post

Prepare Now for the 2022 Hurricane Season

by Posted in Flood Insurance, Homeowners Insurance Tagged , , ,

It’s that time again. Just like death and taxes, preparing for the Atlantic hurricane season every year is inevitable for Tampa Bay residents. However, just because it happens every year, doesn’t mean you should become complacent or neglect your preparations. You and your loved ones have a much better chance of riding out the season safely if you take a few minutes to review your hurricane season plans. (And if this is your first Florida hurricane season, be sure to check out the links at the bottom of this post for more detailed information!)

Before the storms

One of the first steps you should take is to review your homeowners insurance policy limits and coverage. See the declarations page of your policy for this information. Are the policy limits adequate to repair or rebuild your home? What about coverage for your personal property? An up-to-date home inventory will help to make the process smoother if you need to make a claim. Take photos or video of your belongings, and keep receipts for big ticket items.

Remember, homeowners policies have a special deductible which applies only to hurricanes. It’s usually a percentage of your home’s insured value rather than a flat dollar amount, as with a fire or theft claim. While raising your deductible may save you a little money on your premiums, you’ll need to be sure you’re able to pay that deductible should you need to make a claim.

Please call your agent at L & M Insurance Group (813-672-4100) if you need help understanding your policy, if you need to adjust your policy limits, or you need a homeowners insurance quote.

Consider buying flood insurance, even if you’re not in a flood zone. Ninety percent of all natural disasters involve flooding, and flood damage is NOT covered under homeowners insurance. (Click here for a flood insurance quote.)

You might also consider sewer backup coverage, which is also not covered by standard homeowners insurance. It can usually be added to a policy for a nominal fee.

Important: If you decide to buy flood insurance, or make changes to your homeowners insurance policy, don’t wait until a storm is brewing. Coverage cannot be bound when a storm is approaching.

Store your insurance agent’s number and the claims number for your homeowners insurance company in your phone, and make a note of your homeowners insurance policy number.

Collect emergency supplies, especially water (one gallon per person/per day for at least seven days). You’ll also want to stash non-perishable food, extra batteries, first aid supplies, prescription medications, diapers and formula, and pet supplies.

Make plans for evacuation if you’re in an evacuation zone. Know where to go and what to take with you.

Make other basic preparations, including gassing up your car and checking air in tires, as well as oil and water levels. Have some cash on hand, charge your cell phone, tablet, and laptop, and refill prescriptions if possible. Have a portable, battery-operated or NOAA weather radio available for storm updates and instructions if the power is out.

Enable wireless emergency alerts on your cell phone.

Prepare your home and landscaping against a hurricane’s effects. Have trees and branches trimmed, especially those hanging over a structure. Consider installing storm shutters and a wind-rated garage door. Plan what to do with smaller items like potted plants, children’s toys, pool and patio furniture.

If a storm is imminent, turn the refrigerator and freezer to their coldest settings to keep food cooler longer. You may also want to store some perishable items you’ll want access to in a cooler with ice if the power goes out. If you don’t open the door to the refrigerator or freezer, the food will also stay cooler longer. Please be mindful of food safety—click here for more information.

Clean and fill tubs and sinks with water to use for flushing toilets and washing.

During the storm

Stay inside and away from windows, glass doors, or skylights. The safest spot is an interior room with no windows. Close the garage door, exterior doors and windows, as well as all interior doors. Research found that closing interior doors helped to compartmentalize pressure inside a home, reducing pressure on the roof by as much as 30 percent.

Preparing for a hurricane ahead of time can help you minimize its impact. Spend a few minutes now reviewing what you plan to do, what supplies you have on hand, and which ones you need to replenish. Check out the links below for more detailed information. And remember, L & M Insurance Group is here to serve all your insurance needs. Please let one of our agents help you make sure you’ve got the homeowners insurance coverage that best fits your needs this hurricane season, and beyond. Call us at 813-672-4100, or click here to contact us online.

For more information:

Hillsborough County Disaster Planning Guide

Floridadisaster.org

Ready.gov

NOAA.gov

Weather.gov

post

AOB Abuse and Fraud Help to Drive the High Cost of Insurance

by Posted in Auto Insurance, Homeowners Insurance, News Tagged , , ,

If you’ve purchased or renewed homeowners insurance lately, you know that premiums are skyrocketing. While there are several factors driving Florida’s insurance crisis, our high insurance prices are, in part, due to fraud and assignment of benefits abuse.

Let’s take a closer look at what’s happening.

What is Assignment of Benefits (AOB)?

Assignment of benefits (AOB) is a legal agreement between a policyholder and a third party in which the policyholder gives (“assigns”) some of his or her rights and benefits under the policy to that third party. Under certain circumstances, this works well, such as when preapproved health care service providers bill your health insurance company directly for covered benefits. However, in the world of homeowners (and auto insurance), AOB abuse has become rampant, adding more strain to an already stressed insurance market. Most AOB abuse claims stem from homeowners insurance (primarily related to roofing scams or water losses), PIP claims, and damaged windshields. This article will address AOB abuse related to homeowners insurance claims.

What does AOB abuse entail?

In Florida, two things are at play. First, unscrupulous companies are submitting inflated or fraudulent homeowners insurance claims. One common scenario involves roofing companies canvassing a neighborhood after a storm, offering “free roof replacement” after they look for damage that may or may not exist or be caused by that storm. In this and other situations, fraudulent contractors also may do unnecessary repairs, overcharge for repairs, or in some cases, charge for repairs they don’t make.

Second, when an insurance company balks at paying an inflated claim, the fraudulent contractors are hiring attorneys to file excessive lawsuits alleging breach of contract or bad faith. In some cases, lawsuits have been filed even before the insurance company has been notified of the claim!

As we noted in a previous article, “Florida has, by far, the largest number of lawsuits related to homeowners insurance claims. For instance, in 2019, only 8.15 percent of all homeowners claims in the U.S. were filed in Florida, but more than 76 percent of property claim lawsuits were filed here. And what’s worse: only eight percent of the fifteen billion dollars that property insurance companies paid out in claims costs between 2013 and 2020 went to consumers. Seventy-one percent went to attorneys!”

Of course, not every claim is inflated, nor is every lawsuit unwarranted. But Florida currently has an environment of abuse.

AOB abuse “acts like a tax”

Put plainly, even if you’ve never had an insurance claim, AOB abuse and fraud are costing you money. Insurance companies have no choice but to pass legal costs to defend AOB lawsuits as well as the costs of inflated claims to all insurance consumers. According to the Insurance Information Institute (iii.org), “…had legal costs tracked nationwide averages, the cumulative total savings for Florida homeowners insurers (and their policyholders) would have been nearly $1.6 billion.” This statistic only refers to legal costs themselves, not the amount of money paid out in inflated claims settlements. “AOB abuse acts like a tax on Florida consumers,” according to iii.org.

If you have a claim

If you have a homeowners insurance claim, contact your insurance company as soon as you can. Most have 24/7 claims service, either by phone or online. Insurance company representatives will be happy to walk you through the claims process. Don’t allow a contractor or water remediation company to contact your insurance company for you. You don’t need to sign an AOB to have your claim paid.

(For more information, see “Demolish Contractor Fraud.”)

L & M Insurance Group—your source for insurance

We hope this has helped you understand one of the major factors driving the skyrocketing costs of insurance in Florida. Please remember that reputable insurance companies, like the ones L & M Insurance Group represents, will be there for you if you have a claim. If you need a quote for personal auto, homeowners, renters, or business insurance, we partner with multiple insurance companies, and our agents are experts at finding the right match for your individual situation. Please call 813-672-4100 or click here to contact us online.

post

3 Factors Raising Your Commercial Property Insurance Rates

by Posted in Commercial Insurance, Investor Insuance Tagged ,

There have been plenty of headlines lately about Florida’s skyrocketing homeowners insurance prices. Unfortunately, we’re also beginning to see rising commercial property insurance premiums as well. Some of the same troubling trends plaguing homeowners insurance are also driving up the cost of commercial property insurance. If you are wondering why commercial property insurance rates are increasing here are some of the major factors.

Troubling trends in commercial property insurance

As a business owner, you carry commercial property insurance to protect your company’s physical assets—such as office equipment, inventory, and the physical property you own or rent. You can buy commercial property insurance by itself, or as part of a Business Owner’s Policy (BOP). Covered perils generally include fire, explosion, storms, theft, and vandalism. Since the coverage protects your financial investment in physical property, the premium increases are being driven by factors which include:

Catastrophic losses—In the U.S., we’ve endured more frequent and catastrophic storms, floods, tornadoes and fires than usual. There have been 89 weather/climate/disaster events over the past five years with losses totaling more than 764 billion dollars, according to NOAA National Centers for Environmental Information (NCEI).

Rising construction and replacement costs—Replacement cost is the amount needed to replace damaged or destroyed property without deducting for depreciation, up to the policy limit. Rising retail prices mean property items are more expensive to replace. In addition, construction costs have risen, largely driven by the cost of lumber and steel. Shortages in materials, project delays, and a shortage of skilled labor are also increasing the amount of time and money it takes to rebuild after a loss.

Cost of reinsurance—Reinsurance is “insurance for insurance companies.” It’s a way for insurance companies to limit the extent of their own losses in case of disaster. Global reinsurance rates have been rising for several years.

The danger of being underinsured

Even though the cost of business insurance is rising, it’s still an essential part of your business plan. As the U.S. Small Business Administration notes, statistics show 1 in 4 small businesses will have to close if hit by any type of catastrophe. Carrying the proper business insurance can help you avoid that fate. Even if you carry commercial property insurance, you should remain vigilant that you’re not underinsured, meaning you don’t have the right coverage or enough coverage for the risks your business faces. That’s where an expert in insurance can help!

L & M Insurance Group—your partner in commercial insurance

Is it time to review your commercial property insurance? Let L & M Insurance Group help you protect your business. We are an independent insurance agency, with the expertise to find the best coverage for your unique situation. Please call us at 813-672-4100 to discuss your commercial property insurance needs, or request a quote online.

post

Fatal Roads: Working Together to Reduce Traffic Deaths

by Posted in Auto Insurance Tagged , , ,

After years of declines, traffic fatalities* are rising again. For decades, seat belt laws and improved vehicle safety features helped to contribute to roadway safety. In 2020, for the first time in years, roadway deaths increased, despite there being fewer cars on the roads due to pandemic lockdowns. Some experts believe with fewer cars on the roads, drivers began driving more recklessly and aggressively. In 2020, nearly 38,700 people died in crashes, an increase of seven percent over the year before. In 2021, roadway deaths continued to increase.

Community planners and governments have been taking a closer look at traffic deaths and creating plans to reduce them. 

Reducing traffic deaths with “Vision Zero” and the Safe System approach

More than 40 U.S. communities have adopted policies based on the Safe System approach, and in January the U.S. Department of Transportation released a new policy known as the National Roadway Safety Strategy. Here in the Tampa Bay area, the city of Tampa is committed to the Vision Zero Action Plan:

“Vision Zero represents a shift in how we think about and address roadway safety problems. It requires shifting our thinking upstream in order to prevent problems before they happen. This entails moving beyond focusing on changing individual behavior and instead accepting shared responsibility for putting a safe system in place for all road users.”

Principles of the Safe System approach

  • Safe road users—encourage those who use our roads to act safely and responsibly, and create conditions that help them reach their destination unharmed.
  • Safe vehicles—design and regulate vehicles to expand vehicle features and systems which help prevent crashes and minimize their impact.
  • Safe speeds—promote safer speeds on all roads, allowing for additional time to avoid crashes and reducing the force of impact if a crash occurs.
  • Safe roads—design roadway systems to mitigate human error as well as encourage safer behaviors.
  • Post-crash care—improve the availability and speed of emergency care if a crash occurs, as well as manage the crash site to prevent additional crashes.

What you can do to prevent traffic deaths

While some of these actions must take place on the community level, there are a few things you as an individual can do to help prevent traffic accidents and fatalities. Proponents of the Safe System approach note that this will require a shift to a more safety-minded culture for everyone.

  • Slow down. According to the World Health Organization (WHO), “An increase in speed is directly related both to the likelihood of a crash occurring and to the severity of the consequences of the crash.” Just a one-percent increase in speed results in a four-percent increase in fatal crash risk.
  • Do not drive while under the influence of drugs or alcohol.
  • Wear your seat belt and insist your passengers do the same.
  • Secure children in proper child restraints (car seats or booster seats). Doing so “can lead to a 60 percent reduction in deaths.” (WHO)
  • Wear a helmet when riding a motorcycle.
  • Put your phone away. Using a mobile phone slows reaction times, and being distracted makes it harder to stay in your own lane as well as maintain correct following distances.

If we all work together, we can reduce the number of traffic deaths in our community. (As a bonus, these safe driving tips will also help you avoid tickets and non-fatal crashes, too, which can help you keep your car insurance rates down.)

If you need car insurance

As an independent insurance agency, L & M Insurance Group specializes in helping you find the best coverage for the best possible rate. We’ve been helping our neighbors in Tampa, Riverview, Brandon, Valrico and surrounding areas for more than 30 years and we’d love to help you. Please give L & M Insurance Group a call at  (813) 672-4100, or if you prefer to contact us online, please click here.

*Traffic fatalities include those from vehicle-on-vehicle crashes, as well as collisions with pedestrians, cyclists and motorcyclists.

post

Help Prevent Homeowners Disasters With This Spring Maintenance Checklist

by Posted in Homeowners Insurance Tagged , , ,

There are always plenty of things to do to maintain your Florida home—and spring is the perfect time to cross a few items off that home maintenance list. While there are many more than we’ve listed here, these spring home maintenance tasks will help you protect your home and family from two of the worst perils a homeowner can face: home fires and water damage.

Fire protection

Home fires are every homeowner’s nightmare. Once a fire starts, you may have as little as two minutes to escape. That’s why it’s so important to do everything you can to prevent fires and make sure you’ll be alerted immediately if a fire starts. (Click here for more information on what to do before, during, and after a fire.)

  • Test smoke alarms and replace batteries. According to the National Fire Protection Association, approximately three out of five fire deaths occur in homes with no smoke alarms or no working smoke alarms. Test smoke alarms monthly, and replace batteries at least once a year. Replace smoke alarms when they reach 10 years old.
  • Check fire extinguishers and replace if out of date. And make sure you know how to use them!
  • Clean dryer vent ductwork. You should clean your lint filter after every load, but it’s also important to have dryer hoses and vents cleaned on a regular basis to prevent lint fires.
  • Test GFCI outlets. These outlets prevent electrical shock, and can also help to prevent electrical fires.
  • Inspect and clean refrigerator coils. In addition to helping to prevent fire, cleaning coils can help your refrigerator run more efficiently.

Prevent water damage

Water damage is extremely expensive to repair, and depending on the cause, may not be covered by homeowners insurance. Proper home maintenance is the best way to avoid water damage. Take these precautions to help prevent water intrusion or damage to your home.

  • Clean gutters and downspouts. Leaves and other debris can clog them and allow water to run down your home’s exterior and pool at its foundation where it can seep in through any existing cracks. Make sure downspouts direct water away from your home.
  • Check your foundation for drainage problems or water damage and make necessary repairs.
  • Repair any leaks or other damage to your roof.
  • Check plumbing for leaks, especially around toilet bases and under sinks. Consider installing a leak detector device.
  • Inspect exterior doors and windows for leaks. Caulk or apply weatherstripping to make a tight seal to reduce water intrusion.
  • Check appliance hoses (washing machine, dishwasher, icemaker) for damage or leaks.

And while this isn’t a maintenance issue, make sure you know where the main water shutoff is to your home so you can quickly turn off the water in case of a leak or burst pipe.

Is it time for a homeowners insurance review?

Once you’ve completed your spring home maintenance, you may want to review your homeowners insurance. The Florida homeowners insurance market remains in turmoil, but L & M Insurance Group is here to help. We write with multiple insurance companies, and will be happy to review your homeowners policy with you, or to give you a homeowners insurance quote. Please call us at 813-672-4100, or click here to contact us online.

post

Builder’s Risk—Insurance for New Builds and Renovations

by Posted in Homeowners Insurance, Investor Insuance Tagged , ,

In this tough real estate market, you’re excited that you found an older home to completely renovate before moving in. It’s going well—then you get the phone call. A fire burned the structure to the ground. Now what? Did you have the right insurance policy to cover your losses?

When you’re building a new home, or renovating an existing one, you need a specialized kind of insurance coverage. A standard homeowners policy (HO-3) will not cover homes while they’re being built, or in the case above, while they’re being renovated. You need a builder’s risk policy to protect your financial investment during the construction process.

What is builder’s risk insurance?

Builder’s risk insurance protects a home from property damage and loss while it’s being built. This can be new construction from the ground up, or coverage for a major renovation project. Builder’s risk is a valuable coverage for both property investors and private homeowners, and it can cover either residential or commercial properties.

Most builder’s risk policies cover damage to the building itself and/or the construction materials on site from perils such as:

  • Theft
  • Vandalism
  • Fire
  • Explosion
  • Lightning
  • Wind and hail

Builder’s risk policy premiums are calculated using several factors, including location of property, type of project, type of construction, and the estimated date of completion. The property will typically be insured based on the estimated cost to rebuild the completed home. An experienced insurance agent, like those at L & M Insurance Group, can help you figure out the coverage limits and deductibles best for you.

Since there is always some uncertainty surrounding construction timelines, especially now with supply chain and labor shortages, builder’s risk policies offer flexible policy term lengths. Many builder’s risk policies are written for nine months to a year, and can be rewritten if construction is delayed. We also can write policies for as short a time as one month if the project is a short-term one.

Don’t forget liability coverage

A construction site can be a dangerous place. What about liability coverage? Builder’s risk policies do not provide liability coverage for claims that happen during the construction period—for example, if someone is injured while on the property. Be sure to ask your L & M Insurance Group agent to explain your options for protecting your liability in this situation.

Choose L & M Insurance Group for your builder’s risk needs

L & M Insurance Group has years of experience working with individual homeowners as well as property investors in organizations like SREIA (Suncoast Real Estate Investors Association), TBREIA (Tampa Bay Real Estate Investors Association), Sarasota REIA, and GOREIA (Greater Orlando Real Estate Investors Association). If you would like more information about builder’s risk policies, or if you’d like a quote, please call us at 813-672-4100, or click here to contact us online. We understand the insurance needs of property investors as well as private individuals, and would love to help you with all your insurance needs.

post

Three Things You Should Know About Water Damage

by Posted in Flood Insurance, Homeowners Insurance, News Tagged , ,

When you think of Florida, you probably also think of water. We’re lucky to have gorgeous rivers, lakes, and the ocean practically right on our doorstep. Unfortunately, we also have the ever-present threat of water damage—whether from leaks, flooding, or sewer backup.

Florida residents file thousands of water damage claims every year. Water damage claims are second only to wind and hail claims in frequency. The high cost of water damage claims is one of the factors contributing to higher insurance premiums for everyone, and because of this, most homeowners insurance companies now put restrictions and limits on water damage coverage.

Here are three things you should know about water damage.

Water damage is expensive

The average home insurance claim for water damage is $11,098, and nationwide household water damage claims cost up to $20 billion each year. One inch of water can cause more than $25,000 worth of damage.

Water damage isn’t always covered by homeowners insurance

Water damage causes include burst pipes, leaks (either plumbing or roof), appliance failures, sewer backup, and flooding. Homeowners policies generally cover the “sudden and accidental discharge of water,” such as from a burst pipe, accidental overflow of an appliance or fixture, or water damage done in the course of putting out a fire. They won’t cover water damage caused by maintenance issues or failure to make repairs. Frequently, there is no coverage for water damage if mold is present or it is clear that the damage has been in existence for 14 days or more without being fixed. The key is that the problem must be sudden and accidental, not an ongoing maintenance/repair issue.

Sewer backup isn’t covered by most Florida homeowners policies, but you can add coverage via endorsement for a nominal amount of money.

What about water damage from flooding? Flood damage is not covered under a Florida homeowners insurance policy, regardless of the cause of the flooding. If you need flood coverage, you can buy a separate flood insurance policy.

When shopping for homeowners insurance, be sure to read your potential policy carefully, and ask your agent to explain any water damage exclusions or restrictions if you have questions.

You can help prevent water damage

There are some home maintenance tasks you should do to minimize significant water damage to your home, including:

  • Inspect your roof for missing or damaged shingles and make repairs if necessary.
  • Caulk and seal windows.
  • Inspect and maintain your plumbing system.
  • Know the location of the main water shut-off valve to your home. Being able to shut off the water quickly can minimize damage if a pipe or hose bursts.
  • Replace your traditional water heater every 10 years.
  • Shut off the water supply to your washing machine when you go out of town.
  • Don’t leave the house when the dishwasher or washing machine are running.
  • Check that gutters and downspouts are clear, and that water drains away from your foundation.
  • Install a humidity sensor in areas where a leak might occur, such as near a washing machine or dishwasher.
  • Install a wireless water valve—these monitor water flow and usage and can potentially alert you to a leak.

Let L & M Insurance Group help

If you’re in the market for a new homeowners insurance policy, you want to know that you have the appropriate coverage for your needs, including water damage coverage. We know sorting through insurance information can be confusing. That’s where we can help. Please consider independent insurance agency L & M Insurance Group for all your insurance needs, including homeowners insurance. We have many years of experience serving the communities of Tampa Bay, Riverview, Brandon, Valrico, and surrounding areas. Give us a call at 813-672-4100, or click here to contact us online.

post

L & M Insurance Group Is Your Source for Affordable Commercial Auto Insurance in Florida

by Posted in Auto Insurance, Commercial Insurance Tagged , ,

Of all the many decisions Florida business owners have, choosing the right commercial insurance coverage is one of the most important. Without proper insurance protection, you could easily find yourself in serious financial trouble—you might even lose your business. L & M Insurance Group can help you with all your commercial insurance needs, but today we’re going to highlight commercial auto insurance.

Who needs commercial auto insurance?

Anyone who operates one or more vehicles in the course of doing business, or who owns or leases a vehicle for business use needs commercial auto insurance (also known as business auto insurance). All kinds of businesses need commercial auto insurance, including trucking and hauling services, taxi or limo services, moving companies, delivery services, repair services, locksmiths, landscaping companies, and day care or van services. You need a commercial auto policy if:

  • The vehicle is registered in the name of the business
  • You have permanently attached equipment or pull a trailer in relation to your work
  • You have a commercial license plate
  • You have a sign or advertising for the business on your vehicle
  • Employees drive the vehicle, or drive their own vehicles while working for your business
  • The vehicle is used to deliver packages or food
  • The vehicle is used to transport clients or other employees
  • You transport people for a fee, such as driving for Uber or Lyft

Don’t expect your personal auto policy to cover business use. Business use is almost always excluded under personal auto policies, and your insurance company could deny claims if they find you’re using your vehicle in your business. (If you still have questions about whether your usage qualifies as business use, please consult a commercial auto agent.)

A commercial auto insurance policy offers the same types of coverages as a personal auto policy, including liability (property damage, bodily injury, uninsured motorist) and comprehensive and collision. Commercial auto policies are designed to address the needs of the business owner, and whatever situations might arise from business use of a vehicle. The good news is that the cost of commercial insurance is often quite reasonable—and not always more expensive than a personal auto policy. The best thing to do is to discuss the types of coverage and limits you need with a commercial auto insurance agent, like one of the professionals at L & M Insurance Group.

How to get a commercial auto insurance quote

It’s simple! Just give L & M Insurance Group a call at 813-672-4100, or click here to contact us online. Our experienced agents will help you choose a commercial auto policy that suits your needs. Some info that will help us give you the most accurate quote includes:

  • How many vehicles you need to have insured
  • Who the drivers will be, and as much of their driving history as you know
  • How the vehicles are used
  • Whether or not you transport cargo or people
  • How many miles will be driven each year

Protect your business with a commercial auto policy

A commercial auto policy will help to protect your business—and you, personally—from financial loss stemming from the cost of an accident if you or one of your employees is at fault. L & M Insurance Group writes commercial auto insurance for both large and small businesses. We have more than 30 years’ experience serving the insurance needs of Riverview, Brandon, Valrico, Tampa, and surrounding communities. Please give us the chance to help you protect your business!

post

Florida Home and Auto Premiums Are Skyrocketing—Is There Anything You Can Do?

by Posted in Auto Insurance, Homeowners Insurance, News Tagged , , , ,

Almost every day we receive calls or emails from upset clients whose insurance premiums are going up, even when they’ve never made a claim. Some policies are going up by hundreds of dollars per year—what is happening?

The Florida insurance market is in crisis, particularly the homeowners and auto insurance sectors. A perfect storm of factors is contributing to today’s skyrocketing premiums and a market in which it’s getting harder to find insurance at all. In addition to rate increases, insurance companies are pulling out of Florida and tightening their underwriting guidelines. Florida consumers are facing insurance premium sticker shock and are finding it harder and harder to get the insurance coverage they need at a price they can afford.

Why insurance premiums are skyrocketing

As a locally-owned, independent insurance agency, L & M Insurance Group is committed to helping you find insurance that fits your needs and that you can afford. We also want to help you understand the factors contributing to this crisis. Here are the main reasons Florida insurance is seeing such steep increases:

Catastrophic losses. In 2020, Florida insurers lost nearly $1.6 billion dollars, and are reporting even greater losses in 2021. These losses mainly stem from litigation and reinsurance costs (see below), as well as continued payouts for hurricanes Irma and Michael.

Reinsurance costs. It might seem odd that wildfires in California or Australia would affect the price of insurance in Florida, but they can. That’s because disasters all over the world affect the cost of reinsurance for everyone. Reinsurance is “insurance for insurers”—a way for insurance companies to limit the extent of their own losses in case of disaster. The cost of reinsurance has been rising, and experts expect it to continue going up.

Skyrocketing construction and repair expenses. With the price of everything from car parts to lumber going up, it costs more than it did in past years to repair your vehicle or rebuild your house in case of a loss.

In addition, the value of vehicles and homes is also going up, which means in order for you to receive replacement cost in case of a loss, your insurance company will have to pay out more. It follows that if a covered item is worth more, then the cost of insuring it will be more.

Labor shortages are also affecting the price of construction, home, and auto repair. (Read more about how supply chain issues and labor shortages are affecting car insurance premiums.)

Lawsuits and fraud. For years, bad actors have exploited both policyholders and property insurers. Homeowners have been talked into filing claims and lawsuits by third parties like attorneys, contractors, or water remediation firms. Often times, homeowners don’t understand the claims process, or are relieved to have someone else take over. Unfortunately, every insurance consumer in Florida is paying the price for inflated or fraudulent claims and lawsuits.

Florida has, by far, the largest number of lawsuits related to homeowners insurance claims. For instance, in 2019, only 8.15 percent of all homeowners claims in the U.S. were filed in Florida, but more than 76 percent of property claim lawsuits were filed here. And what’s worse: only eight percent of the fifteen billion dollars that property insurance companies paid out in claims costs between 2013 and 2020 went to consumers. Seventy-one percent went to attorneys!

What can you do?

Much of what is happening in the insurance industry is out of individuals’ control, but here are three things you can do:

Review your insurance needs with an L & M Insurance Group agent. We can help you make sure you have the appropriate coverage for your situation, and that you’re taking advantage of all discounts available to you. We can also discuss whether or not an option such as switching to a higher deductible to lower your insurance premium is right for you.

If you have a claim, be sure to contact your insurance agent and/or your insurance company yourself. Do not sign anything without talking to your insurance agent or directly to your insurance company.

Contact your elected officials and tell them that continued insurance reform is still needed. Though recent legislation has helped to reduce assignment of benefits lawsuits, other types of lawsuits are still going up, at a cost to all of us.

We at L & M Insurance Group understand your worries and frustrations about the cost of home and auto insurance. We promise we will do the best we can under these difficult circumstances to provide you with the best coverage at the most cost-effective price. Please call us at 813-672-4100 if you need to discuss your insurance options. If you prefer, you may also contact us online.

post

Make These Insurance Resolutions for the New Year

by Posted in Auto Insurance, Commercial Insurance, Homeowners Insurance, Life Insurance, Uncategorized Tagged , , , , ,

At the start of a new year, many people resolve to get their finances in order. L & M Insurance Group would like to remind you that appropriate insurance coverage is one of the best ways you can protect yourself from financial disaster. Insurance can protect your most valuable assets, like your home and your vehicle, protect you from lawsuits, and even care for your family after you’re gone.

Here are a few things you can resolve to do now to make sure you have the financial protection you need—for the lowest possible insurance premiums.

Review your life changes. Was 2021 was an eventful year for you? Did you experience any major life changes, such as marriage, divorce, or the birth of a child? Did you renovate your house, buy a new vehicle, turn 55, or start a business? Become an empty nester? Even if you already notified your insurance agent about these changes, now is a good time to do a more thorough review of your insurance coverage to make sure you’re properly protected.

Review your coverage. Once you’ve reviewed your personal situation, you’ll want to see how it lines up with your insurance coverage. Insurance is meant to protect your financial assets in case of accident, crime, or disaster, including providing liability protection in case someone sues you. Some common areas of concern we see frequently include:

For auto insurance, do you carry bodily injury in high enough limits? (Insurance experts recommend 100,000/300,000 for most situations, even though Florida state requirements are much lower.) Do you carry uninsured motorist (UM) coverage? (In Florida, we have many un- or under-insured drivers on the roads, so we recommend carrying UM coverage.)

For home insurance, does your policy provide replacement cost coverage? Your home should be insured for enough to rebuild, repair, or replace it and your personal possessions with comparable quality—not just for how much you owe on your mortgage or the home’s market value.

And speaking of personal possessions, did you buy or receive any expensive items in 2021—such as jewelry, art, or home electronics? High value items may need special coverage, over and above what is covered under a standard homeowners insurance policy.

Consider your life insurance needs. Do you have life insurance? Do you need it? If you do have life insurance, be sure that your policy is up to date with the correct beneficiary, and any other details that may have changed. Life insurance is surprisingly affordable, especially for younger people who are most in need of it to help safeguard their families’ futures. If you don’t have life insurance but would like to explore your options, please call 813-672-4100, or click here for an online quote.

Keep your driving record clean. Still one of the most basic things you can do to keep your auto insurance rates down!

Maintain or improve your credit record. Many insurance companies look at your credit when calculating insurance premiums. Boosting your credit record can result in cheaper insurance rates and more policy options to choose from. (Even if your credit is not great, L & M Insurance Group can still help. Give us a call at 813-672-4100.)

Work with an independent agency. Independent agencies, like L & M Insurance Group, represent multiple insurance carriers instead of just one. This means we have more flexibility to shop for the best policy and insurance company for your individual situation. We can also write just about any type of insurance you need, including personal and commercial auto, home, life, renters, and business insurance. And OUR number one new year’s resolution is to help YOU find the best insurance deal! Give us a call at 813-672-4100, or contact us online for all your insurance needs.