AND CLICKORLANDO DOT COM. AND NOW WE’RE GOING TO GET RIGHT ON OVER TO NEWS 6 MORNING
ANCHOR JUSTIN WARMOTH WITH THE
WEEKLY.
>> THIS IS THE WEEKLY ON
CLICK, ORLANDO DOT COM WITH
JUSTIN WARMOTH.
>> GOOD MORNING. I’M JUSTIN
WARMOTH. AS WE APPROACH THE
PEAK OF HURRICANE SEASON,
FLORIDA IS STILL DEALING WITH
THE PROPERTY INSURANCE CRISIS
JUST IN THE LAST 2 YEARS, 14
COMPANIES HAVE STOPPED WRITING
POLICIES IN THE STATE AND MORE
THAN 400,000 FLORIDIANS HAVE
HAD THEIR POLICIES DROPPED.
MEANWHILE, PREMIUMS HAVE MORE
THAN DOUBLED A FEW MONTHS AGO.
LAWMAKERS ADDRESS THE CRISIS
DURING A SPECIAL LEGISLATIVE
SESSION. BUT HOMEOWNERS LIKELY
WON’T SEE MUCH OF A DIFFERENCE
IN THE SHORT TERM THIS WEEK I
SAT DOWN WITH TOM COTTON, THE
OWNER OF HUGH COTTON INSURANCE
IN ORLANDO ABOUT THE
STRUGGLING MARKETPLACE AND
WHERE WE GO FROM HERE.
stem cell transplant, >> SO WHEN WE SPOKE 5 MONTHS
AGO, YOU SAID THAT FLORIDA,
THE INSURANCE MARKET PROPERTY
INSURANCE MARKET WAS AT A
TIPPING POINT. WHERE ARE WE
NOW?
>> WELL, WE HAVE NOT PASSED
THE TIPPING BUT WHAT HAS
HAPPENED SINCE WE LAST SPOKE
IS THERE WAS A SPECIAL SESSION
BROUGHT ABOUT BY THE CARE OF
THE ENTITY THAT RATES
CARRIER’S FINANCIAL STRENGTH
IN FLORIDA. DEMOTECH DEMOTECH
ANNOUNCED THAT THERE WAS GOING
TO BE SOME DOWNGRADES TO SOME
CARRIERS. SO WHAT THE GOVERNOR
DID THIS, HE CALLED A SPECIAL
SESSION AND WHAT THEY CREATED
WAS A RAT PROGRAM, WHICH WOULD
PREVENT THE CATASTROPHE S
DEMOTECH DOWNGRADED THE
CARRIERS. THEY WOULD. THE REAL
ESTATE MARKET WOULD SHUT DOWN
THE MORTGAGE LENDING MARKET
WOULD SHUT DOWN. WE WOULD BE
IN A REAL WHAT THEY CREATED
WAS A BACKSTOP. THAT IS WHAT
IN A REAL WHAT THEY CREATED
WAS A BACKSTOP. THAT IS WHAT stem cell transplant, HAS CHANGED.
>> THAT BACKS UP. LET’S GO
THROUGH LET’S GO THROUGH WHAT
WAS ULTIMATELY PASSED DURING A
SPECIAL LEGISLATIVE SESSION.
>> IT WILL THE CHALLENGES WE
HAVE SO MANY CARRIERS,
SOMETHING AND THE VIEWERS AT
HOME THEY’VE BEEN EXPERIENCING
IT CERTAINLY THEMSELVES OR
SOMEONE THEY KNOW OR OTHER
NEIGHBORS. THEY’VE HAVING
POLICIES NOT RENEWED, BUT EVEN
THOUGH THEY MAY HAVE NOT HAD
ANY CLAIMS HAVE A LONG
RELATIONSHIP WITH THE CARRIER
AND THEY’RE IN THERE CANCELING
THEIR POLICIES. AND THE REASON
THEY’RE DOING THAT. GOVERNMENT
REGULATES INSURANCE COMPANIES
TO PREMIUM TO SURPLUS RATIOS.
AND IF THEIR PREMIUM IS
GROWING, THEIR SURPLUS HAS TO
GROW. WHETHER SURPLUS HAS BEEN
DEPLETED. DO THESE CRAZY
LITIGATION AND EXCESSIVE
LAWSUITS. SO THEY HAVE TO
BRING THEIR PREMIUMS DOWN.
OTHERWISE THEY BECOME
FINANCIALLY IMPERILED. SO
THAT’S WHAT’S GOING ON IN THE
MARKETPLACE. THAT’S WHY
CARRIERS ARE WRITING. I MEAN,
WHAT BUSINESS MODEL SAYS,
RIGHT? LESS BUSINESS RIGHT?
THEY HAVE TO SO. EVEN IN SPITE
OF THAT, SOME OF THE CARRIERS
WERE PRECIPITOUS SEE CLOSE TO
HAVING THEIR PREMIUM. THE
SURPLUS RAY SHOWS OUT OF
BALANCE. SO THAT’S WHY SAYING,
HEY, YOU KNOW, SOMETHING HAS
TO BE DONE. SO THE SPECIAL
SESSION PASSED A BACKSTOP
WHERE YOU THE FLORIDA
INSURANCE GUARANTY FUND WILL
PROVIDE THE INITIAL RE
INSURANCE OR ADDITIONAL
REINSURANCE THAT THE CARRIERS
MIGHT NOT HAVE BEEN ABLE TO
PURCHASE OR MIGHT NOT HAVE
BEEN ABLE TO AFFORD WHEN
THEY’RE REINSURANCE TREATIES
RUN IT AND THEN THEY WILL HAVE
ACCESS TO CITIZENS CAPITAL.
NOW IT’S A TEMPORARY FIX TO
PREVENT THE CRISIS OF A
DOWNGRADE THAT STILL DOES NOT
SPEAK TO THE FACT THAT
CARRIERS HAVE SURPLUS RAY
SHOWS AND HEAVEN FORBID, WE
HAVE A MAJOR STORM HIT THE
STATE BECAUSE THAT’S A WHOLE
OTHER BALLGAME. IT SURE IS.
AND WHAT WE’RE GOING TO GET TO
I BUT LET’S FOCUS ON CITIZENS
BECAUSE I KNOW THAT.
>> IF SOMEONE EITHER HAD THE
POLICY DROP SUPPORT FOR GOT 2
OUT OF CONTROL FOR THEIR
BUDGET, THEY CAN’T AFFORD IT.
THEY RESORTED AND SO MANY DID
2 CITIZENS. WHY IS THAT AND
WHY IS IT FOR THE STATE AND
REALLY FOR THE ENTIRE MARKET
ITSELF IS PROBLEMATIC.
>> GOES BACK TO SOMETHING YOU
JUST SAID SAYS IF THEIR
INSURANCE, IF THEIR COSTS OUT
OF CONTROL TO GO TO CITIZENS,
CITIZENS WAS NOT DESIGNED TO
BE A COMPETITIVE MARKET, WAS
CONSIGNED TO BE A MARKET OF
LAST RESORT BECAUSE IT IS A
POLITICAL ANIMAL. IT IS LESS
EXPENSIVE IN SOME CASES IN THE
PRIVATE MARKETS. SO THERE’S A
BUNCH OF A BUNCH OF RULES. THE
PLIGHT OF THAT. BUT CITIZENS
HAS SOME CHALLENGES IN THAT.
THEY’VE ALWAYS HAD A CAP OF
700,000 OF HOMEOWNER VALUE
THAT CREATED A PROBLEM IN
SOUTH FLORIDA. NOW HAVE SOME
EXCEPTIONS IN SOUTH FLORIDA
WILL DO A MILLION DOLLARS, YOU
KNOW, IF SOMEONE HAS NO OTHER
CHOICE BUT CITIZENS AND THEY
HAVE A HOME THAT’S WORTH OVER
$700,000 CITIZENS WILL NOT
ACCEPT. SO 700,000 OUTSIDE OF
THE TRI COUNTY AREA. SO THAT
LEAVES THEM IN THE SURPLUS
LINES MARKET. SO WHEN YOU READ
SOMETHING IN THE PAPER, YOU
HEAR PEOPLE TALKING, CITIZENS
WAS NOT INTENDED TO BE A
SOLUTION OR A DESTINATION
THAT’S INTENDED TO BE A MARKET
OF LAST RESORT. THAT IS NOT
COMPETITIVE WITH THE PRIVATE
MARKET. BUT CENSUS POLITICAL
ANIMAL. IT’S
>> KIND OF HIS OWN TALK ABOUT
FEDERALLY BACKED MORTGAGES.
FANNIE MAE, FREDDIE THEY MAKE
UP BY 62% MORE THAN HALF OF
FLORIDIANS ARE BACKED BY
FANNIE AND FREDDIE AND THOSE
THOSE FEDERALLY BACKED
MORTGAGES THERE REQUIRED TO
HAVE HIGHLY RATED COMPANIES
PROTECTING THEM. SO LET’S TALK
ABOUT THAT IN THE END BECAUSE
SOMETHING COULD HAPPEN FOR A
NUMBER OF COMPANIES THAT THEY
ARE FROM AN A TO AN X RATING
DEMOTECH WHICH PROVIDES THOSE
RATINGS. WHAT DOES THAT? WHAT
DOES THAT LOOK LIKE? WHAT IS
THE ENDGAME HERE?
>> OKAY. YES, A GOOD QUESTION.
AND I HOPE I CAN ANSWER THE
QUESTION THAT YOU ASKED, BUT
I’M GOING TO ANSWER THE
QUESTION THAT I HEARD. YEAH.
OF FANNIE AND FREDDIE REQUIRE
CARRIERS OF A CERTAIN RATING
AND WHEN THEY USE IT WHEN THEY
EXPRESSED THEIR REQUIREMENTS,
IT’S USUALLY IN TERMS OF WHAT
IS KNOWN AS BEST BEST AM BEST
AS A AND CITY. THAT RACE
INSURANCE COMPANIES. THAT IS
THE PREEMINENT ONE. IT IS.
IT’S THE ONE THAT GETS ALL THE
THE RECOGNITION EVEN THOUGH IT
HAS BEEN PROVEN THAT WE’VE HAD
A PLUS WITH THE RATINGS JUST
COMES OUT BY BEST THEIR
BANKRUPTCY 6 MONTHS LATER. SO
THAT’S NOT COMPLETELY
ACCURATE. BUT IT’S THE IT’S
THE BEST. THERE ISN’T A
STANDARD THAT FANNIE AND
FREDDIE GO BY. SO WHAT MADE
HIM A TECHNIQUE IS THAT DAMAGE
TECH GOT THEIR RATING
METHODOLOGY APPROVED BY FABIAN
FREDDIE BECAUSE FOLLOWING
HURRICANE ANDREW WHEN THERE
WAS OF THE HUGE VACUUM AND THE
NEED FOR CARRIERS, THERE A LOT
OF CARRIERS WERE FORMED AT
THAT TIME POST 1992 AND
BECAUSE THEY WERE NOT RATED BY
BEST, THEY HAD TO HAVE A WAY
THE RATINGS SO THEY COULD BE
USED HOMEOWNERS AND LENDERS.
SO THAT’S WHAT DEMONT ACTED.
EMMA TECH HAD A RATING THAT
WAS APPROVED BY THEM. THE
SOLUTION. THAT THE GOVERNOR
AND THE LEGISLATURE CAME UP
WITH THAT SOLUTION HAD TO
FALL. YOU KNOW, WITH THE RAT
PROGRAM, WE’RE TALKING ABOUT
WORD EXTENDED ACCESS TO FIGHT
AND CITIZENS REINSURANCE, 2
CARRIERS THAT MAY BE
FINANCIALLY THAT SOLUTION HAD
TO BE APPROVED UNDER FEDERAL
GUIDELINES. AND IT WAS I MEAN,
THAT WAS A BRILLIANT MOVE BY
THE GOVERNOR, GOVERNOR
DESANTIS AND THIS AND THE
HOUSE THE LEGISLATURE TO USE
THE TOOLS THAT WERE AVAILABLE
TO THEM TO SUPPORT OUR MARKET.
SO I HOPE THAT ANSWERS YOUR
QUESTION. YEAH, I YOU KNOW,
IT’S JUST IMPORTANT TO THINK
FOLKS REALIZE HOW
>> HOMEOWNERS RELY ON RATED.
THEY HAVE OUT OF LINE. IS THEY
THEY HAVE TO TO BE IN CHURCH.
SO MY QUESTION IS WHAT HAPPENS
WHEN IT’S SOLELY ON MORTGAGE
COMPANIES TO FIND THE
INSURANCE? WHAT WAS THAT
ISSUE? OKAY. WELL, WHEN WHEN
YOU HAVE WHEN YOU DON’T PAY
YOUR INSURANCE PREMIUMS OR YOU
DON’T HAVE AN ACCEPTABLE
CARRIER GOES INTO WHAT THEY
CALL A FORCE PLACEMENT.
>> AND MOST OF THESE LENDERS
HAVE SOME SORT OF ARRANGEMENT.
I’M USUALLY IT’S GOING TO BE
IN LLOYDS OF LONDON WHERE THEY
THEY FORCE PLACES AND A
FOURTH-PLACE POLICY. THIS
EXCEPTIONALLY EXPENSIVE AND IT
HAS IT’S NOT A REAL
HOMEOWNER’S POLICY IS REALLY
INTENDED TO PROTECT THE
LENDING INSTITUTION, NOT THE
PERSON WHO OWNS THE HOUSE THE
LAST PLACE YOU WANT TO BE IS
FOR SPACEBALLS.
>> ALL RIGHT. SO YOU MENTIONED
IT AND I THINK IT’S ON THE
MINDS OF SO MANY AS APPROACH
HURRICANE SEASON, THE PEAK OF
HURRICANE SEASON, WHICH IS.
NEXT WEEK. SOMETIME I. THAT IS
THE ELEPHANT IN THE AND IT’S
SOMETHING WE CAN’T CONTROL AND
IT. IT COULD REALLY DO
ABSOLUTE DAMAGE. I DON’T KNOW
WHAT HOW HOW WOULD I EXPLAIN
OR MAYBE YOU COULD DO IT? WHAT
ADJECTIVE WOULD YOU USE SAY IT
DOESN’T HAVE TO BE A CATEGORY
5. JUST A SIGNIFICANT STORM
THAT IMPACTS A LARGE MAJORITY
OF THE STATE. WHAT DOES THAT
LOOK LIKE? I’M IN THE FALLOUT
FROM THAT.
>> WELL, IT SEEMS THAT AS
AMERICANS, WE HAVE VERY SHORT
MEMORIES. YEAH, YOU I
CERTAINLY REMEMBER HURRICANE
ANDREW IN THE DEVASTATION THAT
CREATED THE COUNTRY NOW. BUT
YOU KNOW, DIDN’T HAPPEN
RECENTLY. THEY THEY JUST DON’T
THINK ABOUT THE IMPACT IT WILL
HAVE WILL DEPEND UPON THE
SEVERITY OF THE STORM AND THE
DURATION OF THE STORM.
SOMETIMES IT’S THE DURATION
THAT CAUSES THE ISSUES MUCH
MORE THAN THE SEVERITY OF THE
STORM. SO THE PATH THAT TAKES
THE CARRIERS THAT ARE AFFECTED
YOU A SIGNIFICANT ANDREW,
SOMETHING LIKE THAT. IT COULD
PUT SEVERAL CARRIERS IMPERIL
WHAT THE CARES HAVE BEEN
WORKING TO DO OVER THE YEARS
IS DISSIPATE. THEIR RISK. YOU
KNOW, THEY ONLY COME IN, THEY
TRY TO BALANCE THEIR RISK
BETWEEN COASTAL IN ON COASTAL
THEY TRY TO LIMIT THE VALUES.
THEY DO THE BEST THEY CAN. AND
IT’S MODELING THE MODELING
THAT THEY USE. THEY DID THE
BEST THEY CAN TO MITIGATE THE
RISK. BUT, YOU KNOW, WE CAN’T
CONTROL THE WEATHER.
>> THIS IS THE WEEKLY ON CLICK, ORLANDO DOT COM WITH JUSTIN WARMOTH.
>> WELCOME BACK. OUR TOPIC
THIS MORNING. FLORIDA’S
PROPERTY INSURANCE CRISIS.
THERE ARE A NUMBER OF FACTORS
AT PLAY, BUT THE MAIN DRIVER
HAS BEEN MOUNTING LITIGATION,
MOSTLY FROM ROOF REPAIRS
CARRIERS OPERATING IN FLORIDA,
SHELLED OUT MORE THAN A
BILLION DOLLARS IN
UNDERWRITING LOSSES LAST YEAR.
AND THAT’S IN ADDITION TO
PAYING OUT CLAIMS IN TURN ITS
CARS, POLICIES TO BE DROPPED
AND PREMIUMS TO SPIKE FOR A
CLOSER LOOK AT BROUGHT IN
LOCAL INSURANCE AGENT TOM
COTTON. SO IT’S A MATTER OF
TRYING TO CONTROL.
>> A BAD ACTORS WHO ARE
SEEKING TO TAKE ADVANTAGE OF
THE SYSTEM AND WE HAVE TO
TRAIN PEOPLE THAT THEY
HOMEOWNER’S POLICY IS NOT A
WARRANTY. YOU KNOW, YOU’RE
WASHING MACHINES GOING TO WEAR
OUT YOUR ROOF HAS A LIMITED
LIFE SPAN. NOW, IF YOU HAVE A
RELATIVELY NEW ROOF ON YOUR
HOUSE AND WE HAVE A STORM THAT
MAY HOLD UP VERY WELL, BUT YOU
HAVE A ROOF THAT’S ALREADY
PAST ITS USEFUL LIFE. IT’S
2025 YEARS OLD. IT’S GOING TO
SUSTAIN SOME DAMAGE BECAUSE
IT’S OLD AND PEOPLE GET A
BRAND NEW ROOF FOR AN OLD ONE.
NOW, I WANT TO SAY THAT
THEY’RE TALKING IMPLEMENTING A
LOT OF CARRIERS ARE DOING IT
NOW IMPLEMENTING A ROOF
DEDUCTIBLE ARE MAKING YOUR
ROOF ACTUAL CASH VALUE, RIGHT.
BUT THE WAY THE LAW CURRENTLY
READS, AND I DON’T WANT YOU TO
THINK THAT THE LEGISLATURE IS
ROLLING OVER GIVING INSURANCE
COMPANIES EVERYTHING AND
TAKING THINGS AWAY FROM
POLICYHOLDERS. THE WAY IT
CURRENTLY READS IS IF YOUR
ROOF IS DESTROYED BY
HURRICANE, REGARDLESS OF HOW
WILL THIS YOU’RE STILL
ENTITLED TO A NEW ROOF. AND
THE PROBLEM IS THESE PEOPLE
CRUISING THE NEIGHBORHOOD IS
GOING TO LET ME INSPECT YOUR
WITH ALL. YOU’VE GOT SOME
STORM DAMAGE. THEY GO TO,
THOUGH THE WEATHER DATA CENTER
IN SOUTH CAROLINA AND THEY
PLUG IN THE ADDRESS AND THEY
ROLL IT BACK TO SUPER CELL
GOES OVER THE NEWS THAT THE
DATA LOSS AND YOU GET A BRAND
CHURCH. SO AGAIN, THAT’S
HOMEOWNERS ARE RESPONSIBLE FOR
THIS AS WELL. YEAH, AND I KNOW
THAT SOME HOMEOWNERS, LET’S
JUST SAY THEY HAVE THE POLICY
DROPPED BECAUSE THE ROOF WAS A
CERTAIN AGE.
>> AND THEY JUST DON’T HAVE
THE RESERVES THAT WILL HAVE
THE LIQUIDITY TO MAKE THE
NECESSARY REPAIRS TO THE ROOF.
TO GET INSURED. WHAT WOULD YOU
TELL THAT PERSON? BECAUSE I
KNOW THEY’RE OUT THERE
WATCHING. I KNOW IT’S A TOUGH
KNOW THEY’RE OUT THERE
WATCHING. I KNOW IT’S A TOUGH stem cell transplant, SITUATION. SO, YEAH, WELL, YOU
KNOW, YOU OWN A HOUSE. YEAH,
YOU HAVE TO MAINTAIN YOUR
HOUSE AND SAY, WELL, I CAN’T
AFFORD A ROOF.
>> THAT’S AN UNFORTUNATE
CIRCUMSTANCE. BUT IF THEY OWN
THE HOUSE, THEY HAVE EQUITY IN
THEIR HOME. THEY TAKE A HOME
EQUITY LOAN. THEY HAVE CREDIT
CARDS. I MEAN, I’M NOT
SUGGESTING THAT PEOPLE GO INTO
DEBT, BUT I MEAN, WHAT YOU
HAVE A CAR, THE TIRES WERE
OUT. YOU HAVE TO BUY NEW
TIRES. TIRES ARE EXPENSIVE.
WHEN YOU HAVE A HOUSE, A ROOF
IS A CONSUMABLE AND THEY SAY
THEY PUT A 30 YEAR ROOF AND
WELL, THAT’S THE WARRANTY THE
THEY PUT ON THERE. IT’S PROVEN
THAT IN THE FLORIDA CLIMATE
ROOFS NOT GOING TO LAST A FULL
30 YEARS JUST BECAUSE THEY SAY
YOU HAVE A 30 YEAR WARRANTY.
IF YOU CAN REMEMBER WHO SOLD
YOU THE PRODUCTS, YOU MIGHT
GET A WARRANTY THAT MIGHT
PROVIDE THE MATERIALS. BUT WHO
CAN REMEMBER FOR THE ROOFER
WAS THE ROOF OF THEIR HOUSE OR
WAS THE ROOF HOUSE ROOF BEFORE
YOU BOUGHT IT? PROBABLY, YOU
KNOW, THE RIVER OR THE
SUPPLIER, EVEN STILL IN REPORT
IS REALLY DON’T MEAN MUCH WHAT
HE’S DOING TO THE MARKETS OF
THE HOUSING MARKET THE ABILITY
FOR FOLKS TO
>> GET A MORTGAGE. WHAT IS
THIS DOING TO THAT? I IMAGINE
THAT IT’S HAVING AN EFFECT
BECAUSE IT’S BECOMING HARDER
TO GET A CERTAINLY IT IS. IT
IS CERTAINLY SLOWING IT DOWN.
THERE’S THERE’S 2 THINGS THAT
WE SEE.
>> AND OUR PERSONAL LINES UNIT
IS PEOPLE TRYING TO BUY HOUSES
OR PEOPLE SELLING HOUSES THAT
THEY FIND THAT THEY EITHER
HAVE A STAB WALK. PANEL MAY
HAVE TO REPLACE ELECTRICAL
PANEL FOR THE ROOF. THE CAN’T
GET HOMEOWNERS INSURANCE. SO
WHAT HAPPENS IS THEY EITHER
HAVE THE SELLER HAS TO COME
OUT OF POCKET AND FIX IT PRIOR
TO PUTTING IT ON THE MARKET IN
A GOOD REALTOR WILL GET THEM
TO DO THAT OR THE BUYER SAYS,
WELL, YOU KNOW, IF YOU’RE NOT
GOING TO STICK ME WITH THE
COST OF A NEW ROOF AND
ELECTRICAL PANEL, THEY
RENEGOTIATED COMES OUT OF THE
CAR SO WE HAVEN’T SEEN THE
VELOCITY OF TRANSACTIONS
SLOWED. IT’S SIMPLY A MATTER
NOW. THIS IS A NEGOTIATION
BETWEEN THE BUYERS REALTOR IN
THEM AND THE LENDER. THIS
WHO’S GOING TO DO IT? YEAH, IT
HAS TO GET DONE. ALL RIGHT. SO
IN THE LAST 2 YEARS, I MEAN,
THE STATS ARE CRAZY. AND I
KNOW WE’VE SORT OF TOUCHED ON
THIS, BUT 400,000 FLORIDIANS
HAD THEIR POLICIES DROPPED IN
THE LAST 2 YEARS. 14 COMPANIES
HAVE STOPPED WRITING NEW
POLICIES.
>> 5 COMPANIES HAVE GONE BELLY
UP. 2019, IT WAS $2000 ON
AVERAGE. FOR PREMIUM IN THE
STATE OF FLORIDA. MORE THAN
DOUBLE NOW. $4200. WHAT IS THE
stem cell transplant, ENDGAME?
>> WELL, IT’S THIS CAUSED BY
THE DRAIN AND SURPLUS CAUSED
BY THE RIDICULOUS AS I
MENTIONED BEFORE, REPEATED THE
AMOUNT OF MONEY THAT HAS BEEN
PAID. BUT THERE’S EXAMPLES
WHERE THE HOMEOWNER RECEIVED
$17,000 AND BECAUSE OF THE WAY
THE ATTORNEYS BILLS WORKED,
THE HOME OF THE ATTORNEY GOT
$800,000. FOR SETTLING THE
CLAIM.
>> OKAY. SO THAT’S THE REASON.
MEAN, LISTEN, I KNOW THAT
THERE ARE ATTORNEYS ALL OVER
THE COUNTRY WHO FOCUS ON THIS
PROPERTY INSURANCE. DOES IT
SEEM TO YOU THAT THEY ALL
PROBABLY DO BUSINESS IN THE
STATE OF FLORIDA BECAUSE
THAT’S THE FINANCIALLY CORRECT
MOVE BECAUSE OF
>> THE POLICY THAT’S IN PLACE.
I CAN’T COMMENT AS TO WHETHER
OR NOT IT’S A BUNCH OF OUT OF
STATE FOLKS. I MEAN, THE
REPORTS I SEE IT IS CLEARLY
DOMESTIC DOMESTIC BASE
LAWYERS. BUT THERE’S NO ONE
SINGLE ENTITY THAT IS
RESPONSIBLE FOR THIS. IT’S A
COMBINATION OF A BROKEN
SYSTEM. A COMBINATION OF THE
POLITICS THAT ARE INVOLVED.
THIS IS A VERY COMPLICATED
ISSUE. BUT AT THE END OF THE
DAY INSURANCE COMPANIES CAN
ONLY SUPPORT SO MUCH PREMIUM
BASED UPON THEIR SURPLUS IN
RESERVES. AND THE RESERVES ARE
DEPLETED BECAUSE OF EXCESSIVE
LITIGATION. THEY HAVE TO LOWER
THEIR WRITINGS. SO IT’S KIND
OF IT’S A KIND OF A
COMPLICATED ISSUE WHEN THEY’RE
TRYING TO WRITE LESS POLICIES.
AGAIN, THEIR RATES ARE
REGULAR. THE RATES ARE ALSO
REGULATED IT INSURANCE
COMPANIES CAN’T DEFEND
THEMSELVES VERY WELL. BUT AT
THE END OF THE DAY, EVERYTHING
IS DRIVEN BY LAWS, RULES,
REGULATIONS THAT ARE IMPOSED
ON THEM. SO THE LAWS ARE
SAYING YOU’VE GOT TO GET YOUR
PREMIUM SURPLUS IN LINE. SO
YOU GOT TO WRITE LESS
POLICIES. THE LAWS ARE SAYING
YOU HAVE TO CHARGE MORE. SO
IT’S VERY COMPLICATED THEM.
LAST TIME WE SPOKE, I WHAT
TIPS YOU HAD IF SOMEONE HAD A
PREMIUM COME IN THE MAIL IT.
>> YOU KNOW, WENT UP OR SPITE
OR WHATEVER YOU LIKE TO SIGN
IT. YES, I DID THAT. TAKE IT.
I MEAN, TAKE IT BECAUSE THE
PROCESS TO FIND IT IS GOING TO
BE VERY TROUBLING. SO TAKE THE
POLICY REGARDLESS OF OF HOW
MUCH IT WENT UP THIS TIME
AROUND. AS AS WE DO, YOU KNOW,
APPROACH THE PEAK OF HURRICANE
SEASON. WHAT TIPS DO YOU HAVE
FOR A IN THE STATE OF FLORIDA?
stem cell transplant, THE MEDIA.
>> DOES A GREAT JOB PRIOR TO
HURRICANE SEASON TELLING
PEOPLE WHAT TO DO. THEY DON’T
ATTENTION THAT, YOU KNOW, NOW
WE’RE HALFWAY THROUGH THE
SEASON. YOU SHOULD BE
PREPARED. ALL NEVER HURRICANE
IRMA WAS COMING UP TO STATE.
AND THE ONLY THING I DIDN’T
HAVE WAS BAR OIL FROM A CHAIN
THAT THEY WERE SOLD OUT. AND I
KEPT WAITING TO GET IT. WELL,
IT WAS THE DAY THE STORM IS
SUPPOSED TO STRIKE. I WENT TO
GET THE BAR OR STANDING IN
LINE AND THERE WAS A GUY THERE
IN LINE VERY, VERY VOCAL. HE
LIVED IN A MOBILE HOME. HE WAS
BY THE SITTER. NOAH CAMPBELL
AND A 16 OUNCE PROPANE BOTTLE
IT’S ALL I NEED. THIS ISN’T
GOING TO BE A BIG DEAL. THAT’S
WISHFUL THINKING. THIS IS, YOU
KNOW, WISHFUL THINKING WILL
NOT GET YOU THROUGH A
HURRICANE. YOU NEED TO BE
PREPARED THAT HOME. YOU NEED
TO GO AHEAD AND HAVE YOUR
HURRICANE SUPPLIES IN PLACE.
EVERS, ONE THING I CAN
EMPHASIZE IF YOU HAVE A
GENERATOR RUNNING NOW, DON’T
TRY TO CRANK IT UP AFTERWARD
BECAUSE IT HAS BEEN SITTING
FOR 3 OR 4 YEARS, PROBABLY
GOING TO BE THE FRESH FUEL OR
MIGHT NEED SERVICE. AND ALWAYS
REMEMBER, YOUR GENERATOR HAS
THE SAME MOTOR THAT YOUR LAWN
MOWER HAS, THAT THEY SHOULD
BOTH BE IN THE SAME PLACE OUT
IN THE YARD. CORRECT, CORRECT?
YEAH, THAT’S A GOOD POINT.
BECAUSE EVERY SINGLE YEAR WE
SEE.
>> GENERATORS BEING USED
IMPROPERLY UNFORTUNATELY
LEADING TO DEATH. IS THERE
SOMETHING THAT A HOMEOWNER CAN
DO NOW, THOUGH, TO PREPARE TO
2? I KNOW THAT NOBODY WANTS TO
OUT OF POCKET BY A NEW OR BUT
IT WHAT? WHAT CAN THEY DO TO
TO MAYBE? MITIGATE THE RISK OF
IT WHAT? WHAT CAN THEY DO TO
TO MAYBE? MITIGATE THE RISK OF stem cell transplant, HAVING A THE ROOF TORN OFF OR
SIGNIFICANT DAMAGE. IF A STORM
COMES THROUGH K WILL, YOU KNOW
MY EXPERIENCE AT AN ORLANDO,
WHICH IS THE ONLY PLACE I’VE
EVER LIVED THROUGH HURRICANE.
OKAY. I WAS BORN 5 DAYS BEFORE
HURRICANE DONNA AND IT WAS 32
YEARS BEFORE WE HAD ANOTHER
MAJOR STORM IN THE STATE OF
FLORIDA.
>> MAKE SURE KEEP YOUR TREES
TRIMMED BACK. IF THERE’S LIMBS
HANGING OVER YOUR HOUSE,
PARTICULARLY AFTER LAUREL
OAKS, KEEP YOUR TREES TRIMMED.
I KNOW I HAVE A TREMOR COME BY
MY HOUSE EVERY YEAR.
ANYTHING’S THE TREES. SO THE
AIR WILL GO THROUGH THEM MORE
EFFICIENTLY. IT’S AN EXPENSE,
BUT IT KEEPS IT FROM LANDING
ON MY ROOF. MOST OF THE DAMAGE
IN CENTRAL FLORIDA FROM
CHARLEY, FRANCES AND JEANNE
WERE NOT FROM WIND. IT WAS
FROM FALLING ON HOUSES AND
CARS. IT WAS A LANDSCAPING
DISASTER. SO TRIM YOUR TREES.
YOU SHOULD ALSO ALREADY KNOW
WHO YOU’RE GOING TO CALL WHEN
YOU HAVE A PROBLEM. YOU KNOW,
AFTER THE AFTER A STORM,
EVERYBODY’S LOOKING FOR
SOMEBODY YOU SHOULD ALREADY
KNOW WHO YOU’RE GOING TO CALL.
IF YOU’VE GOT TREES DOWN, WE
GOT A CALL. IF YOU HAVE ROOF
DAMAGE, WE GOT A CALL. IF YOU
HAVE WATER DAMAGE AND MAKE
SURE YOU KNOW YOUR POLICY
INFORMATION, POLICY NUMBER AND
THE CLAIMED 800 CLAIM NUMBER
ON YOUR POLICY. IF NOT, YOU
CAN CALL YOUR AGENT, YOU CAN
ALWAYS JUST CALL YOUR AGENT.
BUT, YOU KNOW, THEY GOT TO GET
TO THE OFFICE. THEY GOT TO GET
OPEN. THE 800 NUMBER IS
DIRECTED SOMEPLACE WHERE THE
WHERE THERE’S NO CHALLENGES
FOR A CATASTROPHE. GET THE
CLAIM REPORTED YOURSELF AND
THE CONTRACT REQUIRES YOU TO
MITIGATE YOUR CLAIM. SO I
WOULD HAVE, YOU KNOW, SPIRIT
HEART ON HAND WET, DRY VAC.
YOU KNOW, IF YOU HAVE POWER,
IF YOU HAVE A GENERATOR, YOU
KNOW, THERE’S NO THERE’S NO
EXCUSE FOR A FLORIDIAN NOT TO
BE PREPARED. YOU CAN WISH THAT
THEY DON’T COME, BUT YOU NEED
TO BE PREPARED FOR WHEN THEY
DO.
>> AND MY THANKS TO TOM COTTON
FOR HIS INSIGHT THIS MORNING
FOR MORE INFORMATION ON
FLORIDA’S INSURANCE CRISIS AND
THE SUPPLIES YOU NEED FOR YOUR
HURRICANE KIT. JUST HEAD
CLICKORLANDO DOT COM SLASH
WEEKLY. I’M JUSTIN WARMOTH.
HOPE YOU HAVE A GREAT SUNDAY