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Serving South Florida

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For over 35 years

Hurricane Preparedness

Pros and Cons of Self-Insuring For Wind Coverage

Hurricane Wind Damage
On average, the cost of homeowners insurance in Florida has gone up by 32.5% since 2016. This is more than three times higher than the average rate change than the rest of the country experienced during this time (10.9%).
More and more of my clients are analyzing the pros and cons of self-insuring instead of carrying a wind insurance policy. Self-insurance entails setting aside money for a potential loss in lieu of purchasing a third-party insurance policy. Depending on the losses your home faces, this could either save or cost more money than conventional insurance coverage.
The logic behind self-insurance is that providers calculate premiums based on forecasted risk. These figures are designed to profit the insurance company by bringing in more money than they are likely to pay out. Under this reasoning, a homeowner should theoretically be able to set aside funds in case an incident occurs, thereby protecting themselves without an insurance company taking a cut. Even with wind coverage a homeowner has a minimum deductible of 2% that they will have to pay out-of-pocket before insurance covers any damages.
All forms of insurance are essentially risk transfer strategies. When you purchase an insurance policy, you are paying a third-party to shoulder some of the risk. If you self-insure, however, you are choosing to retain the risk yourself.
Pros:
Interest: The funds you earmark for self-insurance can accumulate interest until you need them, growing substantially if you don’t have infrequent losses.
More Control: With self-insurance, you’re not bound to insurance policy fine print that contains specific exclusions and stipulations. You can spend the designated funds to cover virtually any wind incident.
Cons:
Potential for Significant Loss: Some types of claims can be extraordinarily expensive. That’s a very risky proposition for most people.
Self-insuring is normally only an option if there is no bank mortgage on your home. When you have a mortgage held by a financial institution, they want to make sure their investment is protected. The mortgage holder will insist on seeing proof of insurance coverage, so dropping your coverage is not typically an option.
How high could repair costs go?
Even for the people with no mortgage, self-insuring is a risky strategy and requires you to have liquid assets set aside for repairs.  It’s hard to plan for the financial impact of hurricane damage. In South Florida, we can go several seasons without getting a wind event; but when a major storm hits, like Andrew (1992), Wilma (2005) or Irma (2017), it’s impossible to predict in advance how much damage will be left in the storm’s wake.
You may have heard how construction costs are already sky-high due to material shortages. Just imagine how high those costs will climb if a major storm hits our area. Replacing a tile roof in South Florida is one of the most expensive repairs a homeowner can face. That cost could easily double after a storm. Without insurance, will you have enough cash or liquid resources on hand to pay for that, let alone cover months of temporary housing in this ultra-competitive rental market while you make repairs?
Other Options:
Talk to your homeowner’s insurance agent to explore other options like raising your hurricane deductible (typically 2% in Florida to 5%). Also, consider wind mitigation measures like impact glass windows and doors and installing a whole home generator, which can help protect your home and reduce premiums. If your home is located east on or near the water, hefty insurance costs may simply be a fact of life. The only way to reduce costs may be to relocate to a less hurricane-prone area ( which is not South Florida).
And one final thought – don’t forget the importance of flood insurance.  Without flood insurance, you are not protected from rising water. In past years, 25% of actual flood claims have been on properties classified as low flood risk. A small investment in insurance can protect you from major expenses.
Pocketing extra money instead of paying a premium to an insurer sounds like a great idea in theory, but it doesn’t always work out in the long run. The cost of your monthly premiums over the years could end up being less than what you’ll pay for rebuilding your home on your own.
Consulting a qualified insurance professional can help you decide whether self-insurance is a viable option in your situation.

2021 Hurricane Preparedness Guide

The 2021 Atlantic hurricane season is predicted to be more active than usual.
A total of 18 named storms, eight hurricanes and three major hurricanes are expected this season.This is above the 30-year average of 14 named storms, seven hurricanes and three major hurricanes.
In order to ensure you are properly prepared this hurricane season, you should consider how you are going to supply your homes given that hurricane season begins June 1st. Don’t be caught unaware, protect yourself.
Hurricane hazards come in many forms, including storm surge, high winds, tornadoes, and flooding. History teaches that a lack of hurricane awareness and preparation are common threads among all major hurricane disasters. By knowing your vulnerability and what actions you should take, you can reduce the effects of a hurricane disaster.
May 9, 2021 is the first day of National Hurricane Preparedness Week; hope you find this information informative and useful as we approach the beginning of the Hurricane Season.
2021 Hurricane Preparedness Guide
Look carefully at the safety actions associated with each type of hurricane hazard and prepare your family disaster plan accordingly. But remember this is only a guide. The first and most important thing anyone should do when facing a hurricane threat is to use common sense.
Know Hurricane Terms:
Hurricane Watch – A hurricane is possible within thirty-six hours. Stay tuned for additional information.
Hurricane Warning – A hurricane is expected within twenty-four hours. You may be advised to evacuate. If so, evacuate immediately.
Storm Surge – Storm surge is simply water that is pushed toward the shore by the force of the winds swirling around the storm. This advancing surge combines with the normal tides to create the hurricane storm tide, which can increase the mean water level 15 feet or more.
Ask your local emergency preparedness office about evacuation plans. Learn evacuation routes.
  • Plan a place to meet your family in case you are separated from one another in the hurricane.
  • Assemble a disaster supplies kit ( See information below)
  • Board up windows. Permanent storm shutters and impact glass offer the best protection. Also, you can use 5/8″ marine plywood. Tape does not prevent windows from breaking.
  • Know how to shut off utilities.
  • Make a record of your personal property (take digital photos or video tape the contents of your home and/or business and keep in a waterproof container with you along with your homeowners insurance policy or better yet, upload everything to the Cloud)
  • Be sure trees and shrubs around your home are well trimmed.
  • Clear loose and clogged rain gutters and downspouts.
  • Determine how and where to secure your boat.
  • Reduce the water level in your pool by about 1 foot. DO NOT drain your pool.
  • Charge cell phones and back up batteries
  • Get extra cash since ATMs will be inoperative if power is lost.
  • Consider flood insurance and purchase it well in advance.
Have a Place To Go:
Develop a family hurricane preparedness plan before an actual storm threatens your area. If your family hurricane preparedness plan includes evacuation to a safer location for any of the reasons specified with in this web site, then it is important to consider the following points:
If ordered to evacuate, do not wait or delay your departure.
If possible, leave before local officials issue an evacuation order for your area. Even a slight delay in starting your evacuation will result in significantly longer travel times as traffic congestion and weather deteriorates worsens.
Select an evacuation destination that is nearest to your home, preferably in the same county, or at least minimize the distance over which you must travel in order to reach your intended shelter location. In choosing your destination, keep in mind that the hotels and other sheltering options in most inland metropolitan areas are likely to be filled very quickly in a large, multi-county hurricane evacuation event.
If you decide to evacuate to another county or region, be prepared to wait in traffic.
The large number of people in this state who must evacuate during a hurricane will probably cause massive delays and major congestion along most designated evacuation routes; the larger the storm, the greater the probability of traffic jams and extended travel times.
If possible, make arrangements to stay with the friend or relative who resides closest to your home and who will not have to evacuate. Discuss with your intended host the details of your family evacuation plan well before the beginning of the hurricane season.
If a hotel or motel is your final intended destination during an evacuation, make reservations before you leave. Most hotel and motels will fill quickly once evacuations begin. The longer you wait to make reservations, even if an official evacuation order has not been issued for your area or county, the less likely you are to find hotel/motel room vacancies, especially along interstate highways and in major metropolitan areas.
If you are unable to stay with friends or family and no hotels/motels rooms are available, then as a last resort go to a shelter. Remember, shelters are not designed for comfort and do not usually accept pets. Bring your disaster supply kit with you to the shelter. Find Pet-Friendly hotels and motels.
Make sure that you fill up your car with gas, before you leave.
Preparing Your Pets for Emergencies Makes Sense.
Get Ready Now.
If you are like millions of animal owners nationwide, your pet is an important member of your household. The likelihood that you and your animals will survive an emergency such as a fire or flood, tornado or hurricane depends largely on emergency planning done today. Some of the things you can do to prepare for the unexpected, such as assembling an animal emergency supply kit and developing a pet care buddy system, are the same for any emergency. Whether you decide to stay put in an emergency or evacuate to a safer location, you will need to make plans in advance for your pets. Keep in mind that what’s best for you is typically what’s best for your animals.
If you must evacuate, take your pets with you if possible. However, if you are going to a public shelter, it is important to understand that animals may not be allowed inside. Plan in advance for shelter alternatives that will work for both you and your pets.
Make a back-up emergency plan in case you can’t care for your animals yourself. Develop a buddy system with neighbors, friends and relatives to make sure that someone is available to care for or evacuate your pets if you are unable to do so. Be prepared to improvise and use what you have on hand to make it on your own for at least three days, maybe longer.
Disaster Supply Kit
I personally prepare a hurricane closet in May with all the needed supplies and materials so that there is never a last minute rush to the store when the shelves have been cleaned out.
Water :
  • Plan on one gallon of water per person per day for at least 3 days, for drinking, washing, cooking, and sanitation. Extra water for pets
  • Store as much as possible in plastic containers such as soft drink bottles.
  • Avoid using breakable containers, such as glass bottles or mason jars.
  • Fill bathtubs with water for bathing and washing dishes
Food :
  • Store at least a three day supply of non perishable food.
  • Choose foods that do not require refrigeration or cooking.
  • Choose foods that are healthy and high nutrition type.  (Canned meats, fruits and vegetables, protein or fruit bars, dry cereal or granola, peanut butter, dried fruit, nuts, crackers, canned juices, non-perishable pasteurized milk, high enery foods, vitamins, food for infants and pets, comfort/stress foods)
Supplies and Equipment:
  • A battery operated radio with extra batteries
  • NOAA Weather Radio with tone alert and extra batteries
  • A flashlight with extra batteries
  • Blankets or sleeping bags ( store in trash bags to keep dry)
  • Paper plates and utensils, including a non electric can opener
  • Candles and matches in a waterproof container
  • Plastic sheeting and duct tape to shelter-in-place
  • Toothbrushes, toothpaste, soap, moist towelettes, and other personal grooming items
  • Paper towels and toilet paper
  • First aid kit and medicines ( ask your pharmacist or drug supply company for a one month hurricane supply and store in water proof container)
  • Fire extinguisher
  • Wrench or pliers to turn off utilities
  • Cell phone and plug in battery operated charger
  • Infant formula and diapers
  • Books, games and toys to keep kids occupied ( remember those batteries)
  • Important family documents such as copies of insurance policies, identification and bank account records, COVID Vaccine Passport, in a waterproof, portable container
  • Complete change of clothing including long sleeved shirt, long pants and sturdy shoes
  • Insect repellent and sun-screen
  • Paper and pencil
  • Local Maps
  • Make sure to keep all of your medications filled.
Business Preparedness
* Have an emergency communication plan in place before the storm hits. How will co-workers stay in contact if the physical location of a business is damaged?
* Turn off all non-critical work devices before the storm hits.
* Alert a third party about business evacuation plans in case a storm makes it impossible to get to your place of business.
* Protect important business documents that you may need quickly, such as property insurance policies.
* Have cash on hand to pay employees or contractors after the storm.
* Know which employees are certified in CPR, EMT, etc.
* If possible, disconnect a building’s main electrical feeds.
* Have a plan to notify all employees, post-storm, about damage and how you’ll move forward.
* Review contracts that are date sensitive and have a backup plan in place to handle potential problems.
* Assess all functions that could be impacted by a lapse in business – cash flow, bills, budgets and any upcoming events.

Emergency Supplies for Quarantine or Hurricane

Emergency Supplies

Emergency Supplies

Emergency Supplies that you can buy now and be prepared for any emergency in the next few months.  COVID-19 cases are increasing and there may be a need for you to self-quarantine for a period of weeks. We are also in the summer months frequently occurring natural disasters—a flood, hurricane, tornado, fires, and more—and they often come with little or no warning.  There are already known shortages of items in the stores and with the onset of a hurricane warming the shelves will soon be bare. Stocking up now on the right non-perishable food items will help you weather the storm (or global pandemic) with less stress knowing that you have these emergency supplies on hand for now or later.

What to Always Keep in Your Pantry

These non-perishable food items (or close to it) have lengthy expiration dates, so you can stash them away for long periods of time, even if it’s not hurricane season or tornado season. Make a list of everything in your stockpile and check expiration dates every 6 to 12 months to keep things fresh. And don’t forget to have a MANUAL can opener on hand at all times—all that food won’t be of any use if you can’t open it.

Peanut butter: A great source of energy, peanut butter is chock-full of healthful fats and protein. Unless the jar indicates otherwise, you don’t have to refrigerate after opening.

Whole-wheat crackers: Crackers are a good replacement for bread and make a fine substitute when making sandwiches.

Nuts and trail mixes; Stock up on these high-energy foods—they’re healthful and convenient for snacking during a hurricane, tornado, or other emergency.

Cereal;Choose multigrain cereals that are individually packaged so they don’t become stale after opening.

Granola bars and power bars;Healthy and filling, these portable snacks usually stay fresh for at least six months.

Dried fruits, such as apricots and raisins;In the absence of fresh fruit, these healthy snacks offer potassium and dietary fiber.

Canned tuna, salmon, chicken, or turkey;Generally lasting at least two years in the pantry, canned meats provide essential protein. Vacuum-packed pouches have a shorter shelf life but will last at least six months.

Canned vegetables, such as green beans, carrots, and peas;When the real deal isn’t an option, canned varieties can provide you with essential nutrients, making these a great hurricane food or natural disaster

Canned soups and chili; Soups and chili can be eaten straight out of the can and provide a variety of nutrients. Look for low-sodium options.

Dry pasta and pasta sauces; It might be a carb-heavy, gluten-full food, but pasta is filling, and dry pasta and jarred sauce can last on pantry shelves for months

Bottled water; You need at least one gallon per person per day. “A normally active person should drink at least a half gallon of water each day,” Andress says. “The other half gallon is for adding to food and washing.”

Sports drinks;The electrolytes and carbohydrates in these drinks will help you rehydrate and replenish fluid when water is scarce. Just make sure your sports drink of choice doesn’t come with too many additives, such as sugar or artificial sweeteners.

Powdered milk or Boxed milk; Almost all dairy products require refrigeration, so stock this substitute for an excellent source of calcium and vitamin D when fresh milk isn’t an option.

Sugar, salt, and pepper;If you have access to a propane or charcoal stove, you may be doing some cooking. A basic supply of seasonings and sweeteners will improve the flavor of your food, both fresh and packaged.

Multivitamins;Supplements will help replace the nutrients you would have consumed on a normal diet.

 

What to Buy Right Before an Emergency

If you’ve been given ample warning that a storm is coming, there’s still time to run to the market and pick up more hurricane food: fresh produce and other items that have shorter shelf lives. Most of these foods will last at least a week after they’ve been purchased and will give you a fresh alternative to all that packaged food..

Apples;Apples last up to three months when stored in a cool, dry area away from more perishable fruits (like bananas), which could cause them to ripen more quickly.

Citrus fruits, such as oranges and grapefruits;Because of their high acid content and sturdy skins, citrus fruits can last for up to two weeks without refrigeration

Avocados;If you buy an unripe, firm avocado, it will last outside the refrigerator for at least a week.

Tomatoes;If you buy them unripe, tomatoes will last several days at room temperature.

Potatoes, sweet potatoes, and yams;If you have access to a working stove, these root vegetables are good keepers and make tasty side dishes. Stored in a cool, dark area, potatoes will last about a month.

Cucumbers and summer squash;These vegetables will last a few days outside of refrigeration and can be eaten raw.

Winter squash:While most are inedible uncooked, winter squashes, such as acorn squash, will keep for a few months. If you’ll be able to cook during the emergency, stockpile a bunch.

Hard, packaged sausages, such as sopressata and pepperoni; You can’t eat canned tuna and chicken forever. Try stocking up on a few packages of dry-cured salamis such as sopressata, a southern Italian specialty available at most grocery stores. Unopened, they will keep for up to six weeks in the pantry.

 

Non-grocery Items:

Within the two-week limit, make sure you have enough toothpaste, floss, face wash, moisturizer, shampoo, conditioner, razors, shaving cream and hand sanitizer with at least 60% alcohol. It’s also good to have extra laundry detergent and hand soap at home. Stock up on face masks, hand sanitizers, toilet paper

 

More Food Advice for an Emergency:

  • If the electricity goes out, how do you know what is and isn’t safe to eat from the refrigerator? If your food has spent more than four hours over 40º Fahrenheit, don’t eat it.
  • If you don’t have electricity, you may still be able to cook or heat your food. If you have outdoor access, a charcoal grill or propane stove is a viable option
  • If your family has special needs—for example, you take medication regularly or you have a small child—remember to stock up on those essential items, too. Keep an extra stash of baby formula and jars of baby food or a backup supply of your medications.
  • If you live in an area at high risk for flooding, consider buying all your pantry items in cans, as they are less likely to be contaminated by flood waters than jars.