Home Owners Insurance Deductible Relief

[Chuck Waters]

Is there such a thing? I'm trying to find some information for a friend whose home was severaly damaged by Frances, then it really got messed up by Jeanne. He believes he heard a report on WFTV (Orlando) about deductible relief. I can't find anything.

He also heard mention that it ended on 10/1.

Any insight would be greatly appreciated.

[Sanibel]

The only thing I've seen is a low-interest FEMA loan...

[CharleySurvivor]

Chuck

If I heard correctly, Tom Gallager -chief financial advisor for the State said the deductible should be combined - not charged for each hurricane damages.

Someone correct me if I am wrong but that is what they said on TV here last week when they had Tom on.

You can call this number for more info 1-800-22-STORM.

[WxGator]

Survivor - I think that he did say that - but that it was his opinion only and not the current standard. I think that he said that he did not agree with the insurance companies requiring double (or triple) deduction, but that is how it reads and there is nothing that can be done really. I am sure that there will be much future litigation out of all of this.

[Sanibel]

I assume part of the reason they count each storm separately is because they want owners to start protecting the house from further damage that will then cost more to repair.

The other incentive is obvious.

[TampaBayBee]

I assume part of the reason they count each storm separately is because they want owners to start protecting the house from further damage that will then cost more to repair.

The other incentive is obvious.

The individual storm deductibles were established between the state of Florida and the insurance companies following losses from Hurricane Andrew to keep insurance companies underwriting policies in the state. Otherwise, Florida would have no one to underwrite homeowners policies. That is the obvious incentive.

[golter]

Deductibles should be charged on a per occurance basis. There will be cases were damage cannot be determined as to which storm caused the loss. In that case the insurance company is going to work with the individual. In large losses many times your deductible is "lost". Lets say you have $50,000 in damages to home and $10,000 in contents. You will be charged your deductible (lets assume $2000) and you will recieve $58,000. Most times this will be ample to repair losses without having to come up with $2,000.

[wayoutfront]

You will find that most carriers are becoming quite forgiving with the multiple deductibles.

The cost of preparing, adjusting ,reviewing, and reconciling against previous claims is huge expense as opposed to paying the claim as a supplement.

[logybogy]

Also many contractors offer "kick-backs" to help you with the deductible. They will give you a higher estimate for insurance purposes so you get more money and then give you a rebate afterwards so you'll have no out of pocket expenses.

I'm not sure exactly how illegal this is or if anyone ever gets caught, but it happens ALL the time.

[stormcrow]

It is really into someone could go to jail area of legality. Inflating an estimate to be able to kick back a deductible could be both price gouging and insurance fraud. Mr. Gallagers comments appeared to be political. There must be a way in the furture, no everyone can afford 2% 3 times.

[alicia-w]

I heard Governor Bush say something the other day about legislation being introduced that would give you a per year deductible (like your medical insurance) instead of a per-storm deductible. This makes sense.

If my house was in South or Central Florida at a cost of about $375K and there's a 2% deductible for each storm, I'd be out over 20 grand already, and nothing from the insurance people. What the heck do we pay insurance for anyway!?!?!?

It's supposed to come up in the special session this year so we'll see.

[alicia-w]

I think the fenagling done in Florida to keep insurance companies in the state pretty much eliminated any sort of deductible relief. But there is talk now of property tax relief:

http://cbs4.com/frances/hurricane_story_259120745.html

[alicia-w]

And for Brevard County residents, there appears to be some help for low to moderate income families:

http://www.brevardcounty.us/Human_Services/post-hurricane-relief.cfm

[alicia-w]

And for Deltona residents:

Home Repair Relief

The City is currently accepting applications from Deltona homeowners who need help with homeowners’ insurance deductibles for homes with damage caused by Hurricane Charley and/or Hurricane Frances. All applications for assistance under this program will be accepted on a first-come, first-qualified, first-served basis. Eligible households occupying eligible property may receive up to $5,000 in assistance. All assistance will be in the form of a zero-interest, deferred payment, forgivable loan for a term of ten (10) years. Eligibility requirements apply. Call City Hall at (386) 561-2100 for more information.

More info:
http://www.ci.deltona.fl.us/2001/whatsnew/SHIP%20-%20Disaster%20Relief%20Assistance.pdf

[Chuck Waters]

Thank you all for your input. I'll forward this to my buddy and pray that he can get some relief.

[wayoutfront]

I'm not sure exactly how illegal this is or if anyone ever gets caught, but it happens ALL the time.

its very illegal......and very wrong.....

what all these actions mean is that all the other homeowners in the country are repairing floridas houses

also with the 2% deductible... most everyone that has the 2% deductible had the option of paying higher premiums to lower their deductible to a flat 500.00.

it was nothing forced on policy holders

[TampaBayBee]

What the heck do we pay insurance for anyway!?!?!?

I'll tackle this silly question. Insurance is a risk pool. When the pool of money runs dry, the money pool is dry, bankrupt, empty. If a pond of water doesn't get rain for weeks, months, or years...it runs dry too.

When more money flows out than is taken in--the insurance money pool is dry. Not an evil plot against us--just the facts, ma'am.