Insurance Problems for Older Homes
Insurance premiums on older homes are skyrocketing and policies are becoming difficult to obtain. The available insurance market for homes built pre-1995 is disappearing by the day. Most insurance companies will no longer insure homes over 30 years of age in South Florida. Many carriers will only accept new business on homes less than 10 years old. The age of roofs, plumbing, and electrical systems are key underwriting criteria. Homebuyers, sellers, realtors, attorneys, and lenders need to know and consider the current insurance market. Premiums on a $400,000 homeowners policy have increased $1,500-$3,000 in the past year. In most cases, only one or two companies will offer a quote on a 1980’s vintage house. Homes with older roofs, shingle roofs, plumbing, or electrical issues are often uninsurable.
To deal with this challenge we suggest the following:
• Obtain insurance inspections such as wind mitigation and 4-point before executing a contract.
• Have inspections reviewed by a qualified insurance agent before or during negotiations.
• Secure an insurance opinion and premium range prior to going into contract.
• Arrange insurance 30 days prior to closing.
• Deal with a highly qualified agent and agency.
From 2004 to 2005 Florida had eight hurricanes and the home insurance market disappeared. 2020 has been challenging. Be informed and prepared. Please contact us with any comments or questions.
Burke Bogart & Brownell, Inc. is a 47-year young Independent Insurance Agency.
BB&B serves Real Estate and Legal Professionals in all areas of Real Estate transactions.
The agency provides educational information as a professional courtesy and consumer benefit.