State Farm cancelling policies in Florida

State Farm has created much controversy over the past year in Florida but it looks like they have gotten what they wanted. A rate increase AND permission to cancel homeowner policies.

My family always had coverage, automobile and homeowners, with State Farm. When I bought my first house in 1992 I had coverage with State Farm. When I moved to Florida in 2001 and bought my house here, I specifically requested information on a local State Farm agent and promptly purchased homeowners coverage here as well. Over the next 8 years, I never made a single claim on the State Farm policy and my house was not damaged in any of the hurricanes or tropical storms that ravaged the state. I was a little disconcerted when the first inklings came about that State Farm was going to leave the state. My policy was going to renew in May and I did not want to pay premiums to State Farm only to have them leave, forcing me to find new coverage for my home. As many of you know, it is very difficult to find a homeowners carrier in this state, regardless of prior claim history or location. I was "lucky" enough to find a carrier where the premium would be about the same after increasing the deductible to $1000.

So good luck to all of you who will be looking for coverage over the coming months. You may want to seek out an independent insurance agent who has access to many other carriers to increase your chances of success. You can visit the Florida Association of Independent Agents (FAIA) website to search for an agent in your area.

Winter Weather Safety

Seems odd to talk about winter weather here in Florida, but it seems the northerners have sent us some cold air for a while.

Remember to exercise an abundance of caution when using a space heater. Keep them away from curtains, furniture, paper, and anything remotely flammable. Check them frequently. It goes without saying to be sure your smoke detector is in working order before using a space heater - or a fireplace. Speaking of fireplaces, when is the last time the chimney was checked or cleaned?

Do you still have a live Christmas tree up from the holidays a couple of weeks ago? The drier weather will cause the tree to dry out faster which is also a fire hazard. Check the water level daily. Please also use caution when taking down all those Christmas lights and decorations.

Even though it is chilly (well, cold) here, just remember we are not dealing with snow and ice!

Hope you all have a happy and safe new year!

What to do about coverage denials....

A recent article in the Columbus, OH Business Journal discussed what businesses should do if coverage is denied on a claim that is submitted to a carrier. Although the writer focused on Ohio law, the article gave some excellent advice to business owners in any state, not just Ohio. In a nutshell, ask questions about why the claim has been denied and share information with the adjuster. There are a lot of gray areas when determining coverage and handling claims - it is not a black and white kind of business. Each claim is different and there are a variety of circumstances that can affect coverage. Contact the adjuster to find out why coverage is being denied to make sure everyone has the same set of facts. A little "push back" sometimes does the trick. For the full article, please click here.

Do you know what you paid for?

Many people buy insurance policies because they "have to" - either because a mortgage company requires it or a the bank requires it for an auto loan. These policies can cost the average family or household thousands of dollars a year, yet many people do not know what they are actually purchasing or if the coverage purchased is right for them. Of course, insurance is not fun to talk about nor is it fun to buy. Who wouldn't rather spend their hard earned money on a trip to Tahiti?

You may not like talking to your insurance agent (if you have one) because you feel like he/she is trying to sell you something.....but it is more likely your agent has your best interests in mind. The more informed you are as a consumer, the more likely it is that you will get the best coverage for the best price.

Some things to consider:

• Do you have a home based business? You might need separate coverage.
• Can you increase your deductible to save some premium dollars? Be sure you can afford it!
• Do you have a lot of jewelry? You might want to add it to a separate schedule to insured it to value.
• Do you have significant assets to protect? You might want to consider an umbrella policy.
• Is the limit of your homeowners policy high enough to rebuild your house?
• If you are a renter (or a condo owner), you still need coverage for your personal belongings.
• Are you automobile policy limits high enough? You might be surprised.

Open the lines of communication with your agent to discuss what you and your family's needs are now...before you suffer a loss.