Insurance Question

[George]

We currently have a home under construction in WaterColor that should be completed early 2007. Once completed, we will need to put in place insurance coverage for wind, water, etc. to make sure that we are protected from potential storm damage. I would appreciate hearing from some of you as to which companies you are insuring your homes through and the types of coverages you have. Of course, I understand rates have increased dramatically, but we obviously have to have insurance and I am interested in some good advice.

Thank you in advance.

 

[Beach Runner]

There have been many threads on this subject, such as http://www.sowal.com/bb/showthread.php?t=4527&highlight=insurance . You can also do a search on the word "insurance" on this message board.

Good luck! You'll need it. When you find someone to insure you, it'll cost a boatload, the premiums will go up every year, and you might even have to find a new insurance company every year because you're not renewed (as has happened to us the past three years).

 

[beachmouse]

Also there's a lot of debate on the subject going on right now in Tallahassee as part of the current legislative session, and the insurance rules and options could significantly change in the next year, especially in the high-end second home/rental property market.

 

[TooFarTampa]

Also there's a lot of debate on the subject going on right now in Tallahassee as part of the current legislative session, and the insurance rules and options could significantly change in the next year, especially in the high-end second home/rental property market.

Exactly. I would wait and come back here for recs when the time comes. Any quote or info you get now likely will be outdated by early next year.

 

[DBOldford]

You will need hazard insurance, liability, separate policies for wind (hurricane) and flood (if you are in a flood zone). You may also wish to get coverage for lost rental revenue, if you plan to rent the home when you're not there. For example, we are insured for up to $60K per year in lost rental revenue and it only costs an additional $36 per month. As for liability, we insure our Grayton home under the $1M umbrella policy on our primary residence and the cost is negligent. Wind insurance is offered primarily through Citizens at present, because most of the companies went out of business in FL after the 2005 storm season. A few small companies still offer it, but two quotes that we received were considerably higher than Citizens. Our wind insurance premium went UP by $4,700 last year and there is a 10% deductible. Flood insurance, on the other hand, is quite reasonable and has a $500 deductible. When we had some storm surge in the bottom floor from Ivan, the insurance check was in hand for full claim, before we even received the charges for same on our bank card. The adjustors were out there in two days from when contacted. We certainly heard a lot of horror stories from others, but had no problems.

Our insurance company is Benny Waterfield Associates in Destin and our very knowledgeable agent is William West. Wm. West was out on disability for some time last year, but is back and we have been very satisfied with him. He even came to our closing and explained every detail with great accuracy.

Good luck and choose carefully. With the industry in a state of flux in FL, it is critical that one is not hopping around from carrier to carrier.

 

[Paula]

Hi Donna:

Who do you get your rental insurance from?

PS: Clean out your private mailbox because I tried to pm you earlier this evening and your box was full. My message was not deep or insightful, so no hurry!

 

[Smiling JOe]

Exactly. I would wait and come back here for recs when the time comes. Any quote or info you get now likely will be outdated by early next year.

If it is being built now, you better have coverage while you build. ;-)

 

[DBOldford]

Very good point, SJ. It's amazing how many people do not insure until occupancy. Insurance is required in CA from the time the framing of the house occurs. An expensive lesson was learned when Bob Hope's multi-million mansion in Malibu burned to the ground in a wildfire...no insurance. This may be a requirement in FL, too since you tend to get wildfires.

Paula, we have insurance through Benny Waterfield Associates in Destin and our agent is William West. And now I am going to clear out my PMs.

 

[yippie]

You will need hazard insurance, liability, separate policies for wind (hurricane) and flood (if you are in a flood zone). You may also wish to get coverage for lost rental revenue, if you plan to rent the home when you're not there. For example, we are insured for up to $60K per year in lost rental revenue and it only costs an additional $36 per month. As for liability, we insure our Grayton home under the $1M umbrella policy on our primary residence and the cost is negligent. Wind insurance is offered primarily through Citizens at present, because most of the companies went out of business in FL after the 2005 storm season. A few small companies still offer it, but two quotes that we received were considerably higher than Citizens. Our wind insurance premium went UP by $4,700 last year and there is a 10% deductible. Flood insurance, on the other hand, is quite reasonable and has a $500 deductible. When we had some storm surge in the bottom floor from Ivan, the insurance check was in hand for full claim, before we even received the charges for same on our bank card. The adjustors were out there in two days from when contacted. We certainly heard a lot of horror stories from others, but had no problems.

Our insurance company is Benny Waterfield Associates in Destin and our very knowledgeable agent is William West. Wm. West was out on disability for some time last year, but is back and we have been very satisfied with him. He even came to our closing and explained every detail with great accuracy.

Good luck and choose carefully. With the industry in a state of flux in FL, it is critical that one is not hopping around from carrier to carrier.

Let me clarify a few of the above remarks. "Most" insurance companies did NOT go out of business in Florida. They simply stopped writing policies in high risk coastal areas and choose to reduce their liability by non-renewing (canceling) many current policies at renewal time.

Second - Citizens is the insurance company of last resort. They HAVE to take you when no one else will. However, to purchase Citizens, it is required that you have been turned down or non-renewed by other insurance companies.

Third - Most insurance companies different deductibles for different things. For example, wind is usually 2%-10% of the INSURED VALUE OF YOUR HOME depending on what you choose. Other types of instances are anywhere from $500.00 and up, depending on what you elect.

Fourth - the above statement "Our insurance Company is Benny Waterfield Associates" is not true. The Agency is Benny Waterfield, the Agent is William West. Benny Waterfield is not an insurance company, but simply a broker.

Who is the COMPANY?

Chances are, if you don't have a primary residence that you can tag your investment or vacation home onto, insurance is going to be hard to find, and expensive.

 

[pk305]

George, Today we just completed our insurance (first time) for our new beach home in Seagrove(hazard, windstorm, flood, excess flood). I was absolutely mortified going into this.....however, there were no problems. We expect to get our CO Friday. We met with Tina at Coastal Insurance (Seagrove) about 3 weeks ago, so today just finalized it and we are good to go. Yes it's expensive, but honestly not as bad as we had anticipated based on all we've read and heard. So don't be disheartened. We fully understand there are some unknowns ahead with the insurance....we are preparing for the worst and expecting the best!! Good Luck with your house!