Phone: (239) 992-6771 | Email: Support@BERealtors.org | Bonita Beach Water Temp: Loading... • Ft Myers Beach Water Temp: Loading...
1. Insurance & the Real Estate Transaction
●Why insurance matters
●When to involve the insurance agent
●Quote -> Binder -> Policy
●Insurance and the buyer's monthly payment
●How insurance can delay or derail a closing
●Get insurance involved early
2. What Makes a Property Insurable?
●Age and condition
●Roof age, material and condition
●Electrical
●Plumbing
●HVAC
●Prior damage and claims
●Occupancy
●Pools, docks and seawalls
●Solar panels
●Detached structures
●Other unusual exposures
3. Insurance Inspections 101
●4-Point - Roof, electrical, plumbing & HVAC
●Wind Mitigation - Construction features that reduce wind risk
●Roof Certification - Condition and remaining useful life
●General Home Inspection - Different purpose from an insurance inspection
●Complete reports and clear photos matter
●Get reports to insurance early
4. Replacement Cost vs. Market Value
●Purchase price does not equal insurance value
●Market value does not equal reconstruction cost
●Land value isn't part of rebuilding the house
●Why Coverage A may be higher or lower than the sales price
●Construction costs matter
●Why two similar-looking homes may have different replacement costs
5. Homeowners Insurance 101 - What's an HO-3, HO-6, DP-3?
●HO-3 - Homeowner / primary or secondary residence
●HO-6 - Condo unit owner
●DP-3 - Dwelling / commonly used for rental properties
●Dwelling/building coverage
●Other structures
●Personal property
●Loss of use / rental income, as applicable
●Liability
●Deductibles
●Replacement Cost vs. Actual Cash Value
●What homeowners insurance generally doesn't cover
6. Wind & Hurricane
●Hurricane vs. other-peril deductibles
●Wind mitigation credits
●Roof construction
●Roof-to-wall attachment
●Opening protection
●Impact windows/shutters
●Secondary water resistance
●Why mitigation features can affect premium
7. Flood Insurance 101
●Flood zone does not equal flood risk
●Homeowners insurance generally excludes flood
●When a lender requires flood
●Why flood can still matter when the lender doesn't require it
●NFIP vs. private flood
●Elevation certificates
●Building and contents coverage
●Flood deductibles
●Get the flood quote early
8. Rentals & Investment Properties
●Long-term rentals ●Seasonal/second homes
●Short-term rentals
●Airbnb/VRBO
●Vacant properties
●Renovations
●Flips
●Builder's risk
●Occupancy matters - tell the insurance agent how the property will actually be used
9. Special Properties
●Older homes
●Luxury/high-value homes
●Manufactured/mobile homes
●New construction
●Waterfront homes
●Unique construction
●Commercial/mixed-use properties
10. Claims, Permits & Property History
●Prior claims
●Open claims
●Unrepaired damage
●Roof permits
●Unpermitted additions
●Renovations
●Electrical/plumbing updates
●Documentation of completed repairs
●The property's history can affect the insurance conversation
11. Insurance Red Flags
●Older/damaged roof
●Electrical concerns
●Plumbing concerns
●Prior/open claims
●Unrepaired damage
●Unpermitted additions
●Incorrect occupancy
●Vacancy
●Missing/incomplete inspection reports
●Unusual property exposures
●Last-minute changes
12. When Insurance Becomes a Problem
●Premium comes in higher than expected
●Premium affects monthly payment
●Property doesn't qualify with the first carrier
●Underwriting requires repairs
●Coverage options are limited
●Different carriers have different appetites
●Specialty/alternative markets may be available
●Don't assume the deal is dead - call the insurance agent
13. The Realtor's Insurance Checklist
●How will the property be occupied?
●Financing or cash?
●Has the buyer contacted an insurance agent?
●Are renovations planned?
●Are there short-term rental plans?
●Send property information and inspection reports early
●Provide lender and title information
●Communicate closing-date, occupancy, or property changes quickly
14. What Could Go Wrong?
●Real-life closing scenarios
●Spot the problem
●What could affect eligibility or price?
●Who needs to know?
●What can be done to keep the closing moving?
●Example: The roof is 19 years old...
●Example: The buyer wants to Airbnb it...
●Example: The 4-point just came back...
●Example: Closing is Friday and nobody called the insurance agent...
●Example: The lender just said flood insurance is required...
The Big Takeaway: Spot Issues Early. Set Better Expectations. Keep Closings Moving.
