AboutDavid Somerfleck Expertise I can answer just about every question about West Palm Beach, FL and it`s surrounding areas, having lived here for several years now. I`m intimately familiar with its business climate, weather, housing, employment issues, and most else.
Experience I have experience as a journalist, editor, and teacher.
Expert: David Somerfleck Date: 6/23/2008 Subject: Hurricane Insurance
Question Hello David,
I'm not sure if you know about insurance, but in case you do...
I'm moving to FL from Las Vegas and I would like to know more about hurricane insurance. I plan to buy a newer (last 5 years) condo. Is hurricane insurance typically included in the HOA fees? If not, is it extremely expensive? How can I find out what it would cost for 100K contents and a 300K unit for hurricane and flood insurance? Or if you have an idea, can you let me know? I've heard that in some cases insurance companies go bankrupt during a hurricane and the policy holders are SOL. Is this true? How do I find a company that will guarantee payment if there is a hurricane? Is that possible?
Thanks,
Stephen
Answer Stephen,
You raise quite a few interesting, and solid questions. I'll try to answer what I can; but ultimately, you're going to have to "put out the calls."
Hurricane insurance is a necessity in Florida, even if you live in a beautiful bunker, steel and concrete condo. It's not at all unusual for these buildings to be flooded after their windows are blow out and sewage/plumbing systems backed-up. Even if your building has a back-up generator, be prepared for the possibility that that system may not work or that it, too, may go out - sometimes for days. Stockpile enough food (if you're going to live there year-round) for several days, if you don't wish to have to travel across the state for a meal. All that being advised, let's answer your questions directly as best as possible:
I would not assume that hurricane insurance is included in HOA fees. Also, bear in mind hurricane insurance does NOT always cover flood insurance or theft. You want a package that covers it all; and yes, a good package is not cheap. WHen I lived in West Palm Beach, many homeowners could not afford insurance, often stating that it was like a second mortgage. Every hurricane season was a roll of the dice for them, that they simply didn't think about.
I'd call several insurance companies in the zip code that you're planning to move to to attempt to get straight answers, and then call several homeowners' associations to "talk shop." Different types of condo associations and real estate organizations are plentiful in Florida, and it would do you a world of good to Google a few and put out some calls.
It's true that some insurance companies went belly-up after a few hurricane seasons; but I think Jeb Bush passed legislation that allowed them to be more selective in what they covered and what they didn't. I no longer live in Florida, so I'm a little behind in what's passed or what hasn't. When my wife and I lived there, it's true that we read many news stories about homeowners who were simply left in the lurch, but we also read stories about insurers saying they wouldn't pay or couldn't.
My advice: Google Florida homeowners associations, Florida condo associations, Florida real estate organizations, insurers, and be as specific as possible in terms of entering in your desired geographic region or city. Send out e-mails and/or calls, and compare answers.
You're smart to ask now, rather than wait and see what happens, as so many do. Hurricanes in Florida are no laughing matter; as even small ones knock out power for days and cause massive amounts of damage and flooding. Weigh the pros with the cons and make your decisions based on logic, not gut reactions.
