Realtors: Are you ready for the 'insurance' questions?

Its no mystery that Southwest Florida presents complex insurance challenges for homeowners, mainly revolving around price and availability. As a result, some buyers will request insurance quotes before they make an offer, especially if they are deciding between several properties. How prepared are you when your buyer asks about insurance? Here are some key rating factors that I look for when I start the quoting process:

• How old is the home? This verifies which building codes were in force when the home was built. Insurance companies are giving significant credits for ‘wind resistive' features so homes built 2002 or after typically receive the largest premium reductions as a result of the new code requirements.
• Was the home built with concrete block or frame construction? There are a surprising number of homes in Collier and Lee counties with a frame construction. These frame homes are still insurable but, as you can imagine, the rates tend to be higher.
• Will the home be used on a seasonal basis? Many of my clients only occupy their Collier and Lee homes on an average of three months per year. Insurance companies will require that the home is either in a gated/guarded community or that they have an active centrally monitored alarm system.
• Does the home have hurricane protection on every opening (ie. windows, doors and skylights)? This becomes very important for those homes located in the ‘wind pool' (or high risk wind zone typically within 1,000 feet from the coast). For homes in the wind pool without shutters, a separate wind only policy may have to be purchased from the state controlled Citizens program which tends to be more expensive.
• What is the flood zone? If the zone is considered ‘high risk', does a negative elevation exist? Many insurance companies won't write negatively elevated homes! That's why its so important to work with an independent agent who works with several insurance companies so they will always have options for you regardless of the risk!!

Keep in mind that these are several other factors that influence insurance rates, but I want you to start thinking about these items when your buyers ask you about insurance. Better yet, why not be prepared with an approximate quote? Many of the listing agents in my network contact me before they even have a buyer to request a comprehensive home, wind and flood proposal. This not only makes you look like a pro but it also provides your clients with the information they need to make a sound investment decision.

Until next time,

Ron