Insurance Commissioner Kevin McCarty Extends 'Use and File' Policy
Hope for Florida Homeowners Dealing with Managed Repair

If you are not concerned about property insurance coverage for water damage in Florida, you should be. In a recent article the Sun Sentinel reported that DeerfieldBeach-based People’s Trust Insurance became the most recent property insurance company in Florida to *exclude coverage of water damage on homes over 40 years old*. In it’s place, People’s Trust offers $10,000 in limited coverage for water damage as an option on it’snew property coverage policies.

This article brings to light several important issues and lists the names of many of the insurance companies that are using this type of policy. The only savings anyone will ever see is the insurance company. Consumers will see little if any savings in their premiums yet be exposed to the one hazard which could ruin their lives – water damage. The $10,000 cap can be quickly eroded by just the cost of drying out a home let alone beginning water damage repairs.

Can you imagine renovating a new home, a $40,000 – $50,000 project including new kitchen cabinets, new flooring, new trim, paint, furnishings and then come home to find a flood in your home from a broken water line? You’re charged $6,000 – $8,000 for drying out the home by a restoration company leaving you a balance of 3- 4k to repair 40-50k worth of damage.

First is how and why the Florida Department of Insurance is approving these policies, These changes can be devastating to a family who very well may never be able to completely repair a home after an incident. The 2nd point is that consumer laws continue to be eroded by the Florida legislature as they continue to weaken existing laws made to protect consumers which allows the insurance companies to make these requests and the Florida department of insurance to approve them.

Consumers need to be more vocal with their Florida legislators now. Later is too late. Many of the issues that have been simmering in the insurance industry will only come to light when a large event strikes Florida and the masses then see the mess the legislators and the department of insurance have created.

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