Does your credit scores impact your homeowners insurance premium and auto insurance premium?

How difficult is it to get homeowners insurance in Florida? I heard not only are premiums high but many insurance companies such as Farmers Insurance pulled out of the Florida housing market.

You have worked so hard all year! use that time off and reward yourself with a vacation. I can help you plan your next getaway.

I have borrowers shopping for a home on “the Big Island”. In an effort to be prepared, they have started shopping for homeowners insurance. Insurance seems to be a bit more complicated in Hawaii based on topography, proximity to bodies of water and lava zones.

I would love some insight from realtors or insurance professionals. What does a homeowner need to be aware of during this process?

We are protecting our clients’ financial interests to ensure a prosperous future!

FIRST TIME INVESTORS

I have seen this where a current homeowner changes their first purchase into a rental property. There may not be many changes on the mortgage end of things. Still, there are quite a few differences in insurability!

It’s crucial to understand that a typical homeowner policy on a NEW AIRBNB listing will not provide sufficient coverage when you need it most. I’m referring to an Airbnb and a long-term lease, but there are two scenarios where you could be held liable as the property owner. When you have a landlord policy on a rental, they are insuring YOU, the one with the financial interest in the property. YOU are the one with pride of ownership, and you will not want to sue yourself or do any damage. However, the real risk lies in situations involving other individuals, such as renters, their guests, and anyone else involved.

It sounds like a more expensive policy, but it is most often in the price range! Well, most landlord policies, also known as dwelling policies, protect you as the property’s landlord, whether that is tenet damage, loss of rent, or even a lawsuit. So, it is critical to know the difference between the policy types when your buyers are keeping a current home to buy a new one! It could be a secondary home in FL, it could be a property for a family member, or it could be the 10th rental property.

A good agent will take the time to understand the client and their needs and wants, but something is black and white, and I wouldn’t want their purchasing power to decrease by a lousy agent.

Maintaining a good insurance score is crucial for your financial well-being. Your insurance score is a number that represents how much of a risk you are to your insurance company. Did you know that making an insurance claim can affect your insurance score? When you file a claim, it’s important to do so wisely and responsibly because claims history can follow you for 5 to 7 years on your insurance history and can have a significant impact on your premium. The more claims you make, the higher your risk becomes, and thus, the higher your premium will be. That’s why it’s important to report claims wisely and responsibly to avoid any negative impact on your insurance score. By doing so, you can ensure that you maintain a good insurance score, which can help you get better rates on your insurance premiums. So, always make sure to report claims wisely and responsibly to protect your financial well-being. #InsuranceTips #FinancialWellBeing

Maintaining insurance coverage is crucial for safeguarding your assets and finances against unexpected events. However, a lapse in insurance can prove problematic when seeking a new carrier. It is imperative to understand the potential consequences that can arise from a lapse in coverage as they can impact your ability to secure insurance coverage.

A lapse in insurance arises when an individual fails to pay their insurance premiums on time, resulting in the expiration of their coverage. This can happen for various reasons, such as financial difficulties, forgetfulness, or being unaware of the renewal date. Regardless of the reason, a lapse in coverage can pose significant challenges when attempting to acquire a new policy.

Primarily, a lapse in insurance can make it difficult to find a new carrier. Insurance companies view lapses in coverage as a red flag, indicating that the client may be a high-risk candidate. The length of the lapse can determine the difficulty of finding a new carrier willing to provide coverage. Some insurance companies may refuse coverage altogether, while others may require a down payment upfront or charge higher premiums.

Additionally, a lapse in insurance can impact insurance rates. Insurance companies use various factors to determine insurance rates, including driving record, credit score, and claims history. A lapse in coverage can negatively affect these factors, resulting in higher insurance rates. In some instances, the insurance company may require higher rates for several years after the lapse.

Finally, a lapse in insurance can impact one’s ability to make claims. If an accident occurs during the lapse, the individual may not be covered by their insurance policy. Even if a new policy is secured after the lapse, the new carrier may refuse to cover damages incurred during the lapsed period.

In summary, a lapse in insurance can create significant difficulties when attempting to secure a new carrier. Timely payment of premiums and staying aware of renewal dates can help avoid a lapse in coverage. If a lapse does occur, it is crucial to work with an insurance agent to find a new carrier and understand the implications of the lapse on one’s coverage and rates. Being proactive about insurance coverage can ensure that one is protected in the face of unforeseen circumstances.

Florida homebuyers and homeowners have a major crisis when it comes to buying homeowners insurance. Many giant homeowners insurance carriers have moved out of the state and no longer do business in Florida.

Lately, insurance companies have been tightening their guidelines to no longer accept what we insurance agents call a monoline policy. AKA a stand-alone home policy without an auto attached or vice versa. This will affect the ability of clients to get a home policy that differs from their auto carrier. This can sometimes be the best option for a client, but with carriers cracking down on eligibility and underwriting guidelines, things can be a bit more complicated. Most clients are concerned about home insurance because they need to close on a home, not their overall cost. (home premium + auto premium.)

This is not the only eligibility factor. So, when you add all the elements together, you might need help navigating the insurance market for yourself or your clients. I can tell you that getting a home quote with your auto insurance carrier will not always be the best option.

If you have any questions or concerns, please reach out, and I would be happy to help!

Brent Norkus is the preferred insurance agent for Gustan Cho Associates dba NEXA Mortgage, LLC. Brent Norkus of Goosehead Insurance is my personal insurance agent for my homeowners insurance, cars, motorhome, and ATV, motorcycles, boat, and all other insurance needs. Brent Norkus of Goosehead insurance can offer insurance through Goosehead Insurance in all 50 states. After going over hundreds of terms and premiums, Brent Norkus can get our borrowers the best terms and insurance than any other insurance company in the nation. Hands down. I have borrowers save over 50% on their homeowners premium on their homeowners insurances. Besides homeowners insurance, Brent Norkus can beat any insurance premium on their cars, business, and property casualty insurance premium. Give Brent Norkus of Goosehead insurance a try. Or ask any insurance questions on this forum and Brent Norkus will answer them.

Auto insurance is a type of insurance coverage that protects individuals and businesses from financial loss in the event of a car accident or theft. It is a contract between the policyholder and the insurance company, where the policyholder pays a premium, and in return, the insurance company provides coverage for specified risks.

Here are some key components and coverages typically included in auto insurance:Liability Coverage: This covers the policyholder’s legal responsibility for bodily injury or property damage to others in the event of an accident for which they are at fault.

Collision Coverage: This covers damage to the policyholder’s vehicle in the event of a collision with another vehicle or object.

Comprehensive Coverage: This provides coverage for non-collision events, such as theft, vandalism, natural disasters, or hitting an animal.

Medical Payments Coverage (MedPay): This covers medical expenses for the policyholder and passengers injured in an accident, regardless of who is at fault.

Personal Injury Protection (PIP): Similar to MedPay, PIP covers medical expenses but may also include coverage for lost wages and other expenses.

Uninsured/Underinsured Motorist Coverage: This protects the policyholder if they are involved in an accident with a driver who has little or no insurance.

Auto insurance is mandatory in many places, and the minimum required coverage can vary. The cost of insurance premiums depends on various factors, including the driver’s age, driving history, type of vehicle, coverage limits, and geographic location.

It’s important for individuals to carefully review and understand their auto insurance policy to ensure they have adequate coverage for their needs. Additionally, laws and regulations regarding auto insurance can vary by jurisdiction, so it’s essential to be aware of the specific requirements in your area.