[vpcats]

Hello everybody.

I am currently paying $6489/yr HOI premium, which was renewed in December and it is paid/built into my escrow.

I may have an opportunity to change over to Citizens and pay about $2600 for a year. The current insurer (which Citizens had sold my policy to 2 years ago) would have to refund my escrow for the remaining months.

I will be meeting with a broker tomorrow morning at 9 AM who said he would have to do a mitigation, one time fee of $160 and I'd have to have an inspection.

New amount with Citizens sounds like I won the lottery, if it's true and I can switch.

Do any of you see any problems with this? Cancellation of current coverage mid stream? Mitigation and Inspection? Going back to Citizens now?
What could happen? What should I look out for?

Thank you.... I'd like to get some advice before I meet with the broker tomorrow AM.

PS. I'm in Miami.

[SunshineState]

Originally Posted by vpcats

Hello everybody.

I am currently paying $6489/yr HOI premium, which was renewed in December and it is paid/built into my escrow.

I may have an opportunity to change over to Citizens and pay about $2600 for a year. The current insurer (which Citizens had sold my policy to 2 years ago) would have to refund my escrow for the remaining months.

I will be meeting with a broker tomorrow morning at 9 AM who said he would have to do a mitigation, one time fee of $160 and I'd have to have an inspection.

New amount with Citizens sounds like I won the lottery, if it's true and I can switch.

Do any of you see any problems with this? Cancellation of current coverage mid stream? Mitigation and Inspection? Going back to Citizens now?
What could happen? What should I look out for?

Thank you.... I'd like to get some advice before I meet with the broker tomorrow AM.

PS. I'm in Miami.

The reason you HOI is so high right now is probably due to the fact that you are with a “take out” company like Homewise or Florida Peninsular, or possibly an un-regulated surplus company. I am deep in the insurance issues and have been to Tallahassee several times and met with the Governor a few times and am involved with a large consumer coalition fighting the insurance increases. During the Special Session we were able to get some changes, especially for Citizens Insurance. That is why it will be much lower than what you are currently paying. I have NEVER heard of a mitigation fee or an inspection from Citizens that would cost you $160 and believe that may be directly from your agent. That is one thing I would ask lots of questions about and also ask for proof that those charges are coming from Citizens and not your agent, and why do you need mitigation to go back on Citizens because according to the new law you can go back on Citizens Insurance if what you are currently paying is 25% higher that what you WOULD be paying if you were on Citizens Insurance. As far as canceling your policy mid stream there are a few things I would check on that also. If your escrow has paid for your insurance already then with SOME un-regulated and surplus lines of insurance they can legally keep up to 80% of your premium. If I were you I would put off my meeting tomorrow until the next business day and make some phone calls. You can call ANY agency that writes insurance to get a quote from Citizens. Example: Call Statefarm and get a quote for Citizens, then call Allstate for a Citizens quote, then call AAA. I would be willing to make a bet that all three places will give you a different quote even though it is all for Citizens Insurance. I can explain why but it is very long and detailed but do your homework and don’t always believe what your agent is telling you even if you have had that agent for many years…shop around and ask lots of questions.

[vpcats]

Thank You Sunshine State.

That's good info. Citizens sold me to Gulfstream. This is my 2nd year with them. I was at about $2200 with Citizens and the first premium with Gulfstream went to $3800 and the 2nd to the $6489. I had called my agent and he said that there were only two other companies covering where I live and that since my house is more than 20 years old, they wouldn't cover me so I didn't change anything.

This is a different broker that a friend of mine recommended to me yesterday. She switched from another company also just recently but she had had this broker when she owned a couple of apt. bldgs (sold when she divorced). Her premium also went down dramatically.

I made the appt so I could actually speak to him in detail in person. I don't like to do these things over the phone, and his office is very close to me. I don't have to sign anything I suppose but I could go just get all the info and do further shopping around before finalizing anything.

I know Gulfstream had sent a notice with the premium about getting mitigation quotes if I felt there were any improvements that could reduce my premiums. The inspection part is the one I'm not sure why.
Also, this guy did say "a one time mitigation charge of $160". Does sound fishy.

How would I know if this Gulfstream would keep 80%?

Thank you so much. This is definitely very helpful.

[SunshineState]

Originally Posted by vpcats

Thank You Sunshine State.

That's good info. Citizens sold me to Gulfstream. This is my 2nd year with them. I was at about $2200 with Citizens and the first premium with Gulfstream went to $3800 and the 2nd to the $6489. I had called my agent and he said that there were only two other companies covering where I live and that since my house is more than 20 years old, they wouldn't cover me so I didn't change anything.

This is a different broker that a friend of mine recommended to me yesterday. She switched from another company also just recently but she had had this broker when she owned a couple of apt. bldgs (sold when she divorced). Her premium also went down dramatically.

I made the appt so I could actually speak to him in detail in person. I don't like to do these things over the phone, and his office is very close to me. I don't have to sign anything I suppose but I could go just get all the info and do further shopping around before finalizing anything.

I know Gulfstream had sent a notice with the premium about getting mitigation quotes if I felt there were any improvements that could reduce my premiums. The inspection part is the one I'm not sure why.
Also, this guy did say "a one time mitigation charge of $160". Does sound fishy.

How would I know if this Gulfstream would keep 80%?

Thank you so much. This is definitely very helpful.

Below I have listed some ways you can save on your insurance.
As for keeping the 80% they have to tell you that if you call them and say you are thinking of canceling your coverage to change providers. I still say the "one time fee" of $160 dosen't sound right. We have worked with many insurance agencies and I have yet to hear that so like I said call around. Good Luck and if you have any other questions feel free to send me a private message if you would like.

GET A REPLACEMENT COST APPRAISAL
A replacement cost appraisal can save you hundreds or even thousands of dollars. Citizens Insurance Corp., as well as other insurance companies will accept any appraisal from a Florida certified appraiser as long as the appraisal reflects the cost of replacing the building and done within the last 12 months. The most common appraisals are the Exterior-Only Appraisal ($175 to $275) and the 1004 Full/URAR Uniform Appraisal ($325 to $400). HAC has a few appraisers listed on our website that are charging reduced rates due to the insurance crisis.
"Replacement cost" is the amount needed to repair the damage or to rebuild the home to its pre-loss condition. For insurance purposes, the replacement cost of a home is NOT the market value of the home, its purchase price or the outstanding amount of any mortgage loan. It does not include the value of the land, but is the cost of rebuilding your home.

GET SEVERAL INSURANCE QUOTES
Insurance agents can give you a quote at any time and use a what is called a “Replacement Cost Estimator” along with county tax records to determine that quote, but if not done correctly can cost you thousands. Some agents are more knowledgeable and ask more detailed questions than others which can help you save on your policy. That’s why HAC recommends more than one quote. Also note, you can only change agents when your policy is up for renewal. By having a “Replacement Cost Appraisal” the agent must use that replacement cost amount which is often thousands less then the RCE.

OTHER WAYS TO SAVE ONCE YOU KNOW YOUR REPLACEMENT COST AND ARE WILLING TO TAKE MORE RISK (Which is better then losing your home
because you can’t afford your homeowners insurance)

· Choose “No” for Replacement Cost Contents (you will only get the depreciated amount for your contents).

· Raise your Deductibles on Hurricane (from 2% to 5% or 10%) and All Other Perils
(from $1000 to $2500, if your mortgage company will let you).

MORE INFORMATION YOU SHOULD KNOW

· Having a hip roof can save you hundreds on your policy under Windstorm Mitigation.



Hip Roof Gable Roof

· If you have a bathroom that has a sink, toilet and shower without a tub that is a ¾ bath and can save you over $20 on your policy’s premium.

· Make sure an agent doesn’t add a Surcharge for No Prior Coverage if you already have an insurance policy (whether it’s Citizens or another insurance company).

[SKB]

I know this post was for VPCATS but I felt it was helpful to me as well.
Thank you so much SunShineState.
You have provided the most valuable information I have seen on this site in a long time.

I certainly will look for you when we make our new home purchase in 2008.

[121804]

Ditto to the above!!! useful, practical, & helpful! Thanks!

I even wrote down some of the info.

[vpcats]

Originally Posted by SunshineState

Also note, you can only change agents when your policy is up for renewal.

Sunshine. I am confused about that statement. I can change coverage companies (Gulfstream to Citizen) but not AGENTS until my renewal date?

So I would have to do all this with my current agent vs the new one I would be seeing this morning? My policy is not up until December.

[SunshineState]

Originally Posted by vpcats

Sunshine. I am confused about that statement. I can change coverage companies (Gulfstream to Citizen) but not AGENTS until my renewal date?

So I would have to do all this with my current agent vs the new one I would be seeing this morning? My policy is not up until December.

Sorry to have confused you. You can call any agent for a quote and when you find the one (agent/quote) that is best for you then you can change agents and insurance companies.

[Donna-50]

Does that mean if I do a refi I would be able to use that appraisal as long as it isn't more than 12 months old.

[vpcats]

Quickie update-
I went to speak with that agent today. He gave me a quote from Citizens which is $4000 less than I currently have. However, I would have to have no coverage currently. I would have to cancel my existing and he would issue a certificate to pick up Citizens at the same time. He was going to get some other quotes through Lloyds of London and US Brokers (?) and get back to me.

The $160 is for mitigation inspection - my roof, hurricane shutters, etc.

In the meantime, I will make a few calls myself tomorrow as Sunshine State suggested.

I also called my current agent asking what would I have to do to cancel existing coverage. They got very nervous and they asked me for 24 hrs to see what else they could do for me.