The “Unholy Quartet” of public adjusters, attorneys, water damage restoration contractors and roofers have absolutely and completely destroyed the Florida homeowners industry. The citizens of our state this quartet purports to serve and support are paying dearly for their enrichment.
We’re not all part of the problem. I’ve been a water damage restoration contractor in Florida for nearly 40 years. I agree there are many bad players on all the teams you mentioned but I have many friends and associates throughout the state ( in all but the PA league ) who cringe when they read about the excesses that have contributed to this issue.
There are about 10% of water damage restoration people who don’t use AOB’s and won’t use 55 fans at $500 apiece to dry out a 900 square foot apartment. The remaining 90% are why you get a bad reputation and I hope you’re doing something about it.
Of course, not all, not all. But, if you “rent” a fan (or fans) for more than the total cost of the fan i.e. $100 per day per fan for 3 days and throw in 4 fans (when the fan costs you $200 to purchase) then you are part of the problem. I have many acquaintances at water damage restoration companies and I think they are great people. But your industry has dramatically increased the cost of the average homeowners claim. We are all paying the price for that claims inflation with higher premiums and less coverage options.
Rates in Central Florida were completely underpriced before this. Not a single home should have a less than 4 figure premium anywhere in Florida, and I saw premiums in the $600s and $700s all the time. It isn’t that far inland – there are areas of Houston further inland than central Florida and almost no one pays less than $1500 a year anywhere in Houston regardless of age of home or value.
I’ve had quite a few renewals recently that have doubled and even tripled over last year. With the loss of companies, we’re really struggling to get people covered. I quote someone and go to bind it 2 or 3 days later and get: “zip code closed for business”.
I’ve been telling customers since mid 2020 that it’s buy it now or don’t bother. That’s how fast things are changing. If they don’t trust my advice on that then they probably weren’t a fit at the agency anyway.
I totally understand what you’re saying, but if I’m told “you must buy today – don’t bother coming back tomorrow if you don’t bind right now” then I’m unlikely to buy from you since you’re tying my hands on comparing rates. What other industry does that … gyms?
That’s how it works in this market right now. Limited capacity. It’s just that simple.
March 14, 2021 at 1:39 pm
Mr. Slow Me Down says:
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Agree. Good way for an agent to lose my very profitable account and a stream of valuable referrals as well.
March 15, 2021 at 1:15 pm
Rosenblatt says:
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That may be how the market works right now, I’m simply saying an agent demanding that I “buy immediately or go fly a kite” is a company I’d never do business with.
March 15, 2021 at 11:15 pm
okt0ber says:
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If you were an agent that is good an educating the client on what is happening in the market right now, that there are only a limited number of “spots” each month, and that if they wait, they might lose their spot, you probably won’t lose the customer. What other industry does that? Concert tickets, sporting event tickets, airline tickets…. literally anything with a limit number is spots available to purchase, just like how insurance capacity works. So, if you explain it in that way, you’ll be appreciated. Be a little creative. Creating urgency doesn’t have to be a negative experience for the customer.
March 13, 2021 at 11:06 am
Mr. Slow Me Down says:
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Not to mention you have over 80% of insurable property values within 10 miles of the coast in the most hurricane prone state. That alone is an insurmountable challenge. I left FL in 1984 and never looked back.
The retail agent is getting killed by the carriers and the MGAs. In all businesses the sales staff is the highest paid department in the company. In INSURANCE the retail agent or SALES STAFF is the lowest paid department. We generate the revenue, pay for high priced employees, pay employee benefits and yet we are still getting 10% and 12% commissions. I want to lobby for an “agency” policy fee of $100.00 to be added to every policy to help the retail agent survive. In the last three years we have had about 8 companies go online to attack the auto and homeowner insurance market. Retail agents need help……
You seriously think 10% to 12% of the high premiums in Florida isn’t enough money? What kind of lifestyle are you trying to live? $100 fee on to of 10% of a $2,500 (or more) policy premium isn’t enough? LOL.
The “Unholy Quartet” of public adjusters, attorneys, water damage restoration contractors and roofers have absolutely and completely destroyed the Florida homeowners industry. The citizens of our state this quartet purports to serve and support are paying dearly for their enrichment.
We’re not all part of the problem. I’ve been a water damage restoration contractor in Florida for nearly 40 years. I agree there are many bad players on all the teams you mentioned but I have many friends and associates throughout the state ( in all but the PA league ) who cringe when they read about the excesses that have contributed to this issue.
There are about 10% of water damage restoration people who don’t use AOB’s and won’t use 55 fans at $500 apiece to dry out a 900 square foot apartment. The remaining 90% are why you get a bad reputation and I hope you’re doing something about it.
Of course, not all, not all. But, if you “rent” a fan (or fans) for more than the total cost of the fan i.e. $100 per day per fan for 3 days and throw in 4 fans (when the fan costs you $200 to purchase) then you are part of the problem. I have many acquaintances at water damage restoration companies and I think they are great people. But your industry has dramatically increased the cost of the average homeowners claim. We are all paying the price for that claims inflation with higher premiums and less coverage options.
average rate increases in Central FL are like 40 to 60 %
You’re experiencing what those in Southeast got in 2005-2007 before the big reforms then.
Rates in Central Florida were completely underpriced before this. Not a single home should have a less than 4 figure premium anywhere in Florida, and I saw premiums in the $600s and $700s all the time. It isn’t that far inland – there are areas of Houston further inland than central Florida and almost no one pays less than $1500 a year anywhere in Houston regardless of age of home or value.
I’ve had quite a few renewals recently that have doubled and even tripled over last year. With the loss of companies, we’re really struggling to get people covered. I quote someone and go to bind it 2 or 3 days later and get: “zip code closed for business”.
Why wait 2 or 3 days? Tell the insured the quote is good for the day. It’s used car salesman like, but that’s where we’re at.
I’ve been telling customers since mid 2020 that it’s buy it now or don’t bother. That’s how fast things are changing. If they don’t trust my advice on that then they probably weren’t a fit at the agency anyway.
I totally understand what you’re saying, but if I’m told “you must buy today – don’t bother coming back tomorrow if you don’t bind right now” then I’m unlikely to buy from you since you’re tying my hands on comparing rates. What other industry does that … gyms?
That’s how it works in this market right now. Limited capacity. It’s just that simple.
Agree. Good way for an agent to lose my very profitable account and a stream of valuable referrals as well.
That may be how the market works right now, I’m simply saying an agent demanding that I “buy immediately or go fly a kite” is a company I’d never do business with.
If you were an agent that is good an educating the client on what is happening in the market right now, that there are only a limited number of “spots” each month, and that if they wait, they might lose their spot, you probably won’t lose the customer. What other industry does that? Concert tickets, sporting event tickets, airline tickets…. literally anything with a limit number is spots available to purchase, just like how insurance capacity works. So, if you explain it in that way, you’ll be appreciated. Be a little creative. Creating urgency doesn’t have to be a negative experience for the customer.
Not to mention you have over 80% of insurable property values within 10 miles of the coast in the most hurricane prone state. That alone is an insurmountable challenge. I left FL in 1984 and never looked back.
The retail agent is getting killed by the carriers and the MGAs. In all businesses the sales staff is the highest paid department in the company. In INSURANCE the retail agent or SALES STAFF is the lowest paid department. We generate the revenue, pay for high priced employees, pay employee benefits and yet we are still getting 10% and 12% commissions. I want to lobby for an “agency” policy fee of $100.00 to be added to every policy to help the retail agent survive. In the last three years we have had about 8 companies go online to attack the auto and homeowner insurance market. Retail agents need help……
You seriously think 10% to 12% of the high premiums in Florida isn’t enough money? What kind of lifestyle are you trying to live? $100 fee on to of 10% of a $2,500 (or more) policy premium isn’t enough? LOL.