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.

Does Homeowners Insurance Cover Water Damage?

May 1, 2023 By W3 Insurance

Does Homeowners Insurance Cover Water Damage?

If you’re asking, “Does homeowners insurance cover water damage?” we sincerely hope that you are not already ankle-deep in H2O. Answering the water damage coverage question is nuanced; whether your homeowners insurance will cover water damage depends on a number of factors. Let’s dive in.

What types of water damage are covered by Homeowners Insurance?

From overflowing dishwashers to water damage after a fire, the following items are typically covered by homeowners insurance.

Burst Pipes

Burst pipes and accidental overflow are usually covered. Poor maintenance, however, is usually not covered. Scroll down to the next section to learn more. Water damage from a fire

Extinguishing a blaze demands water to douse the flames. The resulting damage will be covered.

Roof Leakage

Sorry to all those who were looking to get a new house-topper! While repairs needed due to leaks from lack of maintenance or wear and tear are not covered, if the wind removes a portion or all of your roof and lets the rain inside, your home insurance responds, unless you opted to exclude wind coverage.Accidental overflow

Should an appliance or fixture malfunction, you are likely in luck regarding recompense. This is one of those classic “thank goodness I purchased insurance” moments when the damage is an absolute surprise. Be aware that some policies limit or exclude water damage. Check your policy for specific terms and conditions.Mold

When left undetected long enough, mold can pose a significant respiratory hazard. If mold is the result of a covered water damage loss, eradication expenses will be paid. Policy limits for water damage and mold coverage will vary depending on your policy form. This is another important reason to review your policy each year and to speak with your personal insurance advisor if you have questions.Vandalism

The creative list of possibilities in this category is endless. Luckily, your homeowners insurance will most likely cover the damages.

What kinds of Water Damage are Not Covered by Homeowners Insurance?

Now for the not-so-great news: Not all water damage is covered by homeowners insurance. Here are a few items that are not.

Ground seepage

When rain falls to the ground, it doesn’t travel straight down. It moves underground and sometimes resurfaces in low-lying home areas. Damages from ground seepage are not covered by homeowners insurance.

Poorly maintained pipes or roofs

You are held to a certain level of care regarding your home. If those pipes are exceedingly old or the repair work on them is shoddy, your coverage is likely not going to help you.

Water or sewer pipe backup

Avoid this scenario by keeping your pipes in good working order.

Flooding

This comes as a surprise to many, but damage from rising surface water (flooding) will not be covered by homeowners insurance. You can view our article about flood insurance to learn more about how to purchase this very important coverage.

How long does it take for water to do damage?

Depending on the amount of water, severe damage can begin immediately. It can quickly spread across the floor, saturing carpets, staining tiles, and destroying furniture. Water will spread until it is stopped, usually by a wall, which can cause sudden impact to the structure of your home. If water touches appliances and electrical outlets, there are even greater risks.

If things remain wet, within the first 24 hours you may see soaked wood, swollen or bent drywall, peeling wallpaper, disintegrating documents, and tarnishing metal. If left untreated for a second day, surfaces will warp and metal surfaces will begin to corrode. You will likely see damage within walls and insulation.

How quickly does mold grow after water damage?

If water damage is left untreated, mold growth begins within a few days – though it may not become noticeable for 1 to 2 weeks. Mold (and mildew) spreads rapidly, posing health risks long before you realize it’s there. In addition to damage to carpeting, tiles, walls, and furniture, mold can cause unpleasant smells in the home and lead to respiratory and skin problems for you and your family.

Is Flood Insurance worth it in Florida?

A simple adage sums up why flood insurance is always a necessary protection for Floridians: Everyone in the Sunshine State lives in a flood zone. Even if you don’t have a view of the Gulf, you are still susceptible to nature-led flooding.

Florida is also the ultimate destination for hurricanes, and these unwelcome storms bring massive flood potential with them. Furthermore, even inland Floridians experience massive rainfalls. These events can happen anywhere and at any time. Lastly, storm surge and tidal waters can easily flood or even level an entire home. The images of homes with flood water nearly reaching the second floor are hard to forget. The devastation caused by surging ocean water is a very real threat to Floridians. (insert a Hurricane Ian link).

Not Sure if You’re Covered? Ask Your W3 Advisor.

At W3 Insurance, our advisors know protection. Specifically, our team understands the nuances of flood coverage and can direct you to the policy that is right for you. Before the flood, there’s W3. Contact us for a review of your current policy or to elect new coverage.

Wind Mitigation Credits and Your Home

April 27, 2023 By Tina Gonzalez

What Are Wind Mitigation Credits in Florida?

The State of Florida requires insurance companies to offer discounts for protecting your home against damage caused by windstorms. These discounts are known as wind mitigation credits. In order to be eligible for them, a certified inspector needs to perform a wind mitigation inspection of your home.

Unlike some home inspections – such as a four-point inspection – this one is not mandated by your insurance company or your lender: it’s completely optional. However, most wind mitigation inspections result in savings that at least cover the cost of the inspection in the first year, so they’re generally worth pursuing.

It’s important to note that you will never be penalized for not having these safety features.

What Does a Wind Mitigation Inspection Include?

An inspector will come to your home and look for specific factors that would make your home more resilient to a windstorm. Specifically, they will be looking at your roof and openings into your home such as doors and windows. Florida wind mitigation inspectors examine these key safety features:

Roof shape
Roof bracing of gable end
Roof deck attachment
Roof covering
Roof-to-wall connections
Secondary water resistance
Doors
Protection of openings (such as windows and other openings)

These features will be evaluated to determine how wind resilient your home is with its current features. All Florida homes built after 2002 were constructed to certain safety codes that will likely result in a savings to you. If your roof hasn’t been replaced since 2002 but was built after 1974, we still recommend having a wind mitigation inspection. Based on how it was constructed, there are some features of the roof that may still qualify you for discounts.

There are a few cost-effective measures you can take to safeguard your home and reduce your hurricane-wind premium: securing your roof with hurricane clips or wraps, for example, or hurricane protecting all windows, doors and other openings to your home. To qualify for the opening protection credit, all windows and openings must be protected by wind impact resistant glass. This also includes a hurricane-resistant garage door.

How Much Does a Wind Mitigation Inspection Cost?

A wind mitigation report will cost, on average, $75.00-$150.00. However, with minimal wind mitigation features in place, the inspection will pay for itself in the first year. Credits can go up to the maximum savings of 88% off the hurricane/wind premium.

Who Can Perform a Wind Mitigation Inspection?

Only certain Florida-certified construction professionals can perform a wind mitigation inspection. This includes:

Home inspectors who have completed a training course approved by the Construction Industry Licensing Board (CILB)
Building code inspectors
General building or residential contractors
Professional engineers
Professional architects
Any inspector recognized by the insurer as possessing the necessary qualifications

Homeowners cannot perform their own wind mitigation inspections and general roofers can’t either unless they’re also licensed in one of the categories above.

How Long Do Wind Mitigation Credits Last?

The credits continue for the life of the insurance policy in which the inspection report was used to apply credits. However, the inspection report expires after five years, therefore if you change companies after five years of the inspection you will need to obtain a new wind mitigation report to submit to the new insurance carrier.

Please contact your Personal Insurance Advisor at Wallace, Welch & Willingham to discuss wind mitigation credits and find out if you could benefit from the inspection!

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.

Is Your Golf Course In Danger?

June 9, 2016 By David Cosper

With the presence of Arnie in the 60’s, Jack in the 70’s, and Tiger since 1996, the game of golf has grown into one of America’s favorite past-times. According to the National Golf Foundation, an estimated 25.7 million Americans played at least one round of golf last year. The game is no more popular than in the state of Florida. According to the AARP, our great state has 1055 golf courses.

Golf club owners, managers, and superintendents have an invaluable amount of real estate to protect in order for Floridians to continue playing our courses. This actual experience below brings to light potential exposures, where you may think your insurance agent and insurance provider are going to protect you in the event you suffer a loss.

A client of ours was recently exposed to the outer rain bands of the season’s first tropical storm. I recall emailing him the night prior to express concern over his property and to reassure him of our commitment to protect his business in the event they suffered a loss. He woke up the next morning to something out of a horror movie. His facility had suffered 6 inches of rain and experienced significant washout of many of his bunkers, flooded fairways, downed trees, and backup from many of the course drains due to debris. Without a doubt, the club had sustained significant damage!

A major washout near the tee area of a local golf course after a recent storm.

Is your club prepared to deal with this sort of catastrophe?

More importantly, does your agent representative truly know how to interpret the policy they sold you and can they help remedy the situation so that you may re-open and restore the integrity of your golf club in an expedited manner?

Wallace Welch & Willingham has extensive expertise insuring Golf and Country Clubs throughout Florida. We are prepared to be your partner in times of need and have every resource available to help you get back in business when disaster strikes.

David Cosper | Hospitality and Risk Practice Leader

727.522.7777 ex 110 | dcosper@w3ins.com

Are you Covered for a Business Interruption?

August 13, 2015 By Michelle McKinley

Recent heavy rainfall reminds us that not all natural disasters are brought on by hurricanes. Due to heavy and constant rains, flooding has damaged much of Florida’s roadways. Last week, Governor Rick Scott declared a state of emergency for five counties. This included three bay area counties; Hillsborough, Pinellas, and Pasco.

Damage like this creates an immediate need for all for all companies to take a closer look at their insurance coverage. Would you be sufficiently covered in case of a natural disaster? States like Florida and other coastal locations are particularly susceptible to devastating losses from flooding, tropical storms, hurricanes.

“75% of businesses suffering major property damage are out of business within three years because they did not have a contingency plan or the proper financing to see them through the period of recovery.”

What is Business Income Insurance?

When it comes to managing your property risk, business owners should be concerned not only with a loss to their tangible property but also to their income. Natural disasters, fires, and other insured perils often result in an interruption of the operations of a business, which typically lead to a loss of income. Business income insurance is designed to cover your economic damages when you experience a covered loss that results in a suspension of your business. A suspension of your business can mean either a slow down or a cessation of your business activities. Loss of income is defined in most policies as your net profit as well as continuing expenses, including payroll. Extra expenses that you incur to recover from a disaster can also be covered. You might think of it as disability insurance for your business!

What is Included in a Business Interruption Insurance Policy?

Compensation for lost income if you are no longer able to operate your business due to a disaster-related damage that is covered by your current property insurance policy.
Profits that would have been earned had the disaster not occurred. These numbers are based on previous financial records.
Operating expenses that must be paid even if the business is temporarily closed. Examples are utilities, rent, etc.
Expenses from a temporary location for you to operate out of while repairs are being made to your permanent location.

Business interruption insurance is one of the most valuable policies a business can have, yet it is often overlooked. Contact us today to learn more about this valuable policy.

Hurricane Preparedness Sales Tax Holiday

May 29, 2014 By W3 Insurance

In recognition of Hurricane Awareness there will be a tax free day on certain sale items. The sale this years runs from May 31st to June 8th. Here are some of the items that will be on sale:

Selling for $10 or less:

Reusable ice (reusable ice packs)

Selling for $20 or less:

Any portable self-powered light source
Battery-powered flashlights
Battery-powered lanterns
Gas-powered lanterns (including propane, kerosene, lamp oil, or similar fuel)
Tiki-type torches
Candles

Selling for $25 or less:

Any gas or diesel fuel container (including LP gas and kerosene containers)

Selling for $30 or less:

Batteries, including rechargeable batteries and excluding automobile and boat batteries (listed sizes only)
AA-cell
C-cell
D-cell
6-volt
9-volt
Coolers (food-storage; nonelectrical)
Ice chests (food-storage; nonelectrical)
Self-contained first-aid kit (already tax-exempt

Selling for $50 or less:

Tarpaulins (tarps)
Visqueen, plastic sheeting, plastic drop cloths, and other flexible waterproof sheeting
Ground anchor systems
Tie-down kits
Bungee cords
Ratchet straps
Radios (self-powered or battery-powered)
Two-way radios (self-powered or battery- powered)
Weather band radios (self-powered or
battery-powered)

Selling for $750 or less:

Portable generators that will be used to provide light, communications, or to preserve food in the event of a power outage

Note: Eligible battery-powered or gas-powered light sources and portable self-powered radios qualify for the exemption even though they may have electrical cords.