Does your business need commercial hurricane insurance?

May 8, 2023 By Michelle McKinley

Hurricane season starts on June 1st and lasts through the end of November. What does that mean for your business? There are several types of insurance coverage available to help you stay protected from a hurricane – making wise decisions about your coverage could make or break your business if the wrong storm hits at the wrong time.

What Type of Insurance Covers Hurricanes?

Hurricane insurance coverage is normally provided in your property insurance policy. There are several types of coverage available, depending on your location, your proximity to the coastline, and your carrier.

Property Insurance Coverage for Hurricane Damage

All Peril – This is the most comprehensive coverage – covering everything except for what is specifically excluded in the policy.

Named Peril – This will cover ONLY what is specifically noted in the policy. It’s usually less expensive but offers more restrictive coverage.

Wind and Hail – This is the most restrictive of the three coverages and only covers damage caused by wind or hail.

All Peril, Named Peril, and Wind & Hail policies will have a deductible attached. It can vary from a dollar amount to a percentage amount. A deductible is the amount of loss paid by the policyholder before the insurance will begin.

Does My Business Need Flood Insurance for Hurricanes?

Water damage isn’t the same as wind or storm damage. Most commercial property policies exclude coverage for losses caused by rising water. However, much of the damage caused by hurricanes in coastal areas involves rising water which isn’t covered under most property insurance policies.

In cases where homes or businesses sustain concurrent wind and rising water damage, some insurers attempt to separate the covered wind damage from the uncovered rising water damage and pay what they owe. Other carriers deny the claims entirely citing the flood exclusion. Consequently, it’s essential to make sure you’re covered for both wind and rising water.

Does Business Interruption Insurance Cover Hurricanes?

Even if you have proper coverage under your property and flood policies, your business could be in danger. Could your business survive being closed and non-operational for 30 days or more during repair time? Most small businesses would have a hard time surviving that long of a closure, and it causes many to shut their doors.

Fortunately, business interruption insurance kicks in after the 72-hour deductible period. It can help you cover ongoing expenses and make up lost revenue while you’re getting back on your feet.

Make Sure You’re Protected

Make sure you’re covered this hurricane season – contact an agent at Wallace, Welch & Willingham or call us at 727-522-7777 to find out what your business needs to be fully protected.

The Impact of Hurricane Ian on the Boating Industry

April 14, 2023 By W3 Insurance

When Hurricane Ian made landfall on Caya Costa Island, Florida on September 28, 2022, it unleashed more than just immediate harm to life and property. Well into 2023, the Florida boating industry is still experiencing lasting changes and challenges brought on by the category 4 storm. “Hurricane Ian insurance” is still a top search phrase on Google, and Florida boat owners and property owners alike are left wondering: How can I properly cover my belongings to protect against damages from such a storm?

The marine insurance sector was drastically affected by Hurricane Ian. Winds of over 155 miles per hour damaged many insured vessels. So many claims were filed after the storm that many insurance companies opted to leave the Florida market, cease writing new policies and/or impose new terms, which may impact future boat policy renewals. This leaves boat owners with fewer coverage options today than they had a year ago. In addition, underwriting requirements are now stricter than before, and homeowners insurance in the Sunshine State is following a similar trajectory.

On the marine side, some premiums have skyrocketed. Boats damaged by Hurricane Ian, essentially broken crafts, bobbed in the surf for months after the storm fizzled. Salvage crews worked for weeks to meet immense demand. Not long after, a large number of used boats started to appear on the resale market “as is.”

What does this have to do with you, and how do you navigate the post-Hurricane Ian insurance marketplace? By understanding the impact Ian had – and continues to have – on Florida boating and related sectors, you can find coverage options that are still available for most vessels.

The following snapshot of the post-Ian insurance market will reveal why it’s more difficult today to find a comprehensive policy.

Hurricane Ian and the Insurance Market

The aftershocks of Hurricane Ian range from the tangible (wrecked vessels and property wind damage) to the intangible (premium rate hikes and fewer marine insurers in the marketplace). Damage estimates from the storm are on par with those of Hurricane Katrina in their brutality, significance, and overall price tag.

This affects consumers in myriad ways. Not only is it more difficult now to secure a policy that protects a boat or a home in Florida, but the policies on offer are now significantly more expensive. Florida homeowners insurance, for example, has undergone rate hikes ranging from 6 to 11% or more..

This affects commercial and residential property owners alike who have no choice but to pay the increased costs. After all, you never know when the next hurricane will form over the Atlantic, aimed for the Florida coastline. It’s imperative to elect insurance before a tropical system exists, because once a storm is identified as a threat, insurers historically will not allow the public to purchase insurance for protection. Going even further to protect themselves post-Ian, some insurers now won’t even offer a new policy for protection once a tropical depression is spotted on the radar.

Meanwhile, the coverage that is available should be closely scrutinized. While it’s possible to secure insurance coverage in today’s marketplace for home and marine vehicles in Florida, policies may carry exclusions for wind and named storms. To ensure that you carry the policy that best protects your investment, partner with an insurance advisor who understands the current marketplace and can offer personalized protection.

Hurricane Ian and the boat resale market

Used boat shoppers beware: Hurricane Ian boats with low sticker prices might be lemons – and they also might be uninsurable. Thousands of boats were damaged as Hurricane Ian swept boats from their moorings and devastated even secure-seeming harbors. Many of these crafts received patch jobs and were put up for sale at cheap prices. Before Hurricane Ian, it was sometimes possible to get insurance for repaired boats if they were carefully vetted for seaworthiness. Today, finding coverage is more difficult than ever before. So many damaged crafts have flooded the marketplace that insurers are wary of taking chances on them.

What about insuring property?

As of February 2023, data from the Office of Insurance Regulation indicated that 40% of property claims have either been stalled or rejected. This makes sense: according to reinsurer Swiss Re, Ian is to blame for $112.9 billion in damages. Only Hurricane Katrina has Ian beat when it comes to losses. Now more than ever before, it’s imperative that you work with an experienced insurance advisor to obtain coverage.

Just a single inch of water from flooding can cause costly damage to your home. Here’s what you need to know
about insuring against damages caused by flooding.

Trust a professional who understands the current insurance marketplace and can find you the best coverage for competitive premiums. Today, that’s no easy task. It takes an insurance advisor’s assistance in order to stay up-to-date with sector changes. Secure a solid policy to ensure you have the right coverage.

Has homeowners insurance been specifically affected?

Hurricanes have the ability to peel off roofs, break windows, and bring forth storm surges that destroy even the most sturdy abode. It comes as no surprise that homeowners insurance has been specifically affected by Hurricane Ian. Even homeowners who barely detected a raindrop from Ian can expect to pay much more for homeowners insurance than ever before.

This truism is because of the massive number of claims filed by homeowners who were affected by the storm. Paying out that many claims is bound to have an effect on future rates, as insurance companies are still scrambling to find the funds to make good on their coverage promises. It doesn’t matter, then, if your area of Florida has never had problems from hurricanes. The state is seen as a high coverage risk, from down in Key West up to Pensacola. And homeowners are going to pay the price.

Specific impacts to the marine insurance sector

There’s good news and there’s bad news. The good news is there’s never been a better time to find a used boat. The bad news is that virtually no insurance company is going to insure a sea craft totaled by Ian, no matter how great the restoration job. Before purchasing a used vessel, though, talk with your marine insurance advisor regarding your coverage options. That way, you won’t be stuck out on the water uninsured.

Deductibles are also steadily increasing, even for new vessels. The bottom line is this: understanding your coverage means avoiding unwanted surprises later. There are fewer companies insuring boats now, and most have changed their policies to reflect the ripple effect Ian continues to have on the insurance marketplace.

Shop for marine insurance wisely. Enlist an ally from W3 Insurance.

Is it safe to boat after Hurricane Ian?

The answer to that question depends on where you are. Certain areas are no longer safe. The hurricane dredged certain waterways and swept debris into others. Caution is always the best option when it comes to avoiding potentially changed seas. Hidden debris is best seen on a viewfinder, which is a handy tool to have on board.

Pollutants also linger in the waterways as a result of Ian. Florida’s Department of Environmental Protection received many reports about oil-slicked waters and more. Untreated wastewater was a common complaint. Aerial views of damage caused by the hurricane can be seen here.

To stay safe, visit the Environmental Protection Agency’s page before heading out on the water. You’ll be able to see updated waterway data and make an educated decision regarding where to navigate next.

Explore the best coverage and rates for your property

Whether you’re seeking homeowners insurance or marine insurance, it’s possible to find the best coverage and rates that meet your unique needs. No amount of scrolling the Internet is going to give you access to the experienced advice you’ll get from the insurance advisors at W3. Contact our team today to take the guesswork out of insurance coverage and get the protection you need. Whether a hurricane hits Florida next year or waits another 100, the W3 team will provide you with coverage that meets your unique needs.

Protect Your Home From Water Damage

September 15, 2016 By Melonie Harris

Water damage can be a nightmare!

The reality is water damage claims are the most common type of homeowner’s loss. The inconvenience of cleanup, repair and potential out of pocket costs are just not worth the aggravation.

Up to 22 gallons of water are lost daily due to leaks from dripping faucets or malfunctioning toilets. Water damage is one of the most common losses to your property. How can you prevent a water damage loss?

Water Damage Prevention

There are no single ways to prevent a water damage loss, but there are ways to minimize your loss from occurring. As a homeowner, there are many things that you are a responsible for in the maintenance of your home. There are 9 places where water damage can occur: plumbing, roof, sump pump, water heaters, shower, toilet, sink, washing machine, and the ice maker.

Age of Your Home

Homes that are thirty years old or older are three times more likely to have a plumbing or drainage problem. It is highly important that the plumbing of your home is inspected annually. If you pay close attention to your monthly water bill, you will be able to quickly spot a plumbing issue.

Are You Covered?

Being a homeowner takes great responsibility, but there are some simple precautions that can be done to prevent a water damage loss, and keep you from paying thousands in damage to your property. Make sure to check with your insurance agent to review your coverage, as many carriers can limit or exclude water damage coverage for older homes. Most carriers only offer $10,000 as a buy back option, which can be minimal if serious damage occurs, and it may not be suitable to repair all of the damage.

Being proactive in maintaining your home and preserving your claims/loss history for catastrophic loss is in your best overall interest from an insurance perspective. Your history for all locations owned follows you for 3-5 years depending on the insurance company.

We offer a free review of your home insurance policy. If you have concerns about water damage and what you are covered for please call us at 727-522-7777. Wallace Welch & Willingham represents many insurance companies that have policies that can be customized to fit your particular need.

Don’t pay your flood insurance renewal payments late!

June 22, 2016 By Doris Sova

Now it is more important than ever that your NFIP flood policy renewal payment is received on time*. If your payment is late, your premium could be adversely affected.

For all renewals effective April 1, 2016, the following rules have been added by the National Flood Insurance Program (NFIP):

For properties in special flood hazard areas (flood zones beginning with an A or V) that are currently rated with subsidized rates (no elevation certificate is used for rating), OR being rated under the Newly Mapped Program may lose their subsidized rates or Newly Mapped rates when the renewal payments are received as follows:

If the premium payment is received after the 30-day grace period, but within 90 days following the expiration date on or after April 1, 2016:

- 1^st time, the policy will be reinstated and the effective date will be 30 days from the date the insurer receives the payment (no change to rating).
- 2^nd time, the policy will no longer be eligible for subsidized rates or the Newly Mapped rates. The effective date will be 30 days from the date the insurer receives the payment and a new application and/or an elevation certificate may be required to rate the policy.

If the premium payment is received more than 90 days after the policy expiration date, the policy will no longer be rated eligible for subsidized rates or with the Newly Mapped rates and a new application and elevation certificate will be required and the standard waiting period for new business will apply.

The above rules apply to flood premiums whether paid by you or your lender. Therefore, it is important that your renewal payments are made timely. If your lender pays your renewal premium, verify that your loan number and lender are correct and your payment has been processed.

Keep on top of flood insurance renewal payments—we want to help you stay safe and pay less.

Flood Reform & Your Business

October 10, 2013 By W3 Insurance

In 2012, the U.S. Congress passed the Biggert-Waters Flood Insurance Reform Act. This requires a number of changes to the National Flood Insurance Program (NFIP). These law changes are mainly the result of rising costs and consequences of flooding over the past few years.

Some of these changes have already been put in place and others will be implemented in the coming months. Key provisions of the legislation will require the NFIP to raise rates to reflect true flood risk, make the program more financially stable, and change how Flood Insurance Rate Map (FIRM) updates impact policyholders. The changes will mean premium rate increases for policyholders over time and they must be adhered to by all insurance companies who write flood insurance.

Effective October 1, 2013, the NFIP (National Flood Insurance Program) will no longer allow renewals for Pre-FIRM (built prior to 1975) business property in a Special Flood Hazard Area (this includes all A & V Zone properties) to continue receiving subsidized premium rates. Business property flood renewals will experience a premium rate increase of 25% annually until their premium reflects true risk or until the owners submit a new elevation certificate.

New Business Property purchases that are Pre-FIRM and in Special Flood Hazard Areas will no longer be able to assume the seller’s flood policy and will be required to obtain an elevation certificate and pay the full actuarial rates. Please note: allowing a flood policy to lapse, even if it’s the fault of your Mortgagee, can trigger rate changes and require you to obtain an Elevation Certificate to secure flood coverage.

Business Property is defined as any non-residential building that produces income, or a building designed for use as office or retail space, or for wholesale, hospitality, or similar uses.

General rate increases for all flood policy holders prior to the Biggert – Waters Act was a maximum of 10% per year. With the passage of this Act, the maximum annual increase will be 20%. Additionally, Federal Rate Fee is increasing from $40 to $44.

If you don’t have an elevation certificate for your building, you will need to hire a surveyor to come to your property to complete the certificate. Also, effective October 1, 2013, a 5% Reserve Fund will be added to all flood policies except Preferred Risk Policies. Contact your WWW representative for a lists of surveyors in the area.

Sometime in 2014

This section of the bill requires an adjustment to the rating for all policies when their community adopts a new Flood Insurance Rate Map. This will be phased in over the five years following the effective date of the map change or revision.

It is important to note that actions such as buying a property, allowing a policy to lapse (even if it’s the fault of your Mortgagee), or purchasing a new policy can trigger rate changes and will require you to obtain an Elevation Certificate to secure flood coverage. We can advise how these changes might affect your flood coverage and what options you might have to lower your premium.