In excessive climate, home contents insurance prices extra. If you may get it. – The New York Occasions
Some people who have bought homes in unfamiliar areas or have less choice in an overheated market have found with hindsight that the properties, especially older homes on the coast, were traditionally uninsurable. To get insurance coverage, they need to turn to the so-called surplus market, on which the tariffs set by the state insurance regulator do not apply. An insurer in this market can ask what it wants.
"Wealthy individuals in places like Florida are quick to buy houses because of a lack of inventory and before they buy a home better built for the same price," said Woodward. “Then we have a 30 to 60 day degree and we have to cover it. Many people did not imagine the cost of this insurance when buying it. "
Insurance for an older $ 1 million home in South Florida that was not built to local regulations and offers protection against wind and rain damage could be $ 40,000, compared to $ 3,000 for a similar home elsewhere, said Woodward. Coding the old house so premiums down, including new windows, doors and roof, can cost $ 100,000 or more, he said.
Mr. Buchmüller said a friend built a house in Florida to protect it from extreme weather conditions. The house is not in South Florida so the building codes are looser, but the friend asked that the roof be strapped on and to meet the stricter regulations.
"The contractor told him that 29,000 more roof fastenings were required," said Buchmüller. "Adding the code for South Florida to a house is no small measure."
Whether it's a starter home or a $ 5 million beach home, some owners are more careful than others to look after their home.
"Some people treat their home as if it were their home," said Woodward. “But some people treat their home like it's just a place they live. And I don't care what you spend. "
Extreme weather can force more homeowners to take better care of their homes – or risk losing their insurance.