Property Insurance

Property insurance in Florida can be expensive. One way to limit this is look for properties built after the most recent set of building code updates, mandating that structures be able to withstand higher winds. Insurance companies charge less to insure properties that meet the latest code requirements. Homes and condos that are not located directly on or adjacent to the waterfront or in designated "flood zones," cost less to insure.

Do Foreign Nationals pay higher premiums?

They may pay slightly higher premiums, but not because  they are foreign national homeowners. Foreign nationals can usually occupy their home only part time, for as long as their visa allows them to stay in the USA. While absent from their home there is a higher risk that the home will suffer damages. For example: a broken water pipe, leaking for months, can cause a lot of damage. Furthermore, the risk of burglary is a lot higher compared to primary homes.

In order to offset at least some of the cost Foreign Nationals tend to rent their places out to friends, relatives or even strangers. Insurance companies consider this a higher risk which may increase the premium as well.    

Wind Mitigation Inspections are a valuable inspection service that may reduce your windstorm insurance. Insurance discounts are available for building features that reduce damage during high wind events.

The discounts are justified because stronger, more wind-resistive structures have lower windstorm losses, which mean reduced costs to insurance companies. Most existing structures have one or more wind resistive construction features and may qualify for some insurance discounts.

Hurricane Shutter or/and Impact Resistant Windows/Doors - two features that will most likely bring the premium for wind insurance down. Hurricane Charley (Port Charlotte, 08/2004) has proven that shutters are the most effective devices when it comes to wind protection. They are a piece of mind while you are in the midst of the six month lasting hurricane season.  

• Home Features and Characteristics — The age of the home, type of structure, wiring, roof, garage, etc., can affect the Insurance premium. Older homes can often cost more to insure, and those costs can differ depending on whether the home is brick, frame, stone or has synthetic siding.
• Location —If your home is close to a fire station - good! Is it exposed to extreme weather, such as hurricanes and tornadoes or is it in a neighborhood more prone to theft - bad!
• Protective Devices — Burglar alarm systems, smoke detectors, fire extinguishers, sprinkler systems and deadbolt locks can lower the Insurance premium.
• Personal Factors —Smokers may pay more for home insurance than nonsmokers. Certain pet owners (pitbulls etc.) may pay a higher premium as well. A good credit history also can lower the insurance premium. 

Home Insurance Coverage — What Is Covered?

Standard home insurance coverage policies provide the following types of coverage, up to the limits outlined in the policies:

• Dwelling — Pays for damage or destruction to your house and any unattached structures and buildings (fences, patio cover, sheds etc.).
• Personal Property — Covers the contents of your house, including furniture, clothing and appliances, if they are stolen, damaged, or destroyed. Items of high value (paintings, artwork, super expansive electronics need to be insured separately).
• Liability — Protects you against financial loss if you are sued and found legally responsible for someone else's injury or property damage.
• Medical Payments — Covers medical bills for person(s) injured on your property.
• Loss of Use — Pays for additional living expenses if your home is uninhabitable due to a covered loss. Most standard Florida Homeowners Insurance policies pay 10% to 20% of the amount of your Dwelling coverage. 

Homeowner insurance does not cover damage caused by flood, and federal disaster assistance is only offered when the president declares a major disaster (which only happens in 50% of flooding situations).

Surprisingly, only a certain percentage of all Florida homes are officially in a flood zone. When financing a home in a flood zone flood insurance is always required by the lender. However, a flood insurance might always be a good investment - even if you paid cash - because the whole state of Florida is actually a flood zone.

Does the policy cover Hurricane damage?