The Florida insurance marketplace is an absolute mess, and it appears to be getting worse. Homebuyers and homeowners who are accustomed to shopping for the best rates with multiple carriers are in for a rude surprise. You may be lucky to get one quote; and you probably won’t like the price, the coverage, or recognize the company name. Insurance carriers report losing a combined $57 billion in 2021 and some carriers became insolvent. Rates are escalating 30-40% and coverage is decreasing. Obtaining homeowner’s insurance is simply not a guarantee in our current marketplace.
Insurance carriers are being very selective in what they will cover which makes it even more important to include a home inspection as part of your pre-purchase, due diligence. We understand most homes are being marketed as “As-Is”, but you should understand while the roof, electrical, plumbing, etc. may be in good operating condition, these components may not be insurable under the strict guidelines demanded by insurance carriers.
Currently, in addition to the standard Uniform Wind Mitigation and 4-Point Insurance report, many carriers are requiring Supplemental Inspection reports. These supplemental reports may require documentation of the wall cladding, soffits, roof pitch, and more. Some carriers are requesting foundation reports certified by a General Contractor or Engineer, which may be outside the scope of a home inspector’s license.
Next Steps For Homebuyers
Homebuyers today need to discuss their home purchase with an insurance agent upfront to determine what insurance reports the carrier may require. You may only have a few days to complete your due diligence so you need to know what you need quickly so you can select the right inspector who can provide any supplemental reports they may ask for.
In today’s home buying market, it’s not about what you may be willing to risk or live with; it’s about what the insurance carrier will accept.
Upon acceptance of your offer to purchase:
- Talk to your insurance agent about specific concerns a carrier may have with your home.
- Choose a home inspector who is also a licensed General Contractor so you can quickly deal with any specialized reports which may fall outside the scope of a home inspector license.
Remember, your home purchase may be dependent upon obtaining insurance coverage, everything else is secondary.
Call Property360 For Your Home Inspection
Property360 is one of the most qualified and experienced home inspection firms you will find in the metro Jacksonville and Orlando markets. As a licensed general contractor, we provide mold assessments, home inspections, stucco & EIFS inspections, and much more! We can provide any inspection you may need to close on your new home. Our sister company, 360PestControl, provides WDO/termite inspections and full-service pest and termite services. To request an inspections, contact us at (904) 606-1570 today!