Rental Property Investor · Member since 2019 · 137 posts · 42 votes
Hi everyone,
I am an out of state investors and am interested in investing in Florida. But I heard the insurance is very expensive and difficult to get sometimes. There is a 4 point system, including no more than 20 years old roof and 20 years old HVAC. Or you could not get insurance coverage. I am wondering if every property needs to change their roof and HVAC every 20 years then?
Real Estate Agent · Tampa, FL · Member since 2015 · 129 posts · 44 votes
3y
Right now the property insurance situation in Florida is a mess. Florida has the highest homeowners insurance premiums in the country if you can get it. If you are looking at SFR's to invest in, make sure you have a good handle on the insurability of the property or what it would take to make it insurable. Condos are a bit easier as the structure itself is usually covered by the COA, but even then, make sure you take a look at the association's financials.
Yes, the 4 point is there to ensure the 4 main systems are functioning so the insurance company can issue the policy. (Hvac, roof, plumbing, electric)
There are a LOT of factors involved and it is not quite as clear cut as simply the age of the roof etc.
Other elements: impact/shutters/panels or nothing for storm protection will greatly influence your insurance. If under contract and the roof is too old to insure - you can get a temp policy with a mandatory new roof contract in place.
To answer your question: I have never had a seller had to replace a roof or replace the HVAC simply to close the sale. I did have one seller who agreed to repair a roof, pay for it and then was reimbursed by the buyer at closing.
But most of the time - that is not needed. Insurance also depends on your location as well. The age of the property is another part of the story. Frame or CBS is yet another.
Don't let it scare you from investing here though. I have worked with lots of investors who are doing very well with their properties! Ask away and of course - if you want to talk more - I'm here!
Yes, the 4 point is there to ensure the 4 main systems are functioning so the insurance company can issue the policy. (Hvac, roof, plumbing, electric)
There are a LOT of factors involved and it is not quite as clear cut as simply the age of the roof etc.
Other elements: impact/shutters/panels or nothing for storm protection will greatly influence your insurance. If under contract and the roof is too old to insure - you can get a temp policy with a mandatory new roof contract in place.
To answer your question: I have never had a seller had to replace a roof or replace the HVAC simply to close the sale. I did have one seller who agreed to repair a roof, pay for it and then was reimbursed by the buyer at closing.
But most of the time - that is not needed. Insurance also depends on your location as well. The age of the property is another part of the story. Frame or CBS is yet another.
Don't let it scare you from investing here though. I have worked with lots of investors who are doing very well with their properties! Ask away and of course - if you want to talk more - I'm here!
Right now the property insurance situation in Florida is a mess. Florida has the highest homeowners insurance premiums in the country if you can get it. If you are looking at SFR's to invest in, make sure you have a good handle on the insurability of the property or what it would take to make it insurable. Condos are a bit easier as the structure itself is usually covered by the COA, but even then, make sure you take a look at the association's financials.
Agreed. It is so expensive. Hopefully it will come down in the future.