Rising insurance costs have been the number one concern from homeowners and those considering investing in Florida.  While we have seen increases, the insurance market continues to improve, and the latest update should provide some optimism and relief for all.

After my call with insurance professional Charles Eberhart, here is a little more background on the current state of this market.

CURRENT FLORIDA INSURANCE MARKET

• New companies or spin offs of other carriers have entered the Florida market, making rates more competitive. Private flood companies are also entering the market. 
• Now is a good time to reconnect with your current insurance professional and ask them to review your portfolio and see if there are better options for you with new entrants and changes.
• During the first few years of ownership, it may be wise to go with the best policy you can get. You don’t know the house as well so it may make sense to go for higher coverage. 
• Don’t be afraid of the new companies as long as you are working with an agent that has experience and knows these people.  Your agent should know the questions to ask and appropriately vetting them.
• South Florida and Orlando have become geographically cursed, not due to hurricanes, but because of litigation. 
• If you have made any additions such as sq footage, or a pool etc, you’ll want to reach out to your insurance agent to get them to increase your policy to cover replacement value.

FLOOD ZONES & FLOOD INSURANCE

• Don’t be scared of flood zones.  If flood insurance is affordable, it is a really good product.  Get a flood price on everything to see if it might be worth it, no matter the zone.
•  Flood zones that are not X do not necessarily mean the property has a history of flooding.
•  If a property is in a flood zone, the zone doesn’t affect the pricing anymore.  The price is generally driven from elevation and proximity to water.  The closer to tidal water it is, the higher the propensity there is for rates to be more expensive.
• Insurance professionals have a pretty good sense of what they have seen with flooding and knowing elevations.
• New constructions do a revision for whole neighborhood and bring in fill dirt to convert to flood zone X.
• If the property has more than one flood zone, the one used for insurance is what the structure is built on.

DISCOUNTS

• Wind mitigation is the main discount most people will want to get.  This means that for home built prior to 2002, you would ask your inspector for a wind mitigation.
• A four-point inspection is and eligibility inspection, not a discount inspection.
• Burglar alarm can be a good discount but not huge.
• Insurance Score: Everyone has an insurance score which is what they look at as well. Having good credit and low claims history will provide bigger discounts here.  Most companies go back 3-5 years into your history.
• Impact windows: This is a great feature to have for credits, however it can only be used with impact windows if all the other openings such as garage door, skylights, etc are also impact rated.  The inspector may need to see the etchings on shutters, and without etchings you may not get the credit.

HURRICANE COVERAGE

• This is mostly covered for NE Florida in a hurricane deductable.  In other parts of the state this would be a separate policy, such as in south Florida.

SHORT TERM RENTALS

• STR popularity has driven the need for carriers to provide options. Investors should know the shortest time you’ll rent it for.  Most carriers are ok with 2 days if they take the short-term rental at all.  Sometimes companies offering STR coverage can be cheaper than others. 

For more information:

Charles W. Eberhart    

Eberhart Insurance

701 Market St, Suite 111

St Augustine, FL 32095

Office Phone 904-599-0237

Website InsGuidesFl.com