Homeowners Insurance? (Tamiami, North Port: appliances, lender, house)

[cchamberland]

We are getting ready to close on a home at the end of this month. I did get some Homeowners insurance quotes last Sept. when we signed the contract which were in the reasonable range of 1500-2000.

However, now that I want to finalize the insurance, about 60% of the ones I talk to state that I have to have coverage in the amount of the 'replacement' costs which they are estimating to be about 150-200K more that what we are purchasing it for, increasing the premiums to 3-4K a year.

Mind you, this is a NEW build and I know what the builders cost was to build and it appraised for a replacement cost at close to what we purchased it for. The insurance co.'s say they won't insure us for less than what THEY want to claim is the replacement cost - what do you do if you think it's inflated? Is this a common practice here? Do I have any choice at all?

I can understand where perhaps a few years ago this may have been the case, but the market here has stabilized and I don't see how there is such a big gap between the current construction price (about 80.00 a sq. ft) and what they claim it to be (120+ a sq. ft.) Curious to see if anyone else has run into this issue?

[TamRE]

Homeowner insurance rates went up this year. I would check around with a few different agencies. We were discussing homeowner insurance in our office meeting this morning and we were told to advise homeowners not to go with an H08 plan. This probably won't apply to you, but it is a beware for others looking. This plan does not give you enough coverage on your home. Be sure to have your agent explain exactly what you are getting or not getting.
H08 – Old Homes
This type of policy is for owner-occupied older homes that have a replacement cost that exceeds the property’s fair market value.

[ArmyChief]

We found this gentleman the best for us:

Ray Witkowski Jr, AAIKey Agency - North Port
14942 Tamiami Tr Suite H
North Port, FL 34287
941-460-1285 Direct
941-429-9709 Ext 285 Phone

Good Luck

[sware2cod]

Make sure they are giving appropriate discounts for Wind Mitigation Inspection (get one asap if you dont have it).

You might be able to either
1) forego coverage for contents or
2) change contents coverage to 'actual cash value' (e.g. used value) instead of 'replacement cost' (e.g. brand new replacement for furniture, clothing, etc)


The problem with contents coverage...if your home is valued at $300k, they automatically insure your contents for 50%, I think. This would be $150k contents coverage which is usually overkill. But you are stuck with their standard calc.

I was able to forego contents coverage for flood and wind and switched contents to "actual cash value" for fire/regular ho policy.

Bottom line, I want to insure the home. I can buy new furniture, clothing, appliances if necessary and I'm willing to take this risk. The lender doesn't require contents coverage

[touretteboy65]

I'm in the same position, and it's turning whatever hair I have left gray. A wind mitigation report will be requested by the insurance company, regardless if one was obtained by the seller of the house being bought (they want it in the buyer's name). Myself? I'm getting quotes ranging anywhere from $2000 to $8100, all for the same coverage (most expensive is Citizens, via State Farm. Like a good neighbor, State Farm is there,,, to take your wallet). Shop, shop, and shop some more is my suggestion. It's brutal. Good luck.

[ArmyChief]

Tourette....what age and size home, what location and is it in a flood plane...that will inform us if it might be normal.

[sware2cod]

FYI the wind(hurricane) portion can get a high deductible...5%...10%. Get quotes with various wind deductibles to see how your annual premium changes.

[touretteboy65]

Originally Posted by ArmyChief

Tourette....what age and size home, what location and is it in a flood plane...that will inform us if it might be normal.

Home was built in 1970 and is just under 2100 sq ft. Home is located in the 34240 zip code, and as far as my research indicates, it is not in a flood zone. Then again, so were many homes in LA prior to Katrina. We'll probably purchase flood insurance, just for peace of mind.

[ArmyChief]

Originally Posted by touretteboy65

Home was built in 1970 and is just under 2100 sq ft. Home is located in the 34240 zip code, and as far as my research indicates, it is not in a flood zone. Then again, so were many homes in LA prior to Katrina. We'll probably purchase flood insurance, just for peace of mind.

I think the majority of your cost is due to the he of the home. Has the roof been replaced since 2001? If so, maybe..maybe someone was able to upgrade the roof. If so, get a wind mitigation to see.

[TamRE]

You can go to the Charlotte County permit search web site and type in the address of the property to see if any permits were pulled for items such as a roof or water heater. Just type in the street # and name, leave everything else blank. https://www2.charlottefl.com/citizenaccess/

As far as flood zone, you can go to the following site and type in the address. It will tell you if it is in a flood zone, give you a range of insurance rates and give you some insurance companies to contact. www.floodsmart.gov

You can also get detailed information on the Charlotte County GIS site: Charlotte County GIS Department

I usually look up all this information for my buyers, but it is public access.