HO insurance comes in various forms of coverage which can vary state by
state. It can range from a very basic form HO-1 to the rather all
inclusive Form HO-4, as well as custom coverages offered by several
carriers.
Bob is correct that each state sets its own parameters, loss/profit
ratios that it expects the carriers to meet, and each company must make
a decision on whether to write coverage in that state. Following the
catastrophic losses in Florida from several hurricanes, many companies
did choose to abandon the Florida market. Those that did remain put
rather severe limits on where and what they would insure. To fill the
gap, Florida put together the Florida State Underwriting pool to provide
coverage in those areas where the traditional carriers would not insure
risks. It is expensive, very limited, and requires that each homeowner
carry a separate policy for wind damage and another for flood damage.
The flood insurance is partially underwritten by the Federal government.
I recently lost all my towers, antennas, etc to Tropical storm Gabriella
which had reported winds just below hurricane force. At my QTH, they
exceeded that since it picked up two 5 ton AC compressors off my roof
and moved them 12' to come to rest against a side retaining wall. (Flat
commercial membrane roof). Ripped the outside deck right up including
the hurricane clips, snapped a 4mm stainless steel forestay on the mast
of my sailboat like it was piece of spaghetti, and blew the glass doors
inward such that there was a 3" gap at the frames. We were shocked that
the glass doors held and didn't shatter. Shredded all the canvas off my
powerboat, and stripped the coconut palms of all the coconuts.
After reading my insurance policies, I remembered that:
1) There was NO coverage for wind damage unless it was a "named"
storm.
2) Nothing on the exterior of the building is covered including
attached buildings (carports, etc).
I did submit a claim and did collect a small amount of the damages since
the AC compressors tore a hole in the roof membrane and the ceilings and
walls on two lower floors were damaged by the water.
I then received a notice that my premiums for the next two successive
years would be increased by 40% per year until I had met certain reserve
requirements. (it was already $3,400 per year for the wind alone).
Count yourself lucky if you can get a Form 4 homeowners policy. Each of
these policies here on the coastal areas of Florida are very expensive,
very limited both in covered risks and in limit amounts. In my opinion,
even the Florida pool coverage is not actuarially sound given the
unbridled coastal development that Florida has permitted in the past 20
years.
I was once an Insurance company executive. Florida and similar coastal
areas scare the bejeebers out of most underwriters.
FWIW,
Jon Hamlet, W4ZW
Casey Key Island, FL
"A little bit of Paradise in the Gulf of Mexico"
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