When your buyers are considering the purchase of coastal property in Southwest Florida, there are several insurance factors they need to understand. For example, if they are securing a mortgage, they will need wind and flood coverage for the closing, in addition to the standard home policy. And even without a mortgage, these coverages are highly recommended for properties that have direct ocean access. Here are a few items to discuss with your buyers if they have insurance-related questions or concerns.
In many cases, wind coverage can be included on the home insurance policy. However, for a home with direct ocean access most insurance companies will require that every exterior opening (i.e., windows, entry doors, garage doors, and skylights) have Miami-Dade Code hurricane protection. This can be verified by purchasing a Wind Mitigation Inspection. For buyers interested in coverage from the top-rated High Net Worth companies (ie., AIG, ACE, Chubb, and PURE), newer Florida Building Code compliant roofs will also be required. An offer from these companies is often contingent upon writing a package account for each client (i.e., out-of -state residences, automobiles, jewelry, and personal umbrella).
Properties with direct ocean access are located in VE or AE flood zones. These high-risk zones require an Elevation Certificate before Primary FEMA Flood or Excess Flood quotes can be provided. The certificate provides the base flood elevation as determined by FEMA in addition to the elevations of the garage, machinery, and first-floor living level. Some homes in these areas have elevated living levels which adds to the complexity of the underwriting process. For all areas below the base flood elevation, it’s necessary to confirm whether or not the enclosure is properly vented (in AE zones) or has breakaway walls (in VE zones).
When your buyers have questions about insuring their coastal property, turn to Gulfshore Insurance for answers. We’ve been managing business and personal risk since 1970, and we want to be the 1st choice when you—or your buyers—need insurance advice.