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Republican Gov. Ron DeSantis began following up on a campaign promise to make the environment a priority by signing an order last week seeking to tackle Florida’s problems with blue-green algae in its rivers and red tide off its coast.

DeSantis signed the order in Bonita Springs in southwest Florida, one of the areas where slimy algae have coated waterways because of pollutants flowing downstream from Lake Okeechobee.

“I pledged I would take action, and today we are taking action,” DeSantis said. “What we’ve done is really, really strong … I think this is something that can unite all Floridians.”

DeSantis said he will seek $2.5 billion over the next four years for Everglades restoration and water resources. The order not only touches on algae problems, but rising sea levels and the ongoing battle with Georgia over water diverted for Atlanta’s use instead of flowing downstream to Apalachicola Bay. The reduction of fresh water entering the bay has hurt the region’s oyster industry.

He didn’t say where the money would come from, and his office didn’t immediately respond when asked about the funding. Late in the day, DeSantis demanded the resignations of all nine members of the South Florida Water Management District, which oversees the Everglades area. The board in November extended a lease with sugar farmers for land needed for a reservoir that is key to water purification efforts, angering DeSantis.

While critics often said DeSantis’ predecessor, U.S. Sen. Rick Scott, ignored science and rising sea levels, DeSantis addressed it on his second full day in office. He is creating an Office of Resiliency tasked with protecting coastal communities and wildlife from sea level rise.

“As we’ve seen things like increased flooding (and) rising waters, we want to make sure that Florida is doing what it needs to do to protect its communities,” DeSantis said.

The order also directs the Department of Environmental Protection, Department of Health and the tourism agency Visit Florida to work together to address algae problems. He is creating the Blue-Green Algae Task Force and the Office of Environmental Accountability and Transparency and a new position called chief science officer. It wasn’t immediately clear whether the new offices and position would be under the umbrella of another agency and when and how they’d be filled.

One of the priorities will be to reduce nutrients flowing into Lake Okeechobee and to treat them before they flow downstream, where algae feeds off the pollutants.

Senate Democratic Leader Audrey Gibson had several questions about the DeSantis order.

“Will he turn to the Trump Administration? Or will he be seeking help from the Legislature? Can our state budget handle this increase? Is the plan to cut into other programs to raise the needed funds? Will Floridians lose services in one area to offset the costs for water cleanup?” Gibson said in a press release.

She did, however, praise the intent behind the order.

“We share the urgency for cleaning up our water and our environment; it’s been a top priority of ours for many years. The policies of the past administration have taken a terrible toll on our natural resources, to say nothing of the impact on our marine life,” Gibson said. “But an executive order has to have more than just lofty goals, or admirable pursuits. It has to have the details we need to judge whether these goals are doable.”

A Florida roofing company owner was arrested last month after allegedly attempting to defraud multiple homeowners out of more than $49,000 and working without workers’ compensation insurance, according to a statement from Florida Chief Financial Officer Jimmy Patronis.

Terry Wayne LaCoste, owner of Terry W. LaCoste Weathertight Systems, Inc. and David E. Gilliland, Inc., was arrested after the Bureau of Workers’ Compensation Fraud received a tip from the Pinellas County Consumer Protection, Clearwater Police Department and the Pinellas County Sheriff’s Office regarding complaints against LaCoste.

Investigations revealed that LaCoste allegedly victimized a total of six homeowners by making them pay deposits up-front for roofing work. LaCoste either never started on the job or never finished the contracted work. In total, the victims had a financial loss of $49,447 combined.

The investigation also revealed that LaCoste was working without the proper workers’ compensation insurance coverage.

LaCoste was arrested on Dec. 18 and transported to the Pinellas County Jail without incident. He faces charges of organized scheme to defraud, theft/misappropriation of construction funds, and working without workers’ compensation insurance coverage. If convicted on all charges, LaCoste faces up to 15 years in prison.

“Fraud like this also steals work from honest businesses and drives up insurance rates for everyone,” Patronis said. “Remember to always verify before you buy and ensure that the contractor you’re hiring is reputable and has the proper insurance coverage before allowing them to start work on your property.”

Please welcome the newest member of our staff Michelle Cordova. Michelle was born in Naples and she graduated from Naples High School. She has been in the insurance industry since 2009 most recently with Carr & Associates LLC. Michelle specializes in auto, home, condo, renters, flood, umbrella, boat and RV insurance. We are happy that Michelle decide to join our team. Welcome MIchelle!

Last year’s intense hurricane season has motivated most Florida residents to prepare for hurricanes that could hit the state this year, according to a recent survey by the Property Casualty Insurers Association of America (PCI). The results showed a higher percentage of preparedness among Floridians than other hurricane-prone states, but more than 60 percent still say they have not purchased flood insurance.

Nearly two-thirds (64 percent) of residents in Florida say they have taken precautions in advance of the 2018 hurricane season, according to a new poll conducted online by SurveyMonkey on behalf of PCI. More than half of the 654 Florida respondents of the poll, taken between July 9-23, said last year’s hurricanes prompted them to take precautions. Nearly 38 percent reported that their property suffered damage due to last year’s storms.

Among the other hurricane-prone states surveyed in this poll, including Texas, North Carolina, and Louisiana, Floridians reported being the most prepared. Overall poll results of 1,831 residents across Texas, North Carolina, Louisiana, and Florida found 56 percent have not taken any precautions this year in advance of hurricane season. Only 35 percent said that last year’s storms prompted them to take any precautions this year.

Florida is the most hurricane-prone state in the United States, with 40 percent of all United States hurricanes hitting the state, according to the National Oceanic Atomospheric Administration (NOAA). Since 1851, there have been 118 direct hurricane hits in Florida.

“While we’ve not had much activity this hurricane season in the Atlantic basin, the threat of a storm quickly developing is still a possibility. Historically, August and September are active months for hurricanes and as we saw last year with Hurricane Irma it only takes one storm to cause massive amounts of property damage,” said Logan McFaddin, PCI’s Florida regional manager.

The poll included various categories to gauge hurricane readiness, including:

Flood Insurance

• 63 percent of Floridians do not have flood insurance despite 71 percent saying it’s necessary to help in recovery efforts following a natural disaster
• 13 percent of residents do not know if their existing homeowners or renters insurance policy covers flood damage

Emergency Plans

• 68 percent of Florida residents are familiar with their local municipality, county, or state evacuation plan, with the same percentage saying they have developed an emergency plan and shared it with their household
• 54 percent in Florida have an emergency bag, which includes necessities such as medication, non-perishable food, and water
• More than half (51 percent) have not conducted a home inventory in the event that property and/or possessions are destroyed, damaged, or lost in a disaster

Financial Preparations

• 71 percent of Floridians have readily available cash or savings to meet short term expenses that may arise following a natural disaster
• 69 percent report that they have stored important financial papers and documents in a safe deposit box or online for easy access

Contractor Fraud & Abuse

PCI said following a severe storm it is common for “crooked” contractors to try and take advantage of consumers needing repairs. In Florida, abuse related to water damage and assignment of benefits claims has been a particular problem and the insurance industry and regulators are working to educate policyholders on this escalating abuse.

• 80 percent are at least somewhat familiar with the signs of contractor fraud and abuse
• Yet, 14 percent said they would pay upfront for the rebuilding or repair costs if it meant getting their property fixed more quickly and 18 percent aren’t sure if they would
• 8 percent of residents said they would accept an unsolicited offer from someone to make repairs to their home

Atlantic storm watchers are going to have a hard time seeing the ocean, never mind any tropical systems, as another Saharan swirl of dust from Africa is moving west.

The dust, a marker for dry air, has spread out across the Atlantic and “that is really tamping down on the thunderstorm activity that we would typically see at this time of year,” said Jeff Masters, co-founder of Weather Underground in Ann Arbor, Michigan.

The usual recipe for tropical storms and hurricanes requires thunderstorms, moist air and warm ocean temperatures. You won’t find those ingredients now in the Atlantic region stretching from the Caribbean to Cabo Verde, off the coast of Africa.

That’s where a lot of the tropical action typically gets started this time of year, and then about two weeks later the Atlantic often will enter into its most frenetic phase.

For now though there aren’t many signs the basin is even stirring and until things change “you are not going to get much developing,” Masters said.

Congress avoided a lapse in the federal flood insurance program when the Senate today voted 86-12 to extend authorization for the program by four months to Nov. 30.

The National Flood Insurance Program would have expired at the end of today had the Senate not acted.

The House also voted last week to temporarily reauthorize the program.

President Trump is expected to sign the reauthorization before the program lapses.

The reauthorization does not include any reforms to the program.

Despite years of debate and proposals to reform the program, reforms have stalled. Instead, Congress has passed six short-term extensions of the program. Lawmakers also let the program lapse in 2017 and 2018.

The House passed legislation with reforms more than a year ago; the Senate has yet to do so.

Some in the insurance industry are concerned that Congress may again let the program lapse after this latest renewal and continue to postpone reforms.

“A lapse in the NFIP during the height of hurricane season could impact the ability of the program to promptly pay claims if there is a major flooding event, delay recovery efforts related to the catastrophic 2017 storm season and disrupt real estate markets across the country,” said Jennifer Webb, federal affairs counsel for the Big “I” independent agents association. She said the Big “I” supports a “long-term extension of a modernized NFIP” that would increase flood insurance buyers in both the NFIP and in the private insurance market.

“Congress has avoided disaster by passing this extension of the National Flood Insurance Program, but simply kicking the can down the road is not a solution,” said Jimi Grandi, senior vice president, Government Affairs, National Association of Mutual Insurance Companies. “The problems with the NFIP are well known, and a four-month extension amid the politics of the midterm elections does not inspire much hope for meaningful reform that would provide needed stability for the NFIP and the millions of policyholders who rely on the program,”

There are 5.2 million NFIP policies in force.

The House of Representatives passed a measure to reauthorize the nation’s flood insurance program for four months beyond its current July 31 expiration date.

The House measure to renew the National Flood Insurance Program (NFIP) until November 30, 2018, contains no reforms.

The Senate must still act as well to avoid a lapse in the program. A spokesman for Senate Majority Leader Mitch McConnell told the Washington publication The Hill that the Senate would go along. In June, the Senate included a six month NFIP extensionin a broad farm bill that is now in conference committee between the two legislative bodies.

Today’s House action was taken over a protest by Rep. Jeb Hensarling, R Tex., chair of the House Financial Services Committee, who argued against another short-term extension without reforms. Congress has passed six short-term extensions of the program; it also let the program lapse in 2017 and 2018.

Hensarling argued the House should force the Senate to vote on reforms.

“I want to make it very clear, Mr. Speaker, I believe this program needs to be re-authorized, and the House has done its work,” he said in remarks on the House floor. “The House passed a bill with reforms last November. Never underestimate the Senate’s capacity to do nothing, and unfortunately the Senate has done nothing. But this is a program, Mr. Speaker, that continues to be in dire need of reform. And now we have re-authorized it without reforms not once, not twice, not three times, not four times, not five times – six times since the Financial Services Committee first reported this bill out. Enough is enough.”

Hensarling reminded his fellow lawmakers that 116 lives were lost last year to flooding and there were billions and billions of dollars of property loss, “[A]nd yet, we have a program unreformed that incents people to live in harm – incents people to live in harm’s way. We should not do this, Mr. Speaker,” the Republican said.

House leadership went ahead with the vote and the four-month stop-gap funding bill passed overwhelmingly, 366-52.

Insurance, banking, consumer and taxpayer groups welcomed the House move to avoid a shutdown on July 31 but joined Hensarling in calling on Congress to address the need for reform of the program.

“It is good news that the House voted to keep the NFIP going, but Americans who face the devastating peril of flooding should be able to hold Congress to a higher standard than simply avoiding a lapse,” commented Jimi Grande, senior vice president, Government Affairs, for the National Association of Mutual Insurance Companies. “The time for doing the bare minimum is long past.”

Lenders warned of the effects on the real state market if the Senate fails to follow through. “If there is a lapse, many loan closings in high-risk areas will be delayed or otherwise complicated, resulting in additional costs and borrower frustrations,” said Rob Nichols, president and CEO for the American Bankers Association.

The Independent Insurance Agents and Brokers of America (Big “I”) also urged prompt action by the Senate to extend the NFIP. “A lapse in the NFIP during the height of hurricane season could impact the ability of the program to promptly pay claims if there is a major flooding event, delay recovery efforts related to the catastrophic 2017 storm season and disrupt real estate markets across the country,” said Jennifer Webb, Big “I” counsel, federal government affairs.

Nat Wienecke, senior vice president of federal government relations at the Property Casualty Insurers Association of America (PCI), had a similar message, noting the while the “four-month extension provides homeowners and businesses with certainty through hurricane season,” Congress should enact reforms that will provide “more consumer options and greater financial stability to the NFIP.”

The environmental and taxpayer coalition SmarterSafer called it “disheartening” that Congress has once again declined to enact reforms to the NFIP, which it noted has borrowed more than $25 billion from taxpayers. “We urge Congress to use the next four months to create a comprehensive legislative package that ensures that the program better protects people in harm’s way, the environment and taxpayers,” the group said.

There are at least three reasons for an individual to buy a personal umbrella policy.

To begin with, the primary policies otherwise available generally do not provide liability limits commensurate with the exposure such individuals may face.

Second, the cost of this excess coverage is comparatively cheap.

Third (and perhaps most importantly), umbrella policies not only provide coverage when losses exceed the available primary limits, but add coverage for certain types of losses, such as “personal injury” claims that are generally not covered by primary policies.

Although the limits of homeowners insurance and other forms of personal primary insurance have increased, most only provide coverage with “per occurrence” limits of $300,000 or $500,000. Substantial as that sum may seem, it is hardly sufficient to satisfy the liability an insured may face due to a serious accident.

Umbrella coverage is also surprisingly affordable. As a result, umbrella insurers are willing to quote coverage of $1 million to as much as $10 million at rates that are proportionally cheaper than primary insurance. Umbrella carriers can quote coverage with confidence that statistics show their insureds are unlikely to be sued, and any resulting suits are likely to be resolved within the limits of the insured’s primary coverage.

Umbrella insurance not only boosts available coverage limits at a relatively advantageous cost compared to dollar limits on primary policies, but it does so with respect to a portfolio of primary risks. Thus, an insured has excess coverage available for serious auto or premises liability claims without having to pay to increase limits on primary insurance policies that would insure these separate risks.

Umbrella insurance presents a particular feature that separates it from other types of excess insurance.

Umbrella policies (deemed “bumbershoot” policies in the London market) not only provide insurance coverage once the primary limits are exhausted, but they drop down to provide primary coverage for certain types of losses that may not be covered under the insured’s primary policy.

For instance, umbrella policies typically include “personal injury” coverage for quasi-intentional tort losses, such as claims for wrongful entry or eviction, defamation or disparagement and malicious prosecution or false arrest that many homeowners policies do not cover. Umbrella policies may also define “bodily injury” to include claims for emotional distress that primary policies do not cover. In these cases, the umbrella insurer will step in to defend the underlying claim and fill a gap in the insured’s coverage profile that might otherwise prove expensive and perilous.

While the decision to purchase umbrella coverage should be an obvious one for most policyholders, deciding whether to buy umbrella coverage from the same company that underwrites your primary policies may be more difficult. Some primary insurers may be willing to discount the cost of such insurance when the policyholder agrees to buy a package of policies. Using the same insurer may also avoid a seamless web of insurance and avoid unexpected gaps due to conflicting wordings.

At the same time, having a different insurer write the excess coverage may be to the benefit of the insured in cases where the primary insurer is reluctant to accept coverage and the excess insurer acts in concert with the policyholder to apply pressure to the primary carrier to pay the loss or defend.

Personal umbrella policies can help customize insurance coverage by filling gaps in a client’s coverage profile and raise the limits of coverage to safer levels. In short, the answer to the question of whether an insured should buy personal umbrella insurance is not “yes, you should” but rather, “why on earth would you not.”

The federal government has approved Florida’s request for $616 million that will be partially used to repair homes destroyed or damaged by Hurricane Irma last year.

Gov. Rick Scott and Housing Secretary Ben Carson announced the approval in a conference call last week.

Irma hit the Florida Keys on Sept. 10 as a Category 4 storm, destroying 1,200 homes and damaging 3,000 there.

The storm was a Category 3 when it reached the mainland near Naples. It weakened but did significant damage as far north as Jacksonville.

The state’s plan says $273 million will be spent fixing and rebuilding 6,000 homes. Another $100 million will be used to build affordable housing, $75 million to buyout homes in high-risk areas, $62 million for administration and $60 million for small business recovery.

Cost savings in two Florida funds paid into by workers’ compensation carriers are expected to equal a nearly $20 million reduction in expenses for insurers operating in the state next year, according to a statement from the Florida Department of Financial Services.

The cost reductions are a direct result of the sound financial management of the Workers’ Compensation Administration Trust Fund (WCATF) and the Special Disability Trust Fund (SDTF), two funds that workers’ compensation carriers contribute to, DFS said.

Florida Chief Financial Officer (CFO) Jimmy Patronis said the reductions in costs for insurers are expected to translate into savings for Florida businesses in 2019.

“Reducing the cost of doing business for workers’ compensation carriers by $20 million means additional savings could be passed on to Florida businesses, easing financial burdens,” Patronis said.

Legislative changes in 1997 resulted in the SDTF being prospectively abolished and statutorily prohibited from accepting any new claims for dates of accident after Dec. 31, 1997. However, in accordance with Florida law, insurers and individual self-insured employers continue to be assessed to fund a small number of older claims. Further, fiscally responsible management of the WCATF has allowed for assessment rates to be reduced.

The 2019 assessment rate reduction will be the seventh reduction for the WCATF, and the ninth for the SDTF.

DFS said other factors that contribute to a healthy Workers’ Compensation Administration Trust Fund (WCATF) that enable the CFO to reduce the assessment rate, include but are not limited to:

• Division of Worker’s Compensation, Bureau of Compliance enforcement actions;
• Increase of exemption applications processed due to a healthy economy;
• Other regulatory fines, fees and infrequent wind-falls for the WCATF;
• Decrease in COLA payments to seriously injured claimants.

These expected costs reductions come on the heels of the Florida Office of Insurance Regulation approving a 1.8 percent decrease in workers’ comp rates, effective June 1, 2018. The decrease, filed by the National Council on Compensation Insurance (NCCI), was attributed to a change in the profit and contingency factor thanks to the recently-passed Tax Cuts and Jobs act. DFS estimated the change could equal a $79.5 million savings for Florida businesses.