Buying a Home in Florida? Don’t Let Homeowners Insurance Be an Afterthought

If you’re buying, selling, or already own a home in Florida, homeowners insurance probably isn’t the most exciting topic on your list.

But it may be one of the most important.

On this episode of Coffee with Ky, I sat down with Tara Suero of Sihle Insurance Company to talk about what Florida homeowners really need to know about insurance—and there were several things that even surprised me.

From four-point inspections and aging roofs to flood coverage, hurricane protection and previous insurance claims, there’s a lot more to insuring a Florida home than simply getting a quote.

So grab your coffee. Let’s break down some of the biggest takeaways from our conversation.

Florida Homeowners Insurance Is Different

One of the first things Tara and I talked about was something I experienced myself when we moved to Florida.

You don’t know what you don’t know.

Someone relocating from Ohio, New York, New Jersey or another part of the country may be familiar with homeowners insurance—but Florida introduces an entirely different set of considerations.

Hurricanes. Wind coverage. Flooding. Sinkholes. Roof requirements. Wind mitigation.

Tara’s advice was simple: ask questions—and work with an insurance professional willing to explain the answers.

You shouldn’t need to become an insurance expert. But you should understand what you’re buying and what your policy does and doesn’t cover.

The Four-Point Inspection Can Be Incredibly Important

If you’re buying an older Florida home, you’ve probably heard the term four-point inspection.

A four-point inspection focuses on four major components of the property:

• Roof
• HVAC system
• Plumbing, including the water heater
• Electrical system

Why does this matter?

Because the age, condition or type of these systems can affect which insurance carriers may be willing to insure the property.

During our conversation, Tara explained that certain plumbing materials, electrical panels, older roofs and other conditions can limit the carriers available to a homeowner.

And fewer carrier options can mean fewer choices when you’re shopping for coverage.

As a REALTOR®, this is one area where I’m a big believer in getting the information upfront. I’d much rather discover a potential issue during the inspection period than have it become a surprise later in the transaction.

A Home Improvement May Help Even If It Doesn’t Give You a Direct Discount

This was one of my favorite takeaways from Tara.

Homeowners often ask whether replacing a roof, updating electrical or making another improvement will automatically lower their insurance premium.

Not necessarily.

But an improvement may make your home acceptable to more insurance carriers.

And having more carriers willing to insure the property can give you more options when shopping for coverage.

That’s an important distinction, especially for homeowners preparing to sell.

Wind Mitigation Can Make a Difference

Another inspection Florida homeowners should understand is a wind mitigation inspection.

Certain hurricane-resistant features may qualify a property for insurance credits depending on the home and carrier.

Those features can include things such as roof-to-wall connections and qualifying impact-resistant windows, doors and other opening protections.

Tara shared that she has seen wind-mitigation credits result in significant premium savings in some situations.

If you’ve replaced your roof or made hurricane-protection improvements, it’s worth asking your insurance professional whether an updated wind mitigation inspection makes sense.

Buyers: Call Your Insurance Agent BEFORE You’re Ready to Close

This might have been the most important advice of the entire conversation.

I asked Tara when a buyer should start talking with an insurance agent.

Her answer?

When you’re getting serious about making an offer.

Not three days before closing.

Why?

Because insurance becomes part of the true cost of owning that particular home.

For buyers financing their purchase, the insurance premium can also affect the numbers associated with qualifying for the loan.

That’s why I want my buyers thinking beyond:

“Can I afford the purchase price?”

We need to look at:

“What will this particular home actually cost me to own?”

Insurance is part of that equation.

Previous Insurance Claims Can Matter, Too

Here’s another reason to investigate insurance early in your home search.

Tara explained that previous claims can affect insurance options—not only claims associated with the person applying for coverage, but potentially the claims history associated with the property itself.

That means a beautiful home that appears perfect during a showing could still have an insurance history worth understanding.

It doesn’t automatically mean you shouldn’t buy the house.

It means you need information.

And the earlier we have that information, the better decisions we can make.

And Then There’s Flood Insurance…

One of the biggest misconceptions we discussed was flood risk.

People sometimes assume:

“I’m not required to carry flood insurance, so I don’t need it.”

But those aren’t necessarily the same thing.

As Tara put it during our conversation, we live in Florida.

While some properties are located in higher-risk flood areas than others, flooding can occur outside those areas as well.

Tara also explained that some homeowners may have options for adding flood coverage through an endorsement, depending on the property, location and carrier.

The takeaway isn’t that every homeowner needs the exact same coverage.

It’s that flood coverage deserves a conversation rather than an assumption.

Hurricane Protection: Be Proactive

Hurricane season is simply part of living in Central Florida.

Tara recommends reviewing your coverage before a storm is headed our way and understanding your wind and hurricane protection.

Physical improvements may matter, too.

Impact-resistant windows and doors, hurricane shutters and other opening protections can help protect a home, and qualifying improvements may also be recognized through wind-mitigation credits.

We also discussed Florida’s My Safe Florida Home program as something homeowners may want to investigate when considering eligible hurricane-hardening improvements.

Programs, eligibility requirements and funding can change, so homeowners should always verify the current requirements directly with the program before making decisions.

What About Florida’s Insurance Market?

There was some encouraging news in our conversation, too.

Tara explained that Florida’s insurance market has been seeing additional carrier activity and that she’s even had clients pleasantly surprised by decreases at renewal.

That doesn’t mean everyone’s premium is going down.

Every home, homeowner, carrier and policy is different.

But additional competition and carrier options are certainly something worth watching.

And this is another advantage of working with an independent insurance agency that has access to multiple carriers rather than assuming your current policy is your only option.

Tara’s #1 Piece of Advice

At the end of every Coffee with Ky conversation, I ask my guest for the ONE thing they want people to remember.

Tara’s message was clear:

Don’t make insurance an afterthought.

When you’re assembling the professionals who will guide you through buying a home, your insurance professional should be part of that team early.

Ask questions.

Understand the coverage.

And find someone who’s willing to take the time to explain it.

I couldn’t agree more.

Thinking About Buying or Selling in Central Florida?

Whether you’re buying your first Florida home, relocating to The Villages, preparing to sell, downsizing, or simply trying to figure out your next move, there are a lot of pieces that go into making a smart real estate decision.

My job isn’t just to open doors.

It’s to make sure we’re asking the right questions, bringing in the right professionals and identifying potential issues as early as possible so you can make an informed decision.

If you’re considering buying or selling in The Villages, Lady Lake, Leesburg, Wildwood, or throughout Sumter, Lake and Marion Counties, let’s talk about what you’re trying to accomplish and put together a plan.

☕ One More Thought Before Your Coffee Gets Cold…

Insurance may not be the most exciting part of owning a home—but when you need it, it can become one of the most important.

 

WATCH THE EPISODE HERE:  https://youtu.be/D0SzotBM5U8

Ky Rauzi, REALTOR®
ERA Grizzard Real Estate
Host of Coffee with Ky — Real Conversations Over Coffee
Guiding you home every step of the way.