Property Insurance in Sarasota (credit score, homes, job transfer)

[KonaBrze]

Our family lived in Sarasota for many years but needed to relocate to Tennessee for a job transfer. With the family grown my husband and I want to return but have heard that property insurance rates are now terribly expensive and that a rate increase has been requested. Has the cost become a financial burden for ordinary incomes? We would really appreciate your input on this.
Thank You.

[TamRE]

The rates vary by property. If you don't purchase a home in a flood zone, your rates will be less expensive.

Homeowner insurance – Insurance rates vary by age of home, size of home, conditions of home, and location of home. Insurance is more expensive if you live near any type of water – pond, lake, river, Gulf. Insurance is more expensive if home was not built to current hurricane standards. You can get discounts the home qualifies for by having a wind mitigation inspection done at the same time as your home inspection. Discounts are available for building features that reduce damage during high wind events. Overall discounts include things such as age of home, style of roof, how close the home is to a body of water, how close to a fire hydrant, how the roof is tied down, if the home has hurricane shutters or impact resistant windows, frame or block home, etc. If the home is in a flood zone, the insurance company will require a flood elevation certificate. That can be obtained by paying a survey company to prepare it. To check Flood Zones go to www.floodsmart.gov and type in the address of the property. It will give you the flood zone, rates, and insurance companies.

[Sunshine Rules]

There are a number of factors that influence insurance rates, even the breed of your pet and your credit scores. Homes built after the building code updates that went in effect in 2002 will have the best insurance rates. For instance, a 2012 built $200k home (without pool) could have an insurance rate of less than $750 a year. I have a 1990's built home that meets some of the wind mitigation criteria plus some other discounts for things such as a monitored alarm system, and my insurance is just above $950 a year.

Age of roof is another big factor these days. Once a shingle roof hits 15 years of age, most of the insurance companies no longer want to insure the home. You'll find yourself paying a much higher rate for insurance simply because the roof age hit the insurance companies' magic cut off number.

Homes built before the 1980's will have the more expensive insurance rates and most of those homes will fall into the Citizens insurance pool as private insurance companies don't want to insure older homes. On older homes, Citizens will demand a 4 point inspection report for insurance purposes. The inspection will cover roof, electrical, plumbing and AC/heating system. If issues are found, they will have to be corrected to obtain insurance. I know people who own older homes that pay anywhere from $1400 per year to over $2800 a year - that is not including flood insurance or coverage for wind zone locations.

If you're looking to buy an older home my best suggestion is to research the building permits on the home before making an offer as permits are becoming a sticky issue with insurance companies as well these days.