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Make your Closings better during Hurricane Season? when a hurricane is on its way to the Florida coast Real Estate closings may suffer delays. Insurance companies can hold all mortgage transactions once the National Weather Service issued a hurricane warning or watches. 

Homeowner Insurance is as important as a pre-approval?

All lenders require a Homeowner’s insurance to close unless it is an all-cash deal.

When buying property sellers request a pre-approved mortgage in order to have more security that the transaction gets a loan approval at the time of closing. 

However, Homeowner insurance is as important as a pre-approval requisite especially in South Florida with Hurricane season every year. It is also important to find out if the property is in a flooding area as the policy coverage and deductibles vary. There is accidental flooding coming from internal damage, flooding from tropical rain and flooding from a hurricane. Primary Flood Insurance remains to be one of the best choices for flood coverage in South Florida. 

After the last hurricane devastations, state-financed insurances as Citizens Property Insurance Corp. are being a lot more strict. Coastal residential renovated homes that fulfill all new building codes such as elevation, impact windows, etc. get priority. None of the less both rates and deductibles are much higher. 

Hurricane impact on Insurance premium has made the coastal residential area a luxury real estate market. 

Closing Luxury Real Estate late summer, in Key Biscayne and  Insurance Coverage 

In barrier island areas such as Key Biscayne, the potential damages are much higher therefore high insurance rate is inevitable.

Now when purchasing real estate, it is also important to find out if your mortgage lender accepts the insurance company you are choosing and the coverage quoted to close the purchase of your home. Finding out that your lender does not approve it can result in closing delays. 

Even though Key Biscayne location increases the risks, the demand from people wanting to purchase and reside on the island remains an attractive market for insurance companies. 

Key Biscayne luxury real estate also gets differentiated, the risk of on a condo, an inland home, and a waterfront get different variables when dealing with an insurance policy. As Javier G. Mora , vice president for NSI Insurance Group explained to me lenders do proper due diligence on who is the insurer, the deductible requirements, and coverage, they cannot put at risk their money without being properly covered. As I asked, how Irma’s impacted rates, he said: “ rates are sky-rocketed”. Nevertheless, companies as AIG, Chubb, Lloyds, Pure, Lexington still provide coverage for Key Biscayne Real Estate Luxury Market. 

I do insist on the importance of having a local insurance agent. When it comes to closing Luxury Real Estate late summer a lot of contingencies can come up and a local agent knows better what are the exact needs to protect your investment.

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