, or even more years. They ask "where is the loyalty?" They ask "how can this happen to me I have never even filed a claim?" Unfortunately this is no simple answer, and it is not personal. State Farm agents themselves are being non-renewed by their own company.

When someone calls in this situation I make sure they know they are now in good hands. I will get them a quote in 24 hours or less. I will call them and review the quote so they understand what they are purchasing and how their home will be covered in the event of a loss. I explain that we work as a team and anyone answering the phone should be able to answer their question and if not we will get them the answer and call them back...yes we actually call them back.

 

With homeowners insurance still the forethought for many Floridians, finding ways to save money on insurance is always of interest. The attached link has some really good ways for you to save money on homeowners insurance, many of which pertain to Florida specifically. While there are many ways to cut costs of insurance, it may be worthwhile to look through and see if any of these can help you.

 

In an insurance policy, the deductible or excess is the portion of any claim that is not covered by the insurance provider. It is normally quoted as a fixed amount and is a part of most policies covering losses to the policy holder. The deductible must be "met", that is, paid by the insured, before the benefits of the policy can apply. This is a great place to save some money on your homeowners policy. By taking a $2500 AOP deductable you can save money vs. taking a $1000 AOP deductable.