Sinkholes Suck

Earthquakes, tornadoes  floods, hurricanes, and landslides cost homeowners millions of dollars in damage each year; us Floridians have always focused our attention to hurricanes, but with growing number of sinkholes being reported the focus is shifting.  

Sinkholes are naturally occurring holes in the surface of the earth.   They can form gradually over time as the underground water dissolves layers limestone bringing the soil with it or suddenly.

In addition to Florida being made up of a young very weak, porous, Limestone that is easily weathered by the extreme conditions endured throughout storm season. Pumping from aquifers increases the chances of formation. As well as droughts that cause low ground water levels, that reduces the support of a cavity or the combination of low ground water then heavy rains or floods. 

Sinkholes can also be caused by growing population and development. The changes in drainage patterns, construction, and heavy traffic all have impacts. Building in areas like “sinkhole alley” with limestone depth less than 200 feet are examples of the modern sinkholes that we see on the news today. 

Whether natural or man induced, there are many types of sinkholes. The most common three are:

• ·        “Solution” sinkholes: when the limestone is exposed at the surface or covered by a thin  layer of soil leaving the limestone subject to physical and chemical process that break downs the rock forming a cavity or void. These type develop slowly, but are continuous.
• ·        “Cover-subsidence” sinkholes: when the sand layer is around 50-100 feet with very little clay around it. As the limestone dissolves, sand falls in filling the void. These types are known to not get very large in diameter or depth due to the sand fill.
• ·        “Cover-collapse” sinkholes: when the solution cavity develops in the limestone that the overlaying cover material can no longer support the weight. Greater chance of collapse when the limestone aquifer is below level.

Certain Signs that a sinkhole is about to open up.

-Slumping trees or fence posts

-Formation of small ponds where they had not been before

-Wilting of small area of vegetation in circular pattern

-cracks in building foundation

If you notice signs

-provide safety for your family. Evacuate if necessary

-secure or move valuable possession safely

-Notify your insurance company

-Mark the sinkhole or property with tape or rope to signify danger. 

 * You could be held liable if someone is injured.

For those who are buying a home...

• Be sure that the house is insurable. Is sinkhole coverage included in your policy?
• Hire a home inspector that can find signs of potential activity (especially in central-western Florida)

C.Y.A. (Cover Your Assets)

Rule #1 Cover Your Assets

We are over a month into storm season, you have prepped the yard, your family emergency plan and supply kit are stocked and in place, but what about your insurance? Let the images still haunting us from last years destruction be the extra motivation insurers need to take a much closer look at their policies this year. 

You have worked hard for what you have, so why would you risk it to something as unpredictable as mother nature? Isn't it better to be over prepared then not prepared enough and with changes in the future

1. Do you have your insurance in order? Have you read your policies? Do you understand exactly what is covered for the money you are spending? A standard homeowner insurance policy only protects you from wind and wind driven rain, water that is on the ground is covered under a flood insurance policy. Do you have one? It takes about 30 days for a new policy to take effect...For more information visit National Flood Insurance Program (NFIP)  
2. In your home gone from room to room and photograph and/or video the contents of that room. Electronics, clothing, furniture, art work, etc. You will also want to scan all important documents and policies that you have before sealing them in a water proof bag. Save the photos and scans to a hard drive that you can store safely in a safe location outside your home. Also store a PDF copy on your phone. 

• Property Insurance 
• Boater Insurance       
• Renters Insurance           
• Flood Insurance                
• Wind Only Insurance           
• Auto Insurance                    
• Health Insurance              
• Life Insurance

Post Storm Claims

• Immediately report property damage to your agent, they will arrange a time to visit and assess the damage.                                
• Any emergency repairs you have to make, document and keep all receipts, videos, and photos to submit with your claim.
• During the claim process, keep a log of who and when you spoke to anyone involved in the claim. Also a brief summary as to what was discussed.
• When dealing with contractors, get copies of estimates including the dates it would be completed, & payment schedule. To check their license contact the FL Dept. if Business and Professional Regulations 850-487-1395

We never know what mother nature will bring or the damage she will leave behind. 

Being prepared for the worst is the best way to protect your family and your investment. 

  *If you have a smartphone check to see if your insurance company has a app that you can download ahead of time. 

Watch vs. Warning, do you know the difference?

June 1st - November 30th 

Tropical Storm/Hurricane WATCH is in specified area of watch within the next 48 hours. During a  hurricane watch is when you want to prepare to take immediate action to protecting your family and investments.

Tropical Storm/Hurricane WARNING is in specified are of the warning in the next 36 hours. During this time is when you want to complete all preparations.

*Tropical storm is a severe offshore storm developing in tropical seas with less than hurricane for winds, can develop into a hurricane.

*A hurricane is a type of tropical cyclone that forms in the southern Atlantic Ocean, Caribbean Sea, Gulf of Mexico, and in the Eastern Pacific.

BEWARE! Hurricane 2013 is here!

Floridians & East Coasters...tis' the season to be prepared for the WORST!!

Whether it is a Cat 1 or a Cat 4, you need to be ready for anything and everything that these destructive storms can throw at you. We have seen the media plaster the pictures of damage from past storms such as Hurricane Sandy,Katrina, Wilma, Andrew, as well as aftermath of Oklahoma tornado devastation. As a Floridian, we learn to take it as it comes, but we tend to not blink at a smaller storms. The problem with that is you cannot predict mother natures plan. As a homeowner you cannot take the risk, you are protecting not only your family, but also your investment. So ask your self...

Am I ready? 
Here are a few questions to ask yourself...

What is the plan for my family? Will we evacuate or stay home?
Are we in a flood zone? Will we HAVE to?

Evacuating? Where to? What is the best route?
           Will your pets be able to accompany us? Is a pet friendly hotels an option?

Is my home ready?
- Is my roof up-to-date & secure?
- What about storm shutters? generator?
- Yard debris free?

How is our Emergency Supply Kit? Stocked: Food? Water? Batteries? First Aid? 

Is my insurance current? What are my deductibles? 

Do I have a current inventory of my home and boat?
Pictures/Video of each room and all of the contents?

What will I do with my boat/waverunner?
On a trailer? Will it fit in my garage?
In a marina? What are the dockage policies for storms? Is there a Hurricane Club?
What does the Coast Guard dockmaster advise

What to be prepared for?
-Loss of electricity
-No roof
-Severe water damage
-No way to get money out of bank
-No credit cards
-No grocery store/ gas station
-No car- debris blocking streets
-No phones (land or cell)
-No trees
-Not recognizing surroundings
-$5 bags of ice
-lost personal belongings
-Warlike setting with military presence
-Extreme heat and no way to cool off
-Out of home possibly for weeks
-Not able to work
-Chaos!
-Devastation!

Let your smart phone help:
American Red Cross
American Red Cross: Hurricane
American Red Cross: Tornado
American Red Cross: Shelter
FEMA
FloodSmart.gov

Floods, Hurricanes, and Tornados, Oh My!

Floods, Hurricanes, and Tornados, Oh My! 

Florida is famous for weather related problems and those weather related problems cause insurance problems. Problems that lead to the cost of insurance is one of the main concerns for buyers when purchasing in Florida. Anyone that works in real estate sales or the mortgage industry has to be capable of addressing legitimate concerns of clients when it comes to the cost of homeowners insurance. To do that you must be familiar with the history of Florida’s insurance issues over the years.

Over the last forty years Florida has been one of the fastest growing states in the US. Florida, also known as The Sunshine State is known for its sandy beaches and beautiful coastline, it is not hard to figure out where people want to live. The most desired location is of course the hardest hit when it comes to hurricanes and floods.

In the aftermath of 1992’s Hurricane Andrew Category 4 devastation that cost insurance companies more than $25 million, smaller companies closed and larger insurance companies were able to petition the state for a massive premium increase to help cover their losses. It took until 2004 for them to catch up, leaving many of the smaller insurance companies hesitant to write policies in Florida. Homeowners were left with rising insurance rates and cuts to the coverage just in time for not one or two or even three, but four major storms in one hurricane season throwing the insurance industry in to complete chaos. The next season brought even more destruction with five major storms including Katrina, the most expensive Atlantic hurricane in history. 

The vast number of claims submitted to insurance companies still in business lead to a large number of policy holders to be dropped while others joined the mass "evacuation" that started in the wake of Andrew.

As for real estate agents, they understood that the only thing worse than expensive insurance was no insurance at all. The banks will not close on a loan without proper proof of insurance. So Citizens Property Insurance Corporation was put into action in 2002, to ensure that Florida home owners, no matter where they lived would have access to property insurance. The more other insurance companies dropped their policy holders the more Citizens evolved from the last resort insurance to the largest insurance provider for the state. Since Citizens is a tax-payer funded insurance company, this created new issues, potentially every homeowner in the state could be on the line for claims. 

With the cost of insurance and its availability becoming an important hot topic during the 2006 Florida elections, Citizens Insurance charged its customers the highest rate approved by the Office of Insurance Regulation to avoid competing with private carriers. Insurance agents were actually prohibited from writing policies through Citizens if there was a private (not surplus lines) carrier who would write the risk. If a qualified insurance company was willing to take a group of policies, Citizens Insurance would transfer them to that company and cancel coverage. Customers had no recourse.

As a result Florida Senate Bill 2498 a.k.a. The Glitch Bill, was signed into law by Governor Christ in June of 2007. This legislation permitted agents to write a Citizens policy for customers if the premium for a comparable policy offered by a private carrier was 15% more expensive. Customers were also allowed to stay with Citizens Insurance if they were notified that their policy was being assigned to a private carrier.

In 2010, eight global insurance carriers entered or re-entered the Florida market. While the cost of reinsurance dropped 10% the cost of insurance to consumers remained the same.

Which brings us to February of this year, Florida Sen. Jeff Brandes filed Florida Senate Bill 724, a comprehensive bill to overhaul Florida property insurance law to avoid new "hurricane taxes" which would be necessary if another catastrophic hurricane ravaged the state. The proposal is unpopular among many Citizens customers because it would mandate more rate increases to what they consider to be already high premiums. A similar bill was defeated in 2012.

I hope this helps you in understanding the many issues that can effect a successful closing of your home purchase and the added demands of homeownership.