Insurance

Regardless of how your home came to be damaged or destroyed, as a policyholder you want to know that the limits of your policy will cover the damages that your home endures. Typically, your insurance company will recommend to you a certain threshold based on the structure of your home that is composed of numerous aspects, but as a homeowner, it is essential to get educated on the various elements that come into play when evaluating the limits of a policy. As someone who is insured, you want to make sure that the proper structural coverage is protecting your home in case of any disaster to your house. Wouldn’t it be stressful and frustrating to know that you have to pay for reparations yourself? Our best public adjusters in Miami understand that feeling and would never want to see anyone have to go through that. As someone who pays for insurance, you should be covered adequately.

Factors That Work with Limits on Your Policy

We want to educate you all on the elements that should influence the limits set in your policy. Below will be listed some factors that can help you determine just how many limits you will need by taking the following into account:

• How many square feet does the property have?
• How much is the costs of construction in your area?
• What style does your home have? (Is it colonial? Or other?)
• What type of materials are the outside walls made of?
• How many bedrooms and bathrooms does it have?
• What materials are present on the roof?
• Are there any sheds or garages?
• Are there any special features like a fireplace?
• Was it custom built?
• Are there any add-ons like extra a bathroom?
• Have there been any renovations to your kitchen or bathrooms?
• Is your home older? Making it hard to recreate older materials?
• Is it up to code?

Being a homeowner could be an advantage, but a lot of research has to be done as one who does not want to unnecessarily have to pay for repairs that could have been avoided. These above elements and questions should be addressed when deciding how many limits you must place on your policy. You want to make sure that you have enough to cover every aspect of your home. A fundamental reality that we often emphasize here at the Miami insurance adjusters is the importance of reading your policy and seeing through the fine print. Take the time to conduct your research, consult a skilled public adjuster if you believe you are low-balled, and never wait until the last moment to file a claim, the faster it is done, the fewer problems will come.

As a homeowner legal jargon can be cumbersome, we are going to break down what are exclusions and how the affect your present home insurance policy:

Exclusions in a homeowner’s policy are damages that have been excluded for a risk, that may or may not occur. These are ways for insurance companies to carve coverage for certain damages that they do not want to compensate for; forcing a homeowner to purchase additional coverage.

Typical Coverage

The typical coverage is very broad. Just remember that as professional Miami, FL Public adjusters, we know that insurance companies want to provide you with the least amount of protection as possible so that when something does occur, they do not have to give you an extensive amount of money unless you purchase more coverage’s. Our team wants you to know of which exclusions are within your policy and help you determine whether you need more coverage for your home, family, and yourself.

Exclusions Usually Seen

As a policyholder, there will be many details, factors, and elements included in your policy, but along with inclusions, there are also many exclusions. These are the usual exclusions that should be noted:

Wear and tear

Wear and tear are typically excluded from your policy. For example, the lifespan given to your roof was ten years and your roof collapses from a hurricane at 11-year mark- If you have hurricane insurance, the damage done inside your home from the collapsed roof will be covered, but because your roof passed its lifespan, that may not be covered

Law or ordinance requiring you to repair or change something in your home

If the city tells you that you need to do something to your home, your policy will most likely not pay for it. This would have to be purchased as an add-on.

Floods caused by nature

Usually water damage from a leaky pipe will be covered, but if the damage is done to your home because a hurricane brought an abundance of rainfall and caused a flood in your home, that will not be covered.

Sinkholes, earthquakes, landslides 

Once again, this is not covered. If you live in an area where you experience any of these, it would be wise to purchase the additional protection for your home.

Deaths or injuries in a pool

If someone is injured or drowns in your pool, your insurance does not cover it. It will only cover the damages done to your pool.

Valuables worth more than $1000

If you have anything worth more than $1,000 be sure to look into the add-on protection for expensive personal belongings.

Come Learn More with Us

There are so many more exclusions present in your policy, and because it is so much, most homeowners do not fully read it. At our Miami public adjusting firm, our studied public adjusters know every specification related to all the exclusions within your homeowner’s policy. We could assist you in seeing what you absolutely need, and what you may not need to purchase.

Following a hurricane or other storm that has caused devastation to homes and businesses, many owners seek answers with their insurance policy. There is a significant threat for homeowners during the peak season of hurricanes (June 1^st to November 30^th), meaning that homeowners are already in the face of that danger. The threat is them having to pay money in order to repair the damage that has been done to their property despite them having had purchase insurance for the wind that comes from the hurricane. The reason for that issue is that most property insurance policies contain what is called a “deductible”, what would be known as “hurricane deductible percentage” in this case. These changes were made after the devastating hurricane that took place in 1992, hurricane Andrew. Property hurricane insurance policies were changed dramatically as a result.

The losses and damages that one is faced with after a hurricane is not news, but due to various factors like the building boom, the growth in Florida’s population, and the destruction that took place due to hurricane Andrew, insurance companies changed their game; it was no longer “business as usual” for Florida’s property insurance, hence, resulting in the creation of “hurricane deductible”, more commonly known as wind deductible. The insurance companies did not want to lose; they wanted to put a cap to the amount a homeowner could recover after a hurricane, especially in the state of Florida where hurricanes present themselves like mosquito’s with still water. Learning the specific details involved with hurricane deductibles is vital for anyone who has purchased this add-on, and for those in storm-prone states.

How Do Hurricane Deductibles Apply and Who Controls Them?

The Florida Statute 627.701(5)(a) describes the following who has control over  the application of these deductibles in Florida:

The following indications will persist during the time period of May 1, 2005, or after for any insurance policy of a property hurricane deductible that has been renewed or issued:

1. The same insurer that has one or more policies shall have the hurricane deductible apply to losses on an annual basis for all covered hurricane damages.
2. During the calendar time frame, if there were damages of other hurricanes or damages prior to a hurricane, any subsequent hurricane damage can have a deductible applied to it, that should be more than the amount that is applied to the coverage for hurricane deductible or for damages other than for hurricanes. For subsequent claims made for hurricane damage, the insurance company might tell their insurer to hold any receipts and documentation that they have in conjunction with any losses that have to report or that are less than the hurricane deductible amount that they currently have.

This statute is crucial for any person holding these types of deductibles, which is why every policyholder should review this information with a public adjuster in Miami at Churchill. The details of this statute need to be addressed and made clear to each insured individual because we don’t want a homeowner to have a wake-up call because they did not understand the full scope of the deductibles that they currently had.

Now, when do deductibles apply?

There are specific elements that must exist in order for a hurricane percentage deductible to apply verses that of the standard deductible that covers home insurers for damages and perils that come from water damage, fire damage, or wind damage. What are these requirements? Many individuals are not aware of them and should become knowledgeable of such:

• This Florida statute explicitly clarifies that The National Hurricane Center is the sole basis on whether a deductible applies or it does not
• If a hurricane watch or warning has been made by the National Hurricane Center of a threat of a hurricane, any claim made for up to 72 hours after that warning will have the deductibles applied. Also, if there were obvious signs of hurricane conditions, then they will also apply.

The Actual application occurs when?

These deductibles actual application is based on the property policy insured value percentage amount. To better understand this concept, this following example is provided:

This example applies to commercial policies as well, but if a homeowner has an insurance value of $250,000 on their home and chooses to have a hurricane deductible of 5%, then the homeowner would have to pay a deductible of $12,500, only if there hasn’t been any limitations or exclusions that will interfere with the insurance company paying for their losses. IN that case, the homeowner would have to pay any exclusion or limitation out-of-pocket before the insurance company starts to repair their home. One thing that must be made clear is that if the National Hurricane Center did not declare a wind storm that caused wind damage to a property, a standard deductible would most likely apply, which is significantly less.

The literature of insurances states that either $500, 2%, 5%, or 10% must be offered as a hurricane deductible for all insurers. The higher the percentage, the premium cost will be lower. A con of having this would be having a very high cash payout amount if someone has a lower premium for hurricanes. If one chooses to do that, they must be sure that they are able to absorb that type of payment amount. The hurricane percentage deductible within each policy should be checked for its accuracy because it must be boldface type; no less than 18 points. This issue needs to be discussed with a practiced public adjuster because it is a subject of extreme relevance, especially when a hurricane warning or watch has been issued.

FAQS on Hurricane Deductibles

Question: Following a hurricane claim, how can I be assisted by a licensed public adjuster?

Answer: The services that insurance companies provide after any disaster are limited. In addition, adjusters are often rotated in and out from the danger zone by the insurance companies, which means that an insurer will have to speak with them over and over again. Public adjusters facilitate the process by the usage of their expertise and skilled documentation qualities during the loss adjustment phase. We allow our clients to focus on restoring their damaged property because we take hold of the burden of having to move the claim to the insurance company.

Question: How do I acquire the best representation from a licensed public adjuster?

Answer: It is important that the selected public adjuster has a depth of resources to manage your claim. Researching on them beforehand and figuring out whether they are best suited for your needs is vital. The term “best” is uniquely applied to every case.

Question: Will there be an undervaluation of my settlement amount by the insurance company?

Answer: It most certainly will. That is the job of insurance companies; to stripe you from what you deserve because that is how they will profit.

Question: Is the entire loss of damages coming from a hurricane covered through my insurance?

Answer:  This depends entirely on the type of coverage you have and the deductible amount applied to you. Usually, the physical assets will be covered like your building and equipment. Also, additional living expenses may be covered following a hurricane, but the amount provided for all this covered age is dependent upon the policy that you have.

Question: If I lose income as a result of roads being blocked to my commercial building because of the hurricane aftermath, will I be compensated for the loss of revenue?

Answer: Again, it depends on this policy, but most policies will cover for losses of business as a result of civil authority, and even for egress and ingress interferences. Checking the details of how long a road needs to be blocked before coverage is offered and how long that coverage will be offered for should be noted.

Question: Will I be covered if deliveries of my suppliers cannot be made?

Answer: Unless your policy has dependent properties coverage, it will not be. Typically, the supplier must be named in the coverage. Many factors are involved with this coverage. Contact a qualified public adjuster to learn more.

Question: How are my perishables protected by Spoilage Endorsement and what is it?

Answer: Spoilage coverage is what is provided for perishables that can become bad as a result of power outages, which storms are known to cause. For example, foods, meats, prescription drugs that must be kept cold, etc. These are common losses experienced, especially if the policyholder does not have a generator.

Question: What is my windstorm property deductibles policy limit percentage?

Answer: The loss that comes from a hurricane making landfall that blows a roof or other structural damage is categorized as a windstorm. Unlike other deductibles like broke pipes, the damage that comes from windstorm typically equals a percentage of the current policy limit. An additional premium could be purchased to opt-out in having to pay for a deductible.

Question: What is Debris removal expense?

Answer: After a windstorm, there is often a lot of debris that must be removed, which is expenses often incurred known as debris removal. Some policy languages allow for coverage of this expense above the limit of the policy for either 5%, 10%, or 25%. The wording of this coverage may be ambiguous, or it may be clear, which could be a factor when claiming for this coverage. For this reason, before needing a specific coverage, as a policyholder, you should be certain of what coverage you have.

Question: How can Extra expense cover help me and what does it cover?

Answer: The expenses made after a loss that go above and beyond the normal expenses you do is what is covered through extra expense insurance. The purpose of this is for any interruption that comes to a business is quickly mitigated. Businesses might have to cover extreme expenses following a windstorm in order to get back into operation, and the extra expense will cover that.

We Are Knowledgeable with Hurricane Deductibles

Our experienced Miami public adjusters know the ins-and-outs of every detail involved with an insurance policy for hurricanes. We know what is covered, when it is covered, and what to do to acquire that coverage. Anyone living in hurricane-prone states must revise their policies to ensure that they are receiving adequate coverage in their policies. The losses that a business owner or homeowner could suffer from the aftermath of a hurricane could be detrimental, for that reason, deductibles and policy legal jargon’s must be comprehended. A public adjuster could provide that knowledge to their clients and help them attain the best possible results after a loss has been claimed.

It is essential to understand that an insurance company will never see in your best interest, but we always do!

References:

https://www.publicadjuster.com/type-of-claim/hurricane-wind-damage/understanding-hurricane-percentage-deductibles

Although nobody wants to think it could happen to them, floods and other water problems can occur at the worst possible times. Victims of floods and water damage may lead the victim into dipping into their own savings account to repair the damage. Sadly, there are many individuals who are unable to afford repairs and who do not have any money saved. In fact, many people live check-by-check. These individuals become “stuck” because they cannot afford the fees and related costs. While some may feel relieved to think that their insurance policy will cover the water damage, many people get surprised to find that the majority of standard policies will not pay for the full costs of these damages.

While these insurance companies should be assisting their policyholders during these difficult times, the vast majority of them do not take their customers best interest to heart; they just want profit. This is why, becoming an expert on the limits that a standard coverage provides is crucial, especially if you are a homeowner. This action and prevent the homeowner from becoming a victim of the devious games that insurance companies play. It is important to note that if you reside in a state where water damage is imminent, purchasing additional water damage may be an option that must be taken. To avoid any issues, good results can come from working with a public adjuster expert.

Problematic Dangers That Are Covered by Water Damage

When water infiltrates a home, it can pose numerous threats, the worse being the loss of life. Many lives are taken by floods annually. In fact, water is the element that kills the most people and damages the most properties as a result of natural disasters like hurricanes. These are problems that could surge that could be covered by the policyholder’s insurance:

Burst pipes and similar issues

Cold temperatures and other threats can cause pipes to burst and flood a home in seconds. This problem often damages floors, walls, appliances, and personal property that gets submerged in water. In many cases, standard homeowner insurance will cover the fees and expenses related to a burst pipe. A decent policy should also cover mold removal and other issues that occur in the aftermath of a burst pipe, especially if the water is not cleaned out properly. Not all plans cover pipe replacement or repair services when a burst occurs, so people should carefully review their policy if they would like to know what to expect when they are faced with a pipe that burst.

Leaks within the roof

Hail and winds during a massive storm are known to destroy roofs that can lead to leaks within the home. As a consequence, a number of things could be destroyed within the home, electronic devices may become faulty, or the walls of the house may become rotten if they are composed of wood. Under these circumstances, the expenses associated with these losses will be covered under most homeowner’s insurance plans. Something that many individuals may not be aware of is that roof damage is typically not covered under homeowner insurance. Inability to understand the terms of the policy puts them at a disadvantage and exposes them to overwhelming repair fees. Those who want to get the most from any insurance claim must consult with a public adjuster before moving forward.

Floods

Floods may occur at any moment. They may be so sudden that no warning signs are present beforehand. Unfortunately, many homeowners are fooled to think that their insurance will cover them if a flood were to occur, but they are wrong. After their claims are denied, they are left asking themselves questions and at a loss for words. Getting protection from floods often requires people to take out additional policies to cover the gaps left by standard insurance. For those who live in areas prone to flooding, opting for additional water damage coverage is a wise move in the right direction. Doing so gives them peace of mind because they won’t need to face the unthinkable alone.

Gradual and Water Damages in Homes

Gradual damage is damage that occurs in homes over a specified period of time. As a homeowner or tenant, we often only look at what’s on the outside. We do not see any issues that may be present underneath the structure. Pipes, electrical wiring, and other parts of the home may slowly become affected and over time, become faulty. We tend to see just the walls, floors, and other areas visible to the eye. We don’t realize that our homes are run by complex structure underneath it all. If a home is not adequately maintained and regular investigations are done to assure that everything is functioning well, there may be multiple areas under the surface that may not be functioning correctly, leading to many problems in the future. Only when the problem has grown will there be physical evidence to determine that something is wrong. Only then is when a homeowner attempts to make a claim; when it might be too late.

A homeowner would face a problem when trying to file a claim if the problem that arose was as a direct result of progressive damage. Sure, you may have suffered water damage, but if you were negligent not to maintain your home and that water damage came about; as a result, an insurance company may give you a hard time and deny your claim. It is vital to maintain and inspect a property every so often to ensure that if a disaster does strike, that the homeowner is covered and does not have to face the consequences of gradual damage being an issue.

Below are some typical examples that be lead to a denial of a claim or diminished compensation:

• Damages walls, floors, or ceilings as a result of pipes or faucets that have been leaking for some time
• Cracks on the exterior or on the foundation of the home leading to seepage or water damage because they were not sealed
• Apparent signs of roof repair needed like tiles, shingles or other parts deteriorating
• Corrosion, rot, or mold that has not been addressed
• Electrical wiring deterioration
• Failing to repair or doing poor quality repairs

When a claim gets denied, there are often a space of unknowing. The most popular reason why a claim tends to be denied is a result of gradual damage. For the homeowner, it may be a problem that just suddenly appeared, but as further investigations occurred, it was actually a problem that was already there for a while. Because of the problematic results that gradual damage can cause someone who suffers water damage. In order to prevent further losses, be on top of your homes. Inspect them on a monthly basis.

Exceptions to Gradual Damage

There are instances where gradual damage will be covered. It gets confusing to know what gets covered and what doesn’t when it comes to gradual damage. Typically, gradual damage and wear and tear are excluded from policies, but there are certain exceptions. These exceptions include:

Mold: Mold remediation may be allowed by certain insurance companies as an option for policyholders to purchase. In fact, many companies have been pushing their residents to purchase this coverage.

Falling tree on a roof: A tree is falling on top of a home that causes a breakage could be covered. The damages that seep through from the water can be recovered, along with the roof damage and opening that the property sustained

Broken pipe: A pipe that breaks could have been the result of an ongoing problem. It could have gradually led to it breaking. While the pipe itself would not be covered, the resulting damage what the water that leaked from the pipeline may be covered.

If a claim is denied due to gradual damage, this could be difficult for the policyholder. In order to prevent this from occurring, there are multiple ways that a homeowner can avoid having their claim denied, including:

• Maintaining records of all the repairs that have been performed in the home throughout the years that resulted from maintenance, that way there is proof that you were not negligent
• Be knowledgeable of all the exclusions and details within the policy. In addition, a homeowner needs to know of their responsibilities.
• Performing small repairs on a home can prevent more significant repairs from having to take place. Regularly maintaining a home during the Spring and Fall could avoid a mountain of problems
• Be sure to inquire about other coverage’s that are present and ensure that the coverage that is being purchased fits your needs

Water Damage Numbers and Frequency in Florida

Florida is a state that is often attacked by natural disasters that are full of water. Being in such a state should give reason to purchase additional coverage in case water damage were to occur to a home. These are some statistics that are linked with water damage in the state of Florida:

• In Florida, there are an estimated 2.1 million flood policies currently active
• Because Florida is relatively flat, when the water rises, it makes it extremely difficult to drain effectively
• The NFIP required policies are 2/3 located in the state of Florida
• There were 71 hurricanes and tropical storms that even needed assistance from FEMA in Florida between the year 1995 and 1999
• Because Florida is relatively flat, when the water rises, it makes it extremely difficult to drain effectively
• Only 13% of all households in the state of Florida are covered by flood insurance
• By 2030, $69 billion worth of coastal property will be at risk for the high tide that is currently not at risk
• Florida was amongst the top three states that have seen the most hurricane landfalls since the year 1851
• The Everglades city and the historical coastal fishing was destroyed as a result of the tropical storm Fay in the year 2008
• As a result of the typical patterns of high tides, major flooding attacked the state of Florida in 2013

The NFIP requires Florida to obtain flood insurance due to the high percentage of floods

• Between 1,500 to, 3800 Floridians died after one of the most disastrous events in the state of Florida. A 150-mph hurricane struck communities alongside lake Okeechobee which dragged water out of the lake and onto those communities
• 2% is the average increase in water claims every year in Florida

These facts and statistics show just how prevalent Florida is at being a victim of floods and water damage.

Being Stuck by Water Damage

As mentioned before, it could happen at any moment. The damages that can arise from water damage could be of an abundance. Learning what homeowner insurance does and does not cover is vital for anyone who does not want to face unplanned expenses. Paying a small fee each month allows them to put their worries to rest. When water damage results from problems inside the home, homeowner insurance will usually pick up the bill. On the other hand, homeowner insurance does not cover damage related to a flood or natural disaster.

Each person must check the policy to see what to expect if an emergency occurs. In many situations, people who want flood protection need to buy additional water damage coverage to reach their goal. No matter the threat with which they are faced, people should always speak with a public adjuster to get the best possible results. Don’t forget about gradual damage. This could reduce and even cause your claim to be denied. Maintain your homes and ensure that your coverage is specific to the needs of your home. For example, if you live in Florida, you may want to purchase flood insurance.

References:

• https://floridafloodinsurance.org/flood-facts
• https://www.thebalance.com/how-to-handle-water-damage-claims-3860314