Home Insurance (Miami, Tallahassee, Sarasota: home owners insurance, mortgage, credit)

[diddy02]

My husband and I are really wanting to buy a home in Sarasota, Siesta Key or Longboat Key. But he is worried that we will not be able to get insurance with a company that will not go under if a serious storm comes through.
It would be a huge purchase for us and we were wondering if anyone had any problems getting insurance with a reliable company. Ideally we would want a home on the water or pretty close to it I know are options will be limited but any advice would be appreciated.

[sdasilva27]

I've had no problems but I don't live on the water. I know a lot of people in St. Pete that have terrible problems because Pinellas county is a pennisula. Here at work, numerous people can't get any home insurance except the one that's obligated to give it to people that work here (they have a contract with the company we work for).

My best advice would be to get a bunch of quotes for houses similar to the one you'd like. Make sure the year, location, etc is all similar (unless you know what house you want).

[gettinoutofjersey]

your insurance is all based on the ability of the agent. we just found out what a hard working agent can do. the savings were large. if you want DM me and i will give you contact info privately.

[kbuild]

Being a Wind Mitigation Inspector
it all depends on the Agent and the construction of the home.

Most homes built before 1994 will have more of a disadvantage to savings. Make sure by choosing a home with a "hip" style roof, hurricane straps or clips for uplift and rein-forced concrete preferably cell poured. And one of the most important aspects is hurricane protection " Miani Dade approved and small missile tested.

[SoFLGal]

I've had several clients buy out on the islands recently and none had issues with getting insurance. Most were quoted with Citizens.

Here are some things that insurance agents take into consideration-the age of the home, style of roof(hip roof is best), how close the home is to a natural body of water or fire hydrant, how the roof is tied on, if the home has hurricane shutters or impact resistant glass, if the home has a Miami-Dade rated garage door, if the home is frame or block. These are just a few of the criteria they use to give an insurance quote. There are more but these are some of the biggies.

Another thing that's important to look at when talking insurance is the www.MySafeFLoridaHome.com program. It's important to have a wind mitigation report done on the home. This usually costs around $150 and some home inspectors include it in the home inspection for free. I'll give you an example of how this can effect your insurance. I live in North Port (southern Sarasota county). My home was built in 2003, has hurricane shutters, 2127 under air, hip roof, concrete block, close to a fire hydrant, no pool. Before the inspection my insurance was $1987 per year and after the inspection it was $727. Big difference.

Here's website that talks about insurance that may be of help: Compare Homeowner's Insurance Rates

Then you have flood insurance. 95% of North Port is not in a flood zone. There is a very specific area that is. The other areas of Sarasota and Charlotte county would be hit or miss. Generally west of US 41 and on the islands would be more likely to require flood insurance. The only way to determine the amount of the insurance is to have an elevation certificate. This would show the elevation of the home and what flood zone the home is in (if any). If the previous owner had home owners insurance and had a mortgage they probably have an elevation certificate. I always recommend getting flood insurance even if your home is not in a flood zone. If it's not, the price would be much cheaper for the insurance.

[tommy-105]

Older article, but interesting info on Citizens:

Is Citizens Insurance ready for the big one? - Insurance - MiamiHerald.com (http://www.miamiherald.com/2009/09/20/1242465/is-citizens-insurance-ready-for.html - broken link)

Discourse.net: Citizens Insurance May Be Bad, But Consider the Alternatives

[RhysNJ]

Another thread pointed to this recent Herald-Tribune article, a must-read for anyone in your situation.

SPECIAL REPORT: Weak insurers put Floridians at risk

Armed with this information, you should talk to agents in your areas of interest, knowing which carriers to avoid.

They can also run a Zone Determination report to find out whether or specific properties are in a Special Flood Hazard Area, where coverage would be required by a lender. All properties are in one flood zone or another, but only certain ones make it mandatory to get a loan.

Rhys

[tommy-105]

Another related article from yesterday's paper.

Florida lawmakers eye more control of property insurers

March 24, 2010 - TALLAHASSEE - Gov. Charlie Crist and state Cabinet members called Tuesday for increased scrutiny to determine if Florida property insurers are using internal financial deals to hide profits.

...The debate over management companies came as McCarty updated Crist and Cabinet members on the state's frail property insurance market with hurricane season a little more than two months away.McCarty on Tuesday said more insurers will fail, but he did not cast that as a concern. "Even when we have a strong economy, we have insurance failures," he told Cabinet members.
The Herald-Tribune investigation revealed that more than 2 million Florida families are covered by insurance companies that exhibit signs of financial weakness...

...The report also noted that six Florida home insurers in 2009 were declared insolvent or were forced to close or sell, despite the fact the state has not had a hurricane in four years. McCarty credited his office for "mitigating" the impact of those failures on a consumer-supported solvency fund, but took criticism for keeping consumers in the dark...


Florida lawmakers eye more control of property insurers | Section Home | HeraldTribune.com

[Big House]

It is a good idea to call and get quotes on insurance for your home, prior to submitting a contract. It is quick, easy, and you can feel assured that you have adequate coverage, and what the cost will be once you go to closing. I did it. It is really not a big deal. My home and flood insurance is less than $2K for each, and I am with All State. I am very pleased.

The state is working with insurers to make sure that the residents here are adquately insured, but it a good idea to resolve this all first, and it is easy to call a good agent as SoFLGal suggested. Also, if you are financing a home, the lender is going to make sure that you properly insured at closing, and they are to be named as additionally insured as well. So you have another set of eyes looking to make sure the carrier is properly rated and funded. And, If you own a home, you know that.

[diddy02]

Thanks for all your help with my question. We shall hopefully be going to view a few homes next month. Fingers crossed I can persaude my husband that it will be worth it.