There are many things you have to consider before you buy a policy from Florida home owners insurance companies. You also have to take some time to consider the car that you are going to buy before you take a policy from auto insurance FL companies. Your choice of home or car can directly affect the cost of your insurance. So if you want to save on your insurance premiums, make sure that the house and car that you will purchase will qualify for certain insurance discounts or privileges.
To reduce your insurance premiums, you have to consider the general condition of the house that you are going to purchase. For example, if you are going to buy an older house, its interior components such as wall plasters, flooring and ceilings may be too costly to replace. So these will increase the cost of your Florida home owners insurance. The condition of the roofing can also reduce or increase your insurance premium. Make sure that it is in good shape and will not need much repair or replacement. Auto insurance Fl companies also look into the age of the vehicle to determine the premium you need to pay. Older vehicles may require expensive maintenance than new cars. Your auto insurance premium payments therefore can be higher or lower depending on the age of your vehicle.
Your location can also influence the cost of your home or auto insurance. Because you are living in Florida, you will be prone to hurricane and storm disasters especially if you live in the Gulf area. So instead of getting standard Florida home owners insurance, you may be forced to get a comprehensive insurance that covers hurricane damages. Naturally, this will be more expensive for you. The same is true for car insurance. Auto insurance FL companies usually offer higher premiums if you are regularly traveling on a high risk highway. High incidence of car theft can also increase your premium payments. So better consider these things before you purchase properties or a car.
Consider buying safety and security gadgets for your house and car before you take policies on them. Florida home owners insurance companies and auto insurance FL services can provide lower premiums if you show that you have adequate protections for your properties. You may have to invest on anti burglar alarm system, home camera security, and anti theft devices for cars to get the best deals from insurance companies. These gadgets are very affordable nowadays. So with a little investment on safety and security devices, you will be able to enjoy big savings on your monthly insurance premium payments.
There are many things you can do to reduce your insurance premium payments. You have to consider several factors such as age of your house and vehicle and safety features and devices that you need to install. Such factors will determine if the insurer will give better deals for you. Your location is very critical also because it can directly affect the cost of your monthly premiums.
Front and center are the estimated 700,000 State Farm Florida home insurance policies that are expected to be cancelled over a two year period - that's over 29,000 policies that will be cancelled each and every month for two years. Regardless of your perspective, this is the most significant event that has ever occurred in the history of the Florida homeowners insurance market - and you could not pick a worse time for this to happen.
To begin with, many of the home insurance policies that will be dropped by State Farm Florida will occur at the exact same time that Citizens Insurance Florida will be moving forward with higher rates in 2010 as required by law.
Although dumping on big insurance in Florida has become one of our favorite things to do, here are some little known facts that won't ever make the coverage of State Farm Florida's planned withdrawal from the state:
Customers of State Farm Florida love this company, its customer service, the multiline discounts, and the fast and fair claim service they received from the company after the 2004/2005 Florida hurricanes.
When State Farm Florida policyholders are asked to rate their satisfaction with State Farm on a scale of "1-10" many give them a satisfaction rating of "10" even if their policy is being dropped by the company!
Although State Farm Florida's 47% rate increase was turned down prior to their withdrawal announcement, most of the data that we are collecting says that the annual premiums State Farm Florida policyholders are paying are among the lowest in Florida - partially from the multi-line discounts and also due to the significant wind mitigation credits that many customers are receiving.
None of the above changes the fact that State Farm Florida is leaving the Florida home insurance market. Given this reality here are some things that you need to be aware of if you are a customer of State Farm Florida and you want to take action in response to this announcement.
First you need to realize that your State Farm Florida Insurance Agent is not currently allowed to present you with any other Florida home insurance companies for you to consider except for Florida's state run insurance company of last resort - Citizens Property Insurance Corporation - which by its own admission is currently underfunded and overly dependent on borrowing in unfriendly bond markets to pay major hurricane claims.
As you look for companies to replace your State Farm Florida home insurance policy, many of you will be facing increases that range from 70% to over 200% on your annual premium.
Expect to see a dramatic difference in your new Florida home insurance company - both in terms of the size of the financial surplus it has available to pay your claim and in the headcount it has available for customer service and claims processing. State Farm Florida has more surplus available to pay claims than most of the 40 companies that are still writing new Florida home insurance business combined!
Much of the advice that you've received as a State Farm Florida policyholder has been that you should not take any action now and that you should wait for your Florida home insurance cancellation notice. If you take that advice you could be very sorry in Florida's dysfunctional home insurance market:
For starters, you've heard about many Florida home insurance companies that want to pick up your State Farm Florida home insurance policy. Don't assume that there will be plenty of policies with a new company to go around when your State Farm Florida policy is cancelled.
Some of the companies that initially stated their interest in picking up State Farm Florida policies have tightened up their underwriting guidelines and become more selective about the kind of homes they will accept. Since the State Farm Florida exit announcement, two companies that had expressed interest in taking on some of the policies have had their licenses temporarily suspended.
Many of the State Farm Florida policies being cancelled are homes that were built between 1950 and 1981 - before the stronger Florida Building Codes of the 1990's - not exactly the kind of homes that Florida home insurance companies are going to be anxious to cover.
Because of the financial shortfalls at both Citizens Property Insurance Corporation and The Florida Hurricane Catastrophe Fund, if there is a major Florida hurricane during the 2009 season, don't expect any companies to be willing to pick up your policy when State Farm Florida cancels it starting in 2010.
Here's what you should do right now if you are a State Farm Florida home insurance policyholder:
Don't wait until you receive your cancellation notice - start shopping for a new company right now!
Call several Florida independent home insurance agents that represent multiple homeowners insurance companies and find a new private insurance policy before June 1st when the 2009 hurricane season begins.
Do in depth research on all of the Florida home insurance companies you are considering. If you receive a letter from a company offering to pick up your policy, don't accept their offer until you have thoroughly investigated them.
Don't accept your State Farm Florida home insurance policy being moved into Citizens Property Insurance Corporation unless you have personally done the research and confirmed that there aren't any private Florida home insurance companies who want to cover your home.
Finally, as a veteran of the Florida home insurance market, you know that finding a new insurance company in Florida has always been difficult from the days of Hurricane Andrew in 1992 right through to today.
That's why you have to start shopping for a new policy now. Don't wait for State Farm Florida to cancel your policy. If you do, you'll have the unpleasant experience of scrambling and competing with 29,000 other State Farm policyholders who will be looking for a new Florida home insurance policy at the exact same time that you are.
It's a game of musical chairs that you have to avoid at all costs!
Both Britney Simpson & Michael Letcher are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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