Question 1

What does an insurance broker do?

Accepted Answer

Insurance brokers act as your representative, not the insurance company's. They evaluate multiple carriers to find coverage that meets your specific needs and negotiate terms and pricing on your behalf.

Question 2

How are brokers paid?

Accepted Answer

Insurance brokers typically receive compensation through commissions from insurance companies. For complex or high-net-worth cases, some brokers may charge additional advisory or consulting fees.

Question 3

Why use a broker instead of going directly to an insurance company?

Accepted Answer

A broker offers the advantage of comparing multiple carriers, tailoring coverage to your needs, and providing advocacy during claims processes. In contrast, dealing directly with an insurer limits you to their specific products only.

Question 4

How much home insurance coverage do I need?

Accepted Answer

Your coverage should align with the replacement cost of your home, not its market value. For high-value or coastal properties, such as a $26 million estate in Fort Myers, extended replacement cost coverage and specialized carriers may be necessary.

Question 5

What is replacement cost vs. actual cash value?

Accepted Answer

Replacement cost covers rebuilding at current prices, while actual cash value is the replacement cost minus depreciation.

Question 6

Are hurricanes and floods covered?

Accepted Answer

Hurricane and wind coverage depends on the specific policy and deductible. Flood insurance is typically a separate policy, available through the National Flood Insurance Program or private insurers.

Question 7

What deductible should I choose?

Accepted Answer

Higher deductibles can lower your premium but increase your out-of-pocket expenses in case of a claim. In coastal Florida, high-net-worth clients often opt for percentage-based wind deductibles.

Question 8

How much liability coverage do I need?

Accepted Answer

For affluent households, $1 million in auto liability is common, often supplemented with an umbrella policy ranging from $5 million to $25 million.

Question 9

What is umbrella insurance?

Accepted Answer

Umbrella insurance provides additional liability coverage beyond your home and auto policies, protecting your assets from potential lawsuits.

Question 10

Does umbrella cover defamation or social media claims?

Accepted Answer

Many umbrella policies include personal injury coverage, which may encompass libel and slander claims. However, the specific policy wording is crucial in determining exact coverage.

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