One insurance industry expert claims the risk of getting an adjuster who isn’t fully trained is higher in the wake of an emergency. Photo courtesy of NOAA

As hurricane season gets under way, the giant mess that is homeowner’s insurance takes the spotlight. The almost comical scenario of trying to pay a decent rate for coverage in a part of the United States that routinely gets nailed by storms is a source of frustration for residents and a hot topic for state lawmakers.

In the middle are the insurance inspectors, many of whom promise to save the homeowner money and decrease the insurance companies’ risk. Some perform the duties they advertise and reduce homeowners’ insurance bills. Others have no qualifications and prey on unsuspecting homeowners.

On the surface, inspectors’ jobs are pretty simple. They come into a house and verify that the electrical, heating and cooling, and plumbing systems are in good condition. They also note the type of roof on the home and whether it is built to withstand strong winds. Having a house that passes these inspections ostensibly decreases the insurance company’s risk if the inspector can catch minor problems before they become major ones.

The average home inspection costs about $150. Many of these inspectors advertise possible homeowner savings through insurance company rebates in the thousands of dollars. Different inspectors use different methods. For example, in the case of inspecting the length of nails used to keep the roof in place, some interviewed for this story listed ultrasonic tools that can measure the nails through the wood. Others simply use their eyes. “The builders make mistakes,” one inspector told the SunPost, “and there are always a few loose nails lying around to be measured.”

But for some, these methods are of no concern, because they’re not really inspectors.

Joe Burkeson of the International Code Council, a certified operator of the private insurance inspection company Square-One Inspection Service, notes that home inspections are an unregulated business in Florida, with no licensing provisions for home inspectors.

“You get a lot of guys doing this that have no business doing it, and there’s often a conflict of interest,” says Burkeson. “The problem with having a roofing contractor doing a home inspection is that they have something to sell.”

Burkeson says he often hears stories from homeowners about shady contractors forcing unneeded services.

“I did an inspection for a family who the insurance company told to get their roof inspected by a contractor. The roof was fine, and the people who owned the house knew that, but they had to go through three contractors to find one that didn’t try to sell them a new roof,” says Burkeson.

This sentiment was echoed by a number of inspectors and insurance professionals interviewed by the SunPost.

“I don’t know why it’s not regulated,” says Scott Johnson, executive vice president of the Florida Association of Insurance Agents, “but I certainly think it should be.”

No one at the Florida Office of Insurance Regulation or Department of Financial Services was able to explain why the home inspection business is unregulated and why no official licensing system has been put in place to prevent contractors with ulterior motives from taking advantage of homeowners.

Another problematic situation arises after a natural disaster has occurred.

According to Mark Goldwich, public insurance adjuster and author of the book Uncovered: What Really Happens After the Storm, Flood, Earthquake or Fire, the insurance companies are forced to hire a large number of “temporary emergency adjusters,” many of whom are unqualified.

“After a catastrophe, the need for adjusters and estimators swells, far exceeding anything insurance companies can match. So they load up on temporary emergency adjusters. A lot of these people may have no training in estimating, only a temporary emergency license, which you can get by taking a couple-hour-long course,” says Goldwich.

He says this adds to the policyholder’s problems.

“They just went through a disaster; now they have to deal with the further frustration of getting an inaccurate estimate and end up not getting the money they deserve,” says Goldwich.

The only possible solution to these problems is for the insurance companies to hire and train their own adjusters and inspectors to keep on staff, says Goldwich. This, of course, would cost money.

“In 2005, the year of Hurricane Katrina, the insurance industry made $40 billion in profits, and last year they made $60 billion. Can they not afford to hire more people?” asks Goldwich.

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Miami Beach

Ethics Referendum

Beach Mayor Proposes Referendum on Any Future Changes to Ethics Legislation.

By Ben Torter

If Miami Beach Mayor David Dermer gets his way, the voters of Miami Beach will be handed the responsibility of maintaining the city’s tough ethics laws.

Dermer, who will be termed out as mayor in November, announced last week through a press release that he “has placed a resolution on the July 11 commission meeting agenda calling for a November 6, 2007 special election for the purpose of preserving and protecting the city’s high standard of ethics legislation.

“It is extremely important to preserve the high ‘good government’ standards for the future. This charter amendment will require a public vote prior to any future commission endeavoring to weaken or lower ethical standards,” Mayor David Dermer stated.

In the last 10 years, the city of Miami Beach has ratcheted up the strength of its ethics legislation. Dermer’s press release cited as victories “the barring of conflicts of interest, requiring lobbyist registration, reforming campaign finance, as well as protecting the integrity of the procurement process.”

Most recently, commissioners closed a loophole in its 10-year-old “certain appearances prohibited” ordinance. Prior to the June 6 commission vote, the ordinance prevented companies from lobbying the commission or a city board if an elected official or board member was a “partner, joint venturer or co-corporate shareholder.” When Becker & Poliakoff attorney Michael Gongora was elected to the commission last fall, the ordinance was challenged. Becker & Poliakoff argued that since Gongora is only an associate, they could still lobby the city. The commission said no, and voted to include all employees. In a June 9 Local Perspectives editorial in The Miami Herald, Herald staff wrote, “this toughens even more what are arguably the strongest local regulations on lobbyists.”

The City Commission also enacted legislation barring anyone who contributed to an elected official’s campaign from bidding for a contract with the city, applying for a zoning or land use change or representing anyone seeking a contract or a land use change.

At least four out of seven commissioners must vote yes in order for Dermer’s latest initiative to be placed on the November ballot. Last Friday the SunPost called all the commissioners to get their take.

Commissioner Matti Bower, a mayoral candidate, said she strongly supports the mayor. She said she has been concerned for a long time that because four out of seven seats are up for re-election this year, the ethically responsible dynamic of the commission could be upset.

“When I brought the amendment [certain appearances prohibited] because of that supposed loophole, I specifically said I would like to put something on the ballot to make sure it is not changed, because as it is now, it can be changed anytime,” Bower said.

Commissioner Simon Cruz, who is running against Bower for mayor, is also behind Dermer.

“I have always been a supporter of ethics legislation, and I’m very proud that the commission that came on board in ’97 moved so far on ethics legislation,” Cruz said. “I will support the mayor’s request.”

Commissioner Michael Gongora was in Jupiter Friday, speaking on behalf of the city for affordable housing. When reached Sunday by the SunPost, he said, “I haven’t seen [the press release]. I really can’t comment on it until I take a look at what [Dermer] wants to do.”

Commissioner Saul Gross could not be reached for comment by early deadline. Commissioner Jerry Libbin was in China on business, and Commissioner Richard Steinberg was in Europe.

— Erik Bojnansky contributed to this article.

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Miami

Miami 21 to Be Discussed By City Commission

Code Rewrite Will Affect Miami’s Eastern Quadrant

Miami Mayor Manny Diaz continues his push to approve Miami 21.

By Erik Bojnansky

Miami 21 could come a step closer to reality this week. The Miami City Commission is set to vote on the extensive rewrite of the city’s zoning code, on first reading at its regularly scheduled meeting on Thursday, June 28 at 9 a.m.

Dubbed Miami 21 by Miami Mayor Manny Diaz, the zoning code rewrite is being spearheaded by planner and consultant Elizabeth Plater-Zyberk.

“Miami 21 is a blueprint for the city of Miami of the 21st century and beyond,” states a release from the city of Miami. “It takes a holistic approach to land use and urban planning, broadening the scope of a traditional master plan to become a truly comprehensive plan. Miami 21 will provide a clear vision for the City that will be supported by specific guidelines and regulations so that future generations will reap the benefits of well-balanced neighborhoods and rich quality of life.”

Miami 21 would also switch the city to a “form-based code” that seeks to address the areas of economic development, transportation, parks and public areas, arts and culture, and historic preservation.

It has attracted critics — from property owners who fear the new zoning codes will reduce their specific property values to homeowners who feel that the code will sanction more intensive development in their neighborhoods.

If approved, the Miami 21 code will immediately effect what planners call “The Eastern Quadrant,” which encompasses the areas of Downtown, Brickell, Overtown, Little Haiti, the Design District and the Upper Eastside. Workshops will then be planned for Miami’s other “quadrants” prior to Miami 21 code changes being approved for their areas.

Comments? E-mail erik@miamisunpost.com.

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Winton Out

Governor: City Commissioner Plead Guilty to Charges He Was Suspended For

By Ben Torter and Erik Bojnansky

One year after Johnny Winton was suspended from office following a drunken brawl with two Miami-Dade police officers, Gov. Charlie Crist has permanently removed him from his District 2 Miami Commission seat, putting an end to his hopes of serving out the remainder of his term.

It doesn’t, however, preclude Winton from running for political office in the future.

Ironically, the SunPost reached Winton as he sat on an airplane pulling away from the gate. He could only speak for a moment since flight attendants were asking that cell phones be turned off in preparation for takeoff, but said he might run again in November.

“It’s an option, so I’m definitely going to think about it,” Winton said.

The ruling was handed down on Wednesday, June 20.

“The very essence of our democracy rests on elected officials’ honoring the sacred trust of the people they represent. For that reason, in light of Johnny Winton’s plea of no contest to misdemeanors that represent behavior unbecoming of an elected official, I have chosen to remove Mr. Winton as a Miami City Commissioner,” Crist wrote in a prepared statement. “The people have chosen Marc Sarnoff to complete the remainder of Mr. Winton’s term, and the will of the people should prevail.”

“Oh my goodness,” said Benedict Kuehne, Winton’s attorney, when called for comment the day of the ruling. “I just got back from court. That’s news to me.”

The removal order cites Florida statute 112.51(5) which “authorizes the Governor to remove a municipal official who pleads guilty... to any charge contained in an indictment or information by reason of which the official was suspended….”

On June 16, 2006, the Palm Beach State Attorney’s Office filed charged Winton with two counts of battery on a police officer and one count of disorderly intoxication. Since the battery charges were felonies, then-Gov. Jeb Bush suspended Winton from office four days later.

Following Winton’s suspension, Linda Haskins, Miami’s chief financial officer at the time, was appointed interim city commissioner. Haskins was defeated by attorney and Coconut Grove activist Marc Sarnoff in a hotly contested election in November 2006 for the last year of Winton’s term, which ends November 6, 2007.

On May 30, 2007, Winton plead guilty to misdemeanor battery and intoxication. Kuehne argued that Winton should be reinstated to finish his term since he was not convicted of the exact charges he was suspended for. Sarnoff, on the other hand, argued that Winton should be permanently removed.

Kuehne said both he and Winton are “extremely disappointed in the governor’s decision. “Our firm belief is that the statute and the [Florida] constitution required Mr. Winton’s reinstatement to office... Mr. Winton is exploring available legal options... We believe the constitution is so clear that Winton should be reinstated into office.”

Winton’s criminal court epic is not yet over, though.

There’s a hearing scheduled for Thursday, June 28 at 9 a.m. to make sure the ex-commissioner and Judge Dennis Murphy are on the same page as it relates to the terms of Winton’s probation.

“The motion is to make a technical correction to the probation order so that the supervision of the probation is done by the county and not the advocate,” Kuehne said.

Kuehne explained that the advocate is needed in cases where the person on probation doesn’t have any money. Winton’s attorney said his client doesn’t need the advocate because he is paying for his treatment, and should be supervised by the county. He just wants to make sure the language in Winton’s case file reflects that belief.

“It [the next hearing] is probably unnecessary because this is a guy who has learned his lesson,” Kuehne said. “I just want to make sure there are no glitches in the system.”

Will Winton choose to run against Sarnoff to try and win his seat back this November? Winton couldn’t be reached for comment. Sarnoff, on the other hand, praised Crist’s decision, and welcomes Winton to jump into the race against him.

“I think the he [Crist] rendered a very fair an impartial decision and is upholding the will of the people,” said Sarnoff. “If Winton wants to meet me at the polls Nov. 6, I’d be more than happy to meet the challenge.”

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Miami Shores

A New Source of Revenue

Outstanding Fines and Liens on Properties Seen as Untapped Financial Source By Village Council

By Evan Berkowitz

Faced with pending revenue shortages, the Miami Shores Village Council discussed creating a policy for the collection of code enforcement liens and fines on non-homesteaded property during its June 19 meeting.

Vice Mayor Stephen Loffredo said with the Florida Legislature having recently voted to cut municipality’s property taxes by as much as 9 percent, he saw these owed monies as a good way to supplement the village’s financial resources.

“We are in a tenuous position as far as money’s concerned,” agreed Mayor Herta Holly.

Loffredo said they had “built up a large inventory” of debts, possibly as much as a million dollars. Miami Shores currently has no official policy for these types of liens and it was noted that the primary purpose of code enforcement fining is to achieve compliance, not revenue enhancement.

“It would be very difficult, in my opinion, to draft an across-the-board policy that would fit all situations,” said Village Attorney Richard Sarafan.

Village Manager Tom Benton said the village collects between $130,000 and $150,000 in code enforcement fines annually. “There are, I believe, certain things we could do, legal-wise, to collect some of these things more aggressively,” he said. But Benton noted that hiring attorneys to close on liens will incur great costs in legal fees and there’s no guarantee the village will emerge victorious in the cases. Councilman Prospero G. Herrera II reported that in the past two years $71,844 in non-homestead liens had been collected.

Sarafan said the village had outstanding liens dating back 10 or 20 years and it would be nearly impossible to determine what amount of that is truly collectable. He said fine payment was often received when homeowners wanted to refinance or sell and were then forced to address the debts. The attorney said foreclosure was currently the village’s primary tool in collecting outstanding fines and liens and this procedure was complicated by the fact that it is prohibited by the state constitution to foreclose on homestead (primary resident) property.

Determining which homes are homestead and which are not is often not simple, Sarafan said. “Just because there’s a homestead exemption for tax purposes in the public records, assuming that you have accurate records from Dade County public records, which as you know is a big leap of faith, but assuming that you could get absolutely accurate information, the mere fact that someone claims a homestead exemption for tax purposes does not mean that the property is homestead.

“And alternatively, the mere fact that they do not claim the homestead exemption does not mean that it doesn’t qualify as homestead [under Florida law].” Sarafan described a second way to collect money. “A few years ago the legislature amended the statute to allow you to go to circuit court and petition to have the lien converted into a money judgment, which could then be executed against personal property,” he explained.

Sarafan said this had been done before in Miami Shores when they levied fines on a Cadillac owned by a local “scofflaw,” he said. “It definitely got his attention.”

The village attorney mentioned the possibility of other creditors having priority over village fines and said the hiring of a collection agency to do this work might be a viable option. Sarafan warned of lawsuits being filed against the village and a “public relations backlash.” The lawyer recommended phasing in the new more aggressive policy to give people warning and allow them to pay.

Loffredo, an attorney himself, recommended using outside council for these matters, which he said the village did during the mid-1990s in a successful effort to collect garbage liens. He said lawyers would be hired on a cost-plus-contingency basis, and not given an hourly wage, so there would not be a great deal of money paid to them up front without results.

The council requested that village staff provide a list of outstanding liens, including as much information as possible about dollar amounts and homestead status. They plan to discuss this matter again at their first meeting in September.

Comments? E-mail letters@miamisunpost.com.