STR Insurance & Flood Insurance
How is the market for obtaining STR and flood insurance in the FL Panhandle now? Prices gone up? Policies being canceled?
I can't speak to STR insurance, but flood insurance (although there is a separate private market for it) is a federally-backed program, so the premiums are pretty standardized and carriers aren't generally going to cancel flood policies, because they don't pay out the claims.
I personally had a flood claim in 2020 from Tropical Storm Eta, and it was an interesting (and mostly positive) experience. The insurance adjuster said "Look, I'm not here to figure out how little [big national insurance company] is willing to pay, I'm here to figure out how much FEMA will reasonably pay".
@Lance Mundo Right now in Florida there are a large number of carriers that have a "moratorium" on new policies. This year there have been 17 carriers leave the state, and there is no gauge yet as to what is going to happen since IAN hit. Carriers are definitely non renewing, and there are some that I have heard and seen that have been canceled mid-term.
Having a good agent in Florida is extremely important now more than ever for those of us that are investing and or living in Florida. If you need a referral send me a message and I can get that for you.
Quote from @Aaron Porter:I need a referral man if you dont mind?
@Lance Mundo Right now in Florida there are a large number of carriers that have a "moratorium" on new policies. This year there have been 17 carriers leave the state, and there is no gauge yet as to what is going to happen since IAN hit. Carriers are definitely non renewing, and there are some that I have heard and seen that have been canceled mid-term.
Having a good agent in Florida is extremely important now more than ever for those of us that are investing and or living in Florida. If you need a referral send me a message and I can get that for you.
One of the first things to look into in Florida is the option of removing the flood zone designation off the property.
Lenders have been increasing their requirements for flood. My insurance friends are having to ladder different carriers together into a policy just to suffice the lender requirements. And meet compliance.
Well, if it can be proven to FEMA that the structure sits above the floodplain, then it qualifies to have the Flood Zone designation removed. That will result in removing the lender requirements too.
That evaluation can be done before you make an offer. And removals achieved before closing.
What is happening in Florida is actually affecting insurance and lending nationwide.
What most people don't see is the national flood insurance program actually never brings in enough premium to cover their losses, so even if you think the flood insurance is too expensive it likely isn't expensive enough. There is some talk about the NFIP not insuring any new builds in flood zones, no new policies for commercial buildings (meaning if you sell a commercial building the new owner would have to get private flood insurance), and even cancelling NFIP insurance for higher risk properties. Private flood insurance has doubled since 2017 and it will probably double again over the next few years. I would personally be very afraid of investing anywhere near a flood zone, but everyone has different risk tolerances.
As for standard dwelling policies, several national carriers have left the region altogether. I would definitely speak with an independent broker. They will likely have regional carriers that offer better coverage and will know how much your property actually needs.