wind policy/homeowners insurance question (2009, mortgage, broker)

[ls4montess]

Hi, this is my first post to this forum. longtime lurker. I currently have a homeowners policy with Southern Fidelity and a windstorm with Citizens. for some reason, citizen wants me to reapply for the windstorm. they claim thay my house is underinsured. the house itself unsured for $175,000 and they want to update the coverage to $295,000 . I currently owe $65,000 on the house.

first question is is it my option to declare what coverage amounts I want?, or am I stuck with the $295,000 coverage derived via a special insurace valuation software program along with a $1,800 increase to the windstorm policy

2nd question, will be beneficial to combine my regular homeowners and windstorm under citizens. my house is 1700 sq. feet, 3/2 in miami shores.

Thanks.

[sunrico90]

Originally Posted by ls4montess

Hi, this is my first post to this forum. longtime lurker. I currently have a homeowners policy with Southern Fidelity and a windstorm with Citizens. for some reason, citizen wants me to reapply for the windstorm. they claim thay my house is underinsured. the house itself unsured for $175,000 and they want to update the coverage to $295,000 . I currently owe $65,000 on the house.

first question is is it my option to declare what coverage amounts I want?, or am I stuck with the $295,000 coverage derived via a special insurace valuation software program along with a $1,800 increase to the windstorm policy

2nd question, will be beneficial to combine my regular homeowners and windstorm under citizens. my house is 1700 sq. feet, 3/2 in miami shores.

Thanks.

1st question, I believe (I can be wrong) that you need to keep insurance for the value of the home. Just call other insurance companies and ask for a quote and ask the question.

2nd question: Yes, you should get a better quote...

Suggestion use an insurance broker in your area, can give you a better rates.

Also check Office of Insurance Regulation might find answer or can ask the questions.

[SouthAfrica75]

Citizens shouldn't be tell you how much coverage to have. It is up to the customer as to what amount they want. And, if you under insure youself, that's your problem not theirs.

Just remember that even though your house maybe worth lets say $150,000. It may cost to rebuild at todays cost $200,000 if you had a total loss. So it would cost you out of pocket $50,000 if you under insure yourself.

I would combine insurances as you may get a lower rate for both.

Also as mentioned above, head over to an insurance broker or 2 and get their advice etc.

[cats_pawn]

Unfortunately in Florida insurance companies CAN tell you what coverage amount you must have, or they refuse to sell you a policy.
i.e. if your home will cost $250K to rebuild,(square footage x cost to rebuild based on current costs) and you tell Citizens I only want coverage for the amount of my mortgage amount, they can refuse to sell you a policy.

regarding "And, if you under insure youself, that's your problem not theirs. "

while that seems logical to me, that apparently isn't the case.
The insurance companies claim that this leaves them open to being sued when someone's house has been demolished.
[to me it seems simple: if your policy covers $150K and gets destroyed in the next storm, you only get $150K.]
Apparently people have sued and won, so now the insurance companies won't sell you a policy based on the amount you want coveage for.[this is what Citizens told me, and also another insurance company as well]
[usually your mortgage company backs them up on this : most won't accept policy coverage for the amount you owe only]

[My mortgage balance is $45K,and even when my mortgage company in the past was comfortable with my carrying insurance to cover the amount I owe them, the insurance companies won't sell me a policy for only $50k]
The only thing I can think of that might be beneficial is to get your home inspected by a professional building inspector to determine your home's accurrate square footage and a report detailing the cost to rebuild it,as opposed to just letting the insurance company decide the cost to replace your home. (in many cases the square footage on file is off)
You might want to call Citizens first though to make sure what type of inspector & report they would consider in making the determination. (so you don't spend money for an inspection and then find out they don't consider that type valid)

If you find anything useful on the Fla Office of Insurance Regulation website, please post it here.
My experience with them has been (thus far) that they aren't helpful.
When I've called them regarding a problem or question, they simply call your agent and have them call you to discuss it.
[I am capable of calling my agent,so having them take my problem and just leave a message for my agent, seems useless]
As an example, after Hurricane Wilma, when I got my claims checks, I noticed they deducted 2 deductables from my checks. When I called the insurance company to ask what each deductable was for, they said one was for windstorm, one was for hail. [on your wind policy where it shows deductable ,it usually says something like $1000/$500]
I asked if there was hail during Hurricane Wilma, they said no.
So I asked, why was I charged two deductables, they said that I had to ask the adjustor.
???
When I called the office of regulations, they just called Citizens to say I had questions & to call me.
Anyway if you find out anything useful, please post here.

[Cougar Beach]

Originally Posted by cats_pawn

....

Interesting stuff. Out of curiosity, did the insurance company fix your two deductible problem? The could just have 200 different deductibles and never pay anything on any claim, otherwise.

[ls4montess]

thanks for the responses everybody, as some may know this year, all houses east of 1-95 basically have to o be re-appraised in order to continue windstorm insurance through citizens. one funny thing i found is that my house was appraised for $295k to rebuild, yet a friend of mine who lives just 1/2 mile south in a less affluent area and closer to the water than me, in a larger house was appraised for $200,000 to rebuild. I guess materials and construction lobor cost more in more affluent areas to build the same house.

[ls4montess]

oh yes, one more question. can it be benefecial to shop around for windstorm insurance through citizens or will the cost be basically the same no matter which agent you choose

[cats_pawn]

ALWAYS SHO AROUND FOR INSURANCE, EVERY YEAR.
I check yearly. Up until now I haven't found a policy lower than I have through Citizens ( for identical coverage) but if you don't shop around, you'll never know.
I have a very old house , built 1949, so my insurance is higher than someone who's home was built more recently.
So if your home is newer, you might find better rates from other companies, I personally don't know.

[ray1945]

Originally Posted by cats_pawn

ALWAYS SHO AROUND FOR INSURANCE, EVERY YEAR.
I check yearly. Up until now I haven't found a policy lower than I have through Citizens ( for identical coverage) but if you don't shop around, you'll never know.
I have a very old house , built 1949, so my insurance is higher than someone who's home was built more recently.
So if your home is newer, you might find better rates from other companies, I personally don't know.

My house was built in '64. My insurance is with State Farm for $260,000. My 2008 premium was $4200 UNTIL we had a mitigation inspection done. Premium dropped to $1800. 2009 premium is $1912.
If you haven't had a mitigation inspection done, do it ASAP.

[planetsurf]

^^^ Yes! ^^^

The mitigation inspection helps a lot. If you don't have shutters or hurricane windows it basically pays for itself in 5 years to have your windows replaced.