Hurricanes in Florida

6 Replies

I am looking to start investing around the Cape Coral or Fort Myers area in Florida. I am a little concerned because of the high risk of hurricanes in that area (i.g Hurricane Irma in 2017) . I am assuming most property owners have hurricane insurance. Anybody have any thoughts on that? Recommendations for insurance? Thanks

Yes, you’ll want/be required to have Wind Storm insurance. You have a choice in deductibles which of course affects your rates......2, 5 or 10% of value.

On some newer properties you can also get a 1% deductible or even a $500 deductible (usually in Central FL). Your best bet is to work with an independent agent that knows the area and has access to FL specific carriers. 

yes, you will have a hurricane rider to your policy. hurricanes are just part of living in FL. its like rolling dice.

@Melissa Galvez every market has its own set of risks. Your smart to evaluate them, but I wouldn't let hurricanes scare you away completely just use it as a data point. Storms that actually have an impact on home structures are far less common then the media makes you think. (knock on wood)

Based on your question I'm guessing you are from out of the area. If that is true I would personally be much more concerned with long distance land lording. Again not that it should stop you, but just that personally it would be a bigger variable to my underwriting. (You are probably aware but @David Greene wrote a fabulous book on that topic)

Hi Melissa,

If you end up buying in Florida along the coast also consider getting a flood rider, even if it is not in a flood zone or mandated by your lender. Because if a hurricane comes through and causes massive tidal surge, the flooding is usually not covered under the hurricane policy. Like in Hurricane Harvey, 80% of homes flooded did not have flood insurance, this is obviously a pretty major issue for these homeowners. Like another poster said, you have hurricanes here but at least you don't need to worry about pipes freezing, wildfires, tornado's, quakes, etc.