Florida homeowners can buy high-risk insurance or fix problems

Property owners can take action to make their homes insurable, which lenders normally require in the terms of a mortgage.

An old knob or tube wiring system in the home creates a fire risk, Kin Insurance said. Electric shocks can happen because of the ungrounded wiring. Even some electrical panels are known to overheat and cause fires in the event of a circuit breaker tripping. If the home has a Zinsco, Sylvania, Stab-Loc, Federal Pacific or Challenger electrical panel, a replacement may be required to become eligible for homeowner’s insurance.

A home that depends on a window air or portable air conditioner sends the wrong message to an insurance company, Kin said. A wall unit may leak into the wall, creating water and mold damage. Leaving a window open to insert an AC unit into it opens up the home to a security risk.

When it gets cold, don’t rush to the store for a portable heater or a space heater. They create a much higher risk of fire that insurers don’t like to see.

Insurance companies favor central heating and air for good reasons.  

Is the home vacant? Or do you have a major renovation project in progress – or worse, needed but not in progress? Until renovations are complete insurance companies won’t favor offering a homeowner’s policy, Kin reported.

Vacant homes create a whole different host of problems. Anything that happens to the home may be missed for a long time, just making the damages and level of the loss that much greater. If a pipe bursts, the entire home could flood before it’s noticed. A fire might be caught quickly in an occupied home, but the entire home could go up in smoke before anyone notices in a vacant home.

An empty home is an inviting target for thieves. Think a lack of furniture and personal belongings will mean burglars won’t break in? Think again, as copper wiring thefts and major appliances are attractive to thieves, who will have plenty of time to remove everything with no one living there.

A new roof is great. But once a few patches are made, or some shingles need to be replaced, good luck finding an insurer in Florida, where hurricanes are too frequent visitors.

An asphalt shingle roof older than 15 years old, or a roof of clay tiles, slate, concrete tiles or metal that’s older than 40 years are red flags to insurers, Kin reported. If the roof is shed style or flat, it’s life is expected to last no more than 10 years.

An in-ground propane or fuel tank on your property creates too big a risk for an insurer. An inspector can’t check its condition. That’s a serious issue since a tank leaking fuel into groundwater creates a real liability issue, Kin reported.

These days of a COVID-19 pandemic sent many more people home to telework. Some homeowners already ran a home-based business. Business insurance covers its risks and a business property, but most homeowner’s insurance companies don’t offer this type of coverage for the home.

The homeowner’s policy may provide some coverage, such as for your laptop. But the limits won’t match a business’s needs. If the business creates more foot traffic, it creates more liability for the property, Kin said. In addition, you can run afoul of your city’s or county’s business license ordinances and regulations, not to mention HOA rules. Violating these puts even the limited coverage at risk of denial if a claim is made.

Homeowners do have some options even if they can’t resolve these high-risk situations. Your state should have an option of last resort offering homeowner’s insurance, Kin said.

In Florida, contact Citizens Property Insurance Corp. at 866-411-2742.

California offers the FAIR (Fair Access to Insurance Requirements) Plan Association, which can be reached at 213-487-0111.

Don’t expect the same levels of coverage that a typical private insurance company offers in its homeowner’s policies, Kin reported. But if hurricane winds start to blow and storm surges begin to flood, it beats being uninsured.