Property Insurance is a hot topic. If you have NOT done
the proper research, you might think you could not get Insurance on a Home in Florida.
Fortunately, there are many experts in the area to guide you through the sometimes
murky waters of the insurance industry.
Here is a new online tool that will allow consumers to compare homeowners' insurance rates
in all 67 counties. It's called www.ShopandCompareRates.com They have collected the approved homeowners' rates
for 25 insurance companies, including Citizens Property Insurance Corporation, based on
the following example: a $150,000 masonry home that is 5-years old, has a $500
non-hurricane deductible, a 2% hurricane deductible, has no claims, and no wind mitigation
discounts. Companies have several rating territories in each county, so those rates were
averaged into a single rate in each county for each company. They hope to expand this
feature to include more companies and more options in the future.
www.floir.com The Florida Office of Insurance Regulation ensures that insurance
companies licensed to do business in Florida are financially viable, operating within the
laws and regulations governing the insurance industry; and offering insurance policy
products at fair and adequate rates which do not unfairly discriminate against the buying
public.
www.citizensfla.com
Citizens Property Insurance Corp is a State-run insurer
As a last resort, home buyers who can't obtain insurance can turn to the state's Citizens
Property Insurance Corp. which is the state's largest homeowners property insurer. The
Florida Legislature created the corporation in 2002 by merging two underwriting agencies,
Florida Residential Property and Casualty Joint Underwriting Association and the Florida
Windstorm Underwriting Association, to provide insurance to people in high-risk areas who
can't find coverage in the private market. Citizens Property Insurance is working on a
system that would give policyholders the option to pay their premiums annually,
semi-annually or quarterly. By spreading the payment, Citizens hopes it will alleviate
financial pressures brought on by a high-risk state. But it may also mean that Citizens
will have to take on more risk.
Talk to insurance companies early to find the best deal and bind the coverage as
soon as possible.
When you have a good idea that you may be purchasing a property in a general area, it is
recommended to start shopping around and talking to insurance companies for quotes. It's
similar to what you would do for a mortgage.
A binder - is an insurance company's commitment to cover the home buyer. Just as a loan
lock is a lenders commitment to lock in a rater for a specific time. Without a binder,
real estate deals can be delayed when insurance companies shut off new coverage because of
hurricane or tropical storm reports.
Most insurance companies track weather patterns to determine when and where to temporarily
stop issuing policies. In hurricane season, before you are ready to go under contract get
that binder. Buyers must put money down toward the insurance costs to get a binder, but
the money will be refunded if the deal falls through.
June 15, 2007 The State of Florida approves
eight insurers, limits who they can cover and pricing.
State insurance regulators have given eight new property and casualty insurance companies
approval to write policies so far this year, already doubling the number of insurers that
entered the market as of May last year. The companies are limited in who they will cover
and at what price. Among the eight insurers approved by the Florida Office of Insurance
Regulation, four are standard insurers, three are nonstandard insurers -- also called
surplus line carriers -- and one is a reciprocal exchange, in which the members pay a
first-year fee that becomes the initial capital for the insurer.
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