Weather related binding restrictions:
Binding restrictions (or a temporary halt on writing new business) happens when a storm crosses the binding restriction boundaries During this time we can only provide insurance quotes, new coverage cannot be bound Restrictions are generally lifted once disaster threat has passed, yet carriers can restore binding authority whenever they desire During hurricane season, encourage your buyers to secure insurance as soon as possible (if closing date changes, must leave policy effective date as is).
Getting to know your client:
To be prudent insurance professionals, we must know what is important to our clients (is it price, comprehensive coverage, low/high deductibles, solid carrier with high claim satisfaction?) Our agency wants our clients to understand their coverage and know their options . We don't like false advertising with low insurance rates that buyers may not qualify for due to prior claims, credit, pets, pool slides, trampolines, etc . Our information gathering process is so vital for our underwriting accuracy.
Determining Insurance Value:
Insurers must insure a dwelling at its rebuild/replacement cost value at time of application (this is not purchase price or loan amount) * We have rebuild/replacement cost software programs that calculate these values These evaluations are proprietary documents to our insurance contract and cannot be given to a lender or client © Statues prohibit lenders from requiring we insure to loan amount. Statues prohibit insurers from overcharging for excessive coverage.
Cat4 Home Product:
Reimburses hurricane deductible o Quote example: home insured for $400,000, 2% hurricane deductible is $8,000, premium for Cat4Home coverage is $291/year.
Flood Insurance options:
Everyone is in a flood zone and needs flood insurance Flood insurance is required only if a bank lends money for the purchase and if property is in a high-risk flood zone Our agency will determine the flood zone with each property quote NFIP-wait period of 30-day, waived if lender required Private Flood- wait periods only 15 days, waived if lender required, can be less costly than NFIP, more comprehensive coverage options available.
Wind Mitigation Inspections:
Every homeowner should have one and must be in buyers name Every condo unit owner should have one (obtain from condo assoc and can be in the associations name). Annual premium sayings can be hundreds/year Cost of inspection averages between $75-$100 Key inspection components (see Wind Mitigation Inspection report doc)
Retrofit roof- we let buyers know how much they can save for this upgrade.
4-Point Inspections/Hazards Present:
Any structure 30+ years is a safe idea If issues noted on 4-point that would affect insurance, let us know how we should address these areas with buyer Hazardous electrical panels, such as FPE, Sylvania, Challenger, Zinsco, can be replaced for approximately $2000 AC and Heat- in Florida all units must be in working condition Water Heater- age limit is < 15yrs if located inside the home- $600 avg new unit Polybutylene plumbing- unacceptable/whole home replacement about $4500 (1800sq ft home) Corroded plumbing- remove corrosion from pipes/connections (check for this under all sinks, behind toilets, washing machine) e Roof Age- (all must be in good condition w/3-5 yrs useful life remaining).
Shingle- 15-20 years » Flat/Rolled Membrane- 10 years » Tile/Metal- 30 years (some up to 40 yr but limited).
We encourage clients to contact us before reporting to carrier . We hold our clients hands through the process Liaisons for our clients and go to bat for them with carrier.
Kim Osman Insurance Group