Buying a home is a lot of moving parts. Between the inspection, mortgage, appraisal, closing documents and everything else that comes with purchasing a house, homeowners insurance can feel like just another box to check.
But insurance can affect whether the purchase moves forward — and the home you’re buying can have a major impact on what coverage is available and what it costs.
If you’re buying a home in Florida, it’s a good idea to start the insurance process early. An insurer may need information about the home’s age, roof, electrical and plumbing systems, location, construction, prior claims and other characteristics before agreeing to provide coverage.
Here’s what to know before you close.
When Should You Get Homeowners Insurance When Buying a House?
Start shopping for insurance as soon as you’re under contract — or as soon as you have enough information about the property to get a meaningful quote.
You don’t want to wait until the day before closing to discover that the house has an insurance problem.
Starting early gives you time to:
- Get quotes from available insurance companies
- Determine whether the property is eligible for coverage
- Find out whether an inspection is required
- Review the home’s roof, electrical, plumbing and HVAC information
- Check whether wind mitigation documentation is available
- Discuss flood insurance
- Compare deductibles and coverage options
- Provide proof of insurance to your mortgage lender
- Resolve underwriting questions before closing
The quote you initially receive can also change if the insurer discovers information that affects eligibility or rating. Florida’s Department of Financial Services specifically notes that a homeowners quote is an estimate and may change based on the insurer’s underwriting guidelines and rating factors.
Does a Mortgage Require Homeowners Insurance?
Florida law does not generally require you to carry homeowners insurance simply because you own a home.
Your mortgage lender is a different story.
If you’re financing the property, your lender will commonly require homeowners insurance because the home serves as collateral for the loan. The lender will typically require proof of coverage before closing.
Your lender may also specify requirements for:
- Minimum dwelling coverage
- Deductibles
- Policy effective date
- Mortgagee information
- Proof of insurance
Your insurance agent can work with the lender to provide the documentation needed for closing.
What Does an Insurance Agent Need to Quote the House?
A listing price and a few photos aren’t enough to accurately evaluate a property for homeowners insurance.
Your agent may need information such as:
- Property address
- Year built
- Square footage
- Construction type
- Number of stories
- Roof age and material
- Roof shape
- Electrical system
- Plumbing system
- HVAC system
- Garage
- Pool or spa
- Screen enclosure
- Detached structures
- Security features
- Intended occupancy
- Prior insurance information
- Prior claims history
For an older home, documentation can become particularly important. An insurer may request a 4-point inspection covering the roof, electrical, plumbing and HVAC systems, or a separate roof or other specialized inspection.
That means the insurance conversation should happen before you’re standing at the closing table.
Why Does the Age of the House Matter?
A house being “new to you” doesn’t necessarily mean it’s new.
A 2020 house, a 1980 house and a 1920 house can have dramatically different insurance considerations.
Insurers may evaluate:
- Age of the home
- Age and condition of the roof
- Type of electrical system
- Plumbing materials
- Heating and air conditioning
- Construction materials
- Location
- Property condition
- Prior claims
- Prior insurance coverage
Older homes aren’t automatically uninsurable. But an older property may require more documentation or have fewer available insurance options depending on its condition and the insurer’s underwriting guidelines.
This is one reason it’s useful to get an insurance quote before you become too far into the buying process.
What If the House Has an Older Roof?
The roof is one of the most important things to investigate when buying a Florida home.
Two houses that look nearly identical from the street can have very different insurance options if one has a relatively new roof and the other has an older roof approaching the end of its useful life.
Your agent may need:
- Roof age
- Roof material
- Roof shape
- Installation information
- Permit or replacement documentation
- Wind-mitigation information
- Photos or inspection documentation
Insurance companies have different underwriting requirements for roofs, so don’t assume that a house is automatically insurable simply because the current owner has a policy.
The fact that someone else currently insures the house does not guarantee that a new insurer will offer you the same coverage.
What Is a 4-Point Inspection?
If you’re buying an older Florida home, you may hear the term 4-point inspection during the insurance process.
A 4-point inspection generally evaluates four major systems:
- Roof
- Electrical
- Plumbing
- Heating and air conditioning
An insurer may require this type of inspection before agreeing to insure an older home. Florida’s Department of Financial Services notes that insurers may require a 4-point or specialized inspection and that failure to provide a requested inspection can affect whether the insurer will provide coverage.
This is different from your standard home inspection.
A home inspection helps you evaluate the condition of the property you’re purchasing. An insurance inspection is used to provide information the insurer may need for underwriting.
You may need both.
What About a Wind Mitigation Inspection?
Florida homeowners should also understand wind mitigation.
A wind-mitigation inspection documents features of the home that may reduce its vulnerability to hurricane or windstorm damage. Depending on the property and insurer, qualifying features can result in premium discounts. Florida’s Department of Financial Services notes that insurers must provide information about available hurricane-loss-mitigation discounts and accept qualifying mitigation verification forms.
When buying a home, ask whether the property already has a current wind-mitigation inspection.
If it does, provide the documentation to your insurance agent.
If it doesn’t, ask whether getting one makes sense for the property.
Wind mitigation can be particularly important in Florida because the same home may have different insurance costs depending on its documented construction and mitigation features.
How Much Homeowners Insurance Do You Need?
One of the most common misconceptions about homeowners insurance is that you should insure the house for whatever you paid for it.
That’s not necessarily how dwelling coverage works.
Homeowners insurance generally focuses on the cost to rebuild the structure, not the market value of the property.
Market value includes the land. Replacement cost is concerned with rebuilding the insured structure.
For example, you might purchase a home for $400,000 even though the estimated cost to rebuild the structure is substantially different.
Your insurance agent can help determine an appropriate dwelling limit based on the characteristics of the home.
Other coverages matter, too, including:
- Personal property
- Personal liability
- Additional living expenses
- Other structures
- Medical payments
- Optional endorsements
The goal isn’t simply to find a policy with a dwelling limit that resembles the home’s purchase price.
It’s to build an insurance program around the property and your financial exposure.
Don’t Forget Flood Insurance
A homeowners policy does not automatically mean you have flood insurance.
Flood coverage is generally separate, and your mortgage lender may require it depending on the property’s location and other factors.
But “my lender doesn’t require flood insurance” doesn’t necessarily mean “I don’t need flood insurance.”
When you’re buying a house, ask about flood exposure before closing.
It’s much easier to evaluate the issue while you’re still deciding whether to purchase the property than after you’ve already moved in.
What Is the Hurricane Deductible?
Florida homeowners policies may include a separate hurricane deductible.
Unlike a typical flat-dollar deductible, a hurricane deductible can be percentage-based. That means the amount you would pay out of pocket can be substantially larger than your ordinary deductible.
When comparing homeowners insurance quotes, don’t look only at the annual premium.
Look at:
- All-other-perils deductible
- Hurricane deductible
- Any roof deductible
- Any water deductible
- Other applicable deductibles
Florida’s consumer insurance guidance specifically recommends comparing deductible structures when shopping for homeowners insurance.
A policy that saves you a few hundred dollars in annual premium isn’t necessarily the same policy if you’re taking on thousands of dollars more in potential out-of-pocket costs.
What If the House Has a Pool, Screen Enclosure or Other Features?
Tell your insurance agent about significant features of the property.
That can include:
- Swimming pools
- Screen enclosures
- Detached garages
- Workshops
- Guest houses
- Sheds
- Fences
- Solar panels
- Expensive outdoor equipment
- Trampolines
- Other structures or unusual features
These aren’t necessarily problems. They’re simply things the insurer may need to know about.
Florida insurers can consider the physical characteristics and potential hazards of a property as part of underwriting.
The important part is don’t leave something out because you assume it isn’t relevant.
What If the Seller Already Has Homeowners Insurance?
The seller’s insurance policy doesn’t transfer to you.
You’ll need your own coverage beginning on the appropriate effective date.
And the fact that the seller currently has insurance doesn’t guarantee that you’ll receive the same premium or even that the same insurer will offer you a policy.
Insurance companies evaluate the applicant and property under their current underwriting guidelines.
Your own insurance history and claims history may also be relevant to the underwriting process.
That’s another reason to start shopping before closing.
Should You Use the Insurance Company Your Realtor or Lender Recommends?
You can certainly consider their recommendation. They’ve likely worked with many companies before, and these can be a convenient place to start when you’re working against a closing deadline.
But it’s worth noting that the priorities of a real estate transaction and the priorities you may have when looking for an insurance policy aren’t always the same.
In our experience, the home-buying process often places a strong emphasis on speed, lowest possible cost, convenience, and getting the required insurance documentation to the lender in time for closing. Those things are important — but they don’t necessarily tell you whether the policy provides the coverage you actually want. Fast and cheap isn’t always better, especially in insurance.
At Smith & Thomas, we understand that insurance has to be handled on time so your closing stays on track. But we also believe the goal should be more than simply getting a policy in place. We want to get you a policy you’ll actually keep. And that means helping you understand what you’re buying, what the policy covers, what it doesn’t cover, and what you’re paying for — so you can choose coverage based on your needs, not simply on what gets you to the closing table the cheapest.
How Should You Compare Homeowners Insurance Quotes?
Don’t compare homeowners insurance by premium alone.
When you receive multiple quotes, compare them as closely as possible.
Look at:
Dwelling coverage
Are the dwelling limits reasonably aligned with the estimated replacement cost?
Personal property
How is your personal property covered, and are there special limits or endorsements you need?
Liability
How much personal liability coverage is included?
Deductibles
Compare the standard deductible and hurricane deductible, along with any other applicable deductibles.
Windstorm coverage
Understand whether windstorm coverage is included and how it applies.
Water coverage
Understand what water-related losses are covered, excluded or subject to special deductibles or limitations.
Endorsements
Make sure valuable property or unusual features are properly addressed.
Exclusions
A lower premium may reflect narrower coverage.
Florida’s consumer insurance guidance recommends an “apples to apples” comparison when shopping for homeowners insurance.
What Should You Do Before Closing?
Once you’ve selected a policy, make sure the insurance information matches the transaction.
Your agent will typically need to coordinate information such as:
- Property address
- Named insureds
- Mortgage lender
- Mortgagee clause
- Coverage limits
- Deductibles
- Effective date
- Closing date
If the closing date changes, let your insurance agent know.
If the property changes before closing, let them know that too.
A significant change in the property or transaction can affect the insurance policy or underwriting.
What If the Insurance Company Doesn’t Want the House?
This is one of the reasons you shouldn’t wait until the last minute.
Sometimes an insurer may decline a property because of characteristics such as:
- Roof condition
- Electrical system
- Plumbing
- Property condition
- Location
- Prior claims
- Other underwriting concerns
That doesn’t necessarily mean you can’t buy the house.
It means you may need to explore other insurance options.
Florida’s insurance market includes insurers with different underwriting guidelines, so the availability of coverage can vary from one company to another.
If insurance becomes difficult, your agent can help you understand what is causing the issue and what options may be available.
Home Buying Insurance Checklist
Before closing on your new-to-you home, make sure you’ve addressed:
- Homeowners insurance quote
- Effective date coordinated with closing
- Mortgage lender requirements
- Dwelling coverage
- Personal property coverage
- Liability coverage
- Standard deductible
- Hurricane deductible
- Roof age and condition
- 4-point inspection, if required
- Wind-mitigation inspection/documentation
- Prior claims information
- Flood exposure
- Pool and screen enclosure
- Detached structures
- Special property or valuable items
- Any required underwriting documentation
Buying a Home? Let’s Talk Insurance Before You Close.
Homeowners insurance shouldn’t be an afterthought once you’ve already committed to a property.
Getting the insurance conversation started early can help you understand what the home will cost to insure, whether additional inspections or documentation are needed, and what coverage options are available before you reach the closing table.
Smith & Thomas Insurance helps Florida homeowners compare available homeowners insurance options and build coverage around the property they’re purchasing.
Buying a home in Florida? Contact Smith & Thomas Insurance for help with your homeowners insurance.