Insurance Frequently Asked Questions

A: Sinkhole is a natural depression or cavity in a land surface, generally occurring in limestone regions and formed by the collapse of a cavern roof, or a sudden slumping of the surface due to overpumping of the aquifers. Sometimes these sinkholes can cause damage to foundations to buildings. Sinkhole Coverage provides coverage for any damage caused by a sinkhole that exceeds the deductible. Insurance companies in certain parts of Florida now give a large discount in order to exclude sinkhole coverage because the expense involved with determining whether or not a client has sinkhole damage is between $10,000 to $20,000. Sometimes the company may have to pay this expense only to determine that the damage is due to settlement, not sinkhole damage. If a client chooses to exclude sinkhole damage, they will still have coverage for "Catastrophic Ground Collapse". This means that sinkhole is only covered if the damage to the home is "catastrophic" and the building is considered unsafe/condemned.

A: In Florida, most carriers will have a seperate deductible for hurricane. This is an annual deductible, so if you have 2 different hurricane losses in one year and you already exceeded your deductible during the 1st hurricane, you will not have to pay a deductible during the rest of the policy period. The Hurricane deductible only applies if a hurricane watch or warning is issued in any part of Florida and ends 72 hours from the time the warning or watch is terminated.

A: Although liability insurance is not required in Florida (only Personal Injury Protection & Property Damage is required), the state has a law called the "Financial Responsibility Law" which states that if the insured is involved in an accident, the Financial Responsibility Law, regulated by the Department of Highway Safety and Motor Vehicles, also requires Bodily Injury Liability coverage ($10,000 Bodily Injury one person, $20,000 Bodily Injury one accident). Therefore, unless the vehicle stays in storage and is unused, we recommend to all of our clients to carry, at the least, $10,000/$20,000 which is the minimum liability limits available.

A: In order to exclude yourself from Workers Compensation, 1.) you must be an owner and 2.) you must file your exclusion with the state. Visit http://www.myfloridacfo.com/wc/forms.html and complete the "Notice of Election to Be Exempt" under the 69L-6 tab.

A: For the most part, yes. The rates are filed by the state of Florida. On the other hand, there are a few Self Insured Funds which are a group of similar businesses that determine their own rates, usually cheaper than the states rates, but these groups can assess additional premiums to their members if the claims exceed the amount of premium they have collected.