Florida Homeowners 101Helping your clients make

the most informed decisions

The Canty Agency

IntroductionThe Florida home insurance marketplace can be confusing even to veteran insurance professionals.

The state is dominated by regional carriers operating in a highly regulated environment. Add to that the

weather realities—we live in a state with some of the most extreme wind exposure in the country.

This all adds up to a residential property insurance market that is continuously changing.

At Brightway, The Canty Agency, we can help you navigate this market to successful outcomes for your

clients.

We’ve produced this guide to help you, our real estate and lending partners, help your residential property

insurance clients in Florida.

Given our dynamic insurance market, few definitives can be offered. However, with a licensed independent

insurance professional at your side, you have a far greater likelihood of helping your clients make the right

choice for themselves and their families.

We can help your clients find the coverage they need at a price they like.

Property Insurance

Buyer’s TipsAlways partner with a Qualified

Insurance Advisor. An

experienced Licensed Agent

should be part of your home

purchase team. The agent should

represent a large number of

insurance carriers in order to give

you and your clients the broadest

choices in coverages, limits,

deductibles, discounts and

service.

About Coverages:

Flood Insurance is a separate

policy

Homeowner’s insurance

excludes coverage for damage

by flood (rising water from off

your premises). Your agent

should determine your flood

zone and know if flood

insurance will be required on

the proposed home. Even

if the home is not in a

“mandatory” zone, some level

of flood insurance protection is

always recommended in

Florida.

Replacement Cost versus

Market Value

Insurance and mortgage

providers require a home be

insured for 100% of

reconstruction, or replacement,

cost. This is different than

market or appraised value. For

example, in a depressed home

market, a home may sell for

$200,000 while it may cost

$220,000 to replace it.

Remember that the

replacement cost includes

tear-down of remaining

structure, debris removal fees

and complete replacement of

damaged home.

Foreclosure or short sale

Some carriers have special

requirements for such

purchases. Additional

inspections and underwriter

reviews may be required. Not

all carriers will accept a

foreclosure and/or a short sale.

Unoccupied homes

After your buyer moves into

their new home, presumably

their former home will be

unoccupied for a period of

time. There are certain things

they should know in order to

maintain coverage at the old

house.

About Inspections:

A “Four-Point Inspection”

may be required

Inspection of the Roof, Electric,

Plumbing and HVAC for homes

30+ years may be required.

This inspection differs from a

Full Inspection Report typical in

a purchase transaction.

However, it may be completed

by the same inspector, at the

same time.

A Wind Mitigation Inspection

can save money

Wind coverage can make up a

substantial portion of the home

insurance premium. For

homes built in 1990 or after

and that have had a roof

replacement in 2002 or after,

the owner should consider a

wind mitigation inspection.

Potential Insurance Issues

When working with your clients, here are some “red

flags” to be aware of and to make your insurance

agent aware of.

Roof

20 years or older–shingle

30 years or older–tile

Flat over living area

Flat 10 years or older

Wood shingles

Electrical

Aluminum wiring

Federal Pacific, Zinsco, Challenger panel boxes

Stab-Lok replacement breakers

Knob & tube wiring

Cloth sheath wiring

Plumbing

Polybutelyne pipe

Pex pipe (older)

Galvanized pipe

Cast iron pipe

Water heater 15+ years old

Heating / AC

Central system 20+ years old

Lack of central heat

Portable heaters

Window AC units

Furnace

Other

Open foundations (not enclosed with either block,

brick or lattice)

Wood shake siding

Asbestos siding

Stilts, pilings, piers

Pool slides & diving boards

Vicious dog breeds

The resulting “wind mit”

affidavit could save the

homeowner a lot of money on

their premium.

Roof material, age and

condition matter

Roof condition is a major

concern of Florida carriers.

Most carriers require a shingle

roof to be 15 years old or less;

several will accept 15 to 20

years old. A shingle roof over 20

is insurable, but will cost more

to insure. Tile roofs 30+ years

old can present challenges,

as can flat roofs over 10 years

old.

About Claims:

Full Disclosure of prior claims

at the property

Insurance carriers have access

to all reported property losses

or claims reported to insurance

companies. Undisclosed claims

on the property (whether they

were paid or not) that are

discovered late or even after

closing, can threaten coverage

and policy premium. Insist that

the seller disclose all property

claims on the home within the

past five years. The buyer

should report these to his/her

agent.

Buyer’s prior claims history

Some Homeowners insurance

companies rate based just on

the property’s claims history.

Others review the property’s

claim history, along with the

buyer’s. Regardless of where

the claim occurred or the type

of claim (property or liability),

full disclosure of property claim

history (5 years) is necessary.

This excludes automobile

claims.

About Carriers and Agents:

Carrier financial stability www.

demotech.com–Demotech, Inc.

is the financial rating company

approved by the Florida Office

of Insurance Regulations

www.floir.com–Office of

Insurance Regulation to search

carrier and agent performance.

About Steve Canty

Steve is a 38-year veteran of the

property and casualty insurance

industry. He spent 30 years as a

claim professional with 15 as a

claim executive with three national

carriers.

For 25 years he has been a

Certified Insurance Counselor (CIC),

a professional designation held by

less than 1% of agents nationwide.

He and his wife Rita started their

Brightway agency in 2007 and he

regularly speaks on a wide variety

of insurance topics, helping

individuals and families protect their

most important assets.

Steve Canty

Agency Owner

Brigtway Insurance

The Canty Agency

4765-09 Hodges Boulevard

Windsor Commons

Jacksonville, FL 32224

O: 904-646-1850

steve.canty@brightway.com

BrightwayInsuranceCantyAgency.com

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