Citizens Property Insurance announced on Friday that Florida state insurance regulators have approved its request to cut the maximum policy coverage limit to $1 million from $2 million for residential properties in wind-eligible areas throughout the state. The change will become effective February, 1st for new policies and May, 1st for renewals.

The change applies to wind-only and multi-peril policies that include wind coverage. Properties with a replacement cost value of more than $1 million and condominium units with a combined building and contents replacement cost of more than $1 million will no longer be eligible for coverage. New applications for coverage under the old limit received by January, 18th will be honored for one policy term.

Continue Reading Citizens Property Insurance Cuts Residential Coverage Limit

Tags: buyers, Florida, homeowner insurance, hurricane preparedness, real estate

Since almost everyone is feeling the pinch under the current economic climate, here are a few tips for buyers of Florida real estate to save on their homeowner’s insurance premium costs.

By taking these few simple steps, you might just wind up saving yourself more premium dollars than you might think.

• Shop around and get a few quotes. On any given day, some insurers are aggressively pursuing new customers while others are not. By shopping around, you can sometimes find a much better deal on your premium costs.
• For older homes (pre-2006), get a Wind Mitigation Inspection report done. Depending upon what measures are in place in the home, you can typically lower your wind insurance costs substantially.

Continue Reading Some Tips for Keeping Homeowners Insurance Costs Down

Tags: buyers, Florida, homeowner insurance, real estate

The 2010 hurricane season is set to begin this week and it is important for Southwest Florida residents to pay attention and be prepared. With three years of relatively quiet storm seasons, it’s easy to become complacent. However, ignoring the possibility of a major storm coming our way can be a major mistake. All you have to do is remember two very important points:

• All it takes is one big storm to hit the area to cause major destruction.
• Not taking the necessary steps to be prepared hurts everyone in terms of the storms aftermath and rising insurance costs.

Continue Reading Another Hurricane Season Looms Large

Tags: Florida, homeowner insurance, hurricane preparedness

The Federal Emergency Management Agency (FEMA) is using advancements in digital mapping technology to redefine the country’s flood zones. As a result, many homeowners are being required to buy flood insurance for the first time, while others who have had coverage for years are being cleared to drop their flood policies altogether.

The changes are occurring as part of a multiyear plan by FEMA to digitize its Flood Insurance Rate Maps to make them more accurate. The process began in 2003 and FEMA is projecting that 65% of the land in the country (92% of the population) will be covered by the new high-tech maps by 2010. According to FEMA officials, the accuracy of the new mapping technology has vastly improved and allows for more precise information to be used in determining special flood-hazard areas.

Continue Reading FEMA Redefining Flood Hazard Zones

Tags: FEMA, homeowner insurance, mortgages, real estate

According to their survey on the most expensive states for homeowners insurance costs, Forbes magazine ranks Florida number six in the country. The survey is based on the National Association of Insurance Commissioners most recent study of insurance premiums, drawn on 2005 data due to lags in state reporting procedures.

Multiple factors are used in the analysis, not necessarily just the threat of a single disaster. Hurricanes, tornados, and floods make the headlines, but hail and wind cause more damage on average. Building costs are another important consideration. Insurance typically pays out at replacement cost (the amount it would take in labor and materials to replace/rebuild the property) and the rising costs of such items are eventually reflected in the costs an insurance company must pay for repairs. Accordingly, states where Mother Nature is usually unkind tend to have the highest average annual insurance costs.

Continue Reading Florida Ranks 6th in the Country for Homeowner Insurance Costs

Tags: Florida, homeowner insurance