Florida is too 'unpredictable' for some insurance companies

Moorehand

There are seven good reasons why i n s u r a n c e companies are shy of doing business in F l o r i d a : A n d r e w , J e a n n e , Wilma, Dennis, Ivan, Charley and Frances.

Additionally, the forecast for the 2006 hurricane season calls for a 195 percent increase in tropical cyclone activity, Wallace Moorehand told the Women's Council of Realtors last Friday.

"Florida's too unpredictable," Moorehand said.

Many of the companies that continue to insure property now insist it be one, two, three or as many as 10 miles away from the ocean, and they must be homes that meet the Florida building code of 2001. If the companies write contracts at all, they are requiring a 300 to 400 percent increase in premium because of the cost of reinsurance.

"Hurricane Andrew hit Homestead, Fla, population 40,000 to 50,000. It was a $16 billion storm. The scary reality is that if that storm hit 50 miles north of there, it would have hit Miami. That big scary reality is still out there," Moorehand said.

Last year, Hurricane Katrina resulted in 1.7 million claims. Hurricane Wilma resulted in 955,000 claims. Wilma was a category five storm costing $10 billion.

"We have reached the point where a $10 billion storm does not make the news," he added. "Only half of those roofs have been repaired." Moorehand said the cost of repairing a new roof is about $5,000 but a dilapidated roof will result in a $50,000 claim.

Moorehand said the total value of insured coastal exposure in Florida is $1,937.3 billion, and that he heard on the Weather Channel that conditions are ripe for a hurricane category 8.

"That's a tornado the size of a hurricane," Moorehand said. "Evacuate early. Shutters don't matter. Get to middle America before you stop running. Go farther than where you evacuated before because a lot of Katrina folks are still there."

He said that if something like Katrina hits here, residents should evacuate to a location where they are likely to be for six months to a year.

"Take all your tools," Moorehand said, so you can make a living in your new location.

Moorehand said he recommends securing flood insurance with a traditional company even if your location in a wind pool area requires Citizens Property Insurance wind coverage. With a traditional company your agent will work on your behalf to dispute your hurricane claim.

"The truth about flood insurance is that if you have a Florida zip code, you need flood insurance," Moorehand said.

He cautioned that people are not leaving the state, but instead the population is growing, with Florida having some of the fastest growing counties in the nation, adding to the density along the coastlines.

"Hurricanes are the cost of living in a beautiful, crime-free area with peace and quiet and calm," Moorehand said. "When I meet a new resident, I ask them just like Clint Eastwood, 'do you feel lucky?"