Four years ago, state lawmakers were confronted with growing outrage on the part of their constituents over skyrocketing auto insurance premiums. In response, they passed a series of reform bills, ultimately signed by Governor Rick Scott, that were designed to both lower the cost of insurance and help combat the unbridled fraud present in the state’s no-fault coverage, otherwise known as Personal Injury Protection.
One of the primary advantages of living in Florida, apart from the countless sunny days, lush greenery and ecological diversity, is the seemingly endless water access. Indeed, those looking to swim, kayak or take a boat out on the water can pick from any spot along the miles of sandy coastline, or spend their time out on one of the state’s many rivers or lakes.
Given this reality, you’ll find that many people in the Sunshine State have everything from canoes and sail boats to powerboats and jet skis parked in their driveways or down at the local marina.
Most of us are well aware that insurance companies will consider a multitude of factors when determining premiums for everything from homeowners’ policies to auto policies. Furthermore, most of us are well aware that these factors taken can range from the obvious to the obscure.
From inventory and bookkeeping to pricing and personnel, business owners of all sizes are confronted with the need to make decisions from day one. While all of these decisions are important to the long-term success of an operation, it goes without saying that some are clearly more significant than others.
Insurance companies do not like to give up control if there is a chance they will have to pay a claim. By providing a defense attorney, for example, an insurer can control how the attorney argues the case for the claimant. In most cases, the claimant is grateful for the help — he has no interest in paying the claim, either.
We often talk about the promises an insurer makes in exchange for a policyholder’s premiums. In the law, some of those promises are referred to as “duties,” with the most important being the duty to defend and the duty to indemnify. Generally, the duty to defend is seen as the more important of the two, and when you think about how the claims process works (or doesn’t work), it makes sense.
Florida is a state of numerous exhibitions, museums and centers for the display and development of different kinds of art. Works of art placed in museums or brought to them in traveling exhibitions are largely owned by outside parties. Insurance coverage must be obtained for all artwork that appears for exhibit or that is permanently situated. Unfortunately, if an insane rampage by someone results in massive damage and destruction of insured pieces, a virtual hornet’s nest of insurance claims and litigation may result.
Try not to get too excited about a hurricane-free 2015, Florida. Chances are your property insurance premiums will not know the difference. Nor, for that matter, will your auto insurance rates respond to the news that we are not the worst drivers in the country.
Florida has not seen a hurricane in 10 years, and the state’s ranking for worst drivers has improved dramatically over the past five years. Why, then, are our homeowners and auto insurance rates among the highest if not the highest in the nation? It seems unfair, but no one said insurance rates were fair. Reasonable, maybe — but not fair.
This week marks an important milestone for Florida: We have officially completed 10 years of relatively quiet hurricane seasons, the longest stretch without a hurricane making landfall in 160 years of tracking such data. That, insurance companies will tell you, is a long time.
