STR in SW FL - Hurricane / Insurance Concerns

Real Estate Broker · Atlanta, GA · Member since 2015 · 65 posts · 25 votes

I want to buy an STR in southwest Florida. My wife is very concerned about the insurance costs and the hurricanes which drive them up. I'm trying to find a way to search only for properties that have maximal hurricane mitigation (elevated out of flood insurance requirements, impact windows or shutters, roof up to current code, etc.) to keep insurance costs down.

Is there any way to search for only properties with these mitigations?

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John Mocker

Insurance Agent · Norwalk, CT · Member since 2016 · 2k+ posts · 1k+ votes

Mike.

Here are a few things that relate to the question and some of the answers:

1. Costs and availability are issues in FL (Hurricanes are one issue but there was an issue with roof claims. The laws allowed insureds to sign over claims. Roofing companies would promise a new roof and put in a claim of damage. If the insurance company did not pay for a new roof, there were Law Firms waiting to sue them. This claim activity plus the normal storm ativity were too much form many Insurance companies. They either pulled out or refused to write new business. That drove up costs

2. The roofing issue caused many carriers to refuse to insure a house with a roof over 10 years old

3. Condo Associations are facing new requirements for capital accounts to make sure they have enough on hand to do the regular maintence. That, plus insurance premium increases are pushing up HOA fees

4. Flood zones B, C, & X normally do not require flood insurance by the Mortgage company. That does not mean that you should not get the coverage, just that it is not going to be required for closing.

5. If you do have to or chose to get flood insurance. Be sure to use an agent who will shop both FEMA's National Flood Ins. Program (NFIP) and the "Private Market" policies. There are dozens of Flood programs that are not part of FEMA and use their own rating systems. Often, they can be significantly less. Also, most that we quote with do not require an Elevation certificate.

hope this info helps

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
3y
Quote from @Mike McGee:

I want to buy an STR in southwest Florida. My wife is very concerned about the insurance costs and the hurricanes which drive them up. I'm trying to find a way to search only for properties that have maximal hurricane mitigation (elevated out of flood insurance requirements, impact windows or shutters, roof up to current code, etc.) to keep insurance costs down.
Is there any way to search for only properties with these mitigations?

Even so many insurance companies are pulling out of FL.
Cost are high and going higher from hurricanes.
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Luke CarlPro Member
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
3y
Newer homes will have the better rates. But they won’t be good. Best to do a couple hours research talking to insurance folks and then sit down with the wife.
Hurricanes are real and they happen every year. Insurance is expensive and going up.
I’m from the Midwest (no hurricanes) and I live in Florida (wife likes it). It’s just something you have to get used to.
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Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
3y
The gov has signed some legislation which is insurance company friendly so some new insurers have come in. Some others still have left. It is as expensive but has gotten a little better since June. You will want to be not be in a flood plane and as inland as you can, but that affects the desirability of the property as an STR. There are still places that make sense. DM me if you need my insurance contacts. Best of luck!
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JD MartinBusiness Member
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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
3y
Quote from @Mike McGee:

I want to buy an STR in southwest Florida. My wife is very concerned about the insurance costs and the hurricanes which drive them up. I'm trying to find a way to search only for properties that have maximal hurricane mitigation (elevated out of flood insurance requirements, impact windows or shutters, roof up to current code, etc.) to keep insurance costs down.
Is there any way to search for only properties with these mitigations?

I'm sure you can get a realtor to do a specialized search for you if you give him/her your criteria. But I wouldn't get too hung up on it, because you're just going to pay a lot of money for insurance and that's how it is. My house is far inland (near Orlando), with no claims, and my premium increased 14% and I consider that an awesome number, because I know others who saw 25-50% increases just this year alone without any damages in their area.
There's really no good answer to this question. If you buy here, especially where you're looking, you are going to pay dearly for insurance.
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Mike McGee
OP
Real Estate Broker · Atlanta, GA · Member since 2015 · 65 posts · 25 votes
3y
Quote from @Luke Carl:

Newer homes will have the better rates. But they won’t be good. Best to do a couple hours research talking to insurance folks and then sit down with the wife.
Hurricanes are real and they happen every year. Insurance is expensive and going up.
I’m from the Midwest (no hurricanes) and I live in Florida (wife likes it). It’s just something you have to get used to.

Funny, I'm from Florida and my wife is from the Midwest! I'm used to it, she's not!
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Mike McGee
OP
Real Estate Broker · Atlanta, GA · Member since 2015 · 65 posts · 25 votes
3y
Quote from @Andrew Steffens:

The gov has signed some legislation which is insurance company friendly so some new insurers have come in. Some others still have left. It is as expensive but has gotten a little better since June. You will want to be not be in a flood plane and as inland as you can, but that affects the desirability of the property as an STR. There are still places that make sense. DM me if you need my insurance contacts. Best of luck!

Thanks! Sent you a PM.
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Patricia Andriolo-Bull
Member since 2022 · 529 posts · 413 votes
3y
Age is the best thing to look at. Some insurance companies are starting to exclude houses that have all the things you mentioned but are older. Frontline (which I've had for 5 years) just booted me because my house is 20 years old with a 5 year old roof and hurricane windows and doors PLUS hurricane shades. Their new policy is to only insure houses 10 years or newer. I've heard this from others too and like others have said, so insurers are pulling out but others are coming in. I haven't found a renewal yet but I expect it to go from the $2k I was paying to approximately $15K (btw, this is my primary, not my rental - rental insurance is even worse because of the STR coverage).
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Kevin Bartlett
Realtor · Member since 2023 · 177 posts · 41 votes
3y
I'd start with a search on the .gov websites for the flood maps. That should help. Insurance is going to be a premium, my clients are getting increases regardless because of the storms. It's something to consider, but staying out of the flood zones will help.
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Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
3y
Quote from @Mike McGee:

I want to buy an STR in southwest Florida. My wife is very concerned about the insurance costs and the hurricanes which drive them up. I'm trying to find a way to search only for properties that have maximal hurricane mitigation (elevated out of flood insurance requirements, impact windows or shutters, roof up to current code, etc.) to keep insurance costs down.
Is there any way to search for only properties with these mitigations?

The Cape, no way!!, It is overpriced as is 90% of FL I live in FL I know the market very well from St Augustine- Miami, and Naples to- Tarpon Springs, its crazy high The Cape/ Ft Myers is saturated. I have a colleague there that owns about 50 75 mill in RE he told me do not touch it.
All the best
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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
3y
Quote from @Mike McGee:

I want to buy an STR in southwest Florida. My wife is very concerned about the insurance costs and the hurricanes which drive them up. I'm trying to find a way to search only for properties that have maximal hurricane mitigation (elevated out of flood insurance requirements, impact windows or shutters, roof up to current code, etc.) to keep insurance costs down.
Is there any way to search for only properties with these mitigations?

Have you thought about Coastal SC, GA or AL instead?
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Adam BartomeoBusiness Member
Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
3y
After Charlie came through the state updated the codes. I don't believe that they have made any major changes since then. If you buy a property 2006 or newer than they should meet all of the newest codes and thus the lowest insurance rate.
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Jessie Dillon
Investor · Hopedale, MA · Member since 2021 · 321 posts · 213 votes
3y
yes, a realtor lol
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Aiman Bennroua
Rental Property Investor · Fort Myers, FL · Member since 2019 · 15 posts · 5 votes
3y
I have rentals throughout fort myers and I seen that my premiums went up a bit but nothing too drastic I’m still cashflowing good on my long term rentals. You just have to shop around and get some quotes.
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Henry Lazerow
Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
3y
How much are you all paying for single family home insurance?
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Mike McGee
OP
Real Estate Broker · Atlanta, GA · Member since 2015 · 65 posts · 25 votes
3y
I'm not interested in Cape / Ft Myers, either.
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Mike McGee
OP
Real Estate Broker · Atlanta, GA · Member since 2015 · 65 posts · 25 votes
3y
I'd also like it to be a winter warm-weather get-away. Coastal SC, GA, AL and even the panhandle of FL are all too cold in the winter. JMHO, YMMV.
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Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
3y
Quote from @Mike McGee:
I'm not interested in Cape / Ft Myers, either.

You mentioned SW FL ,and your area says Cape Coral, ?
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Konstantin GinzburgPro Member
Member since 2021 · 376 posts · 242 votes
3y
@Mike McGee
We have a similar issue in Louisiana now with insurance. There are a few things you can do to try to lower the cost of insurance but overall, it is simply the cost of doing business in these markets and simply need to be factored into your property assessments. The main protection you can try for selecting a property is making sure your properties are not in flood zone regions. In our area, the ideal flood zoning is "flood zone X" but I don't know whether or not this might be called something different in Florida. This is the zoning that has the lowest risk of flooding and will have the lowest insurance rates as a result. Talking with local insurers in Florida may also give you better insights and ideas into how you can minimize that expense for yourself.
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Patricia Andriolo-Bull
Member since 2022 · 529 posts · 413 votes
3y
Quote from @Bob S.:

Quote from @Mike McGee:
I'm not interested in Cape / Ft Myers, either.

You mentioned SW FL ,and your area says Cape Coral, ?
I’m in Marco Island. The only selection in GP for this area is Cape Coral / Ft Myers but many other options like Bonita Springs, Naples, Marco, Sanibel etc.
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Mike McGee
OP
Real Estate Broker · Atlanta, GA · Member since 2015 · 65 posts · 25 votes
3y

I'm interested in Charlotte county. There was no forum for that, so I posted in the closest one I could find.
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Jeff TumbarelloPro Member
Real Estate Broker · Fort Myers, FL · Member since 2008 · 1k+ posts · 323 votes
3y
Quote from @Mike McGee:

I want to buy an STR in southwest Florida. My wife is very concerned about the insurance costs and the hurricanes which drive them up. I'm trying to find a way to search only for properties that have maximal hurricane mitigation (elevated out of flood insurance requirements, impact windows or shutters, roof up to current code, etc.) to keep insurance costs down.
Is there any way to search for only properties with these mitigations?

What type of STR? newer construction is better for the insurance cost.
0 Reply
Mike McGee
OP
Real Estate Broker · Atlanta, GA · Member since 2015 · 65 posts · 25 votes
3y

SF or duplex. Might consider townhouse/condo if HOAs were reasonable and had no STR restrictions. Gulf access canal front would be great. Something that already had a proven track record as an STR would be ideal.
0 Reply
Jeff TumbarelloPro Member
Real Estate Broker · Fort Myers, FL · Member since 2008 · 1k+ posts · 323 votes
3y
Quote from @Mike McGee:

SF or duplex. Might consider townhouse/condo if HOAs were reasonable and had no STR restrictions. Gulf access canal front would be great. Something that already had a proven track record as an STR would be ideal.

Very hard to find HOA that are not a PITA in relation to STR, lol. Try and stick in the Unincorporated parts of the area. Less Government Interference.
1 Reply
John Mocker
Insurance Agent · Norwalk, CT · Member since 2016 · 2k+ posts · 1k+ votes
3y
Mike.
Here are a few things that relate to the question and some of the answers:
1. Costs and availability are issues in FL (Hurricanes are one issue but there was an issue with roof claims. The laws allowed insureds to sign over claims. Roofing companies would promise a new roof and put in a claim of damage. If the insurance company did not pay for a new roof, there were Law Firms waiting to sue them. This claim activity plus the normal storm ativity were too much form many Insurance companies. They either pulled out or refused to write new business. That drove up costs
2. The roofing issue caused many carriers to refuse to insure a house with a roof over 10 years old
3. Condo Associations are facing new requirements for capital accounts to make sure they have enough on hand to do the regular maintence. That, plus insurance premium increases are pushing up HOA fees
4. Flood zones B, C, & X normally do not require flood insurance by the Mortgage company. That does not mean that you should not get the coverage, just that it is not going to be required for closing.
5. If you do have to or chose to get flood insurance. Be sure to use an agent who will shop both FEMA's National Flood Ins. Program (NFIP) and the "Private Market" policies. There are dozens of Flood programs that are not part of FEMA and use their own rating systems. Often, they can be significantly less. Also, most that we quote with do not require an Elevation certificate.
hope this info helps
2 Reply
Mike TerryPro Member
Investor · Fort Myers, FL · Member since 2015 · 293 posts · 278 votes
2y
Quote from @Mike McGee:

I'm interested in Charlotte county. There was no forum for that, so I posted in the closest one I could find.

Charlotte County has a high percentage of older homes 1960's ad 70's. There are pockets of newer builds. The county is less developed, a lot of properties are still on wells and septic. It is less desierable and more remote with less amenities than Lee County. Homes are generally cheaper, but these are the reasons why. Median home price 362k in Charlotte, 400k in Lee.
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