Florida Again Acts to Stabilize Property Insurance Market

On Dec. 14, 2022 Governor Ron DeSantis signed property insurance reform bill SB 2-A into law. Widely touted by the legislature as both “groundbreaking” and “sweeping,” the law is designed to bring long-term stabilization to an increasingly chaotic Florida property insurance market.

This isn’t the first time we’ve reported on the tumultuous Florida property insurance market, nor is it the first time Florida has attempted legislation to bring order to the chaos. Just a scant seven months ago the signing of Senate bills 2D and 4D introduced property insurance reforms in the state to:

  • Clarify options for roof repair and replacement
  • Reduce frivolous litigation
  • Fund matching grants for home hardening
  • Enhance insurer access to the Florida Hurricane Catastrophe Fund (FHCF)

Bill SB 2-A supports those reforms and adds additional regulations that appear largely designed to incentivize insurance companies to continue doing business in Florida, (a long-term plan that legislators say will ultimately benefit Florida property owners).

To read the full article which outlines the market situation Florida property owners are in, and the pain points the laws are designed to fix, click on the document link below to read the full article provided to W3 by our partners at AMWINS:

Click here to read the full article

Inflation and Homeowners Insurance in 2022

Inflation, meet Florida homeowners insurance. Like the rest of America, the Sunshine State is experiencing the effects of inflation. Supply shortages, repair costs, limited inventory and a struggling economy are affecting the cost and availability of homeowners insurance in Florida.

Let’s talk about how increased repair costs and supply chain issues continue to have an impact on Florida home insurance costs and how you can be an informed purchaser of this pivotal coverage.

First, it’s important to actually answer the question: Do I need homeowners insurance in Florida? Legally: no. Practically: a resounding yes.

A home is a major investment that nearly every homeowner is going to want to protect. Therefore, it is imperative to purchase, at the very least, minimum home insurance. Thanks to inflation, even the bare-bones coverage for Florida homeowners is more expensive today than before the coronavirus pandemic.

Still, it is possible to insure your Florida home in a smart manner. Working with an insurance professional can help to give you peace of mind that you have not over or under-insured. Whether you have a beachfront residence with stunning views of the Gulf or an inland ranch abode out of the sight of water, proper coverage hinges on matching your exact needs to the coverage available in the marketplace.

Inflation and its impact on Florida home insurance costs

Why is this price increase happening?

It should come as no surprise that COVID-19 is one of the main reasons for the increase in homeowners insurance costs. Thanks to inflation sparked by the novel coronavirus, home costs continue to rise. One example of this is the roofing sector, which is not immune to these rising costs. Material and labor prices have both risen. Supplies like shingles are harder to find because of supply chain issues, and scarcity leads to higher prices passed on to consumers.

Additionally, with a rise in home purchasing cost comes premium rate increases. Premiums are not arbitrary rates that insurance companies guesstimate, after all; they take into account property location, loss history, type of property, and, of course, the type of coverage you wish to elect. Since home prices continue to spike, premiums stand to do so as well.

The change is all around us, and Florida homeowners insurance is not immune to the higher price phenomenon. There is the sticker shock we feel at the grocery store, where the bill keeps getting larger for the same food we have purchased for years. Home repair and construction projects are priced at a premium due to supply shortages and consumer demand in the housing sector. Globally, shortages continue to affect the world’s citizens on multiple levels.

Inflation can be traced to this overall increase in cost of goods. The roofing sector is a prime example. Today, when a Florida homeowner files a claim for repair, the insurance company is going to have to pay more to repair the home in accordance with the policy. That means rising Florida homeowners insurance costs for all as insurance companies raise their rates in an attempt to remain solvent. Unfortunately, several insurance companies have become insolvent this year; others went insolvent as far back as 2018.

Within this ‘doom and gloom’ outlook comes a bit of light: policies are usually issued annually. That means you may not see any rate difference until that expiration date looms and the renewal of your policy is imminent. Partnering with Florida home insurance advisors who understand both insurance trends and your unique coverage needs is pivotal.

Affordable home insurance options

The way to find the most affordable Florida homeowners insurance options is to truly know how much insurance you need. This is a tough forecast to make, and it is an individual one. Based on certain risk factors and your own comfort level with risk, a Florida homeowners insurance election should be a carefully curated, individualized policy. Here are some elements that can help.

  • Work with a Florida homeowners insurance advisor who truly understands our insurance marketplace. The ideal partner in this decision is an advisor who makes it their duty to understand risk and how to mitigate it in today’s purchasing climate.
  • Consider different options. Perhaps a certain level of coverage that stood you well in the past no longer seems practical. In this state of change, it is worth looking at that past policy and seeing if there are any gaps – or if you assume more risk. For new construction, the options will be different.
  • Is it time to raise your deductible? -Perhaps. Yes, if you need to file a claim, this strategy is going to hit you in the pocketbook. Consider the cost/benefit analysis of this choice before making it.
  • Remember that there is a difference between rebuilding costs and what you actually paid for new construction. This is an important element because rebuilding in the current market is more expensive than in years past.
  • Now may be the time for those impact-resistant windows and other safety upgrades. You may see a decrease in the Florida homeowners insurance rate because of it. Remember the old saying “That place is strong like Fort Knox?” Fortify your structure and make it impervious to the elements, and your rates may decrease. This brings to mind the insurance policy on Fort Knox…but that is for us to examine in another article. Perhaps.
  • Secure, secure, secure. Have you been considering home security measures? Alarms, sensors, and the like? You may see a policy decrease because of such upgrades.
  • Ask for more savings. Skyrocketing interest rates and rising insurance premiums have some consumers wondering if they can still afford home insurance in Florida in 2022. That leads surfers of the Internet to type in queries like Who offers the cheapest homeowners insurance? It can be tempting to just type that question into a URL search engine and select the first option that’s visible.

It bears saying again and again that working with a Florida homeowners insurance advisor is likely the easiest way to procure this knowledge. Instead of spending your time researching, let the homeowners insurance specialists do it for you.

Homeowner financing options to consider

After home improvements such as safety upgrades and fortifying measures come different homeowner financing relief programs. These programs that are designed to cushion the blow of COVID-19 on homeowners include Homeowner Stimulus and Homeowner Assistance Fund.

Homeowner stimulus – Congress has not levied a homeowner stimulus package. Still, homeowners may be able to find refinancing options, and lenders still offer forbearance (or the ability to pay at a lower rate).

Homeowner Assistance Fund – For those most affected by the onslaught of COVID-19, the Homeowner Assistance Fund can help keep them afloat financially. These monies can be used for homeowners insurance, mortgages and more. Additional information about the Homeowner Assistance Fund, which is a national program, is found here.

Many factors affect Florida homeowners insurance costs, and understanding how much it costs to insure a home in Florida and how to best do it is possible. Trust the advisors of W3 Insurance to provide up-to-date guidance regarding Florida home insurance for your unique abode. Your needs are different from anyone else’s, and it takes a personalized examination of those needs and the insurance products available today to make the most informed decision regarding coverage.

Coverage prices may fluctuate, but solid advice does not. Contact W3 Insurance today and have an experienced advisor at your side as you make an informed decision regarding Florida homeowners insurance for your residence.

Flood Insurance: What You Need to Know

Is your property more likely to flood or not to flood? That is the overriding question when it comes to flood coverage and FEMA is attempting to answer it as accurately as possible. Whether your property has been designated in the past as being within a high hazard flood zone or not, changes are underway that could affect the insurance requirements of your business or residence. Read below as we discuss why this is happening, what this means for you, and what your coverage options are.

RISK RATING 2.0

FEMA is using what they’ve deemed “Risk Rating 2.0” as a means to deduce fair and equitable rates across the board to property owners. Since 2021, this Risk Rating has combined such factors as data sets from the private sector, catastrophe models and actuarial science to determine rates.

Much thought has been given to this rating, with the intended results being rate increases and decreases are as transparent as possible. Elements that are considered within the data set include: frequency of flood, flood type and the common risk many property owners cite as an obvious reason for flood possibility – proximity to a body of water.

Why don’t you want a lapse in coverage?

A lapse will trigger additional consequences including a new application with a 30-day waiting period and the loss of glide path, which has a maximum year-over-year rate increase cap.

Glide path provides a discount from paying full risk rates.

  1. The benefit to glide path is that it provides the policyholder with a maximum year-over-year rate increase cap until the premium reaches full risk rates.
  2. This is significant, as the policyholder may experience a huge premium spike if they suffer a lapse in coverage.
  3. Example – The 2.0 renewal offer is $688. Payment is received by the insurance company after the grace period (29 days), or insufficient funds are received. The premium without glide path is now in excess of $4,000.

Helpful tips include:

  1. Consider using Certified Mail when sending premium payments. The certified mail date is used as the premium receipt date, which ensures the earliest receipt date possible. You can also track your payment from the post office to the remittance center at: www.usps.com/shipping/trackandconfirm.htm.
  2. Premium payment must be received by the insurance company, not the agent/insurance agency.
  3. If the premium payment is mortgage billed, be certain the lender remits payment on time. The grace period to avoid a lapse in coverage applies is regardless of being lender or insured paid. If the lender is late with an escrow payment, there is no recourse provided to the policyholder. Be certain the lender information shown on your policy is current.

More information regarding Risk Rating 2.0 can be found on the FEMA link: https://www.fema.gov/flood-insurance/risk-rating

REMAPPING

Changes in premium are also happening due to remapping. These map changes are not just topographical; they potentially shift flood zones. Florida is currently being reviewed and remapped by FEMA. That means possible changes to flood insurance requirements for many homeowners are on the horizon, if not already in effect. FEMA carefully considers the risk profile of different areas; therefore, your home may be designated at a lower or higher risk of flood than previously indicated. Read further about remapping.

PRIVATE MARKET FLOOD

Whether you select coverage through the National Flood Insurance Program (NFIP) or Private Market Flood coverage depends on your individual situation. Unlike the NFIP, Private Market Flood has no waiting period (the waiting period for NFIP is thirty days).

Look for additional important information from your flood insurance company, which accompanies your renewal offer, and call your W3 advisor with any further questions.

Florida Home Insurance Premium Hikes: TAKE ACTION

Rate increases are causing anxiety among Florida homeowners. Many can share tales of recent rate hikes that hint at a dim future:

If Florida home insurance costs continue to spike, who will be able to afford Sunshine State home ownership?

Understand why rate increases are occurring and take action to protect your Florida home insurance premium.

Here’s the down-low:

  • Within the state, losses have proved extensive and the effects of storms are ongoing. Thanks to hurricane losses from Wilma and Katrina, the total amount of insurers in the state underwriting property policies has dwindled. Many insurers who have remained find themselves still handling claims from Hurricane Irma.

While storm severity and frequency have caused insurance rate increases, so has insurance fraud. Fortunately, there are actions Floridians like you can take to curb this practice:

  • Educate yourself about insurance fraud.
  • Don’t become an Assignment of Benefits (AOB) victim.
  • Protect your pocketbook from shady contractors.
  • Suspect fraud? Notify your home insurance company immediately and report the concern to the Florida Division of Insurance Fraud online or by calling 1-800-378-0445.

Here’s what you can do to be part of the change:

The Florida legislature is considering proposals that address the abuses driving costs ever-upward. Contact Governor Ron DeSantis, House Speaker Chris Sprowls and Senate President Wilton Simpson and express support for property insurance litigation and fraud reforms. Make your voice heard and tell the Florida Legislature to bring insurance claim fraud and abuse under control.  Share your own story and how these rate increases impact your ability to maintain property insurance in the Sunshine State.

For more information regarding Florida property insurance rate hikes, why this is happening and what you can do, read this Reuters article. After you do, pick up the phone and call:

Governor Ron DeSantis at 850-717-9337
Speaker of the House Chris Sprowls at 850-717-5000
Senate President Wilton Simpson at 850-487-5229

Together, we can present a united front to fight against fraud and undue property rate increases.

Follow These Halloween Safety Tips for an Un-Scary Night

Halloween safety tip tales have long included horror stories of razor-filled caramels and egg-tossing teenagers. As your friendly insurance advisors, we’re sorry to report that the list of potential All Hallows Eve havoc does not end there. Things that go bump in the night can lead to scary claims – and, just to be clear, those ‘things’ are people. Read below as we share how to keep your Halloween as free from risk as possible. We’ll even throw in a few COVID-specific guidelines.

Remember: The scariest thing you can encounter going ‘bump in the night’ October 31 isn’t that horror flick marathon you insist on watching. It’s the ‘L’ word, also known as lawsuit. The travesty of Halloween night should be that your child doesn’t share enough of their chocolate stash, not that you’re calling your insurance advisor at 10pm to check coverage limits.

Therefore, we advise you do the following long before you stock up on bags of candy for all those trick or treaters. Start with these.

Check your potential tripping hazards.

  • There is little more terrifying than realizing that the little goblin or Star Wars character laid out in your yard is screaming in pain. Before Halloween night arrives, walk the routes children will take to arrive at your doorstep. If there are any holes in the lawn or wonky stepping stones, address those.
  • Nix the fog machine if it elicits confusion. If children can’t see their gloved hand in front of their face, the fog is too thick. You’re not setting a mood – you’re setting a hazard.

Say NO to hosting a haunted house in the age of COVID-19

  • We know that this is an especially difficult suggestion to follow. The pandemic has inspired so many potential horror vignettes (people without masks! Less than six feet apart in social situations)! Even if yours is the house that usually invites the neighborhood inside for creative scares, forego it this year. The risk of COVID is just too high.
  • In the future, know that charging admission to your own haunted house could lead to it being viewed as a business – with the accompanying risks. Our advice? -Don’t do it.

Look where you’re placing those pumpkins. And life-size grim reapers. And….you get the idea.

  • That skeleton in the middle of the driveway is destined to scare the pants off some kid, so goal achieved! We applaud your attention to location, really, but said kid could also be seriously hurt in this situation. Move the skeleton to a more well-lit area.
  • While you’re at it, it’s worth noting that a real fire is not to be considered a scare success. Check your electrical outlets. Don’t overload them. And if you select decorations that contain lights, check to ensure they are safe.
  • If a decoration contains a light source, don’t place anything over it. That goes with black paper, towels, etc. Looking for ambience? Consider a colored light bulb. Simply screw it into a normal light outlet and, voila! Instant creepiness. We suggest the lights that give off a rosy glow. Unexpected….and simultaneously foreboding.

Remember that this is Halloween with a pandemic twist.

  • Even if you don’t normally host the scariest haunted house walk-through on the block, this isn’t the time to invite neighbors inside for spiked apple cider. Respect social distance guidelines. Hand out candy yourself, instead of allowing all those little hands to grope around in the bowl for the biggest piece. And follow up the visit with a squirt of hand sanitizer (for the trick or treater and yourself).
  • Organize a bike parade. This really only works if the neighborhood understands what’s going on – otherwise, you and your kids will just get exercise without the candy. A bike parade allows for social distancing and allows everyone to wear those cute costumes they’ve been planning for months. Neighbors stand on driveways and throw candy while people cycle by. It’s really that simple.
  • Set up a table at the end of your own driveway and decorate it. You’ll be able to control how close people interact, keep those sticky hands out of your treat bucket, and still participate in the holiday to the fullest.
  • Stuff a pinata with your household’s favorite candy and let the kids pummel it. There you have a win-win: no undue coronavirus exposure, plus all the candy the kids collect will go in the ‘keep’ pile.

Before the big BOO day, talk with your insurance advisor about your homeowners and umbrella policies. Being prepared this year for Halloween means so much more than just purchasing bags of candy. The same Halloween safety tips apply as always – with some extra COVID precautions thrown in for good measure.

Florida Homeowners Insurance: Tips You Should Know

Thanks to those serious Sunshine State-loving hurricanes, Florida homeowners insurance premium numbers tend to be higher in comparison with the rest of America. Add state-specific legislation regarding property insurance and insurance fraud to the equation to bump the numbers ever higher, and it’s no wonder that Floridians are so eager to learn about coverages and policy discounts. For homeowners who see themselves paying nearly double (sometimes more) than their neighbors in nearby states, it makes sense to learn everything possible about the subject.

That’s why we’ve put together a Florida homeowners insurance primer to help you make the right decisions for you and your family. We realize there are challenges in selecting a policy and assessing risk. That’s why it’s so important to also talk with a Florida-specific insurance advisor who understands where you definitely need coverage, where it’s not supremely necessary, and how to edge those payments lower and lower through strategic methods.

A knowledgeable Florida insurance advisor will reveal the ins-and-outs of homeowners insurance.

Simply put, Florida homeowners insurance is designed to cover sudden and accidental direct physical damage or destruction of the interior or exterior of a private home subject to the insurance policy provisions. But there’s more: it’s not just those walls that are protected by a policy of this sort. The possessions inside are as well – and some third-party liability protection is tucked nicely in there as well. This is a quick answer to the question Why do I need homeowners insurance? A more detailed description of why is shared below.

Did you know Florida homeowners insurance is not required by law?

This purchase is a preventative measure that homeowners take in order to secure what is likely their most costly asset: the home sweet home. But no, it is not required. And that means if disaster occurs, it is the homeowner’s responsibility to have planned for any possible loss – whether partial or total.

Hurricanes aren’t the end-all.

In fact, most homeowners insurance claims don’t stem from mammoth storms. It doesn’t take a natural disaster in order for loss to occur. It goes without saying that a hurricane can completely decimate a property and its contents, but the dramatic scenario of a house being torn from its foundation is much less likely than other issues that can arise on a normal occasion due to what’s known as unforeseen perils. Even without worst-case scenarios, plenty of risk exists. Common events such as water losses can do major damage, for example. Opt to go without Florida homeowners insurance, and those repairs will come straight out of your wallet.

Floridians can’t put their homes in a protective bubble; homeowners insurance is the closest thing to it.

Wind, water, theft, fallen trees that crush the roof and more can prove disastrous to a homeowner. Those losses can be covered under homeowners insurance.

Let’s talk canines. The liability portion of a homeowners insurance policy might include dog bites, as those that do happen commonly occur at the owner’s residence.

Before adopting a dog, check with the insurance carrier to see if they will deny coverage because of the breed. Many insurance companies have an Animal Liability Exclusion, or they limit the amount of liability you can purchase for this type of coverage. This is another solid reason to review your policy with an insurance advisor.
Costs of Florida homeowners insurance policies vary.

Florida homeowners face a common challenge when deciding what type of homeowners insurance to actually select.

A trio of options exist; knowing the aspects of each will help in the decision. Before you head into that appointment to talk with an insurance advisor, know your ACV, replacement cost and extended replacement cost verbiage. That way, you’ll be able to have an in-depth discussion and decide together which is right for you and your family.

  • Actual cash value – A homeowners policy that is ACV will take depreciation into account. Let’s say an ACV policyholder experiences a loss that is covered under their Florida homeowners insurance policy. Since they’ve opted for ACV, which was likely less expensive in premium than the replacement cost option, they will likely not receive the same amount they originally paid for the insured item. Instead, the actual value at the time of the loss will factor into the claim. As anyone who has ever sold a car can tell you, depreciation is not a positive element. But then again, at least with this coverage the insured is protected up to a certain point.
  • Replacement Cost on Contents – You paid that certain amount for that property that was damaged or stolen. In your mind, it was worth that sum and perhaps more, due to sentimental value. The policyholder who opts for replacement cost insurance will be talking to their insurance adjustor about the replacement of covered items with ‘like kind and quality’ without depreciation; unfortunately, sentimental value is not a consideration when adjusting a claim.
  • Ordinance or Law Coverage – Looking for even more coverage? This endorsement will extend the coverage amount 25%-50% above the dwelling coverage limit. Someone who wishes to opt for this likely is looking ahead at possible scenarios: perhaps they live in an especially storm-prone area and know they’d have to incur more expense due to updated ordinances, or they are anticipating laws regulating the construction and repair of damaged homes. Cost varies for this extra assurance, but should a covered claim strike you’ll have peace of mind.

How can you lower your Florida homeowners insurance premiums?

Time for some good news! Opportunities do exist to lower your premium and still enjoy the benefits of comprehensive coverage. Some of these elements include:

  • Water shutoff devices – How sturdy is your water heater? Has that hose connected to the washer ever been serviced? These questions are important to answer affirmatively because water damage can really be a drain on your finances. The right water shutoff device will not only protect you from that damaging H20, but it can also elicit a premium discount. Inquire as to whether that water shutoff device is approved by your carrier for savings.
  • Multipolicy discounts – Have you opted to keep your insurance coverage through one company? Perhaps it’s time to start. An insurance company may offer you multipolicy discounts, and with that one-stop-shop mentality comes the ease of dealing with one company. Imagine it: One comprehensive renewal, and one advisor who understands customized protection for what matters to you. It’s a win-win scenario. W3 is an independent insurance agency, we shop for insurance solutions tailored for you!
  • Of course, there’s always the tried-and-true higher deductible choice. If you are looking to reduce your premium, consider a higher deductible. An advisor who understands your unique situation can give insight as to whether that’s likely a good fiduciary move.
  • Improve home security – It makes total sense that an insurance carrier might give you a discount for installing a solid security system. If a thief has difficulty making their way into and out of your home, those possessions that you’ve insured are much safer.
  • Wind mitigation credit – How wind-prone is your residence? Consider having an expert inspect your home. If it’s wind-resistant, you’ll get credits – and that means discounts.
  • Straddle that line between overinsured and underinsured. Again, that’s where the knowledgeable insurance advisor is worth his or her weight in gold.

Consider adding umbrella insurance to your homeowners portfolio.

  • While you’re talking with your Florida homeowners insurance advisor, be sure to ask about the mighty umbrella. There are so many true-life stories of people who purchased Florida homeowners insurance with total confidence, only to find out later that they were in fact underinsured. The umbrella covers you like a shield, one more layer of liability protection. It’s so possible to imagine any of the following scenarios occurring. That’s why it’s so important to acquire the right amount of insurance.
  • Falls on your property – Who knows to what extent the medical bills will be for someone who trips over that loose paver in the driveway? You could be paying for hospital stays in perpetuity.
  • Calamitous events – No one can see into the future. That’s why accidents occur, and that’s why it’s important to consider umbrella insurance to fully cover you if they do.
    Add your own here: __________. It only takes a small amount of creativity to imagine the Halloween trick or treater who stumbles on the step and needs medical attention or the teenager who goes to take the car out of the garage for a joyride and forgets the gear is in reverse.

No one wants to go through the claims process, so take measures where you can to improve the hardiness of your home and keep more money in your pocket. As a Florida homeowners insurance shopper, you’re on the right track; you’re definitely ready to search for the right policy now that you’ve read this blog.

Good luck as your protect that which you hold most dear, and contact W3 Insurance when you’re ready to talk about coverage options. Please note that this article provides a general description of coverages. For complete policy information, including exclusions, limitations, terms and conditions, please refer to your insurance policy contract.

We’re here to help you protect and save. As an all-lines agency, we offer advice regarding coverage, discounts and more. Contact W3 Insurance at 727-522-7777 for more in-depth advice regarding Florida homeowners insurance.

Have You Considered Adding A Water Shut-Off Device To Your Water Damage Action Plan?

Picture this. You’ve just arrived home, and as you pull into the driveway, you see water seeping out the garage. You open the door and discover the painful truth: a plumbing leak has occurred, and water is everywhere. Cue the panic questions:

Do you have insurance coverage? How much coverage do you have for water damage losses? Don’t let the above scenario happen.

Thanks to leak detectors and water shutoff devices, protecting your property from water damage losses has become much easier. From leaky pipes to water heater malfunctions and everything in between, these water damage culprits that lead to property insurance claims are preventable.

Avoid costly repairs and potential insurance claims by installing a preventative device. Some devices could even lead to a policy discount with some insurance companies. Take some time to research and discover more about the various types of leak detectors and water shutoff devices. An initial investment can save you time, money, and aggravation in the long run.

Check out what one of our clients recently told us about their experience with a water shut-off device:

“I wanted to report firsthand about water shutoff devices you recently mentioned. Like you my insurance carrier here in Cincinnati the Cincinnati insurance Co. recommended the installation of a water flow control device. They mentioned four different brands. I researched them and chose Flo by Moen.

When I purchased it online they had a special deal with a plumber for the installation cost of $150 I booked it several weeks out it was installed without a hitch. It was then connected to AC power and Wi-Fi and is now providing daily reports on water usage and every night it performs a system check for leaks.

If I leave the home for any extended period of time I put it in away mode so that it is much more sensitive to shutting off the water supply in the event of what is deemed to be a leak. So for the total cost including installation of about $550 I’m also saving $200 per year on my homeowners policy here.”

It is important for you to review the policy limits for water damage coverage within your insurance contract. If you have questions, contact W3 at 727-522-7777. A great place to begin is a water damage action plan. Find advice regarding crafting one here: w3ins.com/news/category/homeowners

Your Home: A Water Damage Time Bomb

Keep Dry With This Action Plan

Water damage can be a real drain. Protect your home and your pocketbook by opting for the right water damage coverage and addressing potential threats. Proactive “waterproofers” save themselves the expense and headache that comes with an unwelcome deluge. Keep the wet away from your Welcome mat by completing essential home maintenance essential to loss prevention. Below, we’ll examine the common sources for home water damage and how you can prevent excess H20.

  • Roofing: Plenty of water damage risks don’t involve torrential rainfall or wind. Homeowners are often surprised to learn that maintaining their roof is only one element of protection – but it is of course an important one. Give yours a birthday present by having a professional roof inspector examine it every year. This professional will spot suspect shingles, crumbling flashing and other elements that can put you at risk for leaks.
  • Plumbing: Plumbing in general should be treated as a valuable home element. If you see corrosion, condensation or leaks emanating from plumbing anywhere in your home, act immediately. Here’s a hint: If your water bill suddenly spikes, you may well have a malfunctioning plumbing element.
  • Sump Pump: Heading out on vacation? Avoid a surprise ‘gift’ upon your return home by turning off your main water supply line. Since sump pumps can fail for a variety of reasons, it’s a solid strategy. Take the time to inspect those. Clogged inlet screens and float switches can yield problems. Remember to take a look at the outside pipes and watch for that water flow – it should occur away from the home.
  • Water Heater: Five years is the magic number for these home elements. After age five, water heaters are much more likely to burst. Flush yours of sediment twice annually. And once a year after that five year point, ask a professional plumber to take a look at the anode rod, which will inevitably eventually deteriorate. And remember: no hot shower is worth the amount of damage that water heaters can cause if compromised.
  • Toilet: Anyone who has ever experienced a toilet overflow will tell you that it’s not a pleasant experience. It’s also unfortunately a common one. A backed-up toilet can wreak plenty of havoc on wood floors and baseboards; plus, it’s downright gross. How’s that flush mechanism working? Ask that question and answer it every six months. If you need to replace the flapper or film valve, do so. Also, giving the supply line some TLC every six months or so will keep that water flowing where it’s supposed to.
  • Sink: Faulty plumbing lines, thou art evil. When they deteriorate, these lines and the damage they cause can cost a homeowner approximately $7,000. Faulty plumbing lines are the big risk factor in a sink. Inspect it every six months, and if you don’t know where the water supply shutoff line is, go find it immediately.
  • Washing Machine: This one’s an obvious risk. After all, it has ‘water’ in the name! What you should really be on the lookout for here is water supply lines. Every six months, take a look at it. Is it secured correctly? Is it looking worse for the wear?
  • Ice Maker: That supply line can really be a doozy. If an icemaker is not properly installed, that supply line hose can fail. The result of such an incident is a watery mess and inevitable damage. Again, every six months should be a good adage for inspection.

It doesn’t take a lot of time or energy to do quick checkups on water hoses and the like. Schedule these ‘visits’ in your calendar and adhere to them. Putting off inspection of potential water damage sources can prove a costly mistake. Additionally, contact your insurance advisor to discuss whether you need increased water damage coverage. Different elements such as age of the home can increase your risk.

Remember: Your insurance policy is designed to cover you for sudden and accidental loss not otherwise excluded in the policy form. It is not a home maintenance policy. By understanding your coverage and doing your part to maintain your home, you’ll earn an A+ in water damage prevention.

Request a review of your current coverage

At W3, our advisors are committed to helping you understand the protection provided by your policy and making sure that it works for you. Contact us! We’ll review your options and put a watertight plan in place.

Homeowners Insurance and Hurricanes: What Is (and Isn’t) Covered

home with approaching hurricane

Hurricane insurance coverage is as vital to the Florida homeowner as storm shutters that withstand gale-force winds. Those sandbags, batteries, and shutters are must-haves in the emergency preparedness kit, but hurricane insurance coverage alone possesses the power of rebuild. If the worst happens, and that storm demolishes a home, the right coverage can make all the difference. Here’s what to expect as you consider coverage options:

Florida Hurricane Insurance Requirements

It may surprise you to learn that many homeowners policies consider coverage for hurricanes to be standard. However, as a Floridian, beware: a separate windstorm deductible applies to covered losses. When one speaks of ‘hurricane coverage,’ that is actually what they are referring to – the combination of coverages that add up to full protection. This a la carte coverage aspect means that it is important to talk with an insurance professional before choosing coverage. Whatever policy you select, know that the best options cover both the exterior of the home as well as the contents. That takes into account those valuables you hold dear.

Hurricane Damage Covered by Homeowners Insurance

If a tree pushes a divot through your rooftop or the windows shatter (where were those shutters when you needed them)? Your homeowners insurance should cover the damage. Remember, though, that some areas require an extra oomph of coverage––whether that be through increased contents coverage or a replacement-cost endorsement for your contents. This provides you the money to replace your damaged or destroyed possessions with the same, or similarly valued, items.

Possible Damage Not Covered by Homeowners Insurance

Even though hurricanes often bring flooding along for the trip, homeowners insurance does not cover damage from rising surface water. Mold is also not covered by homeowners insurance unless it was added by endorsement and the result of a covered loss. Excess moisture in the air can cause mold, and this is a very real concern when a hurricane hits. 

Flood Damage (Even Resulting from a Hurricane) is Not Covered by Homeowners Insurance

You read that correctly. Even though it’s rather counterintuitive, flood insurance is a completely different coverage. Living in Florida, with shrinking shorelines and neighborhoods surrounded by water, it’s essential for your total home protection to elect for flood insurance.

If a hurricane results in flooding, those who elected to purchase flood insurance can rest easy knowing their home and property will be protected.

Every Florida Home Should Have Flood Insurance

We can’t drive this home enough. Did you know that it doesn’t take a major storm for flooding to occur? Homeowners who state that they don’t need flood insurance because they don’t live in a flood zone miss the mark. In Florida, we know that when it rains, it pours. Heavy Florida showers present a very real flood risk.

Protect yourself. Prepare your home against hurricanes and know what your policy covers. Speak with one of our experienced advisors long before that storm system appears on the radar. We will break down the intricacies of insurance and make sure you understand what you’re paying for. We’re here to help you weather the storm.

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Is Flood Damage Covered By Homeowners Insurance?

flooded house

Water, water everywhere: Unless you’re lounging on a boat or swimming laps, it’s not a good scenario––especially in your home. Insurance to protect against flooding is a specific coverage election and that’s why the policy is specifically labeled ‘flood insurance.’ So, why do you need it? Reason number one is that water can wreak havoc upon a home, and all are susceptible. 

Water Damage from Rising Surface Water

If excess rising surface water makes its way indoors, that means homeowners’ insurance will take care of the damage, right? This is a common misconception. Water damage from rising surface water will not be covered by homeowner’s insurance. Rising surface water constitutes a flood and therefore is covered by flood insurance only.

Forget the part-tsunami, part-tidal wave catastrophic flood image. Just an inch of water inside your home will do major damage. It doesn’t take a dramatic event to douse the savings you’ll need to access to repair that floor, built-in cabinetry, baseboards, etc. Often, water damage from rising surface water comes not from a rush, but a continuous flow. 

We all Live in a Flood Zone

You read that correctly: We’re all in this together. The sooner homeowners realize that they, too, live in a flood zone, the sooner they’ll realize purchasing Florida flood insurance is non-negotiable. Sure, some of us are more at risk than others. The house on the shore of Anna Maria Island is, of course, going to be located in a higher potential flood zone than the Pinellas Park bungalow. However, a well-placed storm can do major damage anywhere.

Flood Insurance at a Glance

How do you know what your Florida flood insurance covers? For the quick and comprehensive answer, contact your W3 insurance advisor. Our staff is trained to assess your exact flood insurance needs and suggest the policy that fits. Remember: The question is not whether you need to purchase a flood insurance policy – it’s which policy you should select. 

Basic flood insurance is likely going to cover the actual façade of the home. The prior example of permanent flooring damaged due to flood is covered with this type of policy in effect. The architectural integrity of the residence and more are protected as defined in the actual flood policy.  

Dwelling and Contents Coverage

Concerned about valuables being damaged because of a flood? Comprehensive Florida flood insurance coverage may be your best election. This ‘upgraded’ coverage means that should the couch be harmed by a flood, you’ll be compensated. Homeowners with valuable possessions such as antiques find these policies to be a vital part of their insurance plan. It’s important to purchase dwelling and contents coverage for flood protection. 

Flood insurance is most frequently purchased through the National Flood Insurance Program (NFIP) or a private market company. The insurance company underwriting your home insurance may offer it as an endorsement to your home policy.

While being fully covered is the optimal solution, some flood coverage is better than none at all. 

Are You Covered?

If you aren’t sure, it’s time to ask the experts. Our advisors will review your policy at no charge to ensure you are fully covered. 

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