Real Estate

BANNED: Six Home Insurance Settlement Killers Florida Homeowners Should Be Aware of

As it becomes more difficult to obtain affordable home insurance in Florida, it is extremely important that homeowners and prospective homeowners be fully informed before purchasing a new home or seeking new homeowners insurance.

If one of these SIX conditions exists on the home, “BUYER BEWARE” as insurance can be difficult and potentially impossible to bind.

1) fuse panel

A properly installed FUSE PANEL by itself is not usually a safety concern, however most insurance companies have prohibited this type of electrical service for all new written policies. There are a number of reasons, some of them are given below.

Major fuse safety issues come into play when a homeowner replaces a blown fuse with an oversized fuse (i.e. a blown 15 amp fuse replaced by a 30 amp fuse that is readily available on the bathroom shelf). service). The circuit is designed to “blow” if a load greater than 15 amps is passed through. Now the “trigger” is set to 30 amps. An additional 15 amps could be enough to make wiring or other components hot enough to cause a fire or other serious injury or damage.

A typical fuse panel can be replaced with a circuit breaker panel for $750 to $2,000 depending on any other upgrades that need to be done on the replacement. Always get a minimum of THREE QUOTES from reputable contractors before authorizing any work done.

two) knob and tube wiring

Knob and tube (K&T) wiring was used from the 1880s to the 1930s. This early method of electrical wiring did a great job for many years and is still used today in a few select government and industrial applications. However, this old rubber or cloth covered wiring that threads into porcelain knobs has exceeded its useful life and is no longer insurable or legal in residential applications under the National Electrical Code.

Rewiring an average-sized home can cost anywhere from $8,000 to $20,000, depending on the unique layout and access to electrical components. Always get a minimum of THREE QUOTES from reputable contractors before authorizing any work done.

3) Aluminum branch wiring

In Florida, aluminum wiring has been in the spotlight since 2010, when tens of thousands of Florida homeowners learned they couldn’t get insurance if they had this common wiring that was frequently used between 1965 and 1973.

Aluminum wiring is known to “slide cold”. Wiring expands as it heats up and contracts as it cools, this can cause the wire to loosen at the connection and this can cause an arc that can heat fixtures and cause fires. Aluminum also oxidizes over time, which can contribute to this fire safety issue.

There are two options for getting insurance if you have aluminum drop wiring. First, and most expensive (but the one we highly recommend) is to completely rewire the branch wiring to copper. This can cost on average $8,000 to $20,000 depending on how easy or difficult it is to access your electrical components.

The second option is to use AlumiConn or CopAlum crimpers which, in essence, crimp a copper “pigtail” to your aluminum wire so that the copper wiring is what makes the connection to your electrical device. This option, on average, costs between $1,500 and $3,000 depending on how many electrical fixtures are in the home. We recommend staying away from this when possible, as we fear that the ever-changing insurance industry will ban the crimp method as well. We also don’t like the idea of ​​going from the average device with 3 connections to having 6 connections. The more connections, the more chances of failure.

4) Less than 100 amp electrical service

A more recent industry shift in our “power hungry world” requires homes to have 100 amps or more of service to power the home. With the high electrical power consumption used by the average homeowner, insurance companies seem to fear that smaller utilities could overheat when using typical high-drain appliances.

The cost of upgrading an electrical service can vary depending on whether the size of the electrical wiring can handle the increased electrical load. If it can’t, the feed line will also need to be replaced. As always, get at least 3 quotes from reputable electrical contractors.

5) polybutylene plumbing

This popular plumbing pipe was widely used during the 1980s and early 1990s. It is typically “blue or gray in color,” flexible, and has caused flood damage to thousands of homes across the country. Until recently, some insurance companies did not ask about the type of plumbing pipe, so agents would place homeowners with those companies; however, effective September 1, 2012, Citizens Insurance Company specifically prohibited polybutylene plumbing.

A typical plumbing renovation cost can range from $4,000 to $10,000 depending on how easy it is to run the new pipe (in attics or under houses). We recommend using copper or CPVC pipe as some insurance companies also take issue with PEX pipe which has become very popular over the last decade. We will cover more about PEX in a later article.

6) Roof with less than 3 years of life

The ultimate INSURANCE BUSINESS KILLER in today’s article addresses your first line of defense in a wind or rain event, THE ROOF! If your roof has less than three years of useful life left, you may be denied insurance coverage. In our hot Florida sun, an average three-tab shingle roof will last 10-15 years. A tile roof of average dimensions will last between 15 and 25 years. Other popular roofing options include shingles and metal roofing. These options have a significantly longer life expectancy of 50+ years if properly installed and maintained.

A new roof is normally calculated per square. One square is equal to 100 square feet of shingles. In the Pensacola area, the cost per square can range from $225 to $300 per square, making the average 30 square roof cost between $6,750 and $9,000 depending on the quality of products used.