News & Resources

We are continuing our discussion of the considerable losses experienced by art galleries during Hurricane, or Superstorm, Sandy. The insurance industry has been making predictions for total claims payouts since a few hours after the rain and wind stopped, but the damage to businesses that sell or display original artworks did not make it into the early estimates. In the grander scheme of things, when entire coastal communities were decimated and buildings in one of the biggest cities in the world sustained damage that will take months to repair, a niche like art galleries may seem inconsequential.

Hurricane Sandy wreaked havoc with many things this past fall. People in Florida and all up and down the coast watched with dismay as the storm battered many parts of the country, killing 132 and causing damage to property. Communities are still struggling in the storm’s aftermath. The total cost to the insurance industry of all claims arising from the storm is expected to be close to $25 billion, almost rivaling the costs experienced when Hurricane Katrina hit in 2005.

If Jan. 1, 2013, was anything like Jan. 1, 2012, about 25 percent more accidents occurred on Florida’s roads than would occur on a normal Tuesday. A leading auto insurer discovered the spike in last year’s claims in a recent study, as we discussed in our last post. Claims filed for New Year’s 2013 may follow the pattern, but they will look much different in other ways, thanks to the state’s new insurance laws.

We all know the risks of driving on New Year’s Eve. Revelers ring in the new year with a little too much to drink, then they get behind the wheels of their cars. The results can be catastrophic. Here in Miami, the added allure of the Orange Bowl on New Year’s Day brings more visitors to town and provides yet another opportunity to drink to excess. The upshot is that the city’s streets could prove especially dangerous during the first 24 hours of 2013.

When a family entrusted their investment money to Bernard Madoff, they started getting financial statements from his business showing them falsely inflated amounts in their accounts to make them think that they were doing well, and perhaps should consider investing more. But the money wasn’t really there. The investment offered was actually just one big Ponzi scheme, and their money was lost. Later, they sought to file insurance claims, as many others from Florida and elsewhere who lost money did.

We are finishing up our discussion of holiday parties — before, we hope, the holiday parties are finished — and the potential liability they carry for the homeowner and renter hosts. The basic rules of thumb are to know your state’s “social host” laws and to be familiar with the liability coverage terms of your homeowners or renters insurance policy.

We are continuing our discussion of insurance issues not really unique to the holidays but certainly more easily overlooked at this time of the year. Some of us love the bustle of preparing for parties, making last-minute or well-planned forays to the stores and rifling through catalogs looking for deals on shipping and gift wrapping. Some of us would rather hunker down with our homeowners insurance policy just to be absolutely clear about our potential liability if carolers stop by and when we have our annual neighborhood get-together.

We may not have a white Christmas in Miami, but that doesn’t mean we don’t know how to celebrate. This time of year is jam-packed with office parties and get-togethers with friends. We deck our halls with boughs of whatever and invite people in to make our spirits bright. Seldom do we wonder about the insurance implications of our annual Christmas Eve cocktail party.

We are returning to our Dec. 5 discussion of long-term care insurance and the changes the industry is likely to impose beginning in 2013. Most of the changes will affect women’s coverage, particularly when it comes to premiums. Tougher underwriting standards are also on the horizon. For Florida residents, the prospect is just more turmoil with insurance in general.

Many homeowners on the East Coast have learned a valuable lesson in the wake of Hurricane Sandy, and it’s a lesson Florida homeowners can take from as well. The lesson is this: Many homeowners whose properties were ravaged by Hurricane Sandy did not understand their insurance policies and as a result will not be compensated for the hurricane’s damage.