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Q&A What are 3 Common Home Insurance Myths?

How much do you know about homeowner’s insurance coverage? If you are like most people, you have a policy but aren’t quite sure what it covers

Unfortunately, this lack of knowledge by the general public has caused some ugly misconceptions about insurance to spread — myths that could cost you and your family a ton of money. Here are three myths about homeowner’s insurance and their respective truths.

Myth #1: Your Homeowner’s Policy Covers Your Home-Based Business

Do you run a business out of your home? Maybe you sell vitamins, makeup, jewelry, or something completely different through a marketing program. Perhaps you handcraft items to sell at festivals or offer services to clients who visit you at your residence. Either way, you might believe the myth that your homeowner’s insurance covers your business endeavors.

This is a myth! Most homeowner’s insurance policies specifically exclude home businesses. This means that if you have an inventory of product stolen or a client becomes injured at your residence, you may not be covered. This problem is pretty widespread, too. According to Independent Agents and Brokers of America, nearly sixty percent of home-based business owners do not have appropriate insurance coverage.

Contact us for a complimentary consultation to discuss your business insurance needs.

Myth #2: Earthquakes and Floods Are Covered

Another fallacy is that a homeowner’s insurance policy will protect you against damage due to an earthquake, flood, or other natural phenomenon. The truth is that sadly many natural disasters are not covered under your standard policy. While some circumstances such as a hailstorm or a tornado are sporadic enough to warrant coverage, others that create widespread damage are not.

This is where having specialty flood coverage comes into play. These are special policies that are underwritten by a private insurer and backed by the government to fully protect your home and belongings against any damage due to named perils. Purchasing one of these policies is usually quite affordable and only takes a phone call to us to start the process.

Myth #3: Your Insurance will Cover Everything in the Event of a Disaster

One more myth that many people seem to believe is that homeowner’s insurance will cover everything you own in the event of a disaster. The truth to this myth is that having a policy only covers a portion of your belongings. Riders often need to be added to expand coverage for expensive electronics, guns, jewelry, and furs. If you own any of these items, it is worth talking to your agent about to ensure you have the coverage you need.

Do any of these scenarios apply to you? For more information or to discuss your unique situation, please contact us today.

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What are the auto insurance requirements in Florida?

In Florida, all drivers are required to have two types of auto insurance coverage:

  • Personal Injury Protection (PIP): Florida is a “no-fault” state, which means your own insurance company will cover your medical expenses and lost wages regardless of who is at fault in an accident. The minimum PIP coverage required in Florida is $10,000.
  • Property Damage Liability (PDL): You must have a minimum of $10,000 in Property Damage Liability coverage, which covers damage to someone else’s property (e.g., their vehicle, a building, or a fence) if you are at fault in an accident.

These are the minimum auto insurance requirements to legally operate a vehicle in Florida. However, it’s important to note that these minimums may not provide adequate protection in the event of a severe accident.

Many drivers opt for higher coverage limits or additional types of coverage, such as Bodily Injury Liability (BIL), Uninsured/Underinsured Motorist coverage (UM/UIM), and Comprehensive/Collision coverage, to ensure they are adequately protected.

Before purchasing auto insurance in Florida, it’s a good idea to consider your individual needs and consult with an insurance agent to determine the best coverage for your situation. 

Additionally, it’s important to stay updated on any changes in Florida’s insurance requirements, as these regulations may evolve over time.

Current requirements may be verified through us or the Florida Department of Highway Safety and Motor Vehicles (FLHSMV).

We would love the opportunity to discuss your insurance needs, please give our team a call at 941.205.0191 in Charlotte County or 239.552.4111 in Lee County.

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Top Reminders for Teen Drivers

Top Reminders for Teen Drivers

If there’s one thing that research points out, it’s that teens are, literally, the worst drivers. According to the CDC, motor vehicle crashes are a leading cause of death for teenagers, and the risk of motor vehicle crashes is higher among teens aged 16-19 than among any other age group. So while your teen is probably thrilled to be driving, and you’re probably thrilled to not be driving them everywhere, it’s important to continue teaching them how to stay safe and smart on the road. Luckily, teenagers are stubborn but still pretty impressionable. Here are the most important things you can instill in your brand new teenage driver, and guidelines to have them follow.

Start slowly: A teenager with a brand new driver’s license is even more likely to get into an accident than her slightly older counterparts. For the first few months, limit excursions to simple trips during the daytime with few or no passengers.

Wear a seatbelt: Despite all our warnings, many teenagers are going to get into accidents. Wearing a seatbelt greatly reduces their chance of death or serious injury if they do. The best way to instill this habit is to insist that your children wear a seatbelt 100 percent of the time, well before they become teenagers and for you to do it as well.

Don’t text: Distracted driving has become just as deadly as driving while tired or intoxicated. Research by the AAA Foundation for Traffic Safety found that distraction was a factor in 58 percent of crashes involving teen drivers. Show your teen how to use smartphone settings for driving, and teach them never to text and drive, period.

Set rules about passengers: When it comes to driving with a teenager, not all passengers are created equal. Teens are much more likely to have an accident when they’re transporting other teens. In addition, some provisional licenses have limits on the number or type of passengers a teen can drive with. Be crystal clear with your teen about who they can have in the car and under what circumstances, and don’t be afraid to say no to letting them drive with certain friends.

Practice for peer pressure: When the risk is of looking uncool or not fitting in, it can be overwhelmingly hard for a teenager to say “no” to giving an obnoxious friend a ride home, making an extra stop, or to getting in the car with someone who has been drinking. Brainstorm and practice for these difficult situations so that your teen will be able to hold their boundaries and confidently say no when it really matters.

Make it safe to call: Your teen needs to know that, no matter what, they can call you for help if they get into a situation where they can’t or don’t want to drive.

Don’t speed: Speeding and tailgating greatly increases the chance of an accident for a teen driver. Make sure your teen knows that getting there late is OK if it means getting there safe.

Respect road conditions: Driving at night or in bad weather are two high-risk scenarios for new, young drivers. Of course, it’s important that your teen gets to practice in difficult conditions, but make sure they know to be extra-vigilant and that it’s perfectly acceptable to wait for things to improve.

For all of your insurance questions, call or Jones Family Insurance today. Serving All of Southwest Florida.

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Florida Governor Supports Liability Protection

Florida Governor Supports Liability Protection

As we’ve reported over the summer, work has continued behind the scenes among some Florida legislators and other elected officials to craft a bill that would provide liability protection for businesses related to the coronavirus pandemic.  Now, Governor DeSantis has weighed-in, saying he would favor such a bill.

The Governor last week told reporters that fear of lawsuits is holding back the economy – specifically, businesses’ concern that they could be sued and found liable for an employee or customer contracting the coronavirus from their business.  While noting that would be a difficult thing to prove, the Governor said the legislature could take up such a bill in a late November special session that’s he pushing to consider his disorderly protestors plan.

States across the country are increasingly looking at providing businesses some liability protection from COVID-19.   Nevada recently passed first of its kind legislation to shield its casinos and hospitality industry from such lawsuits.  The law requires those businesses to follow public health recommendations and provide free testing and paid time off to employees who test positive and are quarantined.

In Florida, where tourism and hospitality is the largest industry, state Senator Jeff Brandes (R-Pinellas) is continuing to work with colleagues and state cabinet members to draft a bill to provide protection for a broad range of businesses.  The goal is to eliminate incentives for lawyers to engage in predatory practices, while still allowing legitimate lawsuits with clear reckless disregard to proceed.

The Governor’s comments came in the same week that he ordered Florida into the third phase of coronarvirus economic recovery, opening up all restaurants, bars, and other businesses to 100% capacity.   He said the move was meant to ensure “business certainty” going forward.   While Florida’s economic recovery continues, the latest report shows state tax collections were down 4.6% in August from August 2019 and unemployment at 7.4%.

Contact Jones Family Insurance for all your insurance needs. Serving Port Charlotte, Punta Gorda and Fort Myers Florida.

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Hurricane Sally left 500,000 without power!

Hurricane Sally left 500,000 without power!

Hurricane Sally came through! The most severe wind damage seemed to be limited to areas near the coast or open bay waters.  What I saw was mostly minor damage to roofs and siding, seldom structural, let alone catastrophic.  At one point though, more than 500,000 residents were without power in Florida and neighboring Alabama, where the Cat 2 storm made official landfall, with maximum winds of 105 mph and up to 30 inches of rainfall.  Storm surge was upwards of 7 feet in coastal Escambia County (Pensacola) and adjacent Baldwin County, Alabama.

AIR Worldwide, the Verisk catastrophe risk modeling firm, estimates Sally’s insured losses will range from $1 billion to $3 billion, with wind representing the majority of losses.  This is exclusive of National Flood Insurance Program losses, which are expected to be especially steep in Alabama, given more than two thirds of flood coverage there is federal.  AIR’s estimates include residential, commercial, industrial, and automobile property losses including contents.  Last Monday includes pictures of flood inundation of upwards of three feet in downtown Pensacola and exclusive drone video and images from a few hours after Sally made landfall on September 16.  You’ll also see the unfortunate damage caused by a loose barge to the newly built southbound span of the Pensacola Bay Bridge, linking Pensacola to Gulf Breeze, on the barrier beach.

 

Two big trees that seemed to know to fall away from nearby townhouses in the aftermath of Hurricane Sally in Pensacola, FL, September 21, 2020.

 

FEMA last week approved a major disaster declaration for the storm.  It includes public assistance for all categories in Escambia County and public assistance Category B (emergency protective measures) for Bay, Calhoun, Franklin, Gadsden, Gulf, Holmes, Jackson, Liberty, Okaloosa, Santa Rosa, Walton, and Washington counties.  The Florida Division of Emergency Management is continuing to conduct damage assessments in the 12 counties that did not receive all categories of Public Assistance.  The Division is also conducting damage assessments at individual residences and businesses and will continue to work with FEMA to apply for Individual Assistance.

The Governor has activated the Florida Small Business Emergency Bridge Loan program through the Florida Department of Economic Opportunity to support small businesses impacted by Hurricane Sally.  The program provides short-term loans up to $50,000, or in special cases $100,000, if warranted by the needs of the business.

 

Courtesy, AccuWeather

So we begin another process of filing and processing insurance claims.  The state has activated the Emergency Adjuster Licensing System to boost the number of insurance adjusters available to help residents with claims.  There are more than 150,000 adjusters currently licensed in Florida.  This activation allows insurance companies to bring in catastrophe adjusters from other states to help handle the increased demand.  Sally was the eighth named Atlantic storm to make landfall in the U.S. this hurricane season.

Contact Jones Family Insurance for all your Insurance needs. Serving Punta Gorda and Fort Myers Florida.

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Important Developments Regarding PIP Insurance

Important Developments Regarding PIP Insurance

PIP insurance or Personal Injury Protection, has the world of motor vehicle insurance providers on tenterhooks as the Supreme Court rules against an insurance company and in favor of the Florida Hospital Medical Center in the 5th District Court of Appeal. Personal Injury Protection(PIP) is mandatory insurance coverage for all registered vehicle owners in the state of Florida and serves to cover up to $10,000 in medical bills, damages, or losses stemming from a motor vehicle accident regardless of which driver was legally found at fault. Nevertheless, not everything is as simple as it seems as insurance providers as well as healthcare providers are all looking out for their best economic interests.  Thus was the underlying basis for the PIP case brought on by the Florida Hospital Medical Center, which held the Progressive Insurance Company liable for $200 in unpaid reimbursement for medical services rendered to one of their policyholders. A Progressive Insurance customer, a car accident victim, suffered personal injuries that accounted for $2,781 in hospital expenses. According to the official court records, his PIP insurance policy had a $1,000 deductible which the hospital subtracted before calculating the total amount using the formula under Florida PIP law. It turns out that the insurer did not apply the same method for determining the legitimate amount owed to the hospital and reached a total amount due of $868. This $200 difference, brought-on by subtracting the car accident victim’s  $1000 deductible, prompted the legal battle by the Florida Hospital Medical Center. The case, which has insurance providers around the USA on edge, ruled against the formula used by the insurer company to calculate the amount owed. The decision was based on the grounds that the insurance company should apply the deductible to the overall charges in line with the statutory provisions. The ruling will ultimately lead to all insurance providers in Florida ultimately having to pay more to hospitals and healthcare practitioners treating motor vehicle accident victims.

So where does PIP stand now? The new rule states (in a nutshell) that the deductible needs to be exhausted at the start. Statutorily, the minimum deductible is $1,000, so the first $1K is the responsibility of the insured person and the insurance provider doesn’t have to pay it. Until now, the insurance company was spreading out the deductible.

Get your Auto Insurance from Jones Family Insurance. Serving from North Port to Fort Myers Florida

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Insurance Company Loses AOB Argument

The Florida Supreme Court is being asked to weigh in again on an insurance claims case involving an Assignment of Benefits (AOB) contract between a contractor and a homeowner.  It follows a recent ruling by Florida’s Fifth District Court of Appeal against an insurance company that refused to make insurance payments to a third party vendor.

In the case of Speed Dry Inc v. Anchor Property and Casualty Insurance Company, homeowner Wayne Parker had filed a damage claim with Anchor after suffering damage from Hurricane Irma in September of 2017.  He then entered into an AOB agreement with Speed Dry to handle the repair work and any claim negotiations with Anchor.  The AOB also allowed Speed Dry to receive payment directly from Anchor according to the terms of the insurance policy.  After Anchor refused to pay, Speed Dry sued Anchor for breaching the policy.

Anchor asked for and won a summary judgment in Seminole County Circuit Court, citing “alienation restrictions” in the Florida Constitution.  It contended that any insurance proceeds resulting from a loss to homestead property are constitutionally protected to the same extent as the homestead property itself and cannot be assigned by an AOB.  Upon appeal, the 5th DCA overturned the lower court decision, ruling an assignment of post-loss insurance benefits does not transfer title of real property…and is thus treated as an ordinary contract.”

“However, because assignments of post-loss insurance benefits are utilized so extensively, we certify the following question to the Florida Supreme Court as one of great public importance: Does article X, section 4(c) of the Florida Constitution allow the owner of homestead real property, joined by the spouse, if married, to assign post-loss insurance benefits to a third-party contractor contracted to make repairs to the homestead property?” the 5th DCA wrote.

A Florida Supreme Court decision last summer to dismiss an AOB case that it previously had agreed to review has left in limbo conflicting lower court rulings on whether insurance companies have had the right to deny AOBs without the sign-off of all parties with an insured interest.

For more information on AOBs and broader litigation abuse in Florida, contact Jones Family Insurance!

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Fact file: Florida hurricane insurance facts

Fact file: Florida hurricane insurance facts

June 2020

  • Six of the 10 costliest hurricanes in U.S. history have impacted Florida. Three of these storms occurred within just two years: 2004 and 2005.
  • The costliest hurricane, based on insured property losses to Florida, was 1992’s Hurricane Andrew. It caused $25.9 billion in damage to Florida and Louisiana (in 2019 dollars).
  • Standard homeowners policies typically do not cover flood damage. Flood insurance is covered by the federally managed National Flood Insurance Program, but private flood insurance is becoming increasingly available.
  • Florida leads the nation in the number of flood policies, according to the National Flood Insurance Program, with about 1.8 million policies in force in 2019.
  • About 98 percent of the total population of Florida lives in one of the coastal counties. The number of people living in coastal areas in Florida increased by 4.2 million, or 27 percent, from 15.6 million in 2000 to 19.8 million in 2015, according to the U.S. Census Bureau.
  • In Florida, 2.9 million single-family homes were at risk in 2020 for storm surge damage from hurricanes up to Category 5 strength, according to CoreLogic, Inc. These homes would cost $581 billion to completely rebuild, including labor and materials.
  • After its establishment in 2002, when the state passed legislation combining two separate high-risk insurance pools known as the Florida Windstorm Underwriting Association and the Florida Residential Property & Casualty Joint Underwriting Association, Citizens Property Insurance Corp. (CPIC) experienced exponential growth. As a result, Florida Citizens has evolved from a market of last resort to the state’s largest property insurer.
  • Florida Citizens Property Insurance Corp. provides multiperil and wind-only insurance coverage to Florida homeowners, commercial residential and commercial business property owners.
  • Direct homeowners insurance premiums in Florida written by Citizens was $490.9 million in 2018 down from $795 million in 2014.
  • Citizens was the state’s fourth leading homeowners insurer in 2018, with a market share of 5.11 percent, down from 9.1 percent in 2014.
  • Florida Citizens had 346,227 policies as of March 31, 2020.

Get your no obligation homeowners insurance quote at Jones Family Insurance. Serving Punta Gorda and Fort Myers Florida.

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Florida renewals a “perfect storm” of challenges

Florida renewals a “perfect storm” of challenges, warns Demotech

20th May 2020 – Author: Matt Sheehan

Financial analysis firm Demotech has warned that the Florida reinsurance renewals will bring a myriad of challenges for the market, with COVID-19 issues piling on top of a shortage of retro cover, continued loss creep, and legislative issues.Even before the pandemic, analysts had anticipated that 2020 would not be business as usual for Florida focused insurers.

Ongoing complications include jurisdictional risk, the competitive position of Citizens Property Insurance Corporation, and increases in the cost of catastrophe reinsurance, including the limited interest of those offering catastrophe reinsurance.

“Having been involved in Florida’s residential property insurance marketplace since 1996, our view is that the financial and market-based criteria affecting residential property insurance have never been more difficult to navigate,” Demotech stated.

Changes in business models and operating plans have already been announced by Capitol Preferred Insurance Company, People’s Trust Insurance Company, and Avatar Property and Casualty Insurance Company, and Demotech believes other carriers will respond in a similar manner.

“We have not experienced market conditions like we are seeing this year since 2006,” said Brian O’Neill, Partner-Client Executive at TigerRisk.

“We are a supply and demand economy, and given the shortage of retro cover available (especially low attaching cover), the loss creep from Irma and to some degree Michael, the lack of legislative reforms to fix the one way attorney fee statutes in the state, and then throw in a Global Pandemic – you have a perfect storm hitting the June 1st renewals,” he continued.

“The carriers in the state are truly performing their best to weather this storm. Support from core reinsurance partners will be critical in this environment along with creating unique risk management solutions and raising reinsurance capacity to optimally manage each carrier’s operational and financial needs.”

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Six Ways to Lower Your Homeowners Insurance #4

Six Ways to Lower Your Homeowners Insurance – #4

The cost of homeowner’s insurance is one of those unavoidable expenses that comes along with owning a house.  How much you’ll pay for insurance varies depending on your location and the age of your home.  It can feel like a big expense, but knowing you’ll be reimbursed if something happens to your most valuable investment can be priceless. Plus, your mortgage company may require that you keep a certain level of homeowner’s insurance as well.  There are typically four parts to a normal homeowner’s policy you’ll see on your quote that you should make your agent explain to you. 

4th — Up your deductible. I say this because typically the lower your deductible the more you will pay for insurance.  In our company we like to talk to you the insured to find out about your background and your financial stability. We do not do this to be nosey but like I said before we treat everyone like family and if we know your situation we can fit you with the right deductible that can inevitably save you money on your policy.  So when we talk to you about your deductible we talk to you about repairs and what repairs you would be able to pay out of pocket for and which ones you’d need to exercise your policy for.  

 

Contact us at www.JonesFamilyIns.com

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Jones Family Insurance | 312 Mary Street. Punta Gorda FL. 33950

Email:service@jonesfamilyins.com

Phone: (941) 205-0191

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Phone: (239) 552-4111

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Phone: (239) 227-2349

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