Destin Florida Real Estate Advice- Why Are Insurance Rates Increasing?
These days Destin Florida single family home and condo buyers are receiving sticker shock when getting insurance quotes. Given all the potential perils that property faces, insurance is a must (not to mention the lender will likely require). Let's examine some of the factors causing the increased rates and some things the consumer can do to get the most for their insurance buying buck.
Some factors causing rates to rise
1) Inflation in general- These days EVERYTHING is more expensive. The Fish tacos I had on Tuesday were twelve bucks back in 2019. This week's trip butchered an entire twenty dollar bill.
2) The cost of recent natural disasters--As mentioned above, everything is more expensive including building material and labor. When a named storm does a billion bucks in damage, those funds must come from somewhere.
3) Insurance companies are leaving the state-- After absorbing the cost of a hurricanes, it should not be surprising that some companies are bowing out. Fewer companies in the marketplace results in higher premiums
4) More people In the disaster "strike zone"-- People (myself included) move to Florida for a host of reasons. More homes along the coast means more property in the potential strike zone. All it takes is one well placed storm...Remember the bill from Katrina, now imagine If a Category 5 hit Miami or Tampa?
Steps Consumers Can Take To Control Home Insurance Cost
1) Location Location Location-- Visit the beach, live on the land. Even a couple of miles onshore can make a major difference in storm surge potential.
2) Get flood insurance even if not in a mandated zone--I've had home buyers let out a sigh of relief when their home was not in a mandated zone. My advice was to purchase insurance anyway. Believe it or not a high percentage of homes that flood ARE NOT in a mandated coverage zone.
3)Understand your policies-- Which coverage kicks in for wind, what about rising water? What happens if the roof leaks AND the home floods? Ask these questions BEFORE the storm approaches.
4) Document EVERYTHING with video and pictures-- Stay safe, but once the danger passes film what you can. Even better? Get some video and pictures the day BEFORE the storm hits.
5) Shop for value, not just price-- Be wary of the company that is significantly cheaper than the herd. Check with the state insurance commission, and ask around. Remember, in the event of a catastrophic loss these are the folks that will be writing the check. Choose wisely...
Need a top Destin real estate agent to guide you through the process from start to finish? If so, call Doug Rogers (318) 613-1994 today! Prefer to start the search online? Go to Destin Florida homes for sale to explore local homes listed on the MLS.