Florida Insurance: What You Need to Know 💵 Homeowners, Flood, Auto, Renters, Umbrella

Florida Insurance: What You Need to Know 💵 Homeowners, Flood, Auto, Renters, Umbrella


homeowners insurance flood insurance car
insurance I get a lot of questions about Florida insurance so today I brought in
an expert hey everybody Melanie Atkinson here with
Smith and associates real estate in beautiful Tampa Bay Florida and because
I get so many questions about Florida insurance and I am NOT an expert on
Florida insurance I brought one in here with me today is Maria Rodriguez and she
is a very good friend of mine my own personal insurance agent and she works
with Rip Weachter insurance here in the Tampa Bay area and we’re just gonna go
through a whole bunch of questions and get some good information for you guys
okay Maria let’s start with homeowners insurance so homeowners insurance I when
people come down a lot of times I think they expect homeowners insurance to be
really expensive because they hear about hurricanes and things like that so let’s
talk a little bit about a normal person moving down buying a normal single
family home here in Florida maybe built in the 90s – brand-new okay the
differences depends where they’re coming from if they’re coming from Ohio or a
little town in Oklahoma and the difference will be even New Jersey the
difference will be dramatic but otherwise we’re compatible to other
states depends basically where they come from what drives the premiums here are
the ages of the home the location the zip code how close to waters are you not
because of the flooding but because of the wind velocity how is the wind going
to affect these homes in in case of a storm when driven rain the bean-counters
have it all figured out okay storms are definitely everyone’s concern yes so
let’s talk about storms hurricane deductibles and what that means because
a lot of people don’t even duck tables are different than in an insurance
policy you’ll have your AOP deductible which stands for all other perils and
then you have your hurricane deductibles some policies have wind deductibles so
if the damage is caused by a name storm when it hits land
it fluctuates over to the hurricane deductible usually it’s two percent some
agents bump it up to five percent to save money but then you’re looking at a
five percent hurricane deductible on your dwelling amount so your dwelling
amount so we’ll do the math on that really quick so say you’re dwelling
amount is insured for three hundred thousand dollars and you have a 2%
insurance deductible so if you need to use that you would have to pay $6,000
correct okay so then if someone bump that up to five percent you would be
talking about fifteen thousand dollars which a lot of people don’t have exactly
and that’s why a lot of times in storm situations you see people with tarps for
a year while they gather up that deductible money to replace that roof a
lot of companies are moving forward in allowing people to buy back a lower
deductible and we give clients that option whenever possible I’m seeing a
thousand dollar deductible twenty-five hundred dollar deductible and a lot of
people are taking advantage and that’s for insurer for hurricane hurricane okay
so that’s typical for the the other perils yes exactly
right if the savings is substantial we bump it up to twenty five hundred but if
it’s just under a hundred dollars a hundred dollars
you just stay at a thousand you know okay yeah so a typical house say it was
built in nineteen ninety seven which a lot of our suburban houses were built in
the 90s and twenty five hundred square feet with a pool in a screen off the top
of your head what would you expect that homeowners insurance to be what’s going
to drive that premium is how old is that roof if the roof was replaced recently
and if it has all the the mitigations of clips single wraps things like that the
secondary water resistance applied on it you could you could see about fifteen to
seventeen hundred dollars a year for that house okay that’s reasonable that’s
over exactly now if the roof is not replaced you’re looking twenty
700 maybe 2,900 depending because we have very few companies that will
entertain any homes with a roof older than between 15 to 20 they start having
problems after 20 years we’re very limited right so that’s a very good
point and whenever I work with clients and they come down we have a lot of
discussions about roofs and the age of roofs
a lot of sellers don’t want to replace the roof because there’s nothing wrong
with the roof but the age of the roof can be very restrictive when it comes to
finding and getting affordable insurance yes yes and a lot of times we will go to
closing we find them as many options as possible we go to closing and then once
they replace the roof we reshot the coverage okay even if it’s midterm okay
so so that’s a good possibility if you run into a situation where the house is
perfect and you like it and the seller won’t replace the roof but the price is
right and you buy the house you can get insurance and then replace the roof
yourself and then find different insurance without the deductions now you
touched on wind mitigation a little bit during that that answer so I wanted to
just go into that a little bit more because that’s a something that we do
here in Florida all the time so it’s normal for us but for people moving from
out of state they don’t really necessarily know what
a wind mitigation is so explain that when a roof is replaced you get a
special inspection it’s called the wind mitigation inspection and on that
inspection it gives the date the permits were pulled very important that permits
are pulled and it states what attached that roof to the house depending on what
attached the roof they get different credits there’s like four different
options did the client spend money on the secondary water resistance which is
what they apply it’s I’ve seen it rolled on when I’ve seen it almost like a
laminate that they put between put over the roof to protect it from water
penetrating that roof okay so even on a shingle roof yes on the
shingle a roof and that’s it’s a nice credit it was a nice credit and we we
could guess on the credits but I’ve seen anywhere if it’s
if no permits were pulled and it has toenails as the attachment I’ve seen a
fifty dollar credit toenails yes that’s one of the options now if it has
everything I’ve seen up to a fifteen hundred dollar credit okay so that’s
significant for so we could guess but it’s so difficult because we don’t until
the inspector gets in the attic takes the picture and it’s very specific they
have to measure and we have to document yes I as a realtor in whenever we’re
doing when mitigation inspections during the inspection process I would say
that’s one of the things that is interesting and frustrating to I had an
inspection done recently on a house that didn’t actually end up closing but they
had a new roof put in but the nails weren’t the long enough nails and so
they they weren’t going to get any of the credits which was to me was crazy
that somebody hadn’t caught that during the process in Florida we talked about
kind of that mid-level age of home so that 90s built home and there’s a lot of
them but in Florida we also have a lot of new construction and we have a lot of
older homes especially in the areas that are very very desirable for people so
the areas with a lot of walkability so South Tampa st. Pete Seminole Heights is
a lot of older homes and when I say older homes I mean 1920s 30s 40s built
completely different than what we deal with with new construction so let’s
start with new construction and then we’ll move into the older homes so with
new construction it’s a beautiful thing new construction oh it’s a beautiful
thing it’s like free insurance yes you know we we love quoting them all the
companies love them you could get a quote as low as five hundred six hundred
dollars for no construction right depending on the type of construction
they used what kind of attachments they used on the roof things like that so we
love new constraint you’re getting all of the credits because all of the the
construction are done up to no to current code most of the new builders
are providing hurricane some sort of hurricane shutters or impact windows
obviously you have new roofs so how long does that does that lasts how long as
the house can like new I start to see the premium
start to creep up after 10 years 10 years wow that’s a long time yeah when
you think about it the most of the risk goes back to the Builder true because
they have warranties so um the majority of the risks goes back to the builders
but that’s when I start to see it creep up they start asking for different
underwriting requirements things like that ten they don’t bug the clients too
much but that’s when I start to see a little shift and twenty years after
twenty years some companies want inspections they want four points and
want to make sure everything is up to date then the roof becomes an issue
right because there’s a lot a lot of claims with leaky roofs and then the
clients want to put in the claim because the roof leaked and caused damage but
it’s a 20 year olds roof right so that is not covered by insurance cards they
will check if there’s a hailstorm and you people we they can’t they call
themselves as storm chasers right and doing it this a lot yes and they knock
on the doors and tell them you don’t have to pay for your roof let let us
help you and well but the companies insurance companies they have engineers
that will take the shingles and determine along with NOAA reports was
there truly a storm that went by this property or not right I need that hail
damage right and there has to be a percentage of the damage on the roof it
just can’t be two shingles that fell off right their goal for these storm chasers
is for the clients to sign assignment of benefits so then they’re stuck because
they’re giving them all the power right so it’s it’s a problem a lot of times
the roof is not covered because it’s a 20 year old roof right okay so a roof
isn’t covered just because of its age no okay no you have to think of insurance
is something that happens sudden and accidental but not basic home not owner
maintenance and that actually is something that that people don’t don’t
realize a lot of times so new construction we love in the insurance
world now how about those older homes those really really cute bungalows that
everybody was aren’t they therefore they’re normal it comes with a
price tag especially if it’s an open foundation an
open foundation is considered higher risk because of the backdraft okay so
open foundation meaning a crawl space a crawl space with no nothing around it
okay and you see them in Seminole Heights and South Tampa the house does
have to breathe there’s certain criterias they have to have certain
venting but if it’s totally open if there’s a fire that starts and I’ve
spoken to two fire men about it it creates a backdraft and that it allows
the fire to get under the house and cause the fire to spread quicker and
those are wood frame houses typically with wood siding and so underneath it’s
all wood so fire is certainly a concern for in a lot of those areas have trees
with moss it’s just a fires delight bring the that’s you know it’s a higher
risk to insure these homes so you’re going to have a higher price tag with
that insurance okay say it’s a regular sized bungalow like a 1,400 square foot
bungalow in Seminole Heights you can afford it because the price tag is great
but then how much are you gonna be paying for insurance approximately let’s
say that if it is an open foundation like that and the roof hasn’t been
replaced I’ve seen as high as 2900 a year a year 3,200 a year and that’s you
know without claims history right because that will the insurance score
does come into play right right now I have a client that I just rewrote her
she had four claims she has a bungalow on that one house I’m the one house she
kept calling not realizing that every time she called they were putting in an
elderly lady and her insurance is 4,500 Wow that just get up there so yes but
usually it’ll run between 19 and 2300 depending on what updates have been made
to that house and the roof is a big right so electric updates plumbing
updates roof updates and a closed crawlspace yes so keep that in mind if
you’re shopping for older homes absolutely another thing that
we’ve started to run into is the plumbing poly buer themed poly butylene
pipes yes yes poly pipes that’s something if it comes up in an
inspection that’s when you call me poly pipes are something that was actually in
one of the suburbs that I work in a lot they did a lot of those in the early 90s
so I can always see them when I come into a house so it becomes an issue that
I tried to address even before negotiating anything but a lot of people
don’t recognize them necessarily so it is it is an issue that’s a lot on
homeowners insurance but we have a lot more to cover so let’s go to everyone’s
favorite subject of flood insurance you even knew what I was going to say before
I said it I would say questions that I get asked
this is probably the number one question that I get asked everyone assumes when
you move to Florida that you’re going to need flood insurance it’s not true
necessarily and I think people are surprised at how often it’s not needed
for instance I live in South Tampa I literally live in a peninsula surrounded
by water but I am not required to have flood insurance so the other question I
get is people always want to know what would the flood insurance be on this
house this house in this house of which I cannot answer and please explain to
everybody why I can’t answer that okay what insurance is mandated you know it’s
it’s regulated by FEMA and now we do have a lot of private markets coming
into that pool that they want to write flood insurance okay which is welcome
but not all lenders will accept it okay so that’s something to keep in mind the
back of your memory bank with everything else so real quick just before you
continue on so everyone understands the distinction if you buy a house cash you
don’t have to get flood insurance because it’s your house your house here
the lender is the one that’s requiring the flood insurance to protect their
investment yes you call me with a client I bring up the
property flood zone determination okay all of Florida is considered a flood
zone is it it’s and it’s divided between hazardous and preferred okay when it’s a
sort of third zone like this property it’s
a much less premium and it’s gates that you could purchase the max is 250
thousand for a hundred thousand and five hundred and sixty dollars for the year
yes and it covers you for what rising water your homeowners insurance does not
cover you flood insurance covers what rising water so from the ground
I think Hurricane Katrina yes so Hurricane Katrina most of the damage
that was done or a lot of the damage that was done was from the ground
correct yes so all of those people who had regular homeowners insurance and
didn’t necessarily think that they were in a flood zone were all of a sudden in
a flood zone and didn’t have coverage because their insurance their regular
insurance wouldn’t cover the damage very important to get flood insurance
regardless of where you live yes you know even hurricane Harvey yes Harvey
was another one a lot of people in Texas they were not in a hazardous flood zone
so they didn’t carry the coverage right so if you aren’t in a hazardous flood
zone then we need depending on the age of the house well actually now with FEMA
is changing all the flood maps throughout the country it’s not just us
right now Hillsborough County we’re in the appeal stage it was supposed to be
made permanent on in the summer but now they pushed it back a little bit to the
fall April 1st some changes are coming down the pipeline I saw that as of today
and that’s one thing that with insurance change is constant all right we get the
elevation certificate the elevation certificate is like the foot it’s like
the fingerprint of the house okay elevation certificate and that tells us
was when this house was built did they add venting to let water flow through
how high above base flood level right was this house built all those little
things and the venting they have to be one square inch per square foot of the
property there’s so many it’s just not like like agents will call me and say I
need a quote right I you can’t give them an accurate quote without it elevation
certificate without information there’s just
there’s just too many scenarios to guess so right and so it’s our challenge as
well as agents to provide it correct insurance information if a seller
doesn’t have an elevation certificate in a recent elevation certificate then that
becomes something that we have to get before we can even get a proper flood
insurance quote so flood insurance is definitely something that takes time to
properly quote correct and then the higher the house the lower the premium
right so the higher the elevation so now today with new construction you see
everybody building everything with the proper venting yes and even the AC units
and everything are up and the FEMA is giving grants for people that want to
elevate their houses how do you do that oh there’s well does it qualify there’s
a whole bunch of things but one thing that FEMA is saying is that they’re
gonna allow some grandfathering back into the picture just a good thing time
will tell yes I know in flood insurance is constantly changing it I know we’re
waiting for for those changes in the map another question I get is flood
insurance for a primary homeowner and then for an investment or second home is
there a cost difference there is a few years ago FEMA and imposed a surcharge
so if it’s a secondary home that someone has they impose a surcharge $250 okay
per year on the news and I think what people hear and they get scared about is
you know you hear these reports about someone’s flood insurance went up to
$10,000 a year why would that happen to somebody if they had a flood policy
because when you have a flood policy it goes up gradually okay every year there
there are limits imposed as to how much you could go up and then they let it
cancel for whatever reason and they have to start a new policy okay it starts
like if they never had it oh okay so that’s when they run into trouble and
we’re gonna see that one thing that FEMA is saying that if you live in a
preferred zone and you have policy and your zone changes from an X
to an A or an AE they’re gonna allow your flood policy to go up gradually
okay so that’s good so in one shot so and that’s actually pretty important
for South Tampa area because it is looking to change here in some of the
areas I don’t think I am but we’ll double check that it there’s a beautiful
program if you send me an email with an address I could look it up
most of the addresses are in there already okay and then give you a
beautiful report of what could what it could be they’re not firma at the
preliminary so you get a report showing you the current status of this flood
zone and what its going to be in are they going to change the face flood in
that area so that’s important for anybody moving here that wants to
double-check and make sure they won’t be in a flood zone in the next year or
whenever they actually put it all into place just to wrap up flood insurance at
minimum if you’re in a preferred zone currently flood insurance if you choose
to have it which I choose to have it I recommend it to everybody is what a year
the through FEMA I’m going to say it’s five hundred and sixty dollar dollars
it’s gonna change April 1st we haven’t we get new rates –great know that the
maximum coverage you to get with them is 250 thousand right and a hundred
thousand but I do have private markets that will allow us to go above those and
then if you want an excess policy to take you to the value of your home we go
to the excess market so we’ll talk about that for just a minute because I
actually had that conversation last week with a client so I don’t think a lot of
people realize that the flood insurance that you’re buying is only $250,000 so
if you happen to have a house that’s worth a lot of money or you have a lot
of belongings in that house you very well could go over $250,000 what does a
lender do and how do they feel about the fact that that might not cover what is
owed on the house because it’s the max that FEMA will allow they have to accept
oh they have to accept it there’s no other option okay so the lender wants
most lenders will require you to have your
with FEMA okay and that’s the maxi so so that’s risky for them it is but they
just want to close I just want to close any and it gives in the coverage enough
to close so right that they will not require them to get excess flood the
clients because they’re thinking this isn’t enough right
they’re the ones who inquire and they want and we always try to quote an
excess flood cool yeah I mean I would think for some of the older homes that
are on the water around here or in st. Pete that I have a very high value you
know say sno-isle or whatever those are right on the water and they might have
been built a long time ago so you would want to protect that for sure so before
we move on to car insurance Maria had one more tip that we wanted to make sure
that we got in here regarding new construction I suggest highly that they
still have the home inspected right I know it’s new construction but a lot of
times things don’t get done they don’t they’re not discovered so just because
it’s new construction don’t forfeit the inspection right get your inspections
done yes and I preach that in all my new home construction videos so it’s nice to
be backed up here by an insurance professional so another question I get
which is completely out of my realm of knowledge other than being a a consumer
of car insurance is car insurance questions and I think a lot of people
think of Florida as a very high car insurance premium state and it is so
Maria explain to us a little bit about car insurance and why it’s so expensive
here in Florida the number one reason is fraud we have a lot of fraud and we have
a very high uninsured motorist state people come in and they just drive they
don’t they can’t afford the insurance they drive anybody’s car they don’t have
insurance and then there’s a lot of fraud to get money so that’s the real
that answer a real answer Dade County’s number one in Hillsborough County the
last time I’ve looked into this was number two so number two mm-hmm
the one time it’s not really good to be able top of us we we compete between
Orlando and us okay so so Orlando’s up there to see we have a lot of
transplants and and Chu in Dade County the way they explained it to me was they
have you have a lot of people coming into the country that I’ve never driven
before right and they don’t they don’t get did they get a license they don’t
even get a lace and a lot of people don’t even have licenses and no
insurance so when you go to obtain your car insurance one of the questions is
uninsured motorist and I we preach it we it’s a necessity so it’s not required to
have it out okay so what’s required to have four
four twenty which means what 10,000 per person 20,000 per accident that’s not
enough no that doesn’t seem in America yeah we don’t write it in my office some
people could maybe I don’t know I don’t even know where people get that I don’t
know so that we don’t write it when somebody comes to us that has had this
coverage before their surcharge it’s almost like not having insurance because
you just had the bare minimum okay what a person should have is an insured
motorist you should have your your limits you shouldn’t keep them at the
bare minimum if you have if you conduct business that you take clients in your
car you have to endorse that policy because the adjusters going to ask yes I
have that much to my dismay I’ve had to get that too so what would be a typical
coverage for you know someone with you know a median priced car you know fifty
thousand one hundred fifty or you could even do twenty-five thousand 50 thousand
what would you recommend I would do the 50,000 100,000 only the person everybody
like I tell my clients only you know what you’re protecting right and
unfortunately we’ve become a country where you know the American dream
becomes has become let me see who I could sue right you see the commercials
all the time on TV for the attorneys looking in their ambulance chasers I’m
not saying that if somebody is truly her and truly needs our
insurance that’s why we pay insurance but it’s become it’s terrible right and
another thing is carry the uninsured motorist because if if you get hit by
somebody that doesn’t have insurance your insurance could help you through
these you know the process oh yeah I don’t understand why anyone wouldn’t
have that that’s the cost right right yeah I mean the insurance costs and if
your children go away to college you need to call the agent say this vehicle
is garage in another state a lot of times the insurance will be less because
the car’s not there or if the child is not near the car and going to school
there’s credits for that there’s credits for good student mmm there’s credits for
driver’s ed okay and then once we hit 75 then we’re going to start paying more
seventy-five years old yep anymore okay so let’s talk about some tips for you
know low insurance obviously a good driving history it doesn’t matter what
kind of car you drive or anything like that yes obviously it because if they
have to replace that vehicle okay so the cost of the car comes into play how many
vehicles you have in the house obviously and the age of the drivers right won’t
come into play so teenage drivers equals very expensive car insurance
it does it does so but they have to keep you know their grades up and sign up for
that driver’s ed in school because the the credit that they get from that is
substantial so okay make sure that certificates gets to the insurance agent
so what would be a normal I guess yearly costs for insurance for just the average
person decent driving history 30 something years old with no no right no
tickets or accidents and no endorsements just a right I would say about 1200 a
year 1200 a year okay so about a hundred dollars a month mm-hmm okay so then we
go up and down depending on your driving history your your yes if you’re a speed
demon and you hit those red light cameras and don’t deal with that and
it uh it it will go up yeah I learned that the hard way let’s talk about just
two other insurance issues for people so umbrella insurance and renter’s
insurance do you think people some people are required to have renter’s
insurance depending on where you’re renting what’s the benefit of that and
then we’ll talk about umbrella coverage as well let’s start with the renter’s
insurance okay let’s say that you’re an investor and you’re buying a home for
somebody who rat you should require them to have renters insurance why that puts
a layer of protection between you and anything that tenants gonna do in the
house that you own in the lease there’s a waiver that says you know I’m waiving
the right to have this and that’s fine that’s it’s the the owner is making an
educated decision not to have that renter if they have a pet there is
renters insurance that will provide animal liability for that dog isn’t it a
protection I mean for both sides so as a renter wouldn’t you want insurance any
way to protect your things exactly because the owner will not be
responsible for your personal belongings and right the renter’s insurance will
provide loss of use okay let’s say that there’s a fire you’re displaced that
renters insurance will provide you the money for the cost to go find another
place security deposit or you know – you were displaced right and a renters
insurance approximately how much um for twenty I just quoted one this morning
for twenty thousand with a hundred thousand liability it was I want to say
it one hundred twenty seven dollars a year a year well that seems silly not to
get that one hundred twenty seven dollars to protect your stuff and
yourself exactly come on be more factly know exactly it and that’s why I
encourage my clients when they’re gonna rent their house it’s a nominal expense
for that person it’s just it’s just good business all right is it
so umbrella insurance again may be good business yes especially again for the
same reason so now umbrella they were the reason they call it umbrella you
think of an umbrella it covers you for liability under your home and your auto
okay so an umbrella policy is going to depending on all your toys
I call them toys if you have jet skis if you have boats if you have depending on
how many cars how many properties so they could fluctuate you could get an
umbrella for anywhere from 1 million to 5 million depending again what is it
you’re protecting but for like a million dollar umbrella with two cars a boat a
house I want to say it’s like 700 maybe a year a year it’s not and again it
takes you your coverage from the liability you’re holding on your auto
and your home up to a million right but again we could we could go to five
million and then if you need more we have other markets that we could go more
so those are for people that really want to protect their yes yes yes yes some
people they go they title their properties under LLC’s or trust or but
if somebody doesn’t want to do all of that that’s the route they go they get
an umbrella policy it cover themselves for everything up to again the amount
they figure I need this much so I hope that was helpful for everybody I know
that you might have even more questions after all that Maria is available to
answer questions via her email or to give you some new quotes if you’re
looking for some new insurance marina does recommend that you have your
insurance the whole package looked at once a year to make sure that you’re
paying the best rates that you possibly can and also please remember if you make
major changes to your property to contact your insurance person right away
and if you’re watching this video you might also have some common mortgage
questions I did a video a while back with my friend Patrick Storch with the
mortgage firm check that one out that’s it for today thank you so much for
joining us with love Melanie and

5 thoughts on “Florida Insurance: What You Need to Know 💵 Homeowners, Flood, Auto, Renters, Umbrella

  1. Contact Maria Rodriguez for your insurance needs within the state of Florida

    [email protected]

    Office: 813.831.8889

    Direct: 813.969.4466

    Rip Weachter Insurance Agency

    http://www.weachterinsurance.com/

  2. Great information, thanks for sharing.

  3. Your right, builders cut corners

  4. This is great! As soon as I’m ready to move to Florida I hope I can work with you to find our perfect home! 😁

  5. Insurance Fraud wow. Thanks illegals for causing us law abiding citizens to have to pay much more because you feel you are entitled to everything you have not worked for. I am here to say you are not entitled, you are not welcome, and you can go back to where you came from!

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