Home insurance prices are rising quickly for an older Florida home. Why? The main claim of older homes are plumbing, water losses. I spoke with someone this week that had a $74,000 water damage claim based upon a broken pipe in their kitchen. How can an insurance company know that I have taken care of my house and not penalize you?
There are inspections that insurance companies use to determine the age of the house. In Florida, some Counties were not good at permits. But, these inspectors know how to determine remaining useful life.
A 4-point inspection
To prove updates, expect for roof (wind mitigation will show too), you will need a 4-point inspection.
This inspection is designed to show by permit dates when your roof, heating (A/C), plumbing, and electrical was replaced or updated. In the case of no permits, the inspector can sometimes estimate the age.
Usually if your home is over 30-years old, Florida home insurance companies will require a 4-point inspection. There are a few companies that will do their own inspections. All homes over 40-years will be required to have one by all companies that I know of presently.
You can fail the inspection. If you are repairing one of these systems, maybe you should put off the inspection. Read these next two stories.
It is a painless process typically. The inspector will need to run the A/C unit, so make sure it is operational. I had a guy that bought a rental home and was fixing the A/C unit. The inspector wrote on the 4-point inspection that the unit was inoperable, I could not place him until he got it fixed. So just be ready.
I had another prospect the other day get a 4- point inspection which gave her unfavorable inspection. The reason, empty breaker socket. She was denied and has to fix it before getting approval. Make sure everything is good when the inspector comes.
The inspection results will determine which companies will insure you here in Florida. If your A/C, roof, plumbing, and electrical have never been updated – you may get stuck with Citizens Property Insurance. Maintenance issues are not covered by insurance although some people seem to think so.
In summary, if your home is well-maintained and you can prove it through an inspection, you will have options for home insurance. Have everything repaired prior to having the inspection. Most Florida insurance companies will place limited water unless you have replaced the plumbing and can prove it. If you have any questions, please leave them in the comments below.