Orlando Mortgage Blog

Hello Everyone,

The following information is very important with regards to your closings, especially FLOOD INSURANCE– PLEASE READ AND SHARE.

Flood Insurance

In the last quarter of 2009, many of the Central Florida Flood maps were revised by FEMA. Some properties fell into a Special Flood Hazard Area, some fell out. This has produced a lot of last minute scrambling to obtain Flood Insurance when required by the Lender. In addition, it can become a sore spot with your Buyer of Borrower if unexpected. And finally, discrepancies are occurring between Lenders Flood Determination results, and Insurance Agent’s Flood Determination results. The solution in this case is to have the Hazard Insurance agent forward conflicting Flood Determinations to a flood dispute unit, which manually pulls the current maps and makes a final determination. THIS CAUSES A DELAY.

Here’s our advice: Please have the Title Company, Lender, or Hazard Agent run a Flood Determination as soon as possible after an offer has been accepted by the buyer. If the Determination indicates the property is in a Flood Zone (A, AE, etc), an Elevation Certificate will most likely need to be ordered from a Surveyor.

Hazard Insurance

Within the past year, we have seen too many smaller start-up insurance carriers go out of business and get taken over by the State of Florida – the term is “Receivership”. The State basically takes on the responsibility of the affected company. Recent examples have been Magnolia Insurance, American Keystone (AKIC), and others. Homewise just lost their Demotech Rating… presenting the possibility that Lenders will no longer accept their Evidence of Insurance.

Here’s our advice: If the premium is significantly lower (BASED ON IDENTICAL COVERAGE LIMITS) as compared to other companies, view this as a red flag and investigate the company further by contacting the FL Insurance Dept at DFS: 877-693-5236.

Here’s wishing each of you a productive year… and please let us know how we can help meet your goals.

Rob Owen, Agent

2009-2010 Better Business Bureau Rating: A+

ROB OWEN INSURANCE, INC.
Property Insurance for Closings
2221 Lee Road Suite 12
Winter Park, FL 32789
Ph: 407-644-1615 Fax: 407-644-8503
Toll Free: 800-803-0866