Florida’s insurance companies offer many kinds of policies to residents besides common homeowner plans. These policies help Floridians manage risk and plan for potential catastrophes with the backstop of additional insurance. Here are just two of the many FL insurance types you can choose from.
Florida’s geography and nearness to water makes it prone to flooding. While your homeowner’s insurance covers a wide range of potential risks to your home and your belongings, you have to purchase flood insurance in order to collect on damage to your home caused by flooding. Many lenders require flood insurance if you have a mortgage on a house in a flood zone.
While it’s possible to purchase flood insurance on the private insurance market, the overwhelming majority of policies are currently written through a program of the Federal Emergency Management Agency. This National Flood Insurance Program is regulated entirely at the national governmental level. FL has the largest number of flood insurance policyholders of any state.
Who Is Eligible for Flood Insurance?
In order for your property to be eligible for flood insurance protection through the federal government, the town or city that you live in must join the NFIP and promise to abide by federal regulations regarding flood plain management and stewardship. Residents of qualifying communities are then able to purchase flood insurance, with a thirty-day waiting for the policy to take effect after signing up.
Due to recent federal legislation, flood insurance has become much more costly for the average FL insurance customer. Even though Floridians pay four times more in premiums than they get in return in claim payments, the cost of policies could soon go even higher. For that reason, the Commissioner of the Florida Insurance Regulation Office has begun to work alongside Florida insurance providers to encourage them to offer more private-market policies to homeowners at prices lower than the federal government.
If you’re purchasing a house in FL, you’re wise to insure it with Title Insurance. Title insurance makes sure that owners and the lenders that underwrite mortgages for home sales are protected against the possibility of an invalid or defective title on a piece of property. Title insurance can also guard against incurring liability if the existence of a hidden lien or other claim is discovered after you take possession of your property. Some title insurance policies can also cover personal property besides homes over similar disputes.
How Does Title Insurance Work?
Before your insurer gives you a title insurance policy to cover your home, their agent will verify that there are no defects in the documents that change hands at a home purchase closing that could affect your right to legally own, control, use, or resell your property. These defects might include:
- Liens on the property from contractors or other businesses
- Unpaid property taxes
- An easement
- Possible claims by heirs of the previous owners
These so-called Title Agents search public records thoroughly on your behalf, and give an assessment of the likelihood that someone could later challenge the validity of your ownership rights to your house and land.
What Else Can Title Agents Do?
Title agents can perform a handful of services to their customers, including preparing and obtaining title searches, examining existing titles for accuracy, issuing title insurance, writing closing documents for home purchases, presiding over the closings themselves, and even distributing funds to appropriate parties at closing.
Title insurance is different from most other kinds of FL insurance as it is purchased only once, and is in force for as long as you or your heirs keep the property.
Now that you know about these FL Homeowners specifics, you can get a quote and start saving money today.