Home Inspection Tips & Insurance
You’ve signed a contract for your new Boca Raton home and it’s time for an inspection. Insurance companies continue to dictate many required inspections beyond the normal home inspection. You will hear terms like 4 point inspection and wind mitigation inspections as well as the termite inspection. What are all these inspections?
Buying a home over 30 years old requires a 4 point inspection which basically covers plumbing, electric, roof and A/C. The inspector fills out a form along with photos noting the age of the roof, A/C, plumbing and electric panels. Sounds like a typical ordinary home inspection but is a special form that is required for insurance and of course the inspectors charge additional monies for this form. Expect $125 to $150 for this form.
The wind mitigation form is required for insurance even if your condo association covers your exterior wind coverage. Sounds crazy, but it is still required when purchasing just interior insurance on a condo. Many times the association has a master wind mitigation done for the whole condo on file. It must be a current mitigation report which also requires numerous photos as well. Everyone will need a wind mitigation form for insurance no matter if you are buying a home or a condo.
Another misconception about the wind mitigation is you can only receive so many credits against your insurance premium. You could have a new Miami Dade code roof, impact windows and double strapped wrappings around your trusses. Sometimes if you have just one or two of the three you will max out on your credits. There is a maximum discount allowed. Your roof and strappings give you the most credit.
A quick example is once you receive your insurance quote ask what if any other credits could be received by doing updates to your home. They may recommend you put impact windows or shutters on your home. Great, how much will that save me? They tell you it will save you $400/year off your premium. Well the windows or shutters will cost me $10,000. Is it worth the cost of the new windows or shutters to save on your insurance? With shutters every opening must covered including door and garage doors.
I highly recommend once you sign a contract on a home or Boca Raton condo you contact three insurance companies with the address of the home and send in for an immediate quote. This will give you the worst case scenario with no credits. As soon as you get the wind mitigation report you can send it to the three insurance companies and they will see what credits you will receive and how much you will save.
Another really important question when replacing roofs, windows and doors is to verify they are Miami Dade approved and not just hurricane approved. The windows and doors will have a special sticker or etching that states Miami Dade approved. The same goes for a new roof, make sure it is Miami Dade approved. It will save you money when getting insurance. Every window/door will have to have that sticker or etching to receive the credit.