Courtesy of iii.org

The cost of insurance fraud is a cost all policyholders wind up paying. Consider that fraud adds about $34 billion each year to the property/casualty insurance sector’s incurred losses in the U.S. That equates to about 10 percent of the cost of insurance. The victims of this fraud are…..everyone.

Florida CFO Jeff Atwater heads the state’s Bureau of Insurance Fraud, which consists of 117 sworn officers plus support staff. He’s been championing fraud awareness and recently published a newsletter with a story about an Orange County man who paid someone to torch his car. This person filed an insurance claim, got paid, got found out – and got jail time. The newsletter said the arson claim cost the insurance company $10,000, and it may cost the perpetrator up to 20 years in jail.

The state has a fraud tip line: 1-800-378-0445. There is also an online form for reporting fraud. We’re in this fight against fraud together.

Courtesy of iii.org

As of this morning, there have been nearly 40,000 insurance claims filed due to damage from Hurricane Matthew. Those numbers will surely rise in the coming days as people continue to find damage to their property related to the storm that hit Florida a mere four days ago.

The Florida Office of Insurance Regulation released Matthew claims data on October 12. About 90% of the claims were for residential property damage. So far, there have been 1,800 flood claims reported by people with flood policies through the National Flood Insurance Program, and 28 claims for private flood insurance, which is coverage outside the government program.

Hardest hit county in terms of total claims reported is Volusia. Duval and Brevard counties also reported significant numbers of insurance claims.

Here’s a tip: If you had minor damage from the storm, and it was below the percentage hurricane deductible, it’s still a good idea to let your insurance company know. Florida has a calendar year deductible for hurricane damage. That means damage from one storm counts in the event another hurricane hits in the 6 remaining weeks of Hurricane Season 2016.

Be sure to review our information on settling insurance claims after a disaster to get more insight on the process and the recovery.

Courtesy of iii.org

Water damage is one of the most common and costly disasters affecting U.S. residences, accounting for billions of dollars in losses to homeowners and renters annually. However, consumers can protect themselves with the right amount and type of insurance coverage.

Standard homeowners and renters insurance provides coverage for burst pipes, wind driven rain and damage resulting from ice dams on your roof. Some policies cover sewer and drain backups, but many do not; however, you can purchase a sewer backup rider to a homeowners or renters policy for approximately an additional $50 each year, with the policy limits varying depending upon the insurer.

Generally speaking, water that comes from the top down, such as rainfall, is covered by a standard homeowners insurance policy, while water that comes from the bottom up, such as an overflowing river, is covered by a separate flood insurance policy. Flood insurance can be purchased from the federal government’s National Flood Insurance Program (NFIP), and from some private insurers.

The average flood insurance policy costs $540 a year, according to the NFIP. For homeowners, the maximum amount of coverage available from the NFIP is $250,000 for damages to the home’s structure, and $100,000 for losses to its contents. There is a 30-day waiting period for a flood insurance policy to go into effect. For those who want coverage beyond the limits offered by an NFIP policy, excess flood insurance is available from a number of private insurance companies.

Properly maintaining a home is one of the best ways to prevent water damage. A homeowner can prevent water seepage by painting water-sealant around the basement, and avert a sewer backup by installing and maintaining a backwater valve which allows sewage to go out, but not come back in.

The Institute for Business & Home Safety offers the following tips:

Inside Your Home

• Inspect hoses and faucets. Check hoses leading to water heaters, dishwashers, washing machines and refrigerator icemakers annually. Replace those with cracks or leaks, and replace them all every five to seven years.

• Inspect showers and tubs. Check the seal and caulking around showers and tubs to make sure they are watertight.

• Shut off the water supply to the washing machine while away on vacation, and never leave the house while the washer or dishwasher is running.

• Know the location of the main water shut off valve in your home. A damaged hose or a burst pipe can send water racing into your home. By knowing where this valve is located and how to shut off the main water supply, you can save yourself time and money.

• Install an emergency pressure release valve in your plumbing system. This will protect against the increased pressure caused by freezing pipes and can help prevent your pipes from bursting.

• Check pipes. Look closely for cracks and leaks and have the pipes repaired immediately.

Outside Your Home

• Caulk and seal windows. Preventive maintenance will guard against water seepage.

• Inspect your roof. Look formissing, damaged, and aging shingles.

• Check your downspouts. Remove debris that may have accumulated in downspouts and rain gutters. Position downspouts so that they direct water away from the house.

• Check sprinklers and irrigations systems. Be sure sprinklers and irrigation systems are not damaging the walls and foundations of the house; turn off and drain outside faucets to protect against frozen pipes.

• Install gutter guards.Gutter guards are the device used to protect the clogging of the roof gutter so that the water from the roof may flow easily and accumulation of water does not take place on the roof but away from the house.

Courtesy of iii.org

Life insurance can form a vital part of your family’s financial stability and well-being but, if you’re like most people, you may find the thought of shopping for the right type of coverage a little daunting. Fortunately, these eight simple steps can guide you along the way.

1. Determine whether you actually need life insurance. Most people do, but not everyone. If no one depends on you financially, if you have no debt and would leave an estate with enough cash to pay its own taxes and expenses, you probably don’t need life insurance. If you do not meet these criteria, you probably will need individual life insurance.

2. Calculate how much life insurance you need. There are two important questions to ask:
   1. What financial resources will be available to survivors after your death? For simplicity, consider three categories of resources: (1) Social security and other retirement-related survivor benefits; (2) group life insurance; and (3) other assets and resources. It is also important to know when these resources will become available—for example, social security survivor benefits are payable immediately to a surviving spouse with dependent children, but only after age 60 if there are no children.
   2. What financial needs will your survivors have after your death. For simplicity, consider three categories of requirements: (1) final expenses; (2) debts; and (3) income needs.
   3. Then subtract your survivors’ financial resources (step #2) from their financial needs (step #3) to determine how large a policy to buy. Many people are underinsured, often because they skip these steps or take a shortcut (such as simply buying a multiple of annual income). For more help in determining the right amount of life insurance, see: How Much Life Insurance Do I Need?

3. Consider other objectives you may have for your life insurance. Some types of life insurance policies include a savings feature that can be used for purposes other than paying death benefits.

4. Determine what type of life insurance best meets your needs. Essentially, there are three types of life insurance policies—term life, whole life and universal life. If you need the insurance for only a specific period of time, or are on a limited budget, a term policy, which has lower premiums, may be a good fit. If, however, you need the insurance for as long as you live and want to accumulate savings, a whole or universal policy may be a better choice.

5. Find out if you need to add any “riders” to the policy. There are two that you should consider—waiver of premium and guaranteed insurability. Some policies come with one or both included with the basic contract but, if not, it is generally a good idea to add them. Waiver of premium pays the life insurance policy premium for you if you are disabled. Guaranteed insurability permits you to add to the death benefit without providing additional evidence that you are in acceptable health.

6. Shop around. There are many ways to save money when buying life insurance, but they don’t always entail paying a lower premium immediately. That said, life insurance is a very competitive business so quotes can vary significantly between companies.

7. Decide whether to pay premiums annually. In most cases, it is better to pay annually rather than in installments because there is often a relatively large additional charge for paying smaller amounts more frequently.

8. Tell your beneficiaries about your life insurance policy. Once the policy is issued, inform your beneficiaries the company that issued it, where to find the paper copy of the policy and any specifics about what you want them to do with the death benefit. While is rare for people to be unaware they are the beneficiary of a life insurance policy, it does happen and you want to make sure that the benefit will not go unclaimed. And store your documents so that they can be easily accessed by your beneficiaries.

Courtesy of http://www.insuringflorida.org/florida-alert-5-days-into-hurricane-season-3-named-storms-already/

We have entered the 2016 hurricane season, and Florida is on alert for a tropical system. It’s the third named storm of the year, and did I mention we are only 5 days into hurricane season? Pay attention please. There has never been 3 storms named this early in the season, which began June 1 and continues through November 30. Keep track of things locally, through the national Weather Prediction Center or through state weather status updates from the Division of Emergency Management.

Complacency is the biggest threat to storm preparation. Maybe you don’t scare easily. Maybe you were well prepared every year since the storms of 2005 shook us up. But since then, many people have let their guard down, meaning they relaxed their vigilance. Consider this a reminder that it is time to ramp up your defenses. Here is a hurricane season checklist to put into action – now.

Is your insurance up to date? Have you talked with your insurer in the last year to make sure your coverage is up to date? If you rent, here’s a renter’s insurance checklist so you are protected if a storm blows through.

This storm is named Colin, and AccuWeather said it will likely track through northwestern Florida and race across the northern part of the state. Effects of this storm system are already being felt since it’s been raining in most locales all day today. Hopefully, it’s no big deal. And, hopefully, it can prove to get the attention of those who yawned at hurricane predictions over the past 10 years.

No one (ever) knows for sure what tomorrow brings. But if you know for sure that you have the basics covered, you’ll sleep better tonight.