Orlando Mortgage Blog

Please share the following information with your office and others who may benefit.

Polybutylene Plumbing

Citizens Property & Casualty is now considering homes with poly plumbing on a case-to-case basis. If the Inspection Report indicates the plumbing is in good condition, it will most likely be accepted. While the premium rate is higher than most of the private insurance market, buyers can opt to replace the plumbing after closing, and obtain a lower premium policy from the preferred market. Any pro-rated Citizens premium will be refunded.

If the buyers plan to replace the poly plumbing within 30 days after closing, we have several preferred companies with lower premiums that may make the exception and allow the agent to bind coverage for the closing.

Stair-step Cracks on Block and Stucco

The private companies are rejecting these homes, primarily because of potential sinkhole claims. A few years ago there were several hundred Public Adjusters licensed in Florida. Today there are well over 2,000. When a PA convinces the homeowner to file a claim, the insurance company is legally obligated to determine if a sinkhole exists. The average cost to the insurance company for this preliminary geological test $8,000 to $10,000. In many if not most of these claims, it is determined that NO sinkhole activity exists. This has resulted in the insurance companies DECLINING ANY RISKS WITH EXTERIOR CRACKING. The Florida Senate is trying to determine how to resolve this issue and protect consumers against aggressive Public Adjusters who may benefit from these questionable claims.

In some cases, private insurers may consider issuing a Homeowner Policy which excludes Sinkhole Coverage. However, Lenders are starting to stipulate that coverage for loan approval.

Home Inspections

We recommend obtaining a Florida Wind Mitigation Inspection along with the standard inspection. This is usually a small cost when combined with the standard Home Inspection, and can result in significant discounts to the Hazard Insurance Policy. Target age of homes that tend to receive discounts: 1960 or newer.

We want to hear your questions | We want to hear about problems you’re having with insurance | We want to hopefully offer a solution!

Rob Owen, Agent

Rob Owen Insurance, Inc | Property Insurance for Closings

2221 Lee Road Ste 12 | Winter Park, FL 32789 | www.RobOwenInsurance.com
OFFICE: 407-644-1615 | FAX: 407-644-8503 | TOLL FREE: 1-800-803-0866