Hurricane Insurance Cancelled and Swimming in Hot Bay and Ocean Water. By Geniusofdespair

It is the beginning of the hurricane season and our homeowners insurance was cancelled. The property is about about 5 miles inland and not in a flood zone -- about 10 feet above sea level. It is starting folks. Remember, this is not flood/wind insurance. It is Homeowners. Luckily this policy will take us through the summer.

I have been around in the bay and ocean the past few weekends. The water temperature is already abnormally hot -according to our Garmen Sonar GPS- it was 89.4 degrees in the Bay yesterday. I went to Bill Baggs too, it was hotter there and weeds were everywhere.  It was actually cooler in No Name Harbor. What a bust our beaches have become. I have swam during the summer and never found it this hot at the beginning of July. I wrote about Crandon a few days ago.

We had record breaking ( nearly doubled the previous record)  warm winter water temperatures in Biscayne Bay that concerned scientists:

"The main concern for Brian McNoldy is if the warm record trend continues as the seasonal average increases. This would put Biscayne Bay on target to see temperatures close to 100-degrees by the summer. It’s something that seems unlikely but will be monitored given the current trends."

This is air temperature graph, not water temperature, since 1908, but hot hot hot!!!

My hot tub is at 104 degrees. Could we reach that level soon? I can't stand that temperature for more than 15 minutes. Is going in the water to cool down a thing of the past?

Our EYES are really quite good at Eye on Miami: Heritage Insurance. By Geniusofdespair

Heritage Insurance CEO Bruce Lucas, Greedy Bastard!

As usual, my radar for bad stuff in campaign reports is on target.

Of course you all remember my post of June 29th when I was looking at Joe Martinez's campaign money. Who am I kidding  -- none of you remember. At one point I asked - in bold letters - about all the Heritage Insurance money flowing into Miguel Diaz de la Portilla's campaign AND Joe Martinez's campaign:

What does this Insurance company  want so desperately in Miami Dade County?  

Well don't you know that today, reading the rag (Miami Herald) there was an article about none other than Heritage Insurance. They want to raise rates in Florida by an average of 14.9% (don't look for the article on-line I couldn't find it).

According to the Palm Beach Post, Florida Homeowners would pay 25% more while the CEO Bruce Lucas is making $27.3 Million (quadrupled salary in one year). According to the Post, that is 50 times what the CEO gets paid at Citizens Insurance. Heritage Insurance contributed $110,000 to Rick Scott. So I have now answered my own question of June 29th, on why they are giving to Miguel Diaz de La Portilla's and Joe Martinez's campaign:

HERITAGE INSURANCE WANTS MORE MONEY!
So do NOT vote for who they support.

What do they offer, no surprises here, flood insurance! Gimleteye warned about insurance increase, last week in a Greenland post:

I'm thinking of beach erosion on the east coast, that so far has only put a few communities in harm's way. I'm thinking of extreme weather events that are piling up but have yet to affect the wealthy or insurance rates or forced evacuation of cities. I'm thinking of mass migrations out of sub Saharan Africa and parts of the Mideast, where temperatures are so high and drought so ferocious that whole populations are on the move. 

 

What happened to flood insurance in Congress? … by gimleteye

Miami Beach resident and senior Time Magazine correspondent Michael Grunwald wrote an excellent report on Congress' failure to reform flood insurance. It is a complicated issue that boils down to the question whether Americans who do not live on coastlines should subsidize the risk of those, like us, who do. Grunwald makes the problem easily understandable here:

Hell and High Water
• Michael Grunwald @MikeGrunwald
May 19, 2014, Time Magazine

Deep Trouble. Two years ago, lawmakers fixed our broken flood insurance system. Then they broke it all over again.

Here’s a rainy-season parable about cooperation in American politics: In July 2012, Republicans and Democrats came together during a bitter campaign season to enact sweeping reforms to the National Flood Insurance Program, phasing out subsidies for hundreds of thousands of property owners in flood-prone areas, dragging a debt-ridden program toward fiscal and ecological sustainability.

Insurance Award Miserable Mistake Governor Rick Scott. Guest Blog by Uninsured

 Neighbors, have you bought any wind storm insurance from Peoples Trust Insurance Company lately? Governor Scott thought enough of this company to award them the “2013 Enterprise Florida Governor's Innovators in Business Award” on January 21, 2014.

What a warm and fuzzy way to acknowledge a company that is currently dropping 20,000 policy holders in a tri-county area because they sold more policies than they have the reserves to cover. This company is dropping everyone who has had coverage written in the past 90 days.

During the presentation ceremony Governor Scott said that, "Florida’s economy has made a huge upturn thanks to businesses like the ones being recognized today. These outstanding companies have worked hard to create jobs and improve our economy. Florida families are able to live the American Dream with the help of the successful, innovative companies that call Florida home. I am thankful to these companies for their help in making Florida a great state for business and congratulate them on their achievements.”

In reality, I own a home three months outside the 2014 hurricane season with no wind storm, no premises liability, no fire and theft insurances.

I am now competing with 20,000 other people looking for the same type of overages. And we all were given a whopping 20 days’ notice before the coverage lapses. Even better for me, I paid an entire year in advance, so I have to wait on the refund of the money remaining from my premium. A helpful employee at the insurance company advised me to find insurance soon and then I would get my money sooner. Need I point out that they are collecting interest on my premium while I wait for the money?

Rick Scott is the business maven that backed Citizen’s Insurance into a corner gutting the legal department; forced them to raise their rates; pushed the constituents of this state into insurance companies like Heritage (that’s one of his buddies, see the Miami Herald) and into newly created underfunded companies like Peoples Trust --- only so he could brag during the election cycle that he controlled the state’s out of control hurricane insurance industry as well as created jobs.

People’s Trust Insurance Company does not meet underwriting criteria and yet, our dimwit governor gives the company an award stating how innovative they were.

People’s Trust grew from 162 employees to 425 employees. The insurance company brought in 45,000 new policy holders, and within 57 days of receiving the Governor’s Innovation/Entrepreneurship Award, they dump 20,000 NEW policy holders. Innovative, indeed! Even Governors can be suckers, not just us plain folk.

Citizens Getting Shafted on Windstorm Insurance. Guest Blog By Outofsight

Florida residents, we need to contact our State Representatives and Senators ASAP as we are getting blown-off on windstorm insurance by the screw-ups in Tallahassee!

Monroe County state representative Ron Saunders just lost on several amendments (along with you and the rest of Florida property owners) as the Florida House of Representatives voted along party lines rejecting two amendments he proposed that would have helped people with wind storm policies:

The first amendment would have capped increases in Citizens windstorm rates to no more than 5% per policy until an "actuarially sound" rate is reached; the original bill (HB1495) included a 10% increase which, when compounded, would essentially result in a nearly 50% increase within 4 years. The second amendment would have held assessments to 15% per account. HB1495 increases these assessments to 25% per account.

Florida Senate Bill 1950 includes some provisions which may be good for Florida's consumers, and some which will be bad.

We should support Senator Fasano's helpful amendment to implement a "glide path" that does not exceed 5% annually per policy for these reasons:

Because this is a compounding increase, the proposed 10% increase will equate to over 45% in just four years, again making wind insurance unaffordable.

There is no solid definition yet of "actuarially sound" rates which are the goal or the target towards which the glide path is heading. Current insurance models do not accurately reflect local building codes or the distinction between damage from water vs. wind, thus there is not as yet an adequate definition or agreement about what an "actuarially sound" rate may be. So, without agreement or definition of the target, the current legislation is an open-ended opportunity for increases in excess of inflation for an indeterminate future. At least by limiting the increase to 5%, we will have time to incorporate these factors (building strength, wind vs. water) into the models and develop consensus on actuarial soundness before bankrupting consumers.

At the 5% annual increase, the potential assessments in the case of a 100-year event would be reduced by 40% within about 5 years.

On the other hand, the property owners cannot support Senator Fasano's terrible measure to eliminate all coastal wind policies from Citizens Property Insurance Corporation, simply because there is no viable alternative for many homeowners along the coast. At this point, windstorm insurance is required by most banks and lenders for anyone with a mortgage, this provision could stop any further recovery in our ailing real estate market and state economy. If a property owner can’t get windstorm insurance, then it will be just another excuse to withhold credit by the bailed-out lenders.

To contact the senators:
Florida Senate
E-Mail Addresses
atwater.jeff.web@flsenate.gov
fasano.mike.web@flsenate.gov
diazdelaportilla.alex.web@flsenate.gov
lawson.al.web@flsenate.gov
richter.garrett.web@flsenate.gov
smith.chris.web@flsenate.gov
alexander.jd.web@flsenate.gov
bennett.mike.web@flsenate.gov
ring.jeremy.web@flsenate.gov
storms.ronda.web@flsenate.gov
villalobos.alex.web@flsenate.gov
baker.carey.web@flsenate.gov
aronberg.dave.web@flsenate.gov
dean.charlie.web@flsenate.gov
oelrich.steve.web@flsenate.gov
deutch.ted.web@flsenate.gov
altman.thad.web@flsenate.gov
crist.victor.web@flsenate.gov
gaetz.don.web@flsenate.gov
garcia.rudy.web@flsenate.gov
gelber.dan.web@flsenate.gov
haridopolos.mike.web@flsenate.gov
hill.tony.web@flsenate.gov
justice.charlie.web@flsenate.gov
lynn.evelyn.web@flsenate.gov
peaden.durell.web@flsenate.gov
pruitt.ken.web@flsenate.gov
rich.nan.web@flsenate.gov
siplin.gary.web@flsenate.gov
wilson.frederica.web@flsenate.gov
wise.stephen.web@flsenate.gov
bullard.larcenia.web@flsenate.gov
constantine.lee.web@flsenate.gov
detert.nancy.web@flsenate.gov
dockery.paula.web@flsenate.gov
garcia.rudy.web@flsenate.gov
gardiner.andy.web@flsenate.gov
jones.dennis.web@flsenate.gov
joyner.arthenia.web@flsenate.gov
king.jim.web@flsenate.gov
sobel.eleanor.web@flsenate.gov

A special thanks to FIRM for the timely update. They are a 501c(6) corporation entirely financed by donations and entirely operated by volunteers. To learn about this citizen’s group go to www.fairinsuranceratesinmonroe.com/ . While they are from Monroe County, they represent the interests of all of us with property insurance issues in Florida.

Townhouses, Insurance and Hurricanes: Lessons NOT learned. Guest Blog by YouBetcha'

This past weekend on visits to three different South Dade townhome developments, which are ALL currently developer owned, their association documents did not require that the homeowner associations provide windstorm insurance for each building through a common policy. Why should we care?

Back in 1992, Hurricane Andrew mowed through South Dade. Tragically, it leveled entire sections of South Dade. Hurricane Andrew painfully affected two little communities by the names of Naranja Lakes and Sea Pines. Its mighty power killed residents, changing lives and this community forever.

The residential area called Sea Pines can be viewed on the southwest side of the Turnpike on the way to the Florida Keys. It is now, as it was then prior to Andrew, a community of single story row houses (or attached townhomes).

Following Andrew, as South Dade struggled to come back from its devastation, Sea Pines and Naranja were years behind in the recovery process. After many legal issues, Naranja Lakes was plowed under and finally has risen again as the Mandarin Lakes community.

Sea Pines was not as lucky Naranja Lakes. It has entire sections that are still tainted with the hard times the community has faced over the past 16 years. One of the critical issues faced by the 1992 owners of the row houses were delays in rebuilding caused by owners of individual units. Either they were without hurricane insurance or they took their hurricane insurance money and abandoned their rebuilding effort. This resulted in totally rebuilt units attached to units that were qualified for demolition. The Homeowners Association was dysfunctional and ineffective. The community slid down into poverty, unable to rise above being a sad reminder of unenforced insurance requirements and homeowner association regulations.

South Dade is facing another hurricane season and the lessons learned at Sea Pines has fallen to the wayside. This past weekend on visits to three different South Dade townhome developments, which are ALL currently developer owned, their association documents did not require that the homeowner associations provide windstorm insurance for each building through a common policy. Each sales representative was asked if they had heard of Sea Pines. They had not.

In turn, each representative was asked what would happen if in a four-unit row of homes, unit 3 did not have windstorm or fire insurance and there was a disaster. The answer was that it could not happen; mortgage companies require it. This is not always true in every circumstance as illustrated by Hurricane Andrew and South Dade or by current homeowners sitting without windstorm insurance.

When offered the scenario where the unit 3 owner bought the unit cash, lived out of the area, chose to not repair it and then bailed out on the property -- The sales people were less enthusiastic about answering questions.

At least one sales representative stated she had not considered that issue and it could be a problem for the neighbors and homeowner association. That representative was from a Lennar community in an economically challenged area. When asked why the association documents were written that way, she said it allowed them not factor in the cost of insurance into the monthly association fees. Lennar, by the way, is a company whose housing bubble was partially inflated by the cash money coming into their South Dade market from South American customers. The other two communities were Cali Greens and Santa Barbara Townhomes in Homestead.

Given the magnitude of legal issues at Naranja Lakes that were caused by absentee owners (no one to be found to sign over the abandoned property), and Sea Pines’ downfall resulting from insurance issues and abandoned units, how can the Miami-Dade County Mayor and County Commission allow the very same circumstances to potentially occur year-after-year?

Did we not learn anything from Hurricane Andrew?

Throw State Farm Insurance Out of Florida! By Geniusofdespair

(Hit image to enlarge it.)

Simple: If State Farm won't carry our property insurance don't let them do ANY INSURANCE BUSINESS IN THE STATE OF FLORIDA.

No cherry picking State Farm! Insurance Companies tried this years ago in New Jersey. When the State refused to let them write any auto policies they backed off.