Realtor® Attorney Joint Committee

REALTOR® ATTORNEY JOINT COMMITTEE 5 Florida Homeowners Insurance Roadblocks to Watch for in 2022

By: Margaret Galewski, Galezano Insurance LLC

If you’re noticing your homeowners’ insurance bills seem higher lately, you’re right. Florida residents are seeing record insurance rate hikes - some of the highest in the country. As people continually flock here to make the Sunshine State their home, they’re often shocked when they get the insurance quote for their new dwelling.

Unfortunately, Florida homeowners insurance rates will continue to rise, due to the heavy cost of previous hurricanes, fraudulent claims, and frivolous lawsuits. These conditions have caused rates to increase dramatically, leading to what many insurance experts are calling an insurance crisis in Florida today.

Because homeowners insurance premiums have increased at such a rapid rate in the past year, it’s crucial homeowners are aware of the pitfalls and trends that can cause additional hassle, as well as financial loss.

Even though rates aren’t going down any time soon, it’s important to minimize the damages.

HERE ARE 5 INSURANCE ROADBLOCKS TO WATCH FOR:

1 | Not having an independent agent on your side: Independent insurance agents work for you, not the insurance company. Because they’re independent, they shop multiple carriers to find the best coverage that fits your budget. Another bonus to hiring a licensed independent agent?

They regularly review your coverage to make sure you have the best insurance plan for your changing needs. 2 | Planning to buy a home close to the water

without preparing for the FEMA’s new flood

zone guidelines: People moving to Florida from

New York, New Jersey, Tennessee, and other states are often shocked when they see flood rate quotes for waterfront homes and homes in FEMA’s new designated flood zone areas.

Unfortunately, living near the water now involves painfully high insurance costs. Hiring a local and trusted independent agent is your best bet to make sure you’re informed and get the best rates possible, given the current circumstances. 3 | Living in or purchasing a home with an aging roof that’s over 10 years old: It depends on the carrier, but some insurance companies are canceling homeowners’ insurance due to an aging roof. If you’re looking to buy a home with a roof that’s 10 to 15 years of age or older, try negotiating during the home buying process to get the roof replaced. If you own a home and your roof is aging, get it replaced as soon as possible to avoid rate hikes or cancellation. 4 | Online quotes that sound too good to be true: As the saying goes, if it sounds too good to be true, it probably is. Online homeowners insurance quotes are high risk and often spell disaster. It’s easy to omit information or unintentionally answer a question wrong, resulting in a quote that doesn’t reflect your true situation. Low online insurance rates are not a good deal when they don’t end up covering you for what you think they will. Always talk to an expert independent agent in-person to prevent a cancellation or insurance claim rejection. 5 | Making changes to your home without permits: Often people DIY to save money, or hire an inexperienced contractor. Many aren’t aware that permits are legally required when updates are added to a home, even if the work is done by the homeowner. Permits ensure local laws and codes aren’t violated and that the work is done properly. If you file a claim due to a mistake you made on a DIY project, you’ll have to pay out of pocket for the loss, and you risk your homeowners coverage getting canceled.

Though the Florida homeowners insurance market is going through a lot of challenges right now, Florida is still one of the most sought-after states to live in, and for good reason. With endless sunshine, beautiful beaches, and plenty of things to do, there’s so much to celebrate when you’re living in Florida.

Join the Realtor® Attorney Joint Committee for a seminar discussing the implications of insurance availability in the lending process as well as how your customers can better prepare themselves for potential claim scenarios at RASM South on March 24 at 1:30 p.m. •

This article is meant for educational purposes only. It is not intended to serve as legal advice and should not be used as a substitute for consultation with an attorney.