Insurance On SFR In SW Florida---It's Outrageous On Some Properties

13 Replies

Hello all: I just got my insurance premium bill for a SFR I own in Cape Coral. The house is a 3/2/2 built 1980. It has about 1600 SF, is CBS, has a newer roof, and a pool. Because it is held in a S corp the liability insurance is a different policy. Problem: almost 3K a year in property insurance. The property is worth about 155K. As an example, I have a different property build in 2006 with about the same value and the insurance is under $1300. Any suggestions on who to try for a different insurance quote? 3K a year is really biting into my ROI.

John Thedford, Real Estate Agent in FL (#BK3098153)

we are in sw FL also. We have found Affinity insurance group has been the best. http://www.affinity-insurance.com give them a call and they will set you up with an insurance specialist. Once you get one assigned, you can just email him/her when you need a quote and you get one within a day or so. 

They have been quick to respond and have always beat the other companies on price.

@John Thedford my understanding is that newer homes are less expensive because the building codes changed in the early 2000's after hurricanes the the 90s and early 2000's. I'm in SE Florida and I have a 2008 CBS 3/2/2 rental that is about the same as what your cost is on your 2006.

You can ask your insurance agent if adding some items to your roof trusses may help your rate. I think having double tie downs on the roof trusses versus single or none can make a difference in your rate....and so the roof doesn't fly off in a hurricane.

Hi John

Mine was built in 2006 and 700 a year plus flood insurance. I am with tower hill insurance. Can anyone advise me on who too use for liability insurance as I don't have any yet. Thanks

@Eric Renney

thanks I just sent them an email. I know that as codes change the older properties are more expensive to insure. I have two built in the 80's that are VERY expensive to insure. I am considering listing those for sale and doing a 1031 to buy newer properties.

@Andy Pillinger

I will look up who I use for liability and let you know. It is pretty inexpensive. Also, you might want to give me a call. I found a FSBO yesterday in the Cape that looks decent. I am probably not going to buy it...some guy has it under contract and wants to assign it.

John Thedford, Real Estate Agent in FL (#BK3098153)

ok thanks John, Im out for the day but will ring you tomorrow about the lead you have. I am pretty sure i am going to invest in a new duplex as some point as the numbers work for me!. I have not self managed a property and i think a new building will be a nice easy way of getting am landlording feet wet!.

@Eric Renney

I got an email back stating they don't cover in Florida. I believe they are in Ohio. What did I miss?

John Thedford, Real Estate Agent in FL (#BK3098153)
Originally posted by @John Thedford :

@Eric Renney

I got an email back stating they don't cover in Florida. I believe they are in Ohio. What did I miss?

 Hello John. 

Here is my contacts name at affinity.

Gale Hunt 

Affinity Group Management

800-790-4872

I have 3 properties using them right now all in SW FL. Maybe a different affinity? Not sure. 

He should be able to help you. 

@Eric Renney

thanks I sent them an email. If they can't help me I am seriously considering listing it for sale in the MLS. I can probably get $1100-$1200 per month on a new similar sized rental, drop the insurance costs in more than half, and get rid of pool and lawn care. It appears that I would net about the same income after adjusting these. I won't get nearly as good as ROI though because I bought the pool home for 101K in 2012 and there is no way to replace it for that little unless a bargain falls in my lap. Doing a 1031 puts time constraints on me so more than likely I will have to pay market to replace it in a quick manner. Long term though...it will save a bundle on insurance and be more desirable to buyers.

John Thedford, Real Estate Agent in FL (#BK3098153)

Hi @Tim Norris,

Thank you for clarification. I will save your contact info. I am just getting into real estate investment business, and have a few questions about insurance) 

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