Florida Homeowners Insurance Blog

Summer in Florida means lots of fun and exciting activities--barbeques, time at the beach or at the pool, boating, and fireworks, just to name a few. Along with these activities comes an increased risk of injury and property damage. That is why the start of summer is a good reason to make time to review your homeowner's policy. After all, you get yourself, your car, your pets, and your kids checked up on a routine basis, so why not include a yearly review of your insurance policy on this list? It is important to ensure that your policy covers what you need it to cover, as not all policies offer the same coverage and not all homeowners need the same things covered. The Florida Homeowners Insurance Claim lawyers at Greenberg, Stone & Urbano, P.A., are experienced in representing individuals in homeowner's insurance claims. We want to make sure you have the coverage you think you have, as well as the coverage you need.

Below is a list of things to consider when determining what your homeowner's policy needs to include.

Continue reading "3 Things You Should Consider When Purchasing a Florida Homeowners Insurance Policy." »

While business and environmental advocates that support the down seizing of Citizens Property Insurance Corporation expect that a new bill to that effect will soon be passed, others opposed to some of the methods for trimming the size of the state backed insurer, are filing bills of their own to insure that such methods are never implemented.

For example, according to sunshinestatenews.com, supporters of a smaller Citizens expect the passing of a new bill that could include any (or all) of the following measures:

1. Doing away with the legislatively imposed 10 percent cap on annual premium increases;
2. Creating a clearing house for private insurers to "cherry pick" accounts;
3. Leaving Citizens with only the most risky or uninsurable areas as it was originally intended to be;
4. Breaking up Citizens Property Insurance Corporation into smaller, more manageable units depending on coverage.

Among these supporters are environmental groups, like the Florida Wildlife Federation, that want a complete overhaul of the state's property insurance market in hopes of making developers think twice before expanding construction to endangered coastal areas.

To that end, Jay Liles, policy consultant for the Florida Wildlife Federation, recently stated "the 2013 state legislative session provides our elected officials with another opportunity to reform both Citizens Property Insurance Corp. and the Florida Hurricane Catastrophe Fund, while ending unnecessary state subsidies for high-risk coastal development." He subsequently continued saying "the Florida Legislature needs to implement thoughtful legislation that will protect Floridians as well as our state's wildlife and coastal habitats."

Similarly, business groups like the Florida Chamber of Commerce and Associated Industries of Florida would specially like to remove the cap imposed by the legislature, as they contend that the low, capped rates at Citizens have kept the private insurance market from growing and therefore, capital from coming back into the State.

In fact, David Christian, vice-president of government affairs of the Florida Chamber of Commerce recently declared in front of the Florida Senate Banking and Insurance Committee "every business and property owner in Florida should be aware of the ramifications if policymakers do not take steps to reform the state's property insurance market." Subsequently, Mr. Christian declared that the legislation sought out by them should not only return Citizens to being the actual insurer of last resort, but should also cause the Florida Catastrophe Fund to be re-categorized as a supplement to private insurance, not a replacement.

Opposing Arguments

According to miamiherald.com, State Representative Jose Feliz Diaz, R-Miami, is among those that oppose the measures being proposed to help shrink the size of Citizens. He is adamantly opposed to doing away with the 10 percent annual cap imposed by the legislature on increasing Citizens' rates.

Representative Diaz compares the consequences of an uncapped insurance rate system to those created when property taxes were capped via "Save Our Homes", where new homeowners pay significantly more than old homeowners. To that extent he has recently said "by failing to boldly reform our state's tax structure and simply maintaining property taxes for old homeowners artificially low, many of those (new) homeowners became trapped in their homes." He feels that uncapped insurance rates would create an unsustainable financial burden on South Floridians.

Consequently, he has formed an alliance with Senator Anitere Flores (R-Miami) to file his first bill, HB 107, which is intended to stop those trying to do away with the legislative caps on their tracks. Moreover, according to Representative Diaz, HB 107 is only the first of many he plans to introduce, from "creating an inspector general that oversees their operations to demanding more accountability from the insurance company."

Continue reading "Fight for Trimming Citizens Continues" »

One of the many ways used by Citizens Property Insurance Corporation to prompt many of its policyholders to "jump ship" and seek coverage under the umbrella of private insurers has been to raise the deductibles for certain damages. According to tampabay.com, one very little known is the deductible for damages caused by sinkholes.

Ugly Surprise

Very few people realize that last year a change took effect in Citizens' policies: all policyholders with sinkhole coverage are now required to pay 10 percent of their home's insured value before Citizens pays for any repairs.

Such was the case of Lee Crowe. In August he was trying to get his insurance company to pay for $23,000.00 worth of cosmetic damage done to his house by a sinkhole. Workers had already filled the sinkhole with $84,000.00 worth of grout. Yet, much to his dismay, Mr. Crowe suddenly found that when it came to repairing the damage to his home, he had a $20,600.00 deductible....

Before this change, the 10 percent deductible was only one option to reduce premiums. Christine Ashburn, a spokesperson for Citizens, has said that the change was announced via email to agents in March of 2012, taking effect on May 2012 for new policyholders and a month later for renewals. However, she stated, policyholders were notified before their renewal and given an opportunity to opt out and remove coverage for sinkhole damage.

According to the same Citizens' spokesperson, the change is part of an ongoing effort to reduce the number of claims for sinkhole damages that the company has to deal with each year. These claims have jumped to nearly 6,700 in 2010 from 2,300 in 2006. It is worthy to note that although Citizens collected $51 million in sinkhole related premiums during 2011, it paid out $136 million to cover sinkhole damage that same year.

Downsizing A Giant

It is important to remember that the company has been trying to reduce its customer base from its current 1.4 million policyholders to about half (approximately 675,000). In order to accomplish this goal, Citizens has been continuously rising rates and deductibles. This policy move is widely supported by Florida Governor, Rick Scott (R), and many other important State government figures who claim to fear that despite Citizens' enormous current reserves, it may not be able to survive a disastrous hurricane season. The company's reserves are estimated at approximately $6.2 billion thanks to the ever rising premiums and deductibles and several years without significant hurricane damages (not since Hurricane Wilma in 2005).

Read The Fine Print

An ardent critic of Citizens, State Representative Mike Fasano, a Republican from New Port Richey, has called the 10 percent deductible a "ploy to raise taxes through the back door without coming to the Legislature." He is considering legislation to either stop the new higher deductible or to give people a cheaper option.

Yet, for many (like Mr. Crowe) it may be too late. According to Taylor Yarkosky, owner of a sinkhole repair company, "your average working person between 30 and 50 years old probably doesn't pay attention (to their policy's details). They're not going to notice until a catastrophe happens that they go: 'What do you mean I've got to pay 10 percent?"

In fact, Mr.Crowe calls the move "sneaky" and claims he never received a letter explaining the change. Moreover, he said, "What they're doing to me is almost counting on somebody's irresponsibility as far as not reading fine print. We have all been programmed to not even read all that stuff."

Given the preceding cases, the lawyers of Greenberg, Stone and Urbano, P.A. have decided to help the members of our community review and understand their homeowners insurance policies at no cost or obligation to them.

Continue reading "Citizens Raises Deductibles for Sinkhole Repairs" »

According to sun-sentinel.com, Florida's Insurance Commissioner, Kevin McCarty, has come up with a list of ways to reduce the size of Citizens Property Insurance Corporation, the state backed property insurer, to something more palatable to the Governor, Rick Scott (R) and other government leaders that fear the company may not be able to survive a disastrous hurricane season. The company has already been continuously raising rates and deductibles on its own in the hope of driving policyholders out onto the private market. Markets, where the carriers may not be able cover losses from a major storm. In some cases, Citizen's has also been cutting coverage, something very dangerous because many policyholders may find themselves without coverage and thus, the funds necessary to rebuild their homes should disaster strike. Unfortunately, many proposals are politically unpopular...

Very Unpopular Choices

Among the most controversial measures is to have Citizens go back to its original role as Florida's main coastal high-risk insurer, thus effectively reducing its current portfolio of over 1.4 million policies to less that 500,000. Of course, this would force many homeowners back to the private insurers and higher premiums.

Another "idea" consists of greatly relaxing or completely eliminating the 10 percent cap on annual premium increases for the policyholders insured with Citizens and/or separating Citizens' coastal and inland business. Thus, insured's could see their premium's go up significantly.

Legislators Come Up With Their Own Ideas

On the other hand, two of the state's most influential legislators in insurance related matters, the Chairman of the Banking and Insurance Committee, Senator David Simmons, R-Altamonte Springs and the House's counterpart, Representative Bryan Nelson have been setting tough goals for Citizens throughout the next two years. Nelson has said he may agree with McCarthy on increasing the cap to Citizens' annual premium increases to 13 percent form the 10 percent it has been for a few years. However, even McCarthy, who proposed the higher cap to help reduce the number of policyholders under Citizens by forcing many into a cheaper (at least initially) private market, has said that a much higher cap could end up hurting the economy.

Company executives, including CEO Barry Gilway, believe that reducing Citizens' in half, to less than 675,000 policies is an attainable goal. While some of those policies would cover Citizens' traditional high-risk coastal market, most would cover inland policies which represent most of the 7,000 policies that Citizens signs up each week.

A Word of Caution

Experts from the Office of the Florida Insurance Commissioner have warned the legislators not to continue cutting back the coverage provided by Citizens because should disaster strike, many homeowners may find themselves unable to rebuild, something that would have catastrophic consequences on our communities. Similarly, other legislators like Senator Tom Lee, R-Brandon, have said that those seeking to reduce Citizens' size should remember that forcing policyholders out of the company by raising rates and deductibles (as well as cutting coverage), should remember that many of these customers being forced out live in areas where there are no other insurance providers. Consequently, these people have no choice but to go to Citizens.

Continue reading "Not Easy to Shrink Citizens" »

State legislators from South Florida have filed legislation intended to block an attempt by Citizens Property Insurance Corporation to raise rates to new policyholders over the 10 percent current cap allowed for increases to current policy holders.. According to newschief.com, the company tried to do the same thing last year, but backed down after legislators questioned the move's legality.

Now, legislators from Miami-Dade County want to leave no doubt that the cap applies to all customers, both new and existing, by filing legislation specifically tailored to that end.

More Debates Over Citizens in the Horizon

Similarly, the new legislation hints at renewed debates in Tallahassee this spring over plans to reduce the Citizen's size. Florida Governor Rick Scott and other state leaders have tried to reduce Citizens' portfolio (which stands at over 1.4 million policies) as they claim they are concerned about the company' ability to handle a disastrous hurricane season. They fear that should disaster strike, they may be forced to establish a so called "hurricane tax" that could effect many Floridians. This move is in spite of the fact that Citizens has accumulated more than $6.2 billion in reserves thanks to several Hurricane seasons that saw little windstorm damages (the last was Hurricane Wilma which hit Florida in 2005) and a continued strategy by Citizen's of raising rates and deductibles, intended to make itself less "desirable" a choice for policyholders.

However, we should point out that such a tax assessment could also result from the financial failure of some of the private companies whom the Governor and other supporters of reducing Citizens' size want to cover policyholders. Many of these "private" insurance companies are in much worse financial shape than the state sponsored homeowners' property insurer and are less likely to be able to handle claims in a catastrophe.

Opponents to Citizens' current strategy to raise rates beyond the 10 percent allowed by law, argue that proof of the thin financial inability of private insurers to offer effective coverage to Florida homeowner's is proven by the fact that most of these "private insurers" decline to write coverage for coastal areas (where the majority of the population lives) leaving Citizens as the only viable alternative for homeowners living in those areas.

Continue reading "New Legislation to Stop Citizens From Raising Rates Over 10 Percent Annual Cap" »

According to news-press.com, Citizens Property Insurance Corp., Florida's State backed homeowner's insurance company has decided to shelve it's controversial $350 million loan program conceived to help it shed thousands of the 1.4 million policies it currently underwrites.

Program Under Fire

Right from the start, company officials had been subject to great criticism due to their intended plan to use $350 million of the insurers' reserves to entice private insurance companies to underwrite thousand of policies that are unwanted by Citizens. These funds have been accumulated due to a combination of continued increases in insurance premiums and higher deductibles, coupled with a few years of almost no damage due to hurricanes and windstorms. As a result, Citizens has been able to build a $6.2 billion reserve from which the above mentioned $350 million were to be taken.

The money was to be used to provide 20 year low interest loans to private insurers agreeing to underwrite for a period of at least 10 years thousands of policies currently under the Citizens umbrella. The problem is that several of the insurance companies that had agreed to underwrite those policies had troubled financial records and are themselves at risk of going bankrupt should a major hurricane hit Florida. Moreover, the need for the loan program was also questioned because some other private insurers had already taken over policies from Citizens without requesting the payment of any cash incentives.

Program Under Review

In fact, Citizen's President, Barry Gilway, who took over leadership of the insurer in June and presented the program shortly thereafter, is now questioning whether given the financial conditions imposed there would be any takers among the private insurers it is supposed to entice. Outside investment advisors are currently reviewing the program as early discussions with potential companies have indicated a need to make changes to the plan. These advisors should have their recommendations ready early this year.

Continue reading "Citizens Backs Down on Loan Program" »

As we all know, from his first day in office, Governor RIck Scott has embarked on a policy to allow for limitless increases in property insurance rates, allegedly to help the State's sponsored property insurance company, Citizens Property Insurance Corp., to shed some of the 1.5 million policies it now holds and, at the same time, to motivate private insurers to start offering services here and spur competition, an age-old capitalist formula that should (at least theoretically) help lower rates in the future.

Too Many Hikes, Too Fast

However, homeowners' insurance rates are being increased so fast and so often that they are starting to cut very dramatically into people's standards of living. In the past we have posted about how many elderly citizens who outright own their properties are being forced to forego homeowner's insurance altogether and "wing on a prayer" any future storms....

Yet, the elderly are not the only affected by these increasing rates. Take, for example, the residents at Village Green Condominium in Sarasota. The board members have been working very hard to try and keep costs down for the residents by repainting the shuffleboard courts themselves to organizing community landscaping days. However, according to heraltribune.com, there is nothing they can do to control property insurance rates and prevent them from skyrocketing.

The rate for the association's 24 units is set to triple (an increment of $20,000.00) next year and all they have been able to do is plead with local lawmakers asking them to address Florida's homeowners' insurance problems in the legislative session that starts in March, 2013. Although the board received a sympathetic message from the lawmakers at their pre-legislative session meeting, solving the problem will not be easy.

This is not the first insurance rate hike that Florida homeowners have seen recently. In fact, many Florida insurers raised their rates in 2011 and so far the Office of Insurance Regulation has received 73 applications to further raise the price of typical homeowner's policies throughout the State. For example, one Allstate affiliate proposed a 32.4 percent rate increase this year.

Thankfully, at least one influential politician, Senator Nancy Detert, R-Venice, will provide a strong voice against these rate increases during the insurance debates in 2013. Detert has qualified as "obscene" the fact that people are paying more home insurance than taxes. At least taxes create jobs...

Similarly, Detert has largely criticized the Governor's plan on how to shrink Citizens Property Insurance Corp. Although Senator Detert agrees that the company must be made smaller, she disagreed with a bill last year that would have allowed surplus lines insurers to take policies out of Citizens because surplus companies are largely unregulated in Florida and therefore can raise rates without state approval. The senator says that a better plan would be to reexamine how Citizens does business in the riskiest coastal areas where people should expect to pay more just because they've chosen to live in a high risk area.

Continue reading "Property Insurance Rates Keep Getting Higher " »

An administrative judge has ruled that the forms used by property insurers in Florida, especially those used by state operated Citizens Property Insurance Corp. to massively deny wind mitigation discounts, are seriously flawed and must be completely disregarded.

Not All Discounts Taken Into Account

According to staugustine.com, Administrative Law Judge Robert Meale found that the forms, which were created by the Office of Insurance Regulation (OIR), failed to provide separate discounts for homes with wind resistant garage doors, as required by state law. These discounts are mutually dependent. In other words, if a house has approved hurricane shutters protecting its doors and windows but has a non rated garage door that would not withstand hurricane winds should a storm hit, the house would be as vulnerable as if it was completely unprotected. Consequently, if a homeowner gets a discount for having hurricane shutters protecting his home's doors and windows, he should also get a discount for having a garage door that will withstand hurricane winds.

This situation prompted the judge to nullify all mitigation forms used when houses built before 2011 were inspected. This is when the more comprehensive Florida Building Code was enacted.

Fortifying Garage Doors

Studies done after hurricanes Andrew and Charley showed that many houses were destroyed when winds broke through weak garage doors and rushed through homes, causing roofs to cave in and walls to crumble. Consequently, the studies concluded, fortifying old garage doors is one of the best ways to prevent wind damage during a hurricane. Also, it's a lot cheaper than buying a new garage door.

A new garage door can cost between $1,000.00 and $2,000.00. A product called "Secure Door", sold at Lowe's for about $150.00 makes an old garage door as safe as a new one. Insurers failure to offer discounts for safer garage doors have not only cost more money to homeowners, but a substantial loss of revenue to the business that manufactures the aforementioned "Secure Door" product. Consequently, Jack Stumpff, owner of the company that produces "Secure Door", filed the lawsuit that brought about Judge Robert Meale's ruling.

No Immediate Benefit

Although the decision could have far reaching implications for homeowners throughout the State, no immediate benefit should be expected from this ruling, as the OIR has appealed it and an appeal process takes time. However, if Judge Meale's decision is confirmed at the appellate level, insurers may have to reimburse millions of dollars to policyholders. For example, the state's largest insurer, Citizens Property Insurance Corp., who holds about 1.5 million policies, has been steadily implementing a re-inspection campaign throughout the last year that has deprived three out of four homeowners of the hurricane mitigation discounts they were previously receiving, causing an average premium hike of $800.00 a year.

Continue reading "Court Ruling Against Improperly Eliminated Homeowners Insurance Discounts" »

Corporate misconduct and scandalous behavior at Florida's state-run homeowners insurance company, Citizens Property Insurance Corp., emerged earlier this year when investigators from the company's Office of Corporate Integrity issued a 73-page report with a long list of improprieties. To add fuel to the fire of public outrage, those investigators were fired last month and the Office of Corporate Integrity closed.

Now, the Tampa Bay Times has unearth details of the investigators' report, prompting Governor Rick Scott to call for an investigation of Citizens highest levels of management. The company's president, Barry Gilway, has stated: "Citizens is committed to ensuring the highest levels of ethic and welcomes a full investigation". Yet some of the newly revealed details of corporate misconduct at Citizens at the very least cast a shadow of doubt over the company's management:

• First is the fact that Susanne Murphy, a chief administration officer at Citizens was allowed to serve as a legal adviser to the company for years, despite not being a licensed attorney in Florida. When this was discovered, top officials at the company altered incriminating evidence. They then allowed Ms. Murphy to resign in August, but continued paying her a salary and giving her benefits until December.


• Then, an underwriting executive who was accused of having an affair with a subordinate was paid more than $80,000 in severance and allowed to receive unemployment benefits after he resigned from the company. The company never opened an investigation of this case.


• Subsequently, evidence of favoritism by Citizens executives was found when one employee was fired for using company resources to promote a line of sex toys and an executive was barely disciplined after she drunkenly slipped off her bra during a company retreat and promoted a side-business on company time.


• Finally, private law firms were hired to conduct several internal investigations and some of the firms cleared high-level employees of charges without considering crucial pieces of incriminating evidence.

Continue reading "More Details Emerge of Corporate Misconduct at Citizens" »

The deadline for thousands of Florida homeowners to decide whether they want to remain insured with Citizens Property Insurance Corp. or not has arrived and over 150,000 of them could be dropped by the state-run insurance company onto private carriers starting Tuesday, November 6, 2012. These policyholders had received last month offers from private insurers giving them a choice to opt out and stay with Citizens or become part of those private insurers' portfolios.

Why Leave Citizens?

According to miamiherald.com, the incentive for homeowners to accept the offers from these private insurers is to escape Citizens' continued rate and deductible hikes, home re-inspections, coverage cutbacks and tougher eligibility requirements. It is believed that those who chose to leave Citizens will see lower rates, at least initially.

However, since the five private companies participating in the program are all much smaller, undercapitalized companies, experts predict that most of these lower rates will go up when the policies renew. The five companies participating in the program are: Florida Peninsula, American Integrity, Homeowners Choice, Southern Oak, and Southern Fidelity Property & Casualty.

Homeowners that decided to opt-out should have sent the opt-out letter they received or visit their agents and express their desires. Yet, it is important to note that if they failed to do so within the allotted 30 days, they will still be able to opt-out and stay with Citizens for the first 30 days after they are taken over by the new company.

More Take Outs To Come

This large takeout is part of an aggressive plan intended to reduce risk and possible financial liability for taxpayers should a catastrophic storm season drain the money available to state-run Citizens to pay for damages. In fact, more take outs are on the way: On December 4, Citizens will shed 53,000 more policies, some of which could include policyholders that opted out during the first take out.

Tips For Homeowners With Damages From Windstorms

Following are very important tips we would like to offer to our readers on the steps they should follow should their homes or other property suffer damages in any storm:

• Take pictures of the damaged property before you make repairs.
• Begin to make temporary repairs to prevent further damage to your home or property. Keep a record of time spent and all receipts for work done on your property. You have a duty to mitigate damages under the terms of your insurance policy.
• Take pictures of any mitigation steps you have taken such as placing tarps on your roofs or covering broken windows or doors.
• Remove tree debris from the structure and place it on the ground.
• If your power is out, unplug any small electrical items and electronics to prevent electrical spike damage.
• Secure replacement costs/estimates from local retailers of like kind, quality and features. Obtain statements from vendors on items that cannot be repaired.
• Do not dispose of any damaged contents until authorized by your agent or claim representative.
• Contact only reputable, licensed vendors for repair estimates. Have estimates signed by the vendor and approved by your adjuster or agent before having major damage repaired.
• Inventory your damaged personal possessions such as furniture, clothing, art, collectables, etc. If a damaged item is a collectable or artwork, try to establish its current value.
• Contact the Law Offices of Greenberg, Stone & Urbano, P.A. immediately after the storm so that we can send our loss consultant to inspect your property and help you prepare the documents in support of your claim.

Continue reading "Thousands of Florida Homeowners Face Insurance Deadline" »

The death toll in New York City from Hurricane Sandy has reached 40 people, half of those in Staten Island, which was overrun by a wall of water on Monday. In fact, Ellen Borakove, a spokeswoman for the medical examiner's office, says that three days after the storm they are learning that most victims drowned. The total number of victims in the United States has reached 98 people.

Among the dead in Staten Island were two young brothers aged 2 and 4, who were swept from their mother's arms after their car stalled in rising waters. Their bodies were subsequently found near each other not far away.

Angry Storm Victims

Storm victims in Staten Island are angry at the lack of response from authorities. According to chicagotribune.com, Theresa Connor, 42, claimed that "they have forgotten us" (referring to authorities) and that her Staten Island neighborhood had been "annihilated".

New York Marathon

Another thing that has angered new yorkers is the Mayor's decision not to cancel the city's annual marathon scheduled for November 4, 2012. Regarding the Mayor's decision, New York City Councilman James Oddo has said that "if they take one first responder from Staten Island to cover this marathon, I will scream." "We have people with no homes and no hope right now."

Kris LoPresto, a native Staten Island marathoner who has been training for the event since June 16, 2012 and run four hundred and one miles since, has decided not to run in solidarity with his fellow residents, writing about his decision in a very emotional statement published in huffintonpost.com.

Devastation in New Jersey

The death toll in New Jersey stands at 13 victims. Entire neighborhoods in towns by the ocean were flooded by seawater and the world famous Atlantic City boardwalk was destroyed.

New Jersey Governor Chris Christie said yesterday that "there's nothing more precious to people than their homes. Those are where their families are, their memories and possessions of their lives, and there's also a sense of safety to home. The Governor continued 'that sense of safety was violated with water rushing into people's homes at an enormous rate of speed and people having to literally swim, climb, jump for their lives."

The Republican Governor, well known for his forcefulness, has announced a series of orders and plans intended to speed up New Jersey's recovery. Although some of the decisions may find opposition, like the one ordering teacher to work of days they were supposed to have off, he has been mostly praised by both political friends and foes. With President Obama complimenting him, Democratic New Jersey politicians appearing by his side, constituents hugging him and victims giving credit to his efforts, Governor Christie is generally seen as doing the job he was elected for very well.

Tips For Homeowners With Damages From the Storm

Although Hurricane Sandy did not cause appreciable damage in South Florida, we would like to offer to our readers the following tips on the steps they should follow should their homes or other property suffer damage in any storm:

• Take pictures of the damaged property before you make repairs.
• Begin to make temporary repairs to prevent further damage to your home or property. Keep a record of time spent and all receipts for work done on your property. You have a duty to mitigate damages under the terms of your insurance policy.
• Take pictures of any mitigation steps you have taken such as placing tarps on your roofs or covering broken windows or doors.
• Remove tree debris from the structure and place it on the ground.
• If your power is out, unplug any small electrical items and electronics to prevent electrical spike damage.
• Secure replacement costs/estimates from local retailers of like kind, quality and features. Obtain statements from vendors on items that cannot be repaired.
• Do not dispose of any damaged contents until authorized by your agent or claim representative.
• Contact only reputable, licensed vendors for repair estimates. Have estimates signed by the vendor and approved by your adjuster or agent before having major damage repaired.
• Inventory your damaged personal possessions such as furniture, clothing, art, collectables, etc. If a damaged item is a collectable or artwork, try to establish its current value.
• Contact the Law Offices of Greenberg, Stone & Urbano, P.A. immediately after the storm so that we can send our loss consultant to inspect your property and help you prepare the documents in support of your claim.

Our Firm's Condolences and Prayers

As a New York native, words fail to express the sadness that the loss experienced by my beloved new yorkers, my neighbors in New Jersey and those in the northeastern states brings to my heart. The collective prayers and thoughts of the attorneys and staff of Greenberg, Stone & Urbano, P.A. go out to the victims of this disaster and their families. The world is a lesser place without them and while their loss is irreplaceable, we hope that a speedy recovery brings a measure of comfort to the hearts of those now suffering.

Continue reading "Death Toll in New York City From Hurricane Sandy Reaches 40 People" »

Superstorm Sandy has left a trail of death and destruction along its path, with at least 17 people dead in seven states and millions without electrical power or public transportation.

The storm finally made landfall yesterday evening in New Jersey, with sustained winds of 80 mph and cut power to more than 6 million homes and businesses from the Carolinas all the way to Ohio.

New York City Badly Hit

New York City was badly battered, with Wall Street closed for a second day and the city's subway system suffering its worst damage ever, according to foxnews.com.

About 1.9 million customers of Consolidated Edison, the company that owns New York City's utility, were without electricity in and around the Big Apple. In a statement released by Consolidated Edison's Vice-President for electric operations, John Miksad, this is the largest storm related outage in the company's history. Substations in Battery Park, the East Village and Chelsea were flooded, causing much of the blackouts in Manhattan. An unprecedented 13-foot surge of seawater (3 feet above the previous record) came into lower Manhattan, flooding tunnels, subway stations and the electrical system that powers Wall Street. A construction crane in a billion dollar luxury high rise that will overlook Central Park was partially collapsed and left precariously dangling 74 stories in the air.

New York's three major airports remained closed and more than 13,500 flights had been cancelled between Monday and Tuesday.

Tips For Homeowners With Damages From the Storm

Although Hurricane Sandy did not cause appreciable damage in South Florida, we would like to offer to our readers the following tips on the steps they should follow should their homes or other property suffer damage in any storm:

• Take pictures of the damaged property before you make repairs.
• Begin to make temporary repairs to prevent further damage to your home or property. Keep a record of time spent and all receipts for work done on your property. You have a duty to mitigate damages under the terms of your insurance policy.
• Take pictures of any mitigation steps you have taken such as placing tarps on your roofs or covering broken windows or doors.
• Remove tree debris from the structure and place it on the ground.
• If your power is out, unplug any small electrical items and electronics to prevent electrical spike damage.
• Secure replacement costs/estimates from local retailers of like kind, quality and features. Obtain statements from vendors on items that cannot be repaired.
• Do not dispose of any damaged contents until authorized by your agent or claim representative.
• Contact only reputable, licensed vendors for repair estimates. Have estimates signed by the vendor and approved by your adjuster or agent before having major damage repaired.
• Inventory your damaged personal possessions such as furniture, clothing, art, collectables, etc. If a damaged item is a collectable or artwork, try to establish its current value.
• Contact the Law Offices of Greenberg, Stone & Urbano, P.A. immediately after the storm so that we can send our loss consultant to inspect your property and help you prepare the documents in support of your claim.

Continue reading "Sandy Leaves Trail of Death and Destruction" »

Hurricane Sandy hit the northeastern United States late yesterday, causing considerable disruptions to all the states that are on its path.

New York And Washington Shut Down

According to chicagotribune.com, New York Governor Mario Cuomo ordered the two tunnels that connect Manhattan to New Jersey and Brooklyn closed later today in preparation for the storm. Holland Tunnel, which opened in 1927 and remains one of the main connections between New York and New Jersey closed at 2 p.m. local time. On the other hand, the Hugh L. Carey Tunnel, locally known as the Brooklyn-Battery Tunnel, also closed at the same time.

Similarly, the New York Stock Exchange was closed for the first time since September 11, 2001. Government offices in Washington were also closed, as well as schools along the East Coast. Governors from Virginia to Massachusetts warned of great danger for the 60 million people on the storm's path and, consequently, nine states have declared a state of emergency.

About 150,000 customers were already without electricity and experts estimate that the damage could reach $20 billion.

President Obama Declares Emergency Areas

President Obama declared emergencies in Massachusetts, Connecticut, Rhode Island, New York, New Jersey and Pennsylvania a measure that authorizes the use of federal relief well ahead of time. The President promised that the government would "respond big and respond fast" after the storm hits and that "we will cut through the red tape" to expedite assistance and not "get bogged down with a lot of rules".

Also, the storm has caused thousands of flights in the Northeast and, as a consequence, created travel problems around the globe. This is the busiest airspace in the nation and according to the flight-tracking service FlightAware, nearly 10,000 flights were cancelled due to the storm between Monday and Tuesday.

Replica of HMS Bounty Lost At Sea

In the meantime, the United States Coast Guard rescued 14 of the 16 crew members of the replica ship HMS Bounty. Search and rescue operations for the two missing crew members continue.

The ship had been featured in films like "Pirates of the Caribbean" and, of course, "The Bounty", a 1984 film starring Mel Gibson and Anthony Hopkins about the infamous mutiny on board an 18th Century British warship by that name.

Tips For Homeowners With Damages From the Storm

Although Hurricane Sandy did not cause appreciable damage in South Florida, we would like to offer to our readers the following tips on the steps they should follow should their homes or other property suffer damage in any storm:

• Take pictures of the damaged property before you make repairs.
• Begin to make temporary repairs to prevent further damage to your home or property. Keep a record of time spent and all receipts for work done on your property. You have a duty to mitigate damages under the terms of your insurance policy.
• Take pictures of any mitigation steps you have taken such as placing tarps on your roofs or covering broken windows or doors.
• Remove tree debris from the structure and place it on the ground.
• If your power is out, unplug any small electrical items and electronics to prevent electrical spike damage.
• Secure replacement costs/estimates from local retailers of like kind, quality and features. Obtain statements from vendors on items that cannot be repaired.
• Do not dispose of any damaged contents until authorized by your agent or claim representative.
• Contact only reputable, licensed vendors for repair estimates. Have estimates signed by the vendor and approved by your adjuster or agent before having major damage repaired.
• Inventory your damaged personal possessions such as furniture, clothing, art, collectables, etc. If a damaged item is a collectable or artwork, try to establish its current value.
• Contact the Law Offices of Greenberg, Stone & Urbano, P.A. immediately after the storm so that we can send our loss consultant to inspect your property and help you prepare the documents in support of your claim.

Continue reading "Hurricane Sandy Hits the Northeast United States" »

Although it is not a threat to South Florida, the outer bands of Hurricane Sandy are bringing rain and high damaging winds to our area. According to foxnews.com, the system just lashed Cuba before heading to the Bahamas and the United States hurricane center estimates that the storm has produced between 6 and 12 inches of rain across Jamaica, Haiti, the Dominican Republic and eastern Cuba.

A Strong Category 2 Hurricane

Sandy is a strong Category 2 hurricane with maximum sustained winds of 105 mph. It is moving north at 18 mph and is expected to move through the Bahamas later today.

Before crossing over Cuba, the storm made landfall near Jamaica's capital city, Kingston, where authorities report that an elderly man died when a boulder crashed into his clapboard house. The island's international airports were closed and a 48 hour curfew was ordered by police in several towns to avoid looting. Curiously, floodwaters carried crocodiles out of their natural habitat in the mangroves and into towns, with one big croc reportedly taking temporary residence in a family's front yard in the city of Portmore.

Also, it is reported that cruise ships changed their itineraries to avoid the storm and, unfortunately, authorities in Haiti say that a woman died when she was swept away by a river she was trying to cross.

No Major Damages Expected in Cuba

Although the rains could produce life-threatening flash floods and mudslides in areas of mountainous terrain like Cuba's eastern province of Oriente, authorities in the island were confident they had done everything they could to prepare for the storm. In the island's second-largest city, Santiago de Cuba, hotels prepared by getting generators ready and closing off some open areas like pools.

Evacuations were limited to the beach resorts. Yet, Miguel Angel Puig, a Colonel with Cuba's Civil Defense, said that since Sandy is a system of very strong and intense rains it could affect as many as 200,000 people in the area. Consequently, fishermen on the Gulf of Guacanayabo, where the city of Manzanillo is located, moved their boats to higher grounds inland.

Tips For Homeowners With Damages From the Storm

Although Hurricane Sandy is not expected to make landfall in South Florida, the rains and heavy winds associated with the system may still cause damage to property in our area. We would like to offer to our readers the following tips on the steps they should follow should their homes or other property suffer damage:

• Take pictures of the damaged property before you make repairs.
• Begin to make temporary repairs to prevent further damage to your home or property. Keep a record of time spent and all receipts for work done on your property. You have a duty to mitigate damages under the terms of your insurance policy.
• Take pictures of any mitigation steps you have taken such as placing tarps on your roofs or covering broken windows or doors.
• Remove tree debris from the structure and place it on the ground.
• If your power is out, unplug any small electrical items and electronics to prevent electrical spike damage.
• Secure replacement costs/estimates from local retailers of like kind, quality and features. Obtain statements from vendors on items that cannot be repaired.
• Do not dispose of any damaged contents until authorized by your agent or claim representative.
• Contact only reputable, licensed vendors for repair estimates. Have estimates signed by the vendor and approved by your adjuster or agent before having major damage repaired.
• Inventory your damaged personal possessions such as furniture, clothing, art, collectables, etc. If a damaged item is a collectable or artwork, try to establish its current value.
• Contact the Law Offices of Greenberg, Stone & Urbano, P.A. immediately after the storm so that we can send our loss consultant to inspect your property and help you prepare the documents in support of your claim.

Continue reading "Hurricane Sandy Hits Cuba and Heads for the Bahamas" »

Barry Gilway, President/CEO and Executive Director of CItizens Property Insurance Corp. has sent a letter to the Editor of the Miami Herald expressing his disappointment at the Herald's recent article regarding the closure of the company's Office of Corporate Integrity. Last week the miamiherald.com reported (and we cited in our last post) that Citizens had dismantled its Office of Corporate Integrity by firing the four officers in charge of these investigations. Among those employees were T.W. Smart, a former senior official with the Florida Department of Law Enforcement who ran the Office of Corporate Integrity; Selisa Daniel, a former economic crimes investigator with the attorney general's office, and two other employees. At the time Citizens stated that they were let go because they lacked the necessary expertise to handle the type of high-level fraud taking place at the company.

Moreover, the miamiherald.com article continued, no forensic accountants (or any other staff) had been hired since the office was dismantled.

Citizens Executive Disagrees

According to miamiherald.com, Mr. Gilway states in his letter that the company's corporate integrity functions have not been eliminated but re-aligned and "placed under other business units to ensure we are following corporate best practices for investigating allegations of potential employee fraud or misconduct." Mr. Gilway further states that "these changes will better define, strengthen and streamline our corporate integrity review procedures, enabling us to more proactively identify, investigate and deter potential internal fraud and policy violations."

In his letter, Mr. Gilway repeats what a corporate spokesperson said before regarding the former Office of Corporate Integrity lacking people with the financial forensics expertise that would allow the identify and initiate investigations of potential internal fraud or policy violations. In fact, Mr. Gilway continues, most complaints investigated by OCI turned out to be workplace complaints and employee performance issues more appropriately handled by management and Employee Relations.

Forensic Accountants Wanted

Finally, Mr. Gilway says that Citizens is actively looking for the best forensic accountants candidates and that once those are found and hired, they will join the Office of Internal Audit (OIA) as part of a team that will oversee a complete internal fraud prevention and detection program and report directly to the company's Board of Governors. According to Mr. Gilway, having the Office of Internal Audit report directly to the Board of Governors "will ensure objectivity and insulate investigators from any potential for reprisal".

According to Mr. Gilway, these situations will be handled as follows: an attorney from their legal department will fill the position of "Citizens Ethics Officer" and will be responsible for processing all ethics policy violation reports and assigning them to the appropriate unit. While internal fraud reports are assigned to the Office of Internal Audit, workplace and performance-related complaints will be assigned to Employee Relations.

Continue reading "Citizens' CEO Responds To Miami Herald Article About Corporate Integrity Office" »