Putting Together a Hurricane Kit to Protect Your Home and Family

While your Florida homeowner’s insurance is designed to help you recover any losses you may sustain in a hurricane, taking the time to put together a hurricane kit can make all of the difference. Late spring 2014 marks the beginning of a new season, and everyone should be prepared.

Fresh Water

One of the primary things you will need to add to your hurricane kit is fresh water and food. While it is possible to purchase fresh water and store it for a period of time, you may find that it is difficult to keep enough water on hand. You should have enough to last everyone in your family at least a week, and many sources state that each person should have access to at least three to five gallons per day for drinking, cooking, washing and more. A great alternative is to purchase a filtration system that fits directly into your home’s bathtub. All you have to do is add water to the tub and pump it through the filter as you need it.

Food

Another thing that is important in the event of a hurricane is the storage of food. A hurricane kit should include non-perishable food items, and preferably those that are canned since they last longer. While things such as dried rice, beans and even pasta last a long time, too, these require long cooking times and more fuel than you may be able to spare for a while. You should store enough food to feed everyone in your family for at least a week, but more is always better than less. Make sure that the goods you choose to keep need only minimal cooking, as well.

Boards and Nails

Now that you have fresh water and food, you’ll need to protect your home. Part of your hurricane kit should always be boards and nails. You’ll want to board up your windows and doors securely prior to the arrival of the hurricane to protect them and reduce the size of the claim you will need to make through your Florida homeowner’s insurance company. There are plenty of websites and even tutorial videos you can find online for the proper way to board up your home prior to a hurricane.

Gadgets and Appliances

There are some things that can certainly help you during a hurricane, and these include some sort of cooking device that is propane or oil powered, a generator and fuel, flashlights, plenty of fresh batteries, a battery-powered weather radio to stay on top of the latest weather updates and alerts, and anything else that your family will need to stay as comfortable as possible during this time. While being without power for a long period of time can certainly be bothersome, you and your family can stay safe and make the best of it.

Finally, it is important that you remember to keep a well-stocked first aid kit and make sure that you have all of your family’s prescriptions filled and in a safe place prior to the arrival of the hurricane. A hurricane kit may not only help you save money on your Florida homeowner’s insurance kit, but it can also save your life. 

Life Insurance in Florida and the Buy-Sell Agreement

If you own a business, then you have likely put plenty of hard work into making sure that your business provides income for you and your family, jobs for your employees, and perhaps even a stream of income for your shareholders. You may have also set up what is known as a buy-sell agreement in order to protect your family in the event of your death. Your life insurance in Florida may actually help in making sure the buy-sell process is a smooth one.

How the Idea Works

In order to use life insurance in Florida along with a buy-sell agreement, each of the co-owners of the business will need to take out life insurance policies on all of the other co-owners, excluding themselves. If there are no co-owners, then the policy can be purchased by the company itself. In the event of your death, then each of the co-owners of your business, or even the company, would receive a benefit based upon those policies. This money would go to your family to assist them after your death and your company’s continuity would be ensured. It is important to consider, however, that there are some advantages and disadvantages to doing things this way.

Advantages

Some of the advantages of using life insurance in Florida alongside your buy-sell agreement include the creation of a lump sum of money to fund the buy-sell agreement after your death and the fact that most life insurance proceeds are also tax exempt.  Since the funds from life insurance policies are generally paid fairly quickly, the buy-sell transaction will not have to be postponed. Finally, if you have managed to build cash value in your life insurance policy, then this can be used in the event that you need to step away from your company for the purposes of disability, illness or even retirement.

Disadvantages

There are also a few disadvantages to consider before you purchase. While the proceeds from the payment of the benefits are tax-free, the premiums must be paid with after-tax dollars because they are not tax exempt. In order to keep the policy effective, payments must be made regularly and on-time. In the event that the co-owners of the business are purchasing policies on each other, it must be considered that some co-owners may be uninsurable due to age or illness. Finally, if the ages of all of the co-owners vary a great deal, then the younger co-owners will be paying much higher premiums for the older co-owners.

Final Considerations

There are a few other things to consider when it comes to using life insurance in Florida to back up a buy-sell agreement. If you choose to go this route, then you should make sure that the policy or policies you purchase fully fund the agreement. It is also important to remember that the value of your business can change over time, so you will want to review your insurance policies annually to make sure that you are not overpaying – or perhaps even underpaying in the event that your business grows.

While it is a good idea for many companies to use life insurance in Florida to fund buy-sell agreements, you should never use your company’s group life insurance to do this. These premiums are tax deductible for your company, but if you choose to make the business itself the beneficiary, then this is no longer the case.  

Florida Homeowner's Insurance and the Slow Economy

In today’s slow economy, it is important for everyone to save money wherever and however they can. However, if you are considering making changes to your Florida homeowner’s insurance so you can pinch a few pennies, you should understand your policy and the things you shouldn’t go without.

What Insurance Covers

Florida homeowner’s insurance is intended to cover the actual cost of rebuilding a home in the event of a fire or natural disaster, cover things within the home in these events and in case of theft, and even protect you from liability in the event that a visitor on your property is somehow injured. However, the most important thing for you to consider is the actual cost of rebuilding your home – especially in today’s market. This is where many Florida homeowners are already underinsured, and it’s exactly where any changes should be very carefully considered.

Market Value

Your Florida homeowner’s insurance is designed primarily to rebuild your home in the event of a fire or natural disaster. However, insurers will often only cover you up to the market value of the home. In a slow economy, and particularly with today’s housing market, the cost of rebuilding your home is likely more than your home’s actual market value. This means that, even with your insurance, you will likely still be paying for part of this construction out of pocket. For this reason, you may want to consider purchasing more insurance rather than cutting back on coverage to save money.

Why Rebuilding Costs More than Market Value

There are two reasons why the cost of rebuilding your home in a slow economy is more than your home’s actual market value. First and foremost, in a slow economy, American consumers aren’t able to borrow as much from banks – nor can they borrow as easily. This makes purchasing homes more difficult and drives realtors to lower the prices on homes in order to turn them over, thereby reducing overall market value. Rebuilding your home would involve taking care not to disturb existing lines that provide utilities, demolition, waste removal and more prior to beginning the process of actually building. This makes new builds cheaper than rebuilds in the long run.

Where Can You Save?

If you are still interested in reducing your Florida homeowner’s insurance premiums, there are a few things you can look into. If you have flood insurance, for example, but you do not live in an area where flooding is a concern, you may be able to cut back on this coverage. Similarly, if you are carrying an abundance of liability insurance in the event that a guest is injured on your property, you could possible save a few dollars by reducing the amount of this coverage type; you should never do away with your liability coverage completely, though.

Before you make changes to your Florida homeowner’s insurance policy, you should first determine your home’s market value and the estimated amount it would cost you to rebuild your home. Then, you should fill in any gaps in coverage to make sure that you aren’t stuck with thousands of dollars in expenses in the event of a fire or natural disaster. 

Understanding How Your Credit May Affect Your Florida Insurance Premiums

It is possible that your credit score could have a profound impact on the amount that you are expected to pay for not only your automobile and homeowner’s insurance, but also for your health and life insurance in the near future. Here, we will analyze the ways in which your credit score can affect your Florida insurance premiums.

The Debate

The common debate among insurance analysts when it comes to customers’ credit ratings has to do primarily with bad credit. Many of these specialists feel that individuals who have bad credit pose a higher risk when it comes to their cars and homes, and this causes their Florida insurance premiums to spike somewhat. However, there are also some analysts who believe that an individual’s credit is not a reflection of his or her risk to the company at all and cite that things such as divorce, a job layoff or even a serious illness can lead to bankruptcy – even for the most responsible people.

Automobile Insurance

According to recent studies, about 92% of automobile insurance check consumers’ credit histories prior to issuing them policies. This is a surprising number for many people, but it should be considered that the result of a credit check is only one of the factors used to determine the Florida insurance premiums for these customers. Credit information can be used to determine whether or not to issue the policy and, if the policy is issued, how much the premiums will be. Insurers also take information about the vehicle, the driver’s record of accidents and violations, the average number of miles driven monthly as well as annually, and more.

Homeowner’s Insurance

When it comes to homeowner’s insurance, almost every consumer can expect to have his or her credit checked before the policy will be made effective. Again, and much like automobile insurance, the result of this credit check will have some impact on the individual’s Florida insurance premiums. Some other things that insurers will check in order to come up with a premium amount include the age of the home, its location, the construction type and any prior losses that have been associated with the particular home.

In the Future

Although most insurers do not use credit information when setting Florida insurance premiums for health or life insurance as of yet, the numbers are slowly climbing. Insurance companies are being led to believe that if a person has bad credit, he or she is likely to be irresponsible when it comes to his or her health. Some analysts have even cited that those who are risky with their finances may also be risky when it comes to actions that could threaten their health or even their lives. Of course, this is not always the case. Bad credit can happen to even the most responsible people.

The best way to avoid increased Florida insurance premiums due to bad credit is to shop around for a provider who does not take your credit into consideration or at least one that considers other things, such as your driving record, first and foremost. 

Strange and Funny Florida Insurance Claims

Although insurance is a subject that should always be taken very seriously, there are some Florida insurance claims that are laughable simply because they are so outrageous. Listed here are some of the funniest, most absurd and rib-splitting insurance claims in the history of the state.

The Insured Cigars

A notable Floridian lawyer, after having won his first big-money case, purchased a large box of very expensive cigars. After taking the time to insure them against flood, fire, theft and everything else imaginable, he proceeded to enjoy his investment for about three months. Afterward, he filed a claim with his insurance company touting that his cigars had been ruined by a “series of small fires.” Needless to say, the insurer refused to pay the claim since it was assumed that the cigars had simply been smoked. However, this is one of the most absurd Florida insurance claims because the judge inevitably ruled that the insurance company has not clearly defined what was considered an ‘unacceptable fire’!

Totalled by a House

A driver in the Tallahassee area was parked on the side of the road waiting for traffic to clear so he could head home from work. While waiting, a very large truck that was relocating a manufactured home essentially ‘dropped’ the home on his car. The driver of the car stated, “One minute I was in my car, and the next I was in a living room. It was strange!” The house moving company’s insurance company eventually paid, but it goes down as one of the funniest Florida insurance claims because the paperwork clearly stated that the man’s car had been totalled by a house.

The Intentional Hail Damage

Back in the 1990s, after a hailstorm that caused a huge influx of Florida insurance claims, an agent for a well-known company was contacted by a man who wanted to be reimbursed for hail damage. Upon examining the car, the agent was sure that the perfectly-round dents in the car could not have been caused by hail and supposed that they had been intentionally put there by what is known as a machinist’s hammer. When the car’s owner was called out on the folly, instead of dropping the claim out of sheer embarrassment, he went on to file a police report that someone had vandalized his car. In the end, the insurance agent was forced to pay the claim because he couldn’t prove that the damage was, in fact, intentional.

Last, but Not Least

Finally, a man who is a native of the Florida Keys was driving home from the grocery store one day when he had what is perhaps the strangest and unluckiest experience of all. As he was travelling down the street, he claims a child ran out in front of his car, causing him to step on the brake. He was lucky enough to avoid this accident, but he stated that an apple somehow came out of a bag, rolled underneath the driver’s seat, and became lodged under the brake pedal. This, he says, is exactly how he ended up parking his car in his living room rather than in his driveway.

There likely hundreds of other strange and funny Florida insurance claims out there, but these are the ones that really stand out from the crowd. It just goes to show you that you never know what could go wrong and why your insurance is so important in your everyday life!