Should you still get insurance for your property in Florida
With all the insurance companies leaving the state of Florida, it leaves property owners without a lot of options for property insurance. This lack of supply in the property insurance market is leading to a large increase in price for property owners. This has to be taken into consideration when underwriting and purchasing properties. The question then arises: To Property Insurance in FL or not to Property Insurance? That is the question, we hope this blog provides you some value.
No Mortgage (FL):
If there is no mortgage on the house and you are sitting on a lot of cash, we’ve noticed people only having liability insurance (cheap) and calling themselves “Self Insured”. If something happens to their property they have cash set aside to cover it. If you want to refinance, start shopping for insurance. See below.
If you have a Mortgage (FL):
This is what the banks are going to say and make you do:
“As we all know, Florida is frequently hit by hurricanes and tropical storms, which can seriously harm homes and other buildings. If your home or possessions are damaged by a hurricane, property insurance may cover the cost of repairs or replacement. Due to both hurricanes and a lot of rain, many areas of Florida are vulnerable to flooding. Flood damage is oftentimes not covered by standard homeowner’s insurance plans. You might need to get a separate flood insurance policy through the National Flood Insurance Program (NFIP) or a private insurer to safeguard your property against flood-related losses. It can also get scorching hot in Florida. Losses resulting from fires, whether they are the result of accidents, natural catastrophes, or other causes, are also covered by property insurance. Having fire coverage is essential due to Florida’s warm environment and the possibility of wildfires in some locations. Florida’s climate and weather patterns can be unpredictable. Having insurance provides peace of mind knowing that you have financial protection in place to address unexpected damage or losses to your home.”
It is not required by Florida law for property owners to have insurance. Certain condominium societies or communities may as part of their rules.
If you or anyone you know is looking to sell their multifamily apartment complex, please do not hesitate to reach out to us. We are looking for our next Grow Inn Homes project!