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Personal Lines Uninsured Motorist Coverage Why You Should Have It Gulfshore Insurance Naples FloridaAccording to the Insurance Information Institute, Florida has the MOST DRIVERS in the country on the road without auto insurance, at a whopping 26%. That means that if you are injured in an auto accident in Florida, you have more than a 1 in 4 chance of being hit by a driver who has no insurance to cover your injuries. In addition, 51% of Florida auto insurance policies have limits of $25,000 per person or lower. If you are hurt or injured in a car accident by one of these uninsured (no insurance) or under-insured drivers (not enough insurance), you may have to pay for your own injuries out of pocket.

UM and UIM insurance is so important to have because it pays if you, your passengers, or family members are injured by another driver who is “at-fault” and does not have bodily liability insurance, has insufficient liability insurance to cover the total damages sustained by you, or no insurance at all. This applies whether you are riding in your car, someone else’s car or are struck by a car while a pedestrian. UM/UIM pays for medical expenses, lost wages and for bodily injury, sickness, disease or death resulting from a car accident, beyond your PIP auto coverage. In Florida, “UM” (uninsured motorist) or “UIM” (underinsured motorist) coverage is limited to what you have set as your BI (bodily injury liability) coverage. In other words, you can purchase UM/UIM only at the same limit that you also carry BI.

Why should I buy uninsured motorist coverage if I have medical insurance?

Medical bills are only a portion of what you can claim on uninsured motorist coverage. UM also pays for things that may not be covered or limited by medical insurance, such as:

  • loss of the future enjoyment of life
  • lost wages and disability
  • long term nursing care
  • wheelchairs and medical devices
  • pain and suffering
  • death
  • replacement services for things you are no longer able to do

 

At Gulfshore Insurance we pride ourselves on serving as your trusted advisor. Please contact us with any questions.

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.

Personal Lines Top 6 ArticlesWe’ve had over 50 new blog posts this year, and in those, we covered a lot. To make sure you don’t miss out, we’ve put together a curated list featuring some of our most read and most shared articles from the past year.

  1. Understanding what an elevation certificate is and how to read one will help you better navigate the issues a home may have in regards to flood insurance, a critical component of the home buying process.
  2. When asked if their Florida home is their “Primary Residence,” the majority of our clients will typically respond “yes” if they are domiciled or homesteaded here. This tells us that they have met the requirements of the City or County in order to receive certain tax discounts. However, for insurance carriers, this is oftentimes irrelevant.
  3. Insurance for construction projects is usually dictated by the terms of the unique contract between the residence owner and the contractor. Whether it’s a renovation project or a new structure, it is increasingly common for these contracts to assign the responsibility of carrying property insurance to the owner.
  4. Many buyers in Florida deed their homes to Trusts or LLC’s for tax and/or probate purposes. What these buyers may not know is that they may face higher premiums by going this route rather than personally deeding the property.
  5. When your buyers are considering the purchase of coastal property in Southwest Florida, there are several insurance factors they need to understand.
  6. These two words are sometimes used synonymously; however, in the insurance industry, they are a world apart.

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.

Personal Lines Renting Your Seasonal HomeOngoing COVID-19 travel restrictions and, in some cases, travel bans, may have made it difficult or impossible for homeowners to return to their seasonal homes. With this inability to travel, the temptation to list your seasonal home as a vacation rental on websites such as Airbnb, VRBO, or other vacation rental websites seem like an appealing option; however, please be aware that a homeowners’ insurance policy contract is based on owner-occupancy and includes specific clauses that reduce or exclude coverage if the occupancy changes.

In one widely reported case, for example, an Airbnb renter was killed when a tree holding up a backyard hammock he was laying on collapsed onto his head. This case makes clear that, before you become a short-term rental host, you should carefully consider your liability for any injuries someone incurs while staying at your home, and whether you have adequate insurance coverage for property damage or loss.

What to do if you are considering renting out your home?  

Contact your agent to discuss your plans BEFORE renting your home so the proper coverages can be initiated. Filing a claim after injury or damage occurs will likely result in denial by your insurance company if you did not previously report the change of occupancy.

In addition to confirming proper insurance coverage, you should also check with your local City or County to make sure they have not imposed any ordinances prohibiting short term rental due to COVID.

At Gulfshore Insurance we pride ourselves on serving as your trusted advisor. Please contact us with any questions.

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.

Gulfshore Insurance Flood Insurance Webinar for Realtors on Sept 23 2020

Join us for an informative Flood Insurance webinar where we will discuss the most up-to-date information real estate professionals should know when advising clients on their properties.

In this webinar, we will cover:
• Flood Program Updates
• Insurance Markets & Rate Changes
• FEMA’s 50% Rule
• Map Revisions
• Compliance Considerations

Guest Speakers:
• Andrea Pelletier, CPRIA, CPIA – Client Advisor, Gulfshore Insurance
• Christa Carrera, CFM – Floodplain Coordinator, City of Naples
• Ashley Tharp, AIS, AINS, ANFI – Corporate Training Manager, Wright Flood

Gulfshore Insurance Naples Florida Homeowners Flood Insurance Realtorsregister button copy new

Private Risk Services Home Replacement Cost ExplainedThe replacement cost of a home on a homeowner’s insurance policy has always been a large part of the discussion among homeowners, insurance advisors, and insurance companies. This is due to the significant role a home’s replacement cost plays in insurance pricing as well as its lack of correlation to other home valuation methods.

Let’s say you purchased your dream home for $2.5 million. The replacement cost is estimated at $2 million. Six months later, your home is destroyed by a hurricane. Whole neighborhoods are destroyed. Demand, price for labor, and construction material costs soar, driving up the cost to rebuild. The actual cost to rebuild your home is now $4 million, leaving you in a $2 million deficit. Studies show that nearly two out of every three homes in the U.S. are underinsured by at least 18%. This means that if there is a total loss, such as a hurricane, fire, or otherwise, the homeowner may find themselves responsible for a significant portion of the rebuilding cost.

On the flip side, homeowners are sometimes frustrated in understanding why their replacement cost is higher than the purchase price of their home.  For example, when a property they purchased for $500,000 is required to be insured for $600,000 or more. Insurance agents routinely find themselves answering the question, “why is my home’s replacement cost so high?” And for good reason. Let’s take a closer look at how this is possible.

Every home has three different values at any given time. It is necessary to recognize all three to understand the insurance company’s calculations, particularly the difference between actual cash value and replacement cost.

  1. Market Value – This is the value any one individual or entity would pay you at any given time for your home, with fluctuations based on the economy. The insurance company isn’t the slightest bit interested in the market value of your home. They stick with measurable constants, such as current cost for labor and materials and depreciation based on the functional life of any piece of property.
  2. Actual Cash Value – This is literally the current value of the wood, nails, drywall, roof, brick, etc. The actual cash value of your home, known as ACV, decreases by the minute. Each day that passes, the physical materials which make up the construction of your home depreciate; do not confuse this with the value of a home depreciating.
  3. Replacement Cost Value – This is the estimated cost to rebuild your home from scratch as it is now; including today’s material and labor costs, removal of debris from the initial loss, cost of permits and architectural drafting, among other things. However, if you don’t insure to the full value of your home, you may find yourself responsible for a significant portion of the rebuilding costs in the event of a loss.

Insurance companies have the most accurate data regarding what a home costs to rebuild. How? Well, they are the ones who pay to rebuild every home that has ever been destroyed (assuming it was properly insured). Your insurer compares your home to the thousands of similar homes they have rebuilt and estimates the cost to rebuild yours accordingly.

What factors help determine the replacement cost of your home:

  • Local construction costs
  • Square footage
  • Year built
  • Exterior walls/roof/trim
  • Style of home
  • Number of bedrooms/bathrooms
  • Garage
  • Unique finishes
  • Customizations
  • Improvements/renovations
  • Upgrades
  • Ultra-high-end items

 

One of the major challenges with estimating replacement cost of a home is that there are many factors that could cause the replacement cost to increase after a loss that are unknown when the replacement cost estimate is being developed.

Some of these factors include:

  • Demand surge after a catastrophe
  • New technologies being used in home construction
  • Changing construction code requirements
  • Limited availability of skilled labor after a catastrophe
  • Government restrictions on site access enforced after a catastrophe
  • Trends in materials costs
  • Fluctuating fuel costs

 

In addition to the current upward trend in basic building costs, rebuilding a home is almost always more expensive than constructing a comparable new one. Local ordinances often place regulations on demolition that increase expenses sharply. In general, rebuilding sites are much less accessible than a vacant lot when it comes to moving and storing materials and equipment.

A major loss to your home is traumatic enough, but to not be able to recoup rebuilding costs could be devastating. It is critical to make sure you have necessary coverage. For over 50 years, Gulfshore Insurance has weathered the storms and we know how to protect homeowners against the perils of living in paradise. If you have any questions or concerns, please do not hesitate to reach out to me.

 

Ron Lazarto, CPRIA is a Client Advisor and Partner at Gulfshore Insurance specializing in Private Risk Services. Ron specializes in offering customized property and casualty insurance solutions for successful individuals and their families. Comments and questions are welcome at rlazarto@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.