Every coverage limit on your policy requires close attention, but Coverage C is something you should spend a little time thinking about. This coverage section sets the amount of money you will have to replace your personal belongs and if you will receive actual cash value or replacement cost value for those items. The amount of money you will have is called the coverage limit and the settlement method is wither actual cash value or replacement cost.
 
The Coverage C limit is typically set as a percentage of Coverage A which is how much your home is insured for. We frequently see policies where the Coverage C limit is set at 50%. That means if your home is insured for $200,000 you would have $100,000 to replace your damaged personal belongings. But wait, we also see the settlement method set to actual cash value. So, you may have $100,000 available to replace your stuff, but you are only going to receive the depreciated value of each item, not what it costs to replace the item.  That TV you purchased 4 years ago for $400 may only be worth $50 now. Or that pair of jeans you paid $50 for may only be worth $5 now. See how this could be a big problem. You may have $100,000 worth of stuff and $100,000 available to replace that stuff, but you are only going to get the depreciated value which may be significantly less than $100,000.  Do you want to go to the thrift store to replace your stuff? Do you want to come up with more money, in addition to your deductible to buy new stuff?
 
We never recommend actual cash value for this very reason.  Most insureds want to have their belongings replace with brand new items and the want the money it would take to do that. We always recommend the replacement cost settlement method. Using the example above, you would be able to go out and buy brand new stuff and you could spend up to $100,000.  Replacement cost coverage does cost a little bit more, but when you think of it as a percentage of your total insurance premium it is not much at all.
 
One last thought. Again, using the example above, do you have $100,000 worth of stuff?  You should take some time and figure out what it would cost to replace all your belongings. Let us say when you get done you decided it would only take $80,000 to replace everything. Then you would buy 40% coverage which would give you $80,000 using the example above. In turn, $80,000 of coverage cost less than $100,000 so the difference in premium between actual cash value and replacement cost may end up being very small.
 
Let us help you evaluate your policy and see if you are paying for the right coverage levels. Click Here to contact us or call (954) 678-2658

We get this question a lot, so we are glad it is an easy one to answer.  You normally have two deductibles on your homeowner’s insurance here in Florida. The All Other Perils (AOP) deductible and your Hurricane deductible.  If the damage is caused by named storm (tropical storms and hurricanes) then you must pay your Hurricane deductible for the insurance company pays for any damage.  All other damage would be in your All Other Perils (AOP) deductible.
 
Also, remember that the AOP and Hurricane deductibles can be either a fixed dollar amount or a percentage of your Coverage A which is what your home is insured for. If your deductible represented as a percentage, remember the deductible is not a percentage of the cost of damage but rather a percentage of what your home is insured for. So, if your home were insured for $200,000 and you had a 2% deductible then you are responsible for the first $4,000 of the cost to repair damages.
 
Let us know if you have a question or would like us to review your coverage by Clicking Here or call us at (954) 678-2658

What is Flood Insurance? Flood insurance is the specific home insurance coverage against property loss from flooding. To determine risk factors for specific properties, insurers will often refer to topographical maps that denote lowlands, floodplains and flood ways that are susceptible to flooding.
 
Nationwide, only 20% of American homes at risk for floods are covered by flood insurance. Most private home insurance companies do not insure against the peril of flood due to the prevalence of adverse selection, which is the purchase of home insurance by persons most affected by the specific peril of flood. 

Flooding is defined by the National Flood Insurance Program as a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or two or more properties (at least one of which is your property) from: Overflow of inland waters, unusual and rapid accumulation or runoff of surface waters from any source, and mud flows

This can be brought on by landslides, a hurricane, earthquakes, or other natural disasters that influence flooding, but while a homeowner may, for example, have earthquake coverage, that coverage may not cover floods as a result of earthquakes.

Click Here to learn more about the right amount of flood coverage for your home or give us a call at (954) 678-2658.

Home insurance, also commonly called hazard insurance or homeowner's insurance (and often abbreviated in the US real estate industry as HO1), is a type of property insurance that covers a private residence. 

It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one's home, its contents, loss of use (additional living expenses), or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory.

Typical Home Insurance CoveragesSection I — Property Coverages

• Coverage A – Dwelling
  Covers the value of the dwelling itself (not including the land). Typically, a coinsurance clause states that if the dwelling is insured to 80% of actual value, losses will be adjusted at replacement cost, up to the policy limits. This is in place to give a buffer against inflation. HO-4 (renter's insurance) typically has no Coverage A, although it has additional coverages for improvements.
• Coverage B – Other Structures
  Covers other structure around the property that are not used for business, except as a private garage. Typically limited at 10% to 20% of the Coverage A, with additional amounts available by endorsement.
• Coverage C – Personal Property
  Covers personal property, with limits for the theft and loss of particular classes of items (e.g., $200 for money, banknotes, bullion, coins, medals, etc.). Typically, 50 to 70% of coverage A is required for contents, which means that consumers may pay for much more insurance than necessary. This has led to some calls for more choice.[14]
• Coverage D – Loss of Use/Additional Living Expenses
  Covers expenses associated with additional living expenses (i.e. rental expenses) and fair rental value, if part of the residence was rented, however only the rental income for the actual rent of the space not services provided such as utilities.
• Additional Coverages
  Covers a variety of expenses such as debris removal, reasonable repairs, damage to trees and shrubs for certain named perils (excluding the most common causes of damage, wind and ice), fire department changes, removal of property, credit card / identity theft charges, loss assessment, collapse, landlord's furnishing, and some building additions. These vary depending upon the form.
• Exclusions
  In an open perils policy, specific exclusions will be stated in this section. These generally include earth movement, water damage, power failure, neglect, war, nuclear hazard, septic tank back-up expenses, intentional loss, and concurrent causation (for HO3).[15] The concurrent causation exclusion excludes losses where both a covered and an excluded loss occur. In addition, the exclusion for building ordinance can mean that increased expenses due to local ordinances may not be covered.[16] A 2013 survey of Americans found that 41% believed mold was covered, although it is typically not covered if the water damage occurs over a period of time, such as through a leaky pipe.[17]
• Floods
  Flood damage is typically excluded under standard homeowners and renter’s insurance policies. Flood coverage, however, is available in the form of a separate policy both from the National Flood Insurance Program (NFIP) and from a few private insurers. [18]

Section II — Liability Coverages

• Coverage E – Personal Liability
  Covers damages which the insured is legally liable for and provides a legal defense at the insurer's own expense. About a third of the losses for this coverage are from dog bites.[19]
  
  Have a question? Give us a call at (954) 678-2658 or Click Here to ask your question.

Almost every Florida insurance policy will have something similar to this following the declarations page:

LAW AND ORDINANCE: LAW AND ORDINANCE COVERAGE IS AN IMPORTANT COVERAGE THAT YOU MAY WISH TO PURCHASE. PLEASE DISCUSS WITH YOUR INSURANCE AGENT.

After the storms hit across Florida in 2005 and 2006, The Florida legislature passed legislation to mandate Ordinance or Law coverage of at least 25% be offered. Florida statute 627.7011 requires all admitted Homeowners insurance carriers in Florida to offer both 25% and 50% Ordinance of Law options.  Some insurance carriers offer an additional percentage option of 10% but that requires a written request by the insured. The only policy forms that are required to offer this coverage are homeowners forms HO3 and HO6.  That means owner occupied single family, town house or condominiums homes.

What is meant by 25% and 50%?  The Ordinance or Law coverage limit is represented as a percentage of what your home is insured for also referred to as Coverage A.  So, if you purchase 25% Ordinance or Law coverage and your Coverage A is $200,000 then you would have $50,000 dollars available for Ordinance or Law coverage.

This does not mean Ordinance or Law coverage is included in your policy. It simply means the insurance company must offer it to you. For you to have this coverage you must elect it at an additional cost.

Ordinance or Law can be a key component when your home is damaged. This coverage kicks in as follows: to cover the costs of bringing your house up to code; demolition costs to the undamaged portion of your home, increased construction costs and to cover the cost to bring you home up to code as required by your local city our county. You should consult with your insurance agent and read your policy for a full explanation of what is covered.

Do you need it? You home insurance is designed to cover the costs associated with replacing your home if a total loss or repairing you home is partially damaged as it was before the damage. It does not cover the coast of bringing your home up to current building code or other building code related requirements. These costs can add up quickly!

For example, your local city our county may require the total demolition of your home if it sustains damage greater than or equal to 50% of the home in addition to bringing your entire home up to current building codes.  Without Ordinance or Law coverage you will be responsible for these costs. What type of codes would require updates? Some examples would include your electrical box, heating, cooling, hot water heater, ventilation systems, windows, doors, roof, and possibly your foundation.
​
This type of situation can come up with homes of all ages, but certainly for older homes not built to current building standards and requirements, so it is our recommendation that homeowners carry this coverage. The cost is very affordable, so why leave yourself uncovered? We can help you determine the right percentage and answer any questions you might have.  Just give us a call and we will be happy to help or Click Here to send us your question.

Remember the old Goldilocks story; Not to hard, not to soft, but just right.  The same idea applies to homeowners insurance. If you buy more than you need you’ll be paying more than you should. If you buy less than you need, then you’ll be under insured at the time of loss and could face tens of thousands of dollars in out of pocket costs.

According to The Weather Channel, the 2020 Atlantic Hurricane season is expected to be more active than usual. They are forecasting eighteen named storms, nine hurricanes and four major hurricanes.  It's May in Florida and that means is time to start preparing for this season.  To help everyone, the 2020 Disaster Preparedness Sales Tax Holiday was passed by the Florida Legislature and signed into law by Gov. Ron DeSantis. The sales tax holiday begins May 29th and extends through June 4th this year. A good place to begin is by visiting the American Red Cross site for their Hurricane Safety Check List.  To open the check list follow this link CHECK LIST.

In compliance with county, state, and federal guidelines Teal Insurance Management has moved all employees to remote working environments.  Although our office is not open to walk in customers, our staff is still working normal business hours to assist new and existing clients with their insurance needs. 

Question:
​Do you need to let your homeowners insurance company know you are refinancing your mortgage?

Answer:
Yes. Once you receive the commitment letter for your refinance, you should call your insurance company or insurance agent.  You'll need to provide the name, address, phone number, and account number for you new mortgage so your policy information can be updated, proof of insurance can be sent, and your new mortgage company can be billed for your insurance renewal premium.

Florida homeowners will see their insurance rates rise again in 2020. The vast majority of the domestic Florida insurance companies have asked the Florida Office Of Insurance Regulation for rate increases ranging from single to low double digits. For example, National Specialty Insurance Company was forced to appear before state insurance regulators to justify their requested 28.1% statewide increase. Another company, Capitol Preferred Insurance Company, was also called to appear to justify their request for a 36.5% premium increase. Yet Another, Edison Insurance Company, requested a 21.9% average premium increase. Other requests include: