Insurance Question

[Frank Bradfield]

Been kicking around the idea of buying something in Florida but what i've heard with the new insurance issues its kinda scaring me off. Have some family that live in Florida and they told me only one company writes homeowners anymore. Seems kinda insane. Just trying to get some accurate information. Any help would be appreciated.
Thanks, frank

[red_yakker]

Not sure what they could be talking about. There are only a handful of companies that will insure a mobile home within so many miles of the coast, but you can do it. My dad was having trouble finding an insurance company that would write a new policy on a new chicken house, but they have always been difficult to insure, and he did manage to find one (just wasn't Farm Bureau, if that makes any sense). A lot of people complain that the FEMA FIRM maps are inaccurate, forcing them to buy flood insurance when they don't really need it, but I haven't heard of insurance companies refusing to write new homeowners policies because of it. You might try calling a few companies wherever you're thinking of buying and see what they can do. That's where you'll get your most accurate info. Local banks are also a good place to ask, they usually know which insurance companies will insure what, although they can be hesitant to recommend one company over another.
But think about it. If there were no companies writing new homeowner's policies, there could be no new mortgages signed, and the housing market would have crashed again, and it would have been all over the news. Last I heard, the housing market is steadily recovering.

[bbb]

You buying something on the coast? If so, you will have limited options if you need wind coverage. Inland will have a lot more choices. If you have an address you can PM me and I'll see what kind of prices I can come up with. We have about 12 companies we write with. Dale

[zload]

Few if any National carriers write new policies in Florida anymore so you are not likely to purchase a policy from the big names most people recognize even though the sign on the agent's door may have a name you recognize the policy likely will be different.

The policies commonly available are typically from a Florida domestic company(basically a Florida only company) many of which were established post 2005 following the 2004 - 2005 multi-hurricane years. There are lots of people who don't care about financial stability of the carrier but in a hurricane prone state that can be a major issue. AM Best ratings are the gold standard and few domestic carriers have AM Best ratings. Older homes, coastal exposures and/or Manufactured Homes add a whole different level of availability/eligibility issues. Non-primary residences are also more difficult than a primary residence. You will also find the policies will usually have at least two deductibles one for Hurricanes and one for Other Perils, and a Hurricane does not mean what you think it does, make sure you understand how the FL statute defines it. Sinkhole coverage is another big issue in FL so ask about it as well, expect some type of inspection requirement.

The "one company" issue that your relatives are describing is most likely from a Manufactured Home or South Florida coastal perspective and they are referring to Citizens Property Insurance Corp. which is essentially the state backed "insurer of last resort". They may be the only choice for some people but not true state wide. There are also surplus lines policies out there if you can't find something with a standard company.

[Frank Bradfield]

Thats good info. Not sure what i'm going to do but it won't be on the coast. Would love something on the Saint Marks or Wakulla river though. My wife wants to wait it out to closer to retirement but seems we might be near a bottom and could be a good time to find a deal.

[bman]

Lots of options and I can point you to a couple of Insurance Brokers that can help.
The flood zone rating and elevation of the home will make a huge difference in price.

Also, because its what I do, I'd be happy to help you find something.
I love those areas and have sold homes from Alligator Point to St Marks

[bbb]

Been kicking around the idea of buying something in Florida but what i've heard with the new insurance issues its kinda scaring me off. Have some family that live in Florida and they told me only one company writes homeowners anymore. Seems kinda insane. Just trying to get some accurate information. Any help would be appreciated.
Thanks, frank

Oh yeah, if you need a realtor I know several and can send you their info.

[bman]

Oh yeah, if you need a realtor I know several and can send you their info.

?

[bbb]

Lots of options and I can point you to a couple of Insurance Brokers that can help.

?

[bman]

Lots of options and I can point you to a couple of Insurance Brokers that can help.

?

Dale! I totally forgot that you were BBB!
I was going to give him your name.
That is hilarious!

For the record- Dale is a great agent and has helped me out of a few big jams.
http://www.tyreagency.com/

[Frank Bradfield]

Now thats funny!

[bman]

Yea, It helps when you read all the posts before you reply

[bbb]

I was just busting your chops Barry.

I know the other agents pay you a bigger referral fee.

[bman]

I was just busting your chops Barry.

I know the other agents pay you a bigger referral fee.

Also for the record... I NEVER TAKE A REFERRAL FEE from any Service Provider

[Sir reel]

I have mentioned a few times that I'm in Frostproof or that I'm traveling back from, etc. As a result of my parents passing, I became the owner of their property in Polk County on Lake Reedy. It's not on the coast but it could be considered lake front. Frank, the biggest issue I believe you'll run into is the "non primary residence" one. My parents had State Farm Homeowners for 26 years on that property. However, as soon as they received word that Mom had passed away the letter was sent out that the policy would not be renewed. I began the search for a provider but could not find one that would cover a "second home". Questions like "how often will you be there? Will anyone live there? Will it be rented? and on and on. I searched on line, filled out numerous applications and inquires. After nearly a year, I received a couple that would blow your hat off with the cost and deductibles. I finally purchased a policy from a firm in Tampa for $1200 a year compared to State Farm's previous $700. Then there were inspections as previously mentioned and more questions about "lake Front" even though they would not cover the brand new $5000 dock because the structure was "over water". Even though "Homestead Exemption" isn't part of this discussion, be prepared for a big increase in property taxes because it won't be your primary residence. If you decide you want to make it your primary and if it's in a different county you will need to change your drivers license to that county and possibly other forms of proof of residency that I haven't run into yet. Finally, don't wait until you've retired to begin the process. I believe it actually works in your favor to start the process a few years before. Good Luck and try not to be overwhelmed by what seems like a lot of negatives.