Florida Homeowners Insurance
Homeowners Insurance another task to home buying
There are some many details to consider when buying a home, location, price, condition, financing, timing, relocating. You can add another task to the home buying process which is homeowners insurance.
When it comes to homeowners insurance most buyers are concerned about cost, but there other factors that affect the cost and your ability to secure insurance.
Homeowners Credit Score
46 U.S. states use a homeowners credit score to evaluate their cost of insurance. There are 3 states in which its illegal to do so California, Maryland, and Massachuetts. The number of Florida homeowners insurance companies that are using the homeowners credit scores is growing.
Many companies are using the homeowners credit to give premium discounts. So if you have good credit, you will receive a discount. On the contrary if you have poor credit, plus have a history of claims, there may be insurance carrier that will not insure your property.
Florida Homeowners Insurance Companies that use Credit
Not all the companies use credit to determine pricing or discounts, but here is a list; Heritage Property and Casualty, Universal Property and Casualty, Ark Royal, Florida Family, Olympus, Modern USA, and American Traditions. With Heritage Property and Casualty, using credit scores is mandatory.
Property Condition a Factor
By far the largest factor in property insurance premiums is the age of the home, and geographical location. Brand new properties fetch the best pricing. They are built to the latest building codes. Everything is brand new there is less chances of pipe breaking and roof issues.
So for buyers looking at homes 30 years or older, the insurance company may require a 4 point inspection to determine the age of the roof, plumbing, air conditioning, and electric.
Navigating Certain Property Items
The following property related items that can cause a buyer not to get preferred rates, preferred insurance carriers, or signifcant reduction on the amount of insurance carriers the buyers can choose from. Here are the most common ones in Central Florida.
- Electric: Many homes built in 1950-1960’s still have Federal Pacific electric panels, along with a few Zinsco panel cause insurance companies concern. Homes built in the early 1970’s may have aluminum wiring.
- Plumbing: Many companies will not insure polybutylene plumbing.
- Roofs: Roofs with less than 5 years of life left or actively leaking roofsc can be problematic.
- Short Term Rental: There will be a smaller list of companies that insures short term rentals.
- Taking title: Taking title in LLC, Corporate name, Estate related entity, may cause issue depending on the specific circumstances.
Having good credit is one way to save on your insurance premiums, another way is to get a Wind Mitigation report. Increasing your deductible or eliminating coverages you do not need can save you money, or have an actively monitored Alarm system. Learn other tips for saving money.
Buyers Broker of Florida helps home buyers save money on their transactions and has the specialty of representing only the buyers best interest in the transaction. 407-539-1053.