Why are insurance carriers continuing to remain under a moratorium for placing new policies?
- While most insurance carriers remain under a moratorium and are not willing to place new insurance policies in Collier and Lee Counties, a few have reopened. Most carriers continue to uncover the extent of hurricane damage which occurred in our area and are not expected to reopen in the immediate future. The driving force for remaining closed in the immediate future hinges on the carrier’s ability to secure and maintain reinsurance for their long-term financial strength.
When is the moratorium expected to end?
- Insurance carriers are waiting until 01/01/23 to negotiate their re-insurance contracts to determine the cost and availability of Property insurance. We are expecting to see the market establish more concise guidelines and adequate rate filings at that time.
Are rates expected to increase due to Hurricane Ian?
- While we have been in a “Hard Market” for several years, analysts are predicting this hard market will continue for some time with higher rates and fewer options due to Re-Insurance costs and limited capacity.
How can buyers who are under contract secure proper insurance at this time?
- Buyers should confirm if the property has been affected by Hurricane Ian. Homes which sustained water damage require the necessary water mitigation steps have been taken and documentation of the condition of the property via inspection.
- While NFIP Flood markets are open, Homeowners and Condo markets continue to be very limited. The few Home and Condo markets which are open may have less desirable terms and conditions with water and mold exclusions. Be sure that that your buyers have reviewed the terms carefully and are aware of any policy limitations.
What if the property sustained damage which the buyer intends to address after closing?
- Homes which experienced damage will need to be insured under a Builder’s Risk policy until the necessary repairs have been completed. Once the work has been completed, the policy can be rewritten to a Homeowners Form including contents.
- Ideally, if the seller addresses the necessary repairs prior to closing, buyers will have a better chance of securing proper Home and Condo coverage.
If the seller files a claim, can the new buyer secure insurance?
- Homes with open claims will not be eligible for a new policy until the claims are closed. Claims must be closed for new home buyers to secure proper coverage.
Is it true that if a homeowner files a Flood Claim, the Flood Insurance on that property goes up?
- The NFIP will not surcharge for one flood loss; however, after a second flood claim of $1,000 or more in a 10-year period, the property is considered a Repetitive Loss Property and will surcharge.
What is the difference between Flood and Wind claims?
- Flood claims are as a result of rising waters and storm surge. Flood adjusters will look at the water mark on the interior and exterior of the home to determine the extent of flooding.
- Wind claims are as a result of hurricane force winds which can cause wind driven rain, damage to the roof and structure where rainwater enters the home.
- Some homeowners have experienced a combination of the two, with homeowners and flood carriers paying their proportionate amount of the claim.
Tips
- While your buyers may be tempted to pay cash and close on a new property without insurance, please keep in mind they may have unrealistic expectations of insurance costs once the market re-opens. Additionally, we are still in hurricane season and will be self-insuring in the event of another storm.
- Obtaining Wind coverage on high valued properties is very limited. Homes which are mitigated with high impact windows or shutters, and properties which are maintained exceptionally well, will have the best results when shopping the market.
- Citizens is open and operating business as usual and will write homes and condos with a replacement value up to $700k.
- Time will tell how Hurricane Ian claims will impact the insurance market long-term. Stay tuned!
Andrea Pelletier, CPRIA, CPIA is Client Advisor and Partner at Gulfshore Insurance specializing in Private Risk Services. Andrea works with successful individuals and their families on creating and customizing package insurance solutions in the areas of luxury homes, car collections, jewelry, fine arts, watercraft, and personal excess liability. Comments and questions are welcome at apelletier@gulfshoreinsurance.com
Gulfshore Insurance is a Naples, Florida based insurance agency specializing in home and homeowners insurance, car and auto insurance, boat and yacht insurance, property insurance, umbrella insurance, valuables insurance for fine art, jewelry, wine, and more. Navigating insurance requires an experienced and trusted insurance agent who understands your high net worth risks and exposures. Gulfshore Insurance services Naples, North Naples, Port Royal, Park Shore, Pelican Bay, The Moorings, Naples Beach, Marco Island, Bonita Springs, Sanibel Island, Captiva, Fort Myers, Sarasota, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.
Hurricane Ian’s historic size and impact has been felt throughout Florida. Recovery will take time and require work and resources we are just beginning to understand. We hope that you and your family are safe following this event.
We have reopened our offices in a limited capacity following Hurricane Ian and will be open from 8:00 AM to 5:00 PM daily. If you need to report a claim from Hurricane Ian, our Claims Team is committed to assisting you.
Please be sure to read the important information below and take the necessary steps to file your claim. As a reminder, to expedite the claims process, you are best served by reporting your claim directly to your insurance carrier. Visit the links below to obtain the necessary contact information.
Report a Claim – Homeowners
Report a Claim – Businesses
If you have filed a claim for a loss from a hurricane, the following helpful information will assist you during this process:
- Your insurance company will assign an adjuster to contact you at the number you provided on your claim report, so be sure to let us know if that has changed or if there is an alternate number where you may be reached. Insurers usually send adjusters to the more severely damaged properties first. If you suffered minor damage, please be patient.
- If your business or home is uninhabitable or you move somewhere else temporarily, be sure to let the insurance company or Gulfshore Insurance know where you can be reached. Spray-painting your building is not recommended, as most policies do not cover exterior painting. Your name and correct address should be sufficient for an adjuster to find you.
- In some instances, an adjuster may issue you an advance check. This emergency advance will be deducted from your final claim payment.
- Take pictures of the damage including your contents, prior to making any temporary repairs.
- Begin making temporary repairs to prevent further damage. Save all of your receipts, the company will ask for them at a later date. Do not remove any of the debris until it has been seen by the adjuster.
- Do not attempt to make permanent repairs on your home or business until an adjuster has inspected it.
- You will be required to complete a Personal Property Inventory form for damaged items. We suggest that you complete this on a per location basis. List the “Replacement Cost” of each item and it’s actual cash value, if you know it. Replacement cost is what it would cost today to replace an item with another one just like it. Actual Cash Value is what the item is really worth after deducting for depreciation and wear. Attach any available documentation (receipts, photos, cancelled checks, credit card statements, warranty booklets, etc.).
- Most homeowners and business owner policies provide for removal of trees or branches that have fallen on a covered structure. They usually do not pay for removal of trees or debris that blew into your yard or fell in your yard without damaging anything. This coverage will vary by company.
- If your property is rendered uninhabitable, most policies provide Loss of Use Coverage which is designed to reimburse you for extra expenses and temporary housing. Usually, temporary housing coverage is based on a similar home of like kind and quality, and the length of time you will be displaced. (subject to your policy limits) Additional Living Expenses: Extra Expense coverage is designed to reimburse you for the extra expenses you incur after a loss that you would not normally incur, such as renting a temporary space, additional mileage, generators, electrical, computer or phone expenses over and above your usual costs, if you have this coverage. This coverage is typically paid on an incurred basis. You must incur the extra expense and provide proof of loss in the form of receipts or invoices.
- If you are unable to temporarily relocate your business and must completely shut down until repairs are made, or if you do maintain operations but at a lower business volume, you may also be able to recoup some of your lost profits and continuing expenses, such as payroll for key employees, if your policy includes Business Interruption coverage.
- If you have had a change of mortgage on a property; completed paying for a vehicle or piece of equipment; or had a change in the named insured (due to death or divorce, etc.), then make sure that you have notified us and an endorsement is made to correct your policy. Any related checks with an insured lienholder will be made payable to YOU AND THE LIENHOLDER, as shown on your policy.
- If you have not heard from an adjuster within 7 to 14 days, notify us immediately so that we can determine what the delay is. We can assist you with your claim.
- Depending on the severity of storm damage in your area, you may need to arrange to meet the adjuster somewhere else and then proceed to your property.
Know that our claims team is on call if you need help getting back on your feet. Please advise us if you are having difficulty with your claim so that we will be in a position to assist you. You can reach us at (239) 261-3646 or (800) 793-5238.
Please don’t hesitate to reach out if you need us – we’re here to help.
Warning! Don’t Become a Victim of Insurance Fraud! Do NOT Sign an AOB Contract!
An Assignment of Benefits is an agreement that transfers all insurance policy benefits and rights from you, the policyholder, to a third party such a contractor or repair vendor after damage has occurred to your property. An AOB is intended to help expedite the claims process and make things easier for the insured, but oftentimes, and AOB is fraudulently misused for repair vendors to seize control of the claims process with the intention of overcharging and inflating repair costs, often while keeping the insured in the dark. We recommend never signing an AOB and transferring your benefits to a vendor. If you have experienced damage from the Hurricane, please call your insurance company first or contact a member of our team. We are here to help!
Gulfshore Insurance is a Naples, Florida based insurance agency specializing in liability insurance, property insurance, workers compensation insurance, vehicle insurance, business income interruption insurance, cyber insurance, commercial umbrella insurance, home and homeowners insurance, car and auto insurance, boat and yacht insurance, property insurance, umbrella insurance, valuables insurance for fine art, jewelry, wine, and more. Navigating insurance requires an experienced and trusted insurance agent who understands your risks and exposures. Gulfshore Insurance services Naples, North Naples, Marco Island, Bonita Springs, Fort Myers, Sarasota, Lido Beach, Longboat Key, Bradenton Beach, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.
Due to Hurricane Ian and the concern for the safety of our associates, Gulfshore Insurance’s offices will close at 3PM on Tuesday, Sept. 27. We will reopen as soon as it is safe to do so. Please be sure to read all of the important information linked below and print out the necessary contact information so you are prepared in the event you suffer a loss from the storm.
Hurricane Resources & Claims Information
We are here to help. To leave a message for a member of our service team click here for an online directory or call our main line at (239) 261-3646 or (800) 793-5238 and select the directory option.
Dealing with the Aftermath of the Storm
In the event a loss occurs, you can report your claim directly to your insurance carrier. Visit the link below to obtain the necessary contact information. We recommend you print this list of claims phone numbers in advance of the storm to reference in the event you are unable to access this information electronically after the storm has passed.
Report a Claim – Homeowners
Report a Claim – Businesses
Damage Assessment & Claims Reporting Reminders
- Conduct an initial damage assessment
- Take photos of any damaged property
- Protect your property from further damage
- Report your claim via the links above or by contacting Gulfshore Insurance with any questions
- Maintain all receipts or bills
While forecasts may change, we want to assure you that our Claims Advocates, Client Advisors, and Service Teams will be standing by after the storm to assist you as needed. You can reach us at (800) 793-5238 or gsi@gulfshoreinsurance.com. Please stay safe if you are in the projected path.
Warning! Don’t Become a Victim of Insurance Fraud! Do NOT Sign an AOB Contract!
An Assignment of Benefits is an agreement that transfers all insurance policy benefits and rights from you, the policyholder, to a third party such a contractor or repair vendor after damage has occurred to your property. An AOB is intended to help expedite the claims process and make things easier for the insured, but oftentimes, and AOB is fraudulently misused for repair vendors to seize control of the claims process with the intention of overcharging and inflating repair costs, often while keeping the insured in the dark. We recommend never signing an AOB and transferring your benefits to a vendor. If you have experienced damage from the Hurricane, please call your insurance company first or contact a member of our team. We are here to help!
Gulfshore Insurance is a Naples, Florida based insurance agency specializing in liability insurance, property insurance, workers compensation insurance, vehicle insurance, business income interruption insurance, cyber insurance, commercial umbrella insurance, home and homeowners insurance, car and auto insurance, boat and yacht insurance, property insurance, umbrella insurance, valuables insurance for fine art, jewelry, wine, and more. Navigating insurance requires an experienced and trusted insurance agent who understands your risks and exposures. Gulfshore Insurance services Naples, North Naples, Marco Island, Bonita Springs, Fort Myers, Sarasota, Lido Beach, Longboat Key, Bradenton Beach, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.
After a hurricane hits, it’s important that you keep your safety in mind before you begin assessing the damage that was done to your property. Pay attention to local officials for information and special instructions. Once confirmed that it is safe to return to your home, keep the following in mind as you begin the recovery process.
Upon return, it is important to survey the property for damage. Do not turn on electrical power until you have inspected the property and evaluated all possible risks. Check for damage inside and outside the property, and document any property damage with photographs, inclusive of your contents. Keep a journal of these damages and report them to your insurance company as soon as you can. Provide a general description of the damage and have your policy number handy if possible.
If your home has sustained damage, it is never a good idea to repair it yourself. However, there are a few things you can do until a professional is able to fix the problem. Remember, do not proceed with permanent repairs or remove debris until the insurance adjuster has had the opportunity to inspect the resulting damages. Save all of your receipts as the insurance company will ask for them at a later date.
- Cover damaged roofs with tarps.
- Cover broken windows with plywood or plastic.
- Use lumber or 4-by-4s to brace sagging ceilings. Remove any wet insulation.
- If possible, restore your air conditioning systems or run fans to prevent mold.
- If mold has already started to grow, clean it up with a mixture of bleach and water.
For decades, Gulfshore Insurance has helped our clients manage the aftermath of devastating hurricanes. We have taken extra steps to ensure we will be there for you following a hurricane or other natural disaster.
Gulfshore Insurance is a Naples, Florida based insurance agency specializing in home and homeowners insurance, car and auto insurance, boat and yacht insurance, property insurance, umbrella insurance, valuables insurance for fine art, jewelry, wine, and more. Navigating insurance requires an experienced and trusted insurance agent who understands your high net worth risks and exposures. Gulfshore Insurance services Naples, North Naples, Port Royal, Park Shore, Pelican Bay, The Moorings, Naples Beach, Marco Island, Bonita Springs, Sanibel Island, Captiva, Fort Myers, Sarasota, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.
Hurricane Season can be a time of turmoil for property owners and real estate professionals alike. The short-term effects of a hurricane can occur both before and after a storm.
Before a Hurricane
Between June 1st and November 30th, Florida enters Hurricane Season, and real estate professionals should be aware of possible restrictions regarding securing insurance for a home purchase. If there is a named storm (typically a Tropical Storm, Hurricane Watch, or Warning) that develops and is threatening our area, most insurers will temporarily close for new policies until the threat passes. In other words, a buyer won’t be able to obtain insurance. This has the potential to impact a home’s closing. If the buyer is financing the home purchase, their lender typically won’t grant a loan commitment without homeowner’s insurance. To prevent this, it is critical to advise buyers to look into securing their insurance as soon as possible, and before the closing date. Buyers should contact their insurance agent and purchase a policy as early as possible during Hurricane Season.
In addition, standard homeowners’ policies typically exclude the peril of flood. All properties are located in a flood zone. Realtors should advise buyers to seek guidance from a local insurance advisor to perform a flood zone determination and confirm if the property is located within a Special Flood Hazard Area.
Recently, there have been numerous legislative and rate changes for flood policies by the National Flood Insurance Program (NFIP). Most recently, FEMA implemented Risk Rating 2.0 thereby transforming a pricing methodology that had not been updated in 50 years. As of April of this year, all policies are now subject to the new rating methodology. Current NFIP rates are not grandfathered in; however, if a buyer confirms the seller has an existing NFIP flood policy, a new policy can be written using the seller’s Glide Path. The seller will need to provide a copy of their current policy Declarations page; the minimum information needed includes the flood insurance carrier, policy number, expiration date, and original policy date. We recommend confirming the seller has a flood insurance policy in place through the NFIP and obtaining a copy of that policy which will enable the buyer to obtain preferred pricing for their new flood policy. If the seller does not have a flood policy in place, in addition to coverage through the NFIP, new home buyers can purchase their coverage through Private Flood markets which have been competitive for a good number of property owners in our area.
Even policy information from the seller for the property may not always be reliable due to flood zone changes and rating errors. It is best to consult an experienced Florida insurance professional at the very start of the due diligence process with any property, to get an accurate flood insurance quote and explanation of flood zones.
After a Hurricane
Insurance carriers carefully review properties for prior losses and open claims and will inspect homes after a new policy is placed, as well as spot-check the home over the life of the policy. In most cases, homes with existing damage are uninsurable if repairs are not made prior to the home closing or in a timely manner following the closing. All insurance carriers will require photos of the affected damaged areas, contractor receipts, and any applicable permits to show that the repairs have been completed. It is not uncommon for insurance carriers to cancel coverage if issues are discovered that were not disclosed on the application. It is important to understand that overall, it is very challenging to bind a new policy for a home that has an open hurricane claim.
Following a catastrophic hurricane or other natural disaster, insurance companies may struggle to keep up with higher-than-expected losses, and subsequently, homeowners may see increases in rates. Average home insurance rates have risen in every state in the last decade, mainly due to natural disasters, and Florida’s average rate is the highest in the nation. Florida tends to have most of its damage caused by hurricanes, such as Hurricane Irma, which hit the state in September 2017 and caused $11.1 billion worth of damage, with the vast majority of that to homes.
No area in the country, or arguably the world, has a stretch of coastline as expansive and hurricane-prone as Florida. This susceptibility to hurricanes puts homeowners and insurance companies in a risky situation. Real estate professionals should always advise homeowners to seek the advice of a local insurance agent on coverages needed. Just as insurance companies have different contracts by state, the contracts can also vary greatly within a state. A local agent will be able to help navigate through these differences and identify the bigger gaps in coverage/contracts.
Gulfshore Insurance is a Naples, Florida based insurance agency specializing in home and homeowners insurance, car and auto insurance, boat and yacht insurance, property insurance, umbrella insurance, valuables insurance for fine art, jewelry, wine, and more. Navigating insurance requires an experienced and trusted insurance agent who understands your high net worth risks and exposures. Gulfshore Insurance services Naples, North Naples, Port Royal, Park Shore, Pelican Bay, The Moorings, Naples Beach, Marco Island, Bonita Springs, Sanibel Island, Captiva, Fort Myers, Sarasota, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.
