Pensacola Realty Masters Blog
Realty Masters is happy to present the following Pensacola area community and Pensacola real estate information!
Florida hurricane season is roughly May through November. That is over half the year! On top of that, hurricanes don't always occur during their season. For homeowners in Florida and in other coastal communities, hurricanes are a huge threat.
Does your insurance policy adequately cover hurricane damage? You'll have to consider several items to reach this conclusion.
In Florida, all insurance companies are required to offer hurricane insurance for deductibles of $500, 2%, 5%, and 10%. Cutting through the insurance technical talk; Say you get a policy that covers $200,000 worth of damage and your house. Your policy has a 2% deductible. If your house is completely destroyed, your insurance company will write you a check for up to the amount of your coverage (in this case $200,000) minus your deductible (in this case $4,000). If this were to happen, you would receive the difference between your coverage and your deductible ($196,000). If you were to experience damages to your home above your deductible, the insurance company would likely offer to pay the estimated or exact repair costs less your deductible.
As we can see, a 2% deductible is great! But what about 10%? If you had a 10% deductible in the above situation, that would be $20,000! If the damage to your home were $19,995, you would be responsible for those repairs. If the damage to your home does not exceed your deductible, you would be responsible to pay the repair costs out of pocket.
Sometimes we don’t realize how high our deductibles are and we’re not able to meet it to repair our homes. If you’re not sure what your deductible is, now is a great opportunity to check. If you’re not happy with what you find, it may be time to shop around for a new policy. In some cases, improving your policy could be a matter of speaking with your insurance agent. Some policies can reduce the deductible for a minimal increase in your monthly payments.
Another thing to be aware of is that your insurance company will only make a payout once during a hurricane season. Hurricane insurance will only be paid out for damages caused by a hurricane declared by the National Weather Service. Deductibles are applied to damages occurring from the beginning of a hurricane watch up to 72 hours aver a watch/warning has ended.
Please be aware that not all insurance policies offered include hurricane or wind damage coverage as there are several different types of insurance policies. Ask your insurance agent specifically about your hurricane and wind coverage. Some policies require a separate policy for hurricane and wind-related damages. Also, make sure you that you have the right type of policy for your situation. For example, homeowners who occupy their home as their primary residence need different policy coverage than those who rent their properties. If you do not have the correct type of coverage, the insurance company may be able to deny a valid claim.
Are you a homeowner looking to ensure you have the proper coverage or a new homeowner looking for first time coverage? It is best to reach out to an insurance professional to review your policy and inquire about what insurance carrier, policy, premiums, and deductibles are right for you.
Check out these other articles about day to day insurance issues:
If you need recommendations for local insurance agents, please reach out to us for referrals!
We've felt some impact from the aftermath of major Hurricane Michael, which hit the Panama City area in October 2018. Here are the ways we've been impacted.
Rental Market Remained Steady
On the positive side, we waived application fees for storm victims and received quite a few renters from Bay County. Along with tightened inventory, the storm helped to cool the winter slow down we normally have.
With the help of a few owners that did some upgrades and remodeling, we were able to raise our new move in rents 6.5% the last quarter of 2018! Statistically, homes leased in the last quarter of the year receive the lowest increase in rent and have the highest days on the market.
Roofers and Other Contractors
We have been struggling with contractor resources as many contractors went over to aid in hurricane relief.
Roofers, general contractors, and remediation companies in the area have been extremely busy. Coupled with extreme rain, there have been several delays with roofing projects in the Pensacola area. Please be patient if you need roofing estimates or roofing work. We expect this to demand to continue into the coming months and year.
Another impact of a major hurricane in our state is increased requirements at insurance renewal time! Insurance companies are being really tough right now.
We've heard of insurance companies sending non-renewals and cancellations or threatening a non-renewal for the following reasons:
- Roof older than 15 years
- Homes built before 1972
- Homes with trees over the roof line or leaning over the home
- Homes with cracks in the driveway
- For filing previous claims on any homeowner's insurance policy
With so many of these instances happening, we want you to be prepared and aware of the insurance issues we are seeing currently. Here are a few ways you can be prepared for this:
Limit Insurance Claims
It makes sense to file an insurance claim if something minor occurs and the total costs will be over your insurance deductible. I mean, isn't that what insurance is for? Instances like vandalism, water leaks, and other minor damages is why you pay for insurance each month.
We understand the premise, but with the recent hardships in the insurance field, we recommend being cautious when filing insurance claims. We have heard of cancellations from filing a claim or insurance companies raising the premium. It can also prevent you from easily switching insurance carriers, as a carrier can use previous insurance claims as a reason to deny a new policy with them.
Did you know that insurance claims follow you as the homeowner as well as the property?
We've seen instance where a claim on a rental property affected the owner on securing insurance on their primary residence. We even saw an instance where a new buyer was trying to purchase a home that had a history of a renter's insurance claim and the new buyer was having a hard time procuring a new insurance policy.
We recommend you pay for these small instances above the insurance policy and only utilize insurance when appropriate and necessary. Consider the long term consequences of filing an insurance claim when computing the expenses for the repair. We know- insurance makes us mad sometimes too.
Consider Replacing your Roof Instead of Repairing
It could be a waste to repair your roof. Often times, when a roofing issue is reported, a roofer will provide an estimate to repair and/or to replace. The roofer will give their opinion on the life of the roof and what the cause of the issue is.
It may seem easier to repair the roof now and worry about replacing later, but do keep in mind the following:
- Roof leak repairs are not always guaranteed and the leak could occur again or arise in another location.
- Repairing could be a waste of money as you will eventually need to replace the roof.
- If your roof is older than 15 years, you will definitely have to replace your roof soon, or in the coming years, to keep your property insured.
- If you try to sell the property without replacing the roof, you will NOT be able to sell the property if the roof is older than 15 years. FHA/ VA financing will deny the loan AND the new buyer will likely be unable to secure a new insurance policy.
We strongly suggest replacing your roof at this time and not spend funds to repair the roof. Of course, we will review each situation on an individual basis.
As many of the homes in our area had roof replacements after Hurricane Ivan in 2004, please keep in mind that these roofs are now 15 years old. Many of the homes that did not need a new roof at the time of Hurricane Ivan were built between 1999 and 2004. These roofs are 15-20 years old now! Reach out if you have any questions or concerns.
If we have any insurance professionals reading these, please feel free to reach out to us with additional information!
The Realty Masters of FL Team
#1 in Pensacola Property Management and Leasing!
Rental Office 4400 Bayou Blvd. #58B, Pensacola, FL 32503 (850) 473-3983 www.PensacolaRealtyMasters.com
Sales Office 4400 Bayou Blvd. #52B, Pensacola, FL 32503 (850) 453-9220 www.RealtyMastersofFlorida.com
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originally posted 01-12-2019
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