Some of them thought they hit the jackpot. They got a few payouts above what they deserved, however they just lost the big one!!! I guess the agents are in line next from an E & O stand point. Hope the agents have a flood waiver in file.
I think you may have hit the nail on the head with your lawyer comment. I detect a bit of dejection in the lawyer’s comment which follows. (From the Miami Herald)
Stuart Michelson, a Fort Lauderdale attorney who is representing homeowners in a class-action lawsuit, said “this ruling will do away with almost every case in this class against Citizens.”
He said there are some 300 homeowners in the class, with suits stemming from the 2004 hurricanes — Charley, Frances, Ivan and Jeanne.
Michelson wasn’t involved in the two cases decided by the state high court Thursday. But he had won a 2004 case in the Fourth District Court of Appeals in Broward County, which led to the cases that eventually made their way to the state’s highest court.
why carry any type of flood insurance if the hazard carrier is expected to pick up the tab. Feds won’t like that one, it’ll cut a deep hole in their pockets. Florida property owners pay a pretty penny for flood policies.
You couldn’t be more right. I have no idea as to why the plaintifs in this case did not carry NFIP flood insurance – if you don’t have a signed waiver in the file, you & your E&O carrier will be in the flood business.
The Florida Assn. of Insurance Agent’s Bob Ross & Dave Thompson have been preaching the need for a signed waiver for as long as I can remember. Probably since the inception of the NFIP.
Chances are that many of these “victims” were offered flood, had they gone to an independent agent, especially those that belong to FAIA. Ergo the suit against the carriers.
Many of the areas that flooded were not in the high risk SFHA A & V zones. In fact, there were areas that hadn’t been flooded in over 100 years. These people were probaly told by their realtor that the property “wasn’t in the flood zone,”
and they “don’t have to buy flood insurance.” This ill advice was then reinforced by the lender who also told them they not in a flood zone.
Here’s a thought, why not sue the idiots who gave out the misleading advice in the first place. They certainly profited from their association with the buyer.
It really isn’t. Just ask. People will tell you. I’ll tell you want is fair…. All the covered items and exclusions are spelled out in this little book. It is just wonderful, I read it cover to cover..had me on the edge of my seat.
1) Thank goodness for the Florida Supreme Court ruling. Fair is fair: pay for coverage and receive benefits after the fact or don’t pay and self-insure. Don’t whine. Don’t waste your money paying your attorney to get a ‘windfall’ of benefits you didn’t pay for in advance. Do you want fries with that? (Perhaps liberal arts majors make decent insurance agents, LOL!) There’s no place in the US that at some time won’t flood!
2) In 27 years in this crazy biz I’ve spent many Friday evenings reading “that little book”. The problem is that there are two very active versions of the ISO homeowners policy on the street (yep, if you are a nerd and know where to look, the 1984 version is still out there, too) plus manuscript policies by certain companies (big boys, ones you’ve heard of and write nationwide; and I mean that literally, am not picking specifically on Nationwide) and oh-my-goodness, a million “manuscript” endorsements that different Florida domestic companies tack on to policies. I just read 4 new endorsements Citizens – our Florida “market of last resort” for you folks out of state that might be reading-is offering re sinkholes, sinkhole deductibles and “catastrophic ground loss” or something like that. My head is still spinning!
I write homeowners insurance in Florida for a living and I can barely keep up with all the endorsements. AND, I’m an agent who actually READS the POLICIES as well as the underwriting guidelines! No wonder buyer’s eyes glaze over when they receive their insuring agreements! It has become very complicated, to say the least! No longer a simple little book, for sure.
3) The previous writer was correct: more flood insurance is sold in Florida than in any other state in the nation and it is absolutely due to the efforts of Bob Ross and David Thompson and the FAIA. And the new flood waiver from FAIA has folks sign off on both basic AND EXCESS flood for the BUILDING AND CONTENTS as the max in the NFIP is respectively $250,000/$100,000. I am a little worried about folks who DID buy flood insurance, generally a Preferred Risk policy, and then let it lapse. Will some attorney figure out a way to sue me because I didn’t PAY the renewal premium for them?
4) The “oh, you’re not in a special flood hazard zone, you don’t need flood insurance” mentality of real estate agents, mortgage brokers, et al, certainly works against the buyers’ interests in the long run. However, RE agents and mortgage brokers are ALWAYS looking to close a sale as inexpensively as possible and as soon as possible. If you don’t believe me, check out how the sub-prime market is doing just now! They take their money and run and I’m left, after a cat, picking up the pieces. Sic the attorneys on those guys. That would be a refreshing change!
5) Aren’t you glad you didn’t mention Charlie Crist? And the demise of PIP?
I’ve read all the comments to-date and heartily agree with the “finally someone got it right” comments. I also agree that mortgage brokers and real estate agents downplay the need for flood insurance. Sadly, many don’t understand what a homeowners policy covers and what it excludes. Someday, they’ll coordinate with the insurance industry to have more continuing education in this important aspect of their job.
If there’s a remote chance of exposure to flood damage, wouldn’t they want their own home protected? Get the facts out up front, include flood coverage, if it’s applicable, in all the calculations, discussions and estimates so the prospective homeowner knows what it will really cost to own their new home. Too many people try to cut costs to get a client into a home, then they can’t afford the actual costs of living in it! They need to be able to pay for full insurance coverage, utilities and maintenance of their home, not just the mortgage payment!
Don’t put new homeowners on the road to losing their investment; be honest and inform them of the coverages they NEED to protect their home in case of loss due to any peril they’re exposed to.
Honesty really is the best policy. I’ll bet no one has gone back to a mortgage broker or real estate agent and complained that they sold them on having flood coverage after they’ve experienced a loss due to rising waters!
I love when people take advice from someone outside the industry. Making insurance decisions based on what a realtor tells you is like going to a mechanic because you have a pain in your leg. Where does “Full Coverage” come from, I don’t know but I have a feeling (if it wasn’t started with them) it’s certainly pepetuated by auto salesmen. If you want to know about insurance, call an agent, If you want to know about a carburator call a mechanic.
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Some of them thought they hit the jackpot. They got a few payouts above what they deserved, however they just lost the big one!!! I guess the agents are in line next from an E & O stand point. Hope the agents have a flood waiver in file.
I think you may have hit the nail on the head with your lawyer comment. I detect a bit of dejection in the lawyer’s comment which follows. (From the Miami Herald)
Stuart Michelson, a Fort Lauderdale attorney who is representing homeowners in a class-action lawsuit, said “this ruling will do away with almost every case in this class against Citizens.”
He said there are some 300 homeowners in the class, with suits stemming from the 2004 hurricanes — Charley, Frances, Ivan and Jeanne.
Michelson wasn’t involved in the two cases decided by the state high court Thursday. But he had won a 2004 case in the Fourth District Court of Appeals in Broward County, which led to the cases that eventually made their way to the state’s highest court.
why carry any type of flood insurance if the hazard carrier is expected to pick up the tab. Feds won’t like that one, it’ll cut a deep hole in their pockets. Florida property owners pay a pretty penny for flood policies.
You couldn’t be more right. I have no idea as to why the plaintifs in this case did not carry NFIP flood insurance – if you don’t have a signed waiver in the file, you & your E&O carrier will be in the flood business.
The Florida Assn. of Insurance Agent’s Bob Ross & Dave Thompson have been preaching the need for a signed waiver for as long as I can remember. Probably since the inception of the NFIP.
Chances are that many of these “victims” were offered flood, had they gone to an independent agent, especially those that belong to FAIA. Ergo the suit against the carriers.
Many of the areas that flooded were not in the high risk SFHA A & V zones. In fact, there were areas that hadn’t been flooded in over 100 years. These people were probaly told by their realtor that the property “wasn’t in the flood zone,”
and they “don’t have to buy flood insurance.” This ill advice was then reinforced by the lender who also told them they not in a flood zone.
Here’s a thought, why not sue the idiots who gave out the misleading advice in the first place. They certainly profited from their association with the buyer.
Moral to the story,
Buy the Maximum Flood
AND
Buy the Minimum Homeowners.
LIVING EXPENSES SHOULD BE PAID
WHENEVER A HOME IS UNINHABITABLE.
REGARDLESS OF WIND OR WATER.
THE POLICY HAS A HURRICANE DEDUCTIBLE….
IT ONLY FAIR TO PROVIDE LIVING EXPENSES
WHEN HURRICANES MAKE THE INSURED PROPERTY UNINHABITABLE.
YOU CAN’T HAVE A HURRICANE WITHOUT WIND.
YOU CAN’T HAVE A HURRICANE WITHOUT WIND AND RISING WATER IN COASTAL AREAS.
AT LEAST,,,,TRY TO BE FAIR!
It really isn’t. Just ask. People will tell you. I’ll tell you want is fair…. All the covered items and exclusions are spelled out in this little book. It is just wonderful, I read it cover to cover..had me on the edge of my seat.
1) Thank goodness for the Florida Supreme Court ruling. Fair is fair: pay for coverage and receive benefits after the fact or don’t pay and self-insure. Don’t whine. Don’t waste your money paying your attorney to get a ‘windfall’ of benefits you didn’t pay for in advance. Do you want fries with that? (Perhaps liberal arts majors make decent insurance agents, LOL!) There’s no place in the US that at some time won’t flood!
2) In 27 years in this crazy biz I’ve spent many Friday evenings reading “that little book”. The problem is that there are two very active versions of the ISO homeowners policy on the street (yep, if you are a nerd and know where to look, the 1984 version is still out there, too) plus manuscript policies by certain companies (big boys, ones you’ve heard of and write nationwide; and I mean that literally, am not picking specifically on Nationwide) and oh-my-goodness, a million “manuscript” endorsements that different Florida domestic companies tack on to policies. I just read 4 new endorsements Citizens – our Florida “market of last resort” for you folks out of state that might be reading-is offering re sinkholes, sinkhole deductibles and “catastrophic ground loss” or something like that. My head is still spinning!
I write homeowners insurance in Florida for a living and I can barely keep up with all the endorsements. AND, I’m an agent who actually READS the POLICIES as well as the underwriting guidelines! No wonder buyer’s eyes glaze over when they receive their insuring agreements! It has become very complicated, to say the least! No longer a simple little book, for sure.
3) The previous writer was correct: more flood insurance is sold in Florida than in any other state in the nation and it is absolutely due to the efforts of Bob Ross and David Thompson and the FAIA. And the new flood waiver from FAIA has folks sign off on both basic AND EXCESS flood for the BUILDING AND CONTENTS as the max in the NFIP is respectively $250,000/$100,000. I am a little worried about folks who DID buy flood insurance, generally a Preferred Risk policy, and then let it lapse. Will some attorney figure out a way to sue me because I didn’t PAY the renewal premium for them?
4) The “oh, you’re not in a special flood hazard zone, you don’t need flood insurance” mentality of real estate agents, mortgage brokers, et al, certainly works against the buyers’ interests in the long run. However, RE agents and mortgage brokers are ALWAYS looking to close a sale as inexpensively as possible and as soon as possible. If you don’t believe me, check out how the sub-prime market is doing just now! They take their money and run and I’m left, after a cat, picking up the pieces. Sic the attorneys on those guys. That would be a refreshing change!
5) Aren’t you glad you didn’t mention Charlie Crist? And the demise of PIP?
A Supreme Court apparently without activist judges who rightly only interpret a law or contract instead of expanding it?
Now if only the US Supreme Court could learn this.
I’ve read all the comments to-date and heartily agree with the “finally someone got it right” comments. I also agree that mortgage brokers and real estate agents downplay the need for flood insurance. Sadly, many don’t understand what a homeowners policy covers and what it excludes. Someday, they’ll coordinate with the insurance industry to have more continuing education in this important aspect of their job.
If there’s a remote chance of exposure to flood damage, wouldn’t they want their own home protected? Get the facts out up front, include flood coverage, if it’s applicable, in all the calculations, discussions and estimates so the prospective homeowner knows what it will really cost to own their new home. Too many people try to cut costs to get a client into a home, then they can’t afford the actual costs of living in it! They need to be able to pay for full insurance coverage, utilities and maintenance of their home, not just the mortgage payment!
Don’t put new homeowners on the road to losing their investment; be honest and inform them of the coverages they NEED to protect their home in case of loss due to any peril they’re exposed to.
Honesty really is the best policy. I’ll bet no one has gone back to a mortgage broker or real estate agent and complained that they sold them on having flood coverage after they’ve experienced a loss due to rising waters!
I love when people take advice from someone outside the industry. Making insurance decisions based on what a realtor tells you is like going to a mechanic because you have a pain in your leg. Where does “Full Coverage” come from, I don’t know but I have a feeling (if it wasn’t started with them) it’s certainly pepetuated by auto salesmen. If you want to know about insurance, call an agent, If you want to know about a carburator call a mechanic.