Insurance policy premiums have increased for everyone, whether owning a house, townhome, condo or commercial property, you are paying more this year than last. Across the state, insurance for homes has rose, along with construction costs. The reconstruction costs and high amount of claims from natural disasters are ultimately costing the insurance companies a lot of money, and the companies are no longer insuring in our state of Florida. Some companies such as Farmers Insurance, Bankers Insurance and Lexington Insurance, a subsidiary of AIG, have voluntarily withdrawn and stopped writing policies in the state of FL.
I am seeing owners need, or want to sell due to the increased insurance costs. Historically an insurance premium amount was more so given on factors such as year built of the home, use of the home (primary, secondary or rental), and materials used to build the home. We could have inspections completed and prove that electrical, plumbing, roof and hvac (heating and air systems) are updated for great discounts, often called a ‘4 point inspection’ also a ‘wind mitigation inspection’ done for a roof discount. Being in Florida, wind mitigation clips are great to have during a hurricane to help hold your roof onto the structure of the home. This is now code for new builds but older homes do not have them. Today, if your home is built more than 20 years ago these inspections are not just used for discounts but required to gain insurance. Along with the inspections being required now, more repairs or updating is needed for coverage. This has ultimately put our state in an insurance nightmare. Pricing people out of homes, insurance escrow amounts increasing for those who have mortgages. Repairs to be completed, that are unexpected, and that many owners can’t afford. When a home is contracted for sale we must gain an insurance policy on the home to close on the sale. Often these repairs or updates are required for the buyer to gain insurance and close on the sale of the home so we negotiate the issues in a timely manner.
There is some relief for home owners through a program by the State of Florida to help with hurricane premiums. You apply, a home inspection is completed, and if any repairs/updating can be done to lower your hurricane premium, the state will pay 75% of the cost (reimbursement) up to $10,000 for these upgrades that protect your home. In result, your insurance premiums go down due to having these upgrades. News just released more funding has been made available for this program beginning July 1. That means many Floridian’s already benefited from this program! More info can be found here: https://www.myfloridacfo.com/