A response received today from the State of Florida when I questioned whether your insurance could be terminated if you have livestock. Their response essentially says if you have an older home (25 years or more) or livestock, you are screwed - great consumer services in the State of Florida...NOT: STATE OF FLORIDA DIVISION OF CONSUMER SERVICES DEPARTMENT OF FINANCIAL SERVICES Dear Ms. Curry: Thank you for contacting the Florida Department of Financial Services with your insurance questions. We appreciate the opportunity to serve you. Homeowner’s insurance underwriting guidelines will vary between insurers. However, below are a few of the most common issues a company reviews when determining to issue or re-issue a policy or not: The age of the home: Many insurers will not insure a home that is 25 years old or older. Those who will may charge a higher premium. Some will require that a pre-inspection be completed (by a licensed contractor) before they will grant coverage. The cost of the initial inspection is normally assumed by the applicant. Subsequent inspections may be performed and usually will be paid for by the insurance company. Some of the items the company will want inspected are listed in the next paragraph. Please note: F.S. 627.7018 states an insurer may not deny coverage solely on the basis of the age of the structure and must consider the wind resistance of the structure and measures undertaken by the owner to protect the structure against hurricane loss. The age of the roof, plumbing, electrical wiring, etc. If you have an older home, the insurance company will want to know when all these items were last replaced/upgraded. They may also require inspection of one or all of these items prior to granting coverage. If these items have been replaced, the insurance company will require documented proof if they agree to waive the inspection. Again, the cost of the inspection is normally assumed by the applicant. The location of the home: Many insurers will not insure a home located in a high risk area. Those who will may charge a higher premium. Most insurers will not cover the peril of wind if your home is located in the wind pool area. It is not uncommon to see insurance companies place restrictions on the number of new policies they will write in a given area. The occupancy of the home: Most insurers will not insure a home that is occupied by someone other than the owner or that is vacant. Animals on the premises: Most insurers will not insure a home that is located on farm land, with animals. It is also very common for an insurer to deny coverage to an owner that has any of several breeds of dogs. (Pit Bull Dog, Doberman Pinscher, Shepherd, Rottweiler, etc.) Please note: this is not a complete list of unacceptable dogs. You may find a company that will let you sign exclusion for the dog(s) and grant coverage but others will not. You will also find that some companies will limit the number of pets you may own. If you own too many, they consider you a breeder, a business on the premises, and they may deny coverage. Claims experience of the applicant: All insurance companies will consider your claims history. An insurance company can deny coverage for all claims above one “act of God” claim. Credit history of the applicant: All insurance companies will consider your credit history/credit score when underwriting the risk. Also, please note an insurance company cannot cancel a policy that has been in effect for 90 days, except for material misrepresentation, nonpayment of premium, failure to comply with underwriting requirements, a substantial change in the risk, or when the cancellation is for all policies in a given class of insureds. In a cancellation notice, the insurance company must site the specific reason for the cancellation. Thank you for the opportunity to be of assistance. For additional information on insurance or financial matters, please visit us on the web at myfloridacfo/Consumers. If you would prefer, you can speak to one of our Insurance Specialists by calling our Consumer Helpline at 1-877-693-5236 between 8:00 am and 5:00 pm EST. Sincerely, Rob Powell DFS Insurance Specialist III FLORIDA DEPARTMENT OF FINANCIAL SERVICES • DIVISION OF CONSUMER SERVICES myfloridacfo/Division/Consumers Rob Powell • DFS Insurance Specialist III 200 E. Gaines Street • Tallahassee, FL 32399-0322 Toll-free: 1-877-693-5236 • Direct: 850-413-3089 • Fax: 850-413-1550 Email: rob.powell@myfloridacfo Affirmative Action • Equal Opportunity Employer
Posted on: Mon, 29 Jul 2013 19:36:20 +0000
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