All Forum Posts by: Jared Townsend

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. 

@Frank C. You may be able to get a commercial liability policy with $1 mil or $2 mil limits that would eliminate the need for the umbrella on that property. If USAA still gives you trouble you could quit claim it to an LLC.

@Dimitri Paspalaris You should be able to get an umbrella policy without owning a primary residence. You would just need a renters insurance (HO4) policy in place. 

This looks pretty decent. I would suggest the following:

• Remove identity theft coverage. This should be covered on your primary residence policy and is redundant here.
• $100,000 liability coverage is low. I always encourage clients to get at least $300,000 so you can qualify for an umbrella policy if needed. $500,000 or $1 million would be even better. 
• Limited water damage coverage caps water damage to $10k - anything beyond that is on you. I always look for full water damage (coverage up to your dwelling limit) but sometimes it isn't cost efficient. 

I hope that helps!

@Tyler Weaver I have considered splitting it up but then there is a cost for that in addition to the cost of two mortgages instead of one. 

@Jerry Padilla That sounds like a solid solution. I'll send you a message. Thanks!

I am looking at making an offer on a property that is zoned for single family but has two SFH dwellings on it. I am concerned though that after stabilizing it the property may not appraise high enough due to a lack of comparable properties nearby. How have y'all handled this in the past? Does anyone have a recommendation for a lender that can handle this type of property? Its in FL by the way.

Thank you!

Hi @Cynthia B.,

There are two types of coverage for ground movement damage (sinkhole) in FL. The first is Catastrophic Ground Cover Collapse (CGCC). This is mandated by the state to be included on all policies. However, it only applies if the following triggers are met:

1) Visible hole or depression

2) Structural damage occurs

3) The movement is sudden 

4) The insured structure is condemned

If any of those are not met, then no coverage. 

Unless you have the sinkhole endorsement which it sounds like you are interested in. Unfortunately as you have found, few carriers offer this coverage any more due to fraudulent activity 10 years ago. A few carriers will offer it with an inspection that you pay for (you rarely pass) and ever fewer offer it without inspection. 

We are able to write sinkhole coverage with a few carriers including American Strategic (Progressive Home), Velocity, and others. Your best bet is to build a relationship with a quality independent agent that can shop the right carriers to get the coverage you are looking for. Best of luck to you!

@Cynthia B.

You're correct - every policy in FL has Catastrophic Ground Cover Collapse (CGCC) coverage as required by state regulations. This covers the home if all of the following triggers are met: visible hole, condemned by the authorities, complete loss. 

You are also correct that to qualify for the sinkhole endorsement you often need to provide a positive sinkhole inspection. However, failing the inspection doesn't mean that you have an active sinkhole under your house and must disclose that upon selling. It simply means that the risk in your area is too high to add that coverage. 

There are a few carriers that will still write the sinkhole endorsement without an inspection though. I would ask your local agent to request quotes from those carriers. 

I hope that helps! 

@David Hayes If you are renting the home for a 3 night minimum it opens up the possibility of insuring the property on a residential policy which tends to be substantially cheaper than a comparable commercial policy. There are carriers, especially in FL, that specialize in writing vacation rental properties, you just have to know where to look. 

There are many Florida carriers that provide coverage designed for vacation rental usage. It is generally better to use these than go to an E&S market like Lloyds of London. If you have any questions about insurance please message me!