Home buyers and sellers beware of what you need to know to prepare for buying and selling real estate in the state of Florida. From insurance to termites it is covered in today’s video.
Home Buyers and Sellers Beware!
00:54 Insurance Companies are Leaving FL
1:14 Florida Insurance Coverage Concerns
1:56 Plumbing and Electrical Insurability Concerns
2:28 Roof Insurability Changes
3:54 Is Your Florida Home Insurable?
4:17 Be Prepared
4:21 Deed restrictions & HOA Concerns and Possible Changes
5:58 Possible Special Assessments and FEE Increases
6:51 Wood Destroying Organism
Home buyers and sellers beware! If you’re buying or selling a home in Florida, there are significant changes to insurance coverage that you need to be aware of.
For instance, did you know that if your water heater is older than 14 years the home is no longer insurable?
Let’s talk about this crazy real estate world. We thought it was crazy when you couldn’t get an offer accepted – now it’s crazy because you can’t get a home insured.
Insurance Companies are Leaving FL
For example, many insurance companies have stopped doing business in Florida. Some have gone bankrupt and others simply refuse to insure homes in the state of Florida.
The main issue is that insurance fraud rates are incredibly high in Florida. In fact, our state holds the number one spot for most fraudulent claims. Not only do we have some of the highest premiums in comparison to other states, but Floridians also struggle to insure properties with new mechanicals.
Florida Insurance Coverage Concerns
Per recent insurance policy updates, hot water heaters must now be less than 14 or 15 years old to qualify for coverage. If you’re selling your home, this is crucial information to be aware of – if your heater is 15 years old or older, replace it before listing the property. And if you’re buying a home, make sure to ask about the age of the water heater – an aged one will likely need to be replaced soon after purchase.
Plumbing and Electrical Insurability Concerns
Other items that you may wish to update to obtain Florida homeowners insurance include. Electrical: there is no longer any aluminum wiring or cotton wiring permitted in houses. Plumbing: You can no longer insure a home with poly pipes.
Outdated electrical panel boxes and plumbing make it difficult to find affordable coverage from Florida home insurance companies. I was told that most insurers want everything to be newer (updated within the last 20 years), but that seems unrealistic to me. Twenty years is not a long time for plumbing or electrical – both usually have lifespans of 40 to 50 years.
Roof Insurability Changes
In Florida, roofing is a significant problem because of our severe weather conditions. For instance, most insurance companies will not cover shingled roofs that are more than 15 years old. In addition, tiled roofs should be replaced every 25 years and metal roofs must be updated every 30 years.
This is ridiculous to me because if you replace your roof and pay for a shingle that is supposed to last 25 years, it sounds great. Who doesn’t want to save money by not replacing their roof? Now they’re just insuring it for 15 years rather than 25. So why are we spending extra money on a roof when we can only afford to give it 15 years of insurance coverage? This seems crazy to me.
Is Your Florida Home Insurable?
If you’re looking to buy or sell, any of these issues could become a problem. Sellers should call around and see if a new policy can be put on the property before they list it. There’s nothing worse than being under contract, getting excited about the sale and closing, only to be told a week before that insurance cannot be placed on the home. For buyers, you want to make sure of two things: 1) that you really love the house and 2) is it insurable?
If it’s not, then you may want to walk away from the deal.
If you’re thinking about selling your home or buying a home in Florida, home buyers and sellers beware of the changes in home insurance. It’s so important to have this information before you list your home or go under contract on a property.
Wood-destroying organisms are often overlooked, but they can cause a lot of damage to wood buildings. In Florida, most homes are made out of the concrete block so there’s not as much worry, however, there are still some wooden structures. Make sure to get a termite inspection before listing your home on the market to avoid any surprises later on.
As I said before, there’s a lot to think about when buying or selling a home. Insurance and the upkeep of the property are major concerns. If you want more help on this process and an understanding of what needs to be done in order to sell your home quickly, contact me. I would be happy to help you out. Thank you for watching!