insurance - News - The Coastal Star2024-03-28T17:54:07Zhttps://thecoastalstar.com/profiles/blogs/feed/tag/insuranceAlong the Coast: With condo owners on edge, insurers take new look at risks, rateshttps://thecoastalstar.com/profiles/blogs/along-the-coast-with-condo-owners-on-edge-insurers-take-new-look-2021-09-29T17:21:50.000Z2021-09-29T17:21:50.000ZMary Kate Leminghttps://thecoastalstar.com/members/MaryKateLeming769<div><p style="text-align:center;"><strong><a href="{{#staticFileLink}}9624561298,RESIZE_930x{{/staticFileLink}}"><img class="align-center" src="{{#staticFileLink}}9624561298,RESIZE_710x{{/staticFileLink}}" alt="9624561298?profile=RESIZE_710x" width="710" /></a></strong><em>The collapse of the Champlain Towers South condo in Surfside in June created ‘an awakening moment’ in which insurers will ‘tighten their underwriting standards and demand information about inspections,’ says Mark Friedlander, from the industry’s Insurance Information Institute. <strong>AP photo</strong></em></p>
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<p style="text-align:center;"><strong>Related Stories: Boca Raton first in county to set standards for <a href="https://thecoastalstar.com/profiles/blogs/boca-raton-boca-first-in-county-to-set-standards-for-building-saf" target="_blank">building safety reviews</a> | Highland Beach tentatively <a href="https://thecoastalstar.com/profiles/blogs/highland-beach-commission-tentatively-approves-ordinance-for-cond" target="_blank">approves ordinance</a> for condo inspections</strong></p>
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<p><strong>By Charles Elmore</strong></p>
<p>The condominium collapse in Surfside sent instant shock waves through Palm Beach County’s southern coast, where condo sales help drive one of the nation’s hottest real estate markets but most condo buildings near the ocean bear the wear and tear of 25 years or more.<br /> The news triggered “many calls and emails from panicked clients,” said Brendan Lynch, president of Plastridge Insurance, an agency more than 100 years old in Delray Beach.<br /> “My initial reaction to this was, ‘Is this isolated to that one building?’” Lynch said. “I know condominiums so well and this is the first time I’ve heard of something like this happening.”<br /> Yes, his agency had handled occasional claims over the years, such as a chunk of concrete falling off a condo balcony and hitting a car, he said. Thankfully no one was injured. <br /> But now a horrifying scene dominated the news. The partial collapse on June 24 of Champlain Towers South, a 12-story beachfront condominium in the Miami suburb of Surfside, killed 98 people.<br /> Within days, insurers began sending letters to condo associations in South Florida asking for proof they passed safety inspections or other information, and serving notice they could lose coverage without it.<br /> In August, a South Palm Beach condo association received a letter from the state’s insurer of last resort, Citizens Property Insurance Corp., saying it had 30 days to produce a signed roof replacement contract or a policy that started in June could be canceled, Lynch said. The association was able to keep coverage by providing assurances improvements were on the way, he said.<br /> An insurance company’s inspector at another condo reported a crack in the garage, causing a flare of alarm.<br /> “I had to scramble and show them it was literally a crack in the stucco,” Lynch said.</p>
<p><strong>Impact on rates uncertain</strong><br /> The full impact on the cost and availability of condo insurance might not be known for months or years, as insurers with regulated rates file new annual proposals for what they wish to charge and decide whether to renew policies.<br /> But international insurers whose rates are not regulated play a big role in Florida’s condo market, as does last-resort Citizens, whose prices are regulated but designed to be anything but the cheapest in the market.<br /> And already, agents say finding or replacing policies for condo associations or the owners of individual units since Surfside has sometimes meant prices 30% to 40% higher.<br /> “We have been in business for 16 years and it has become increasingly difficult to place insurance with wind coverage on the condominium units in the tri-county area,” said Lisa Pacillo, owner and vice president of All Risk Insurance Group in Boca Raton, referring to Miami-Dade, Broward and Palm Beach counties.<br /> All of this represents a big deal economically in Palm Beach County. The Surfside collapse came as Palm Beach County was leading 86 oceanfront counties nationwide in condo sales in the second quarter of 2021, according to Attom Data Solutions, an Irvine, California-based provider of real estate data. <br /> The county’s 10,454 unit sales in the quarter led coastal America and came with a median price of $275,000, a leap of more than 47% in one year, Attom found.</p>
<p><strong>Inspection rules scrutinized</strong><br /> Now local and state government officials are considering an urgent overhaul of regulations for building inspections, maintenance and repairs. Insurers are watching closely and taking stock of how much risk they are willing to take.<br /> “Clearly it’s a moment where insurers are going to tighten their underwriting standards and demand information about inspections,” said Mark Friedlander, Florida-based spokesman for the industry-funded Insurance Information Institute. “It is an awakening moment not just for South Florida but nationally.”<br /> Starting Aug. 1, the annual cost of policies covering individual condo units, known as HO6, began to rise an average of 9.8% in Palm Beach County from Citizens. These policies offer protection for a resident’s personal property inside a condo unit as well as liability coverage. <br /> The average Citizens premium for such policies in the county rose from $1,009 per year to $1,108, in rates approved before Surfside.<br /> Before the collapse, policies that cover the overall condo building and common areas might cost $275,000 to $300,000 for a typical association on a barrier island in southern Palm Beach County, Lynch said. Now all await what happens to those insurance costs, which could arrive on top of separate assessments to residents in condos that are making repairs or improvements on a building.<br /> For buildings close to the coast, condo associations were already relying heavily on what are known as “surplus-lines” insurers, Lynch said. These are companies such as Lloyd’s of London whose rates are not regulated by the state. <br /> Surplus-lines companies collected $7.6 billion in premiums for a range of coverages including condo insurance in Florida in 2020, up 15% from the previous year, according to the Florida Surplus Lines Service Office. Palm Beach County was the third-largest market in Florida for surplus-lines carriers, generating more than $830 million in premiums.<br /> A database at the Florida Office of Insurance Regulation offers a partial glimpse of companies that hold condo insurance policies in Palm Beach County, though it does not include surplus-lines insurers or those with regulated rates who block release of their information as “trade secrets.”<br /> As of June 30, for example, Occidental Fire and Casualty Co. of North Carolina held 23 policies with condo associations in Palm Beach County to cover fire and other risks not including wind damage, records show. A statement by Occidental said decisions to write new business or renew policies are made on a “case-by-case” basis. <br /> In addition to other kinds of policies, Citizens maintained 168 “wind-only” policies for condo associations in the county in the second quarter, meaning it served as supplemental coverage that protected specifically against wind damage from events such as a hurricane. <br /> A somewhat larger array of insurers with regulated rates show up as writing policies for owners of individual condo units, sometimes with wind coverage sold separately. As of June 30, Allstate subsidiary Castle Key Indemnity Co. had more than 15,000 such policies in the county, followed by Citizens with more than 9,000. Allstate officials did not respond to a request for comment.<br /> State law requires insurers to tell regulators if they plan not to renew at least 10,000 residential policies statewide 90 days before notices go out, but so far there have been no such notifications from companies with regard to condo insurance since June 24, said OIR press secretary Karen Roach.<br /> The state’s Office of Insurance Regulation is “closely monitoring” the situation and will work with the governor, Cabinet and Legislature “to address any market challenges and ensure consumer protection,” Roach said.<br /> Since June, Citizens has not seen an uptick in condo policies, either for associations or individuals, spokesman Michael Peltier said.<br /> But Citizens officials say they are adding 5,000 policies a week statewide for single-family homes and other segments of the market as private insurers pull back to trim risk. Since 2019, Citizens has seen its total policy count grow from 420,000 across Florida to more than 700,000. Citizens expects to carry more than 1 million policies by next year. <br /> “Citizens is considering all ideas to reduce exposure, and to continue to operate as efficiently as possible during this unprecedented growth period,” Citizens President Barry Gilway said Sept. 22 at a board meeting in Miami.</p>
<p><strong>Risks being assessed</strong><br /> Much will depend on whether insurers see Surfside as a tragic but isolated event, or an early indicator of widely underappreciated risks in coastal condos.<br /> How insurers assess risks and set prices in the months and years ahead will take into account a whole range of factors — not least building age. The structure in Surfside was 40 years old. In Palm Beach County, local officials have been discussing stricter regulations for buildings 25 years and older near the coast.<br /> More than 90% of the 348 condos along the barrier island from South Palm Beach to Boca Raton are at least 25 years old, a Coastal Star analysis found. That included 88 condo buildings in Delray Beach, 73 in Boca Raton and 71 in Highland Beach.<br /> The older condo buildings grow, the greater the risk they tend to face from weakening or damage over time in wet, salty and windy conditions near the shore without proper maintenance, experts say.<br /> “We often think of buildings as permanent, but they are not,” said Anne Cope, chief engineer at the Insurance Institute for Business & Home Safety in Richburg, South Carolina. Her group took part in a meeting Aug. 17 in West Palm Beach involving organizations concerned about improving building safety.<br /> “The tragic events in Surfside have highlighted the need to look at the health of our buildings,” Cope said. “This building was sadly showing signs of distress. How can engineers better communicate about the health of structures and the need and urgency of repairs?”<br /> Cope said she could not address the likely effects on the premiums insurance companies may charge in the future, but hopes the incident will lead to improved safety standards.<br /> “It was Hurricane Andrew in 1992 that led Florida down the path of strong, modern codes that are now the example for jurisdictions across the country,” she said. “Andrew taught us that having a strong code on the books wasn’t enough; the enforcement and administration of codes was key to the building code.”</p></div>Along the Coast: Average premium for Citizens windstorm up 9.1 percent, now exceeds $3,000https://thecoastalstar.com/profiles/blogs/along-the-coast-average-premium-for-citizens-windstorm-up-9-1-per2019-09-04T21:03:58.000Z2019-09-04T21:03:58.000ZThe Coastal Starhttps://thecoastalstar.com/members/TheCoastalStar<div><p><strong>By Charles Elmore</strong><br /> <br />A new state law billed as holding down home insurance rates won’t stop average premiums from breaking through the $3,000 mark for the first time in Palm Beach County at a company important for coastal residents.<br /> Increases approved by state regulators become effective Dec. 1 for state-run Citizens Property Insurance Corp., the second- largest insurer in the state and county. One area public insurance adjuster’s take in written comments to regulators: “Very concerned.”<br /> For example, make it a 9.1 percent increase to an average of $3,109 annually for Palm Beach County residents who buy Citizens coverage only for the windstorm portion of their policy. Many such customers live near the coast where storm risks are higher. That’s up from an average of $2,851, calculations provided by the company show.<br /> County homeowners buying full coverage from Citizens face an average hike to $3,016 from $2,901 for a standard policy known as an H03, according to company filings. That represents a 4 percent boost.<br /> Individual policies differ and virtually no one pays the exact average, of course. Projections from the company can vary slightly from those of state regulators. Still, the bottom line remains higher costs ahead for most customers.<br /> Citizens refiled 2019 rates to reflect passage of a state law this spring. Insurance industry officials say HB 7065 makes it harder for contractors, attorneys and others to inflate costs when consumers sign papers that let third parties take over control of insurance benefits for a claim. That’s known as “assignment of benefits.” <br /> Supporters say the new law is designed to control abuses particularly prevalent in certain claims, such as water damage from a broken pipe. These are often the costliest kind of claims besides damage from hurricanes and other natural disasters, particularly if plaintiff attorneys take the cases to court. The costs are ultimately passed along to consumers through rates.<br /> Passage of the law after seven years of legislative stalemate represents “a major step forward in our efforts to stem rising premiums caused by unnecessary litigation and assignment-of-benefits abuse,” Citizens President Barry Gilway said. “It is going to make a difference.”<br /> Statewide, Citizens raised premiums 2.3 percent for HO3 policyholders, compared to an 8.5 percent increase requested before the law. An original filing would have raised Palm Beach County HO3 rates more than 7 percent, with the final increase landing at 4 percent.<br /> The effect is far less pronounced in “wind-only” policies, because full-service policies tend to have more claims affected by the new law. Increases for wind-only coverage remain at more than 9 percent in Palm Beach County, for example, even after the new legislation.<br /> In addition, state law caps Citizens’ premium increases at 10 percent in any given year, and company officials say they have pent-up rate need in parts of the state, including southeast Florida.<br /> The law puts new restrictions on attorney fees and changes requirements for how insurance companies must be notified of lawsuits, among other changes. The law could face challenges in court.<br /> Passage of the measure came over the objections of some legislators and professional groups that insurance companies wanted to get rid of rules that encouraged them to pay claims fully and promptly.<br /> “This bill is designed to cure a crisis that has not been actuarially shown and does things that treat some vendors unfairly,” Democratic state Sen. Gary Farmer, an attorney whose Broward County district abuts Boca Raton, said during session debate.<br /> Citizens had more than 36,000 policies in Palm Beach County as of March 31, the second-largest market share, according to state records. It continues to play a key role particularly for coverage near the coast, where many private carriers seek to limit their risk.<br /> Some backers of the new law say they hope it encourages private insurers to write more policies in South Florida and increase competition, but that remains to be seen.<br /> Residents such as Eli Casper of Highlight Realty in Boca Raton told regulators in written comments they opposed the rate increases.<br /> “I am very concerned for myself and my fellow consumers,” Casper said. He said customers are already paying more money for less coverage and said he must “strongly recommend and request” no increase.</p>
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<p><span style="font-size:18pt;"><strong>Biggest home insurers in Palm Beach County</strong></span><br />Company and number of its local policies:<br />1. Universal Property & Casualty Insurance Co.: 86,355<br />2. Citizens Property Insurance Corp.: 36,211<br />3. FedNat Insurance Co.: 28,443<br />4. American Bankers Insurance Co.: 21,513<br />5. Homeowners Choice Property & Casualty Insurance Co.: 15,437<br />Source: Florida Office of Insurance Regulation as of March 31, 2019</p>
<p>Citizens’ insurance hikes in county<br />Coverage/average annual premium after Dec. 1, 2019/current premium/% increase<br />Multi-peril homeowners (H03): $3,016, $2,901, 4%<br />Wind-only homeowners (HW2): $3,109, $2,851, 9.1%<br />Multi-peril condo (HO6): $1,043, $976, 6.9%<br />Wind-only condo (HW6): $990, $920, 7.6%<br />Source: Citizens Property Insurance Corp.</p></div>Delray Beach: City improves insurance-rating classhttps://thecoastalstar.com/profiles/blogs/delray-beach-city-improves-insurance-rating-class2018-10-03T15:48:13.000Z2018-10-03T15:48:13.000ZMary Kate Leminghttps://thecoastalstar.com/members/MaryKateLeming769<div><p class="p1"><span class="s1"><b>By Jane Smith</b></span></p>
<p class="p3">Delray Beach has another bragging right.</p>
<p class="p3">Its Fire-Rescue Department worked to improve the Insurance Service Office rating from a 2 to a 1 in areas it serves.</p>
<p class="p3">Fire Chief Neal de Jesus told the City Commission on Oct. 2 that the Fire Department was evaluated on nine criteria, including personnel training and age of the equipment.</p>
<p class="p3">“Property owners will have to request that their brokers review their premium costs,” he said.</p>
<p class="p3">“We will send out a notice to all property owners via their utility bills,” he said. “We will encourage them to reach out to their insurance carrier to let them know that their Fire Department was designated a Class 1 and request a quote.”</p>
<p class="p3">The improved rating will go into effect on Jan. 1.</p>
<p class="p3">The decrease in the nonwind premium will be modest.</p>
<p class="p3">Commercial property owners could see as much as a 4 percent drop in their nonwind insurance premium, according to the Florida Office of Insurance Regulation.</p>
<p class="p3">“It will again be determined by how the companies have set up a rating system and many policyholders may see no change in premium due to the better protection class,” Karen Kees, Insurance Office spokeswoman, said in an email.</p>
<p class="p3">Homeowners who have nonwind coverage through Citizens Property Insurance Corp. would see no reduction, Kees wrote. That insurer groups classes 1 through 6 together. Homeowners with private policies could see a 1 percent drop in their nonwind premiums, Kees estimated.</p>
<p class="p3">The city provides fire-rescue services to Gulf Stream and Highland Beach on the barrier island. De Jesus said property owners there could also qualify for the rating discount. </p></div>County Pocket: Hydrants now mapped after threat of insurance rate risehttps://thecoastalstar.com/profiles/blogs/county-pocket-hydrants-now-mapped-after-threat-of-insurance-rate-2017-05-31T15:09:57.000Z2017-05-31T15:09:57.000ZThe Coastal Starhttps://thecoastalstar.com/members/TheCoastalStar<div><p style="text-align:left;"><a href="{{#staticFileLink}}7960724055,original{{/staticFileLink}}"><img src="{{#staticFileLink}}7960724055,original{{/staticFileLink}}" class="align-center" width="418" alt="7960724055?profile=original" /></a><strong>By Jane Smith</strong><br /> <br /> Fourteen years after Boynton Beach installed fire hydrants in the County Pocket, its seven hydrants were finally mapped in May.<br /> “We rely on water departments to send the information,” David Sauls, a fire safety specialist with Palm Beach County Fire Rescue, said of hydrant locations. “Sometimes we can’t use their info because the database is not compatible with ours.”<br /> He could not say why the hydrants were not mapped in 2003 when they were installed, because he had a different job with Palm Beach County Fire Rescue at that time.</p>
<p style="text-align:left;"> Maps of fire hydrants are used by county emergency dispatchers to send out the fire-rescue and sheriff response.<br /> Boynton Beach installed the water mains and the hydrants and tests them annually, said Colin Groff, former head of the city’s utilities department and now an assistant city manager. <br /> Groff also said he did not know why the hydrants weren’t mapped because he was not working for Boynton Beach in 2003.<br /> “County pockets with city services are often problematic,” Groff said. <br /> The unincorporated pocket with narrow streets sits just south of Briny Breezes and relies on the county for public safety services. The area spans about 16.5 acres with fewer than 100 dwellings, including 52 single-family homes. The popular Nomad Surf Shop and Seaside Deli also are in the pocket. <br /> Residents enjoy living so close to the beach and watch out for each other, said Marie Chapman, a 10-year pocket resident. “It’s like a mini-Mayberry filled with eclectic residents,” she said.<br /> But in the back of her mind, she worries about fire-rescue response times because of her two young children. Chapman said her concerns stem from a friend, Bill Dunn, who died in 2009 and outsiders who park their cars on Old Ocean Boulevard while they go to the beach. Doing so blocks that street for the large fire-rescue vehicles to reach the pocket. <br /><br /><span style="font-family:georgia, palatino;" class="font-size-3">Insurance notice triggered investigation</span><br /> Periodically, County Pocket homeowners receive notices from insurance carriers that their coverage is being dropped, according to Stuart Malin, a pocket resident of five years.<br /> “A new carrier said it couldn’t find any records of fire hydrants in the area and wanted to charge me a high rate as if we didn’t have hydrants,” Malin said.<br /> He took photos of the hydrants and called Sauls. “He said he would come out and look … [and] not to worry in the meantime, because they can bring in big tanker trucks,” Malin said. <br /> Sauls came out to the pocket and found the hydrants. He updated the hydrant maps on his iPad. Meanwhile, Malin also contacted pocket resident Mike Smollon, a retired Boynton Beach Fire Rescue captain.<br /> “Neighbors often ask me about fire-related issues,” Smollon said. <br /> Malin explained the higher rate his insurance carrier wanted to charge because the county maps didn’t show any fire hydrants in the pocket. Smollon agreed to look into the issue.<br /> Smollon played a leading role in improving emergency response times in late 2009 after Dunn, 48, choked to death while eating a piece of steak. County fire-rescue took more than 12 minutes to arrive from its station at Woolbright Road and Military Trail.<br /> “It should not have happened,” Smollon said.<br /> In late 2009, after Dunn died, Smollon met with County Commissioner Steven Abrams, who represents the County Pocket, then-Boynton Beach Fire Chief William Bingham, then-County Fire Chief Steve Jerauld and a county deputy fire chief.<br /> Smollon found and shared a mutual aid agreement from 1990 made between the fire departments of Boynton Beach and Palm Beach County. The agreement called for Boynton Beach to respond to life-threatening emergencies or when the county station was busy. <br /> Minor calls, such as fire on the beach or a barrel washed ashore, would be the responsibility of the county fire department.<br /> Boynton Beach Fire Rescue was not called the night Dunn died.<br /> The mutual aid agreement was further clarified in early 2011. Now, Boynton Beach sends a unit from its South Federal Highway station to respond to life-threatening emergencies in the pocket. These are defined as choking, seizure, allergic reaction, car accident, drowning, structure fire, cardiac arrest, trouble breathing, unresponsive person, electrocution, shooting/stabbing and aircraft/boating accident.<br /> The clarified agreement works like this: The emergency calls go to the county dispatch center, which contacts the nearest county fire station on West Woolbright Road. An officer there decides whether to send a rescue team or if Boynton Beach should be called.<br /> In 2015, when Delray Beach joined the county dispatch system, the county’s non-emergency calls started going to the city’s barrier island station on Andrews Avenue.<br /> The process sounds time-consuming, but “it adds only seconds to the response time,” Smollon said.<br /> In 2016, Boynton Beach paramedics responded to eight medical calls in the pocket, according to Boynton Beach Fire Rescue records. Its average response time was 5 minutes and 21 seconds. The city has its own dispatch system for 911 calls.<br />Delray Beach Fire Rescue responded to 24 calls in the pocket last year. Its average response time was 10 minutes and 16 seconds, according to county fire-rescue, which tracks the incidents.<br /> Smollon realizes the narrow and dead-end streets in the enclave can be challenging for fire trucks and rescue vehicles to navigate. Even so, he said, “We are paying our taxes and we expect to be treated right.”</p></div>Along the Coast: Modest raises for employees in most towns’ budgetshttps://thecoastalstar.com/profiles/blogs/along-the-coast-modest-raises-for-employees-in-most-towns-budgets2016-08-31T16:03:06.000Z2016-08-31T16:03:06.000ZThe Coastal Starhttps://thecoastalstar.com/members/TheCoastalStar<div><p><strong>By Rich Pollack</strong><br /><br /> The good news is that most local government employees throughout the coastal communities of south Palm Beach County may be seeing raises in the upcoming fiscal year. <br /> The not-so-great news is that for many of them, these raises will probably do little more than help them keep up with the increased cost of living in South Florida. <br /> On average, most of the communities along the coast are proposing employee pay increases of about 3 percent, with some considering a little more and others a little less.<br /> The proposed salary increases, for the most part, are an attempt by local governments to make up for recent years when there were no raises, while at the same time making sure that budgets remain financially sound. <br /> “There were several years during the economic downturn where there wasn’t a lot of movement in terms of compensation and benefits,” says Ocean Ridge Town Manager Jamie Titcomb. “Times are better now with higher property valuations and as a result, there’s a little more flexibility for municipalities to catch up on government market-rate compensation.”<br /> There is, however, only so much local governments can do. <br /> “We always want to be as generous as possible, but we have to be conservative so as to not create an unstable fiscal situation,” Titcomb said. <br /> For some towns enjoying the benefits of increased property values, creative approaches to recognizing employees can help maintain that delicate balancing act. <br /> In Manalapan, for example, commissioners are considering a 3 percent pay increase for employees, up from 2.5 percent last year. <br /> At the same time, however, town leaders are developing a longevity rewards program to compensate employees for their loyalty. <br />After five years, a full-time employee would receive a lump sum payment of $1,250; after 10 years, $2,500; after 15 years, $3,750, and after 20 years, $5,000. <br />Part-time employees would be eligible for half as much.<br /> In Ocean Ridge, commissioners are considering merit raises for employees that would range from 2 percent to 5 percent, depending on several factors, including performance. <br />The town also recently changed its health insurance plan to one that Titcomb says provides better benefits to employees — whose premiums are fully covered by the town — and significantly lowers deductibles for family members.<br /> In Highland Beach, commissioners are considering a 3 percent, across-the-board pay increase for all employees beginning Oct. 1 and have instituted a longevity pay plan, similar to the one being considered by Manalapan. Employees receive pay increases when they reach 10-, 15-, 20- and 25-year milestones. <br />In addition, the town is considering an incentive program where employees are rewarded for ideas that improve efficiency and effectiveness. <br />Beginning in the 2016-2017 fiscal year, employees will also get $1,000 they can use to help with medical costs not covered by their health insurance plan. <br />It is a change in the health insurance, however, that is partially responsible for civilian employees starting the process of forming a union. <br /> In the past, employees were covered by a preferred provider organization, in which the town paid 100 percent of employee premiums and 85 percent of family coverage premiums. <br />In July, however, the town switched to a three-tiered plan that includes a health maintenance organization plan and two preferred provider organization plans. <br /> Employees who join the HMO would save money on their family plans, while there would be increases for both employee and family coverage with the PPO plans. <br />Some employees who say they want to maintain the high level of coverage they received in the past have balked at the increased rates. <br /> In South Palm Beach, commissioners are considering a 3 percent across-the-board pay increase for employees, while in Gulf Stream, a 2.5 percent increase — down from 3 percent last year — has been proposed. <br /> Some communities are considering a combination of a cost-of-living increase and merit raises. <br />In Lantana, commissioners are considering a cost-of-living raise of just about 1 percent and a merit raise of up to 5 percent. <br /> In Delray Beach, commissioners are considering merit raises up to 5 percent while insurance premiums have dropped by about 5 percent for health, dental and vision coverage. <br /> In Boynton Beach, police officers and employees covered by the Service Employees International Union could receive a 3 percent increase, while fire and rescue personnel and employees not covered by the union would receive a slightly lower increase under the proposed budget.<br />In Boca Raton, rather than put a squeeze on employee benefits, city officials propose adding 76 new full-time positions to their municipal workforce numbering 1,423. <br />The extra personnel will add $5.5 million for salaries and benefits to the city’s $392 million operating budget.<br />Boca Raton has scheduled public hearings on its proposed budget at 6 p.m. Sept. 12 and Sept. 26 in the City Council chambers at City Hall. </p></div>Along the Coast: Flood-zone maps flummox local leadershttps://thecoastalstar.com/profiles/blogs/along-the-coast-flood-zone-maps-flummox-local-leaders2013-10-02T18:28:18.000Z2013-10-02T18:28:18.000ZMary Kate Leminghttps://thecoastalstar.com/members/MaryKateLeming769<div><p><strong>By Tim Pallesen</strong><br />Coastal cities are studying new flood maps to know how many residents will be paying much higher premiums for flood insurance.<br />Reforms to the federal flood insurance program raise premiums, phase out subsidies and call for a redrawing of flood maps that might put more homes in high-risk zones.<br />Owners of winter homes who received subsidies started paying higher rates Jan. 1. Beginning this month, buyers purchasing a previously subsidized home must pay the higher premium.<br />Owners of primary residences will learn whether they also must pay annual rate increases of 20 percent for five years once new flood zone maps are approved next year.<br />Officials in coastal communities are trying to decipher preliminary flood-zone maps now. “So far, nobody can figure it out,” Ocean Ridge Town Manager Ken Schenck said.<br />Dick Tomasello, an engineer hired by the county to compare old and new flood maps along the coast, said many oceanfront homes have been moved into the highest-risk zone. Flood insurance rates will reflect damage that might occur in a hurricane if sea walls and sand dunes are washed away.<br />“The entire coast shows that the zone has moved inland,” Tomasello said. “Flood insurance is going to be more expensive.”<br />The Palm Beach County League of Cities has assembled a team of engineers to dispute what executive director Richard Radcliffe described as “grave inaccuracies” in preliminary new maps.<br />“Until those challenges are laid to rest, the town of Gulf Stream is not able to accurately comment on the effect of the revised flood maps,” Town Manager William Thrasher said.<br />Manalapan Mayor David Cheifetz said his town also is reviewing the maps to determine the impact.<br />Congress passed the insurance reforms last year to reduce a $20 billion debt in the program caused by Hurricane Katrina in 2005. Hurricane Sandy increased the debt.<br />The reforms target older homes built at lower elevations before the original flood zone maps were drawn 30 years ago. Newer construction has been built at higher elevations.<br />Mortgage lenders require flood insurance if a property is within a high-risk flood zone. The policies pay a maximum $250,000 loss.<br />Gov. Rick Scott warned last month that real estate sales could be hampered in parts of Florida because of the higher insurance rates.<br />“In cases where new maps move a property into a flood zone, homeowners may find it impossible to sell their properties to a new owner who will be shocked with the massive premium increases required to secure a mortgage,” Scott wrote Florida’s two U.S. senators.<br />Sen. Bill Nelson agreed in a letter to other senators. “The national flood insurance won’t do much good if it turns out folks cannot afford the coverage,” Nelson wrote.</p></div>Along the Coast: Citizens drops hundreds of high-value policieshttps://thecoastalstar.com/profiles/blogs/along-the-coast-citizens-drops-hundreds-of-high-value-policies2012-08-30T15:10:19.000Z2012-08-30T15:10:19.000ZMary Kate Leminghttps://thecoastalstar.com/members/MaryKateLeming769<div><p><strong>By Tim Pallesen</strong><br /> <br />Citizens Insurance is notifying owners of homes valued over $1 million that their insurance coverage will be cancelled. <br /> Coastal communities are hardest hit, according to data released by the state insurer.<br /> Cancellation notices mailed as the hurricane season began leave south county coastal residents scrambling to find alternative insurance at higher costs.<br /> The mayors of two of the south county’s most affluent towns, Gulf Stream and Manalapan, say the cancellation of coverage for expensive homes is unfair.<br /> “It discriminates against the high-end homeowner,” Gulf Stream Mayor Joan Orthwein said.<br /> Gov. Rick Scott and the Florida Legislature are supporting Citizens’ attempt to reduce its financial exposure of $508 billion. The state insurer with 1.5 million policies has $5.7 billion to pay claims after a hurricane.<br /> Citizens says the lower $1 million coverage limit will allow them to eliminate 7,500 policies statewide and $17 billion in exposure.<br /> “It’s unfair to single out one group,” Manalapan Mayor Basil Diamond said.<br /> “But Citizens is looking for ways to go out of business. The coverage limit is one baby step,” Diamond said. “All this will eventually even out if Tallahassee reaches its goal to fully eliminate Citizens.”<br /> Citizens chose to slash coverage in affluent oceanfront towns because of public opinion, according to Jeff Grady, the president and CEO of the Florida Association of Insurance Agents.<br /> “The argument was that Citizens was subsidizing millionaires to insure what was often their second home,” Grady said. “That was the emotion behind this.”<br /> The purge of expensive homes began last year when Citizens set $2 million as the maximum coverage, sending the first wave of cancellation notices.<br /> Delray Beach City Commissioner Tom Carney was among those who got cancelled. “Anything east of the Intracoastal Waterway lost it,” Carney said.<br /> Coastal homes are hardest hit again by this year’s $1 million coverage limit.<br /> Palm Beach County has the second highest number of cancellations with 1,542 policies valued at $3.7 billion, which equals 22 percent of the state dollar amount.<br /> South county coastal communities with ZIP codes 33431, 33432, 33435, 33462, 33483 and 33487 received 613 cancellations, Citizens said.<br /> The mayor of Palm Beach, which got 299 cancellations, is organizing Palm Beach County coastal mayors to protest the coverage limit.<br /> “The legislation making homes valued at more than $1 million or more not eligible for coverage by Citizens is arbitrary, capricious and discriminatory,” Mayor Gail Coniglio wrote Gov. Scott after Palm Beach residents began getting their notices.<br /> Diamond said Manalapan residents may not know about the cancellations yet. “It’s important for Tallahassee to be aware if there’s a lot of pushback on this,” he said.<br /> The state Office of Insurance Regulation approved Citizens’ request for the $1 million maximum coverage on Jan. 13. Citizens stopped writing new policies for the more expensive homes and began sending out cancellation notices for existing policies in May.<br /> Grady and local insurance agencies say residents who have been cancelled by Citizens now must find alternative carriers such as Lloyd’s of London that aren’t regulated by the state.<br /> “It’s the wild, wild west as far as rates and what is covered,” Grady said.<br /> “We can obtain coverage for everybody for a price,” Gracey-Backer Insurance co-owner Barbara Backer said. “But all affected homeowners will see hefty premium increases.”<br /> Backer estimated increases will range from 100 to 200 percent, depending on construction, location and wind protection. One of her Delray Beach clients now must pay a $17,718 premium to an alternative insurance carrier after paying only a $6,417 to Citizens, she said.<br /> Another south county agent, Plastridge Insurance, predicts alternative coverage will skyrocket to be three or four times the Citizens cost. “This has really hit those homeowners hard,” Plastridge co-owner Brendan Lynch said.<br /> Alternative insurance carriers also are raising deductibles, Lynch and Backer said.<br /> Backer predicted some owners of expensive homes will be forced to sell because they can’t afford the added insurance cost.<br /> “At some point, it becomes unaffordable to buy these high-priced homes,” Backer said. “I suspect this insurance cost will affect the real estate market.” </p>
<p><strong>Citizens says it’s dropping more than 600 Multiperil and Wind Only policies in the coastal area</strong><br /><br />ZIP Code Policies Affected Total Policies<br />33431 42 820<br />33432 217 973<br />33435 49 1,650<br />33462 50 775<br />33483 159 1,428<br />33487 96 613<br /><br /> </p></div>Editor's Note: Storm a gentle reminder of danger in naturehttps://thecoastalstar.com/profiles/blogs/editor-s-note-storm-a-gentle-reminder-of-danger-in-nature2012-08-29T19:00:00.000Z2012-08-29T19:00:00.000ZDeborah Hartz-Seeleyhttps://thecoastalstar.com/members/DeborahHartzSeeley<div><p><strong><a href="{{#staticFileLink}}7960407089,original{{/staticFileLink}}"><img src="{{#staticFileLink}}7960407089,original{{/staticFileLink}}" width="266" class="align-center" alt="7960407089?profile=original" /></a></strong></p>
<p style="text-align:center;">Mary Kate Leming</p>
<p><strong> </strong></p>
<p><strong>By Mary Kate Leming, Editor</strong></p>
<p>On the 20th anniversary of Hurricane Andrew’s shredding of Homestead and the Miami area, and seven years since Katrina’s flood waters devastated New Orleans, Tropical Storm Isaac breezed through our area with a reminder of just what hurricane season can bring. </p>
<p>Broken tree limbs, street flooding and roof leaks appear to be the worst things to affect coastal residents in this storm. Thankfully, it seems that FPL’s hardening of the power grid along the coast has paid off — with very few outages. Let’s hope this trend holds.</p>
<p>Of bigger concern may be Citizens’ decision to drop policies on coastal homes insured for over $1 million. This may have a bigger impact on our area than a tropical storm (or worse). Tim Pallesen reports his findings on this trend on Page 1.</p>
<p>And if you live in a condominium, you may want to read Tim O’Meilia’s story on Page 20 about an upcoming workshop to help condo managers, board members and owners understand insurance issues and better plan for repairs following a storm. </p>
<p>Even though damage to property was minimal, Isaac’s storm-stirred ocean washed away about one-half of this season’s remaining sea turtle nests along our beaches. </p>
<p>Luckily, we have the good folks at Gumbo Limbo to keep track of these events and help to assist any turtle hatchlings or injured adults discovered in distress. See Ron Hayes’ story on Page 1.</p>
<p>No word yet on how the spiraling whitefly fared. See our Coastal Life cover story, Page 25. </p>
<p>Hurricane season doesn’t end until November 30. So until then, please plan ahead and stay safe.</p>
<p><i> </i></p></div>Lantana/Ocean Ridge: Changing health care brings big savingshttps://thecoastalstar.com/profiles/blogs/lantana-ocean-ridge-changing-health-care-brings-big-savings2011-09-28T21:07:43.000Z2011-09-28T21:07:43.000ZMary Kate Leminghttps://thecoastalstar.com/members/MaryKateLeming769<div>By Margie Plunkett <br />and Mary Thurwachter<br /><br /> Health-care insurance checkups are turning up substantial savings for at least two coastal municipalities as they near completion of this year’s budget process.<br /> Lantana saved $230,000 by switching employee health insurance from Blue Cross/Blue Shield to a comparable Aetna plan. And Ocean Ridge hopes to save $50,000.<br /> Insurance broker Dave Adams, a Hypoluxo Island resident, pitched both the towns, informing them he could find thousands of dollars in savings in their employee health-care plans.<br /> Prior to the switch, Lantana Town Manager Michael Bornstein said he was content to let stand the deal with Blue Cross, because the town’s insurance carrier had planned no increases, charging $1.2 million for next fiscal year. But the town manager was directed to get more quotes after a July 20 budget workshop.<br /> Council members, including Cindy Austino, pushed for new health-care estimates after the budget workshop in which Adams spoke at the public portion to challenge the existing plan. <br />The town’s insurance broker, Kurt Gehring of the Gehring Group, also present at the meeting, defended the current coverage, noting that swapping the old plan for a new could significantly alter the benefits available to employees. <br /> Bornstein echoed the concern over reduced benefits. <br />“If you want to change the benefit package,” he said, “They do not offer this insurance that we get any more. You are not going to get the same insurance. We went out to bid — we got a zero percent increase. It’s not something I’m recommending you do.”<br /> Changing benefits and costs to the employee was part of the primary discussion for Ocean Ridge commissioners and public before the vote for the insurance change.<br /> Ultimately, the government leaders are obligated to explore possible savings, said Lantana Mayor David Stewart during the town’s budget workshop. “I think we owe it to our residents to make sure the services we are providing are the best for the money,” the mayor said. “If we can get the same insurance for $200,000 less, why aren’t we doing it?”<br /> Preserving benefits in the health plan was critical, however, he said, noting he didn’t want to see benefits lost for any employees. Ocean Ridge also discussed the changes for employees, including a $2,000 deductible a — but the town will subsidize that by $1,200. That means the employee pays only $800 for the deductible.<br /> “Sounds like a better situation,” Mayor Ken Kaleel said.<br /> Questions were raised on the timing of the new health plan, with Police Chief Chris Yannuzzi pointing out that some employees who have reached their deductible for this year, may have to pay all over when the new plan kicks in on an earlier schedule.<br /> Overall, commissioners seemed happy to accept the savings the new health plan offered.<br /> While residents attending Lantana’s meeting questioned whether the town shouldn’t annually bid out its health-care insurance, others, such as council member Tom Deringer, pointed out that private sector business routinely shops around for less expensive insurance coverage.<br /> “You do this every year,” said resident Peter Reed, who runs a real estate company. “You have to keep them honest.” Ú</div>