For the past two decades, Florida has had perplexing issues regarding commercial wind policies and deductibles. This dilemma began in the aftermath of hurricane Andrew in August of 1993.
Fortunately, Andrew’s land fall strike was several degrees South via Southwest of the City of Miami resulting from a complete catastrophe not only from South Florida but in essence, the entire insurance industry within the State Of Florida.
Unfortunately, the State Of Florida at this time, did not take counsel from admitted insurers thereby yielding and allowing gradual rate increase through time. Had this been executed. many admitted insurance carriers would have continued to procure commercial property coverage within the state of Florida. This in turn would have limited and curtailed the overall total amount of written property exposure with Citizens Insurance Company.
Citizens Insurance has engaged in writing and securing well over their capacity as to total volume, exposure, premium and reinsurance to facilitate their margin call for funding.
Plausible solutions for commercial wind coverages should be inclusive of total values to be insured whether 1 building or several overall total amounts of values, commonly known as Insurance To Value, i.e TIV.
These values must be appraised by entities segregating land value and replacement value of the physical structure or structures themselves, not by insurance carriers.
Case and point is personal Homeowners policies that Citizens Insurance demands be insured according to their reasoning and replacement cost value.
It is also imperative to consider what your options are as to deductibles offered and percentages and keeping in mind your Flood insurance values that need to be congruent with your Hazard Policy.
Most risk management actuarials have determined that most of Florida is a flood prone state. Proper assimilation and expert consultation from your insurance agent and or broker is vital to proper risk management and proper breakdown of individual policies. Call your agent and or broker to discuss all possibilities, options and premiums.
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