Home Insurance in FL

[doublethinkmoney]

We just discovered that my in laws don't have house insurance on their home. (Aka soon to be /is our new home). We just moved into the house to help them with upkeep etc and it's a mutually beneficial arrangement.

The house is paid off and their only asset. Worth about $275k in a highly desirable neighborhood, 2300 sq ft. We plan to renovate/update/fix it up and drop $75k into it (it's 30 years old and there have been a lot of "cheap fixes" over the years).

What kind of insurance options should we definitely get and what should we avoid? We are prone to hurricanes but not in a flood area.

We want to be economical about our choice but also get covered if a category 5 blows threw and demolished the house or there is a fire etc. We will definitely choose a higher deductible.

Thanks!


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[Sibley]

Make sure that the policy covers hurricanes and related damage. In general, read the fine print on what is covered and at what amounts.

[orangepalm]

When we bought our home last year we were surprised to find out none of the big national insurers do business in our neck of the woods in FL (they don't want to deal with Hurricanes?), so we got quotes from local brokers and picked the cheapest option that covered everything we wanted and was from a decent company. You definitely want hurricane coverage, ours has its own separate deductible of 2% of the total 'dwelling' coverage. We're a couple miles from the coast, not in a flood zone either so we're not covering that. The one thing that gave us a huge discount was the way the roof is constructed and getting a wind mitigation report from an inspector (our yearly bill would've been $2000+ without it, but now is <$1000).

[LifeHappens]

We're in a coastal area and carry 3 types of insurance 1) regular homeowners 2) flood and 3) wind. The wind policy is what will cover things like your roof blowing away in a tropical storm. You MAY be able to skip flood insurance, but I would quote it before making that decision.

As you do renovations on the house, consider things like changing windows to hurricane glass or getting approved shutters, switching the roof to metal, and installing storm rated exterior doors. This not only lowers your insurance costs, it makes the house more valuable.

[doublethinkmoney]

We're in a coastal area and carry 3 types of insurance 1) regular homeowners 2) flood and 3) wind. The wind policy is what will cover things like your roof blowing away in a tropical storm. You MAY be able to skip flood insurance, but I would quote it before making that decision.

As you do renovations on the house, consider things like changing windows to hurricane glass or getting approved shutters, switching the roof to metal, and installing storm rated exterior doors. This not only lowers your insurance costs, it makes the house more valuable.

Good points. We will definitely look into how those extra costs in renovating will reduce our insurance yearly.

Wind was one of things I was forgetting (knew I was missing something).


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[inline five]

Flood is the expensive stuff in FL. If you aren't in a flood zone pray you don't get put in one.

[LifeHappens]

Flood is the expensive stuff in FL. If you aren't in a flood zone pray you don't get put in one.

Flood is widely variable based on location and the elevation your house. I'm in a coastal flood zone in a stilt house that is 14' above sea level. My flood insurance is less than $400 per year. Neighbors who have homes 2-4' above sea level pay $5,000-$7,000. That is not a typo.

It's an important part of due diligence when buying a home to know what flood zone you are in and your prospective property's elevation.

[Lulee]

I might have drunk too much of the koolaid while working at my last job (testing the website apps for a regional insurance company) but you might this first year do better working with an independent insurance agency who can help you adjust to the Florida insurance rules and regulations and get you competing quotes from a number of companies at one go.  My memory of testing Florida quotes/applications was that they had a number of rules quite different from even their neighboring hurricane prone states.

Additionally the agent can give you info on possible discounts that might influence your plans on upgrading the house.  As an example I’m totally making up, you might find that the cost to upgrade your planned fire alarm system to one that calls the fire department as well as sounds an alarm would cost an additional $250 at installation but save you $100 per year on your policy, a good ROI to make the change worth it.

They might also be able to recommend good contractors and suppliers as well as have other helpful insights that will make doing the upgrades smoother.  Maybe it’s just my small town lifestyle, but around here, knowing the right people and sometimes how to approach them can make things go a lot easier.  An old timer who has been based in the town for decades can help you as an outsider streamline things a lot at times.

[Rosy]

When Hurricane Charlie hit in Texas - we took a drive out to the beach the next day and found an entire row of buildings that used to be elevated on stilts completely leveled. Like a giant hand had just knocked them off. That was a sight I'll never forget.
The storm even changed sea level near the shore - lifted a ship up onto a newly created sandbar about 300 feet or so from shore.

FL homeowners insurance is tricky, it is quite unlike other states. Don't assume anything, know exactly what you are paying for and pick a top rated insurer. See what their "Best" rating is.
You would be smart to find an Independent Agent and ask them to explain your coverage options.