Two milestones in Florida’s property marketplace were reached last week. Neither is hopeful. Neither received deserved fanfare. Both foreshadow straits that are increasingly dire.
Advocacy
SCOT STREMS UPDATE by BARRY ZALMA!
Last month was the two-year anniversary of the two-year emergency suspension of Scot Strems license to practice law—the result of Florida Bar investigations regarding “…mendacious, bad-faith conduct.” All initiated before data became available showing Florida has close to 80% of America’s total property insurance lawsuits. [Read more…] about SCOT STREMS UPDATE by BARRY ZALMA!
DEMOTECH-An unanswered question!
The recent brouhaha regarding Demotech and its’ Financial Stability Ratings (FSR’s) of as many as 20 Florida insurers has now come full circle…almost. One important question remains unanswered.
Before answering the question, and for those who’ve just joined the discussion, a good summary of these happenings can be found in Kyle Ulrich’s blog. As president of the Florida Association of Insurance Agents (FAIA) he’s got a valuable grassroots statewide perspective. Not coincidentally his blog both begins and ends by asking the still unanswered question: “Is it time for Florida to turn the page on Demotech?” [Read more…] about DEMOTECH-An unanswered question!
“Building Code Coverage”
Johnson Strategies LLC expert contributor, David Thompson CPCU, is often asked what he believes are the most undersold coverage’s by agents. His answer always includes the coverage which is the title of this article. We asked David to share his thoughts on Ordinance or Law Coverage, often called “Building Code Coverage” as an assist to agents and others in sharing the value and importance of this often undersold coverage.
Here is David’s article written for that purpose. Learn from it and understand that “every property owner” should consider the purchase and every agent should be fully informed as to its’ history, value and purpose.
“The Fauci of Florida…”
Immediately after learning that the Special Session on property insurance had adjourned with the passage of SB-2D (See Note #1 below), I was astounded to see a TV ad assassinating the character and performance of Florida’s Insurance Commissioner, David Altmaier.
If you haven’t seen the ad, make sure your temper is in check when you do. It’s on YouTube as well as TV and has been circulated by many others including the self-described “Johnny Appleseed of AOB” Harvey Cohen, here.
Collapse of an Evil Empire! PART XII…A Settlement
There’s been another development in the Strems saga indicating that once again… “THE END IS NEAR.”
[Read more…] about Collapse of an Evil Empire! PART XII…A Settlement
The Parallax Point of View!
“Parallax” is a fairly simple physics phenomenon brought to mind by an article in the Insurance Journal(IJ) titled: “Florida Lawsuit Charges United P&C With RICO Violations in Widespread Claims Denials.” (See NOTE #1 below)
Webster defines parallax as an apparent change in the position of an object resulting from a change in position of the viewer. In the rendering above, for example, if the viewer moves far enough to either the right or left he/she wouldn’t even be able to see the moon. [Read more…] about The Parallax Point of View!
“They Have Given Us An Impossible Task!”
You’ve heard me call Citizens Property Insurance Company (Citizens) a “safety valve” for Florida’s property market. I look at it this way: when things get rough in the private market it’s a safe haven for those that private carriers don’t want to insure, or those who can’t afford the approved rate.
Technically, however, Citizens is a state backed carrier that relies on assessments to cover intentionally repressed rates. Similar to an assessable reciprocal (See Fla. Statutes Chapter 629) but without the “attorney in fact” and with the added benefit of being able to assess every policyholder, including those that aren’t insured in Citizens and those that don’t even own a home.
One of Citizens prime missions is to keep its’ policy count and thus its’ assessment exposure as low as possible, low enough to avoid an assessment. At its’ December 2021 board meeting, Chairman Carlos Beruff, said lawmakers “…have given us an impossible task!” [Read more…] about “They Have Given Us An Impossible Task!”
Always Enough…
My last report referenced “greed” as the primary ingredient disintegrating Florida’s delicate property market. Specifically: a quest for billable hours and devious and deceptive solicitations. There was also a little politics as usual. The latter manifested in a House of Representatives that not only failed to implement needed reforms but, was never given the chance to debate them.
The Tipping Point!
SB-1728 passed the Florida Senate last Thursday, but…according to numerous reports, it’s stalled in the House and may possibly die there. Thus signaling our property markets last breath and the collapse of the fragile House of Cards lawmakers created after the ‘04/’05 storms. [Read more…] about The Tipping Point!