Do You Know What is NOT Covered in Your Home Owners Insurance Policy?

You Might be Surprised

 

In recent years, insurance carriers in Florida have added many exclusions to property insurance policies, with little oversight or public debate. These exclusions are drafted into policy leaving consumers with less coverage for the same (if not higher) premium.

Because many policyholders rarely read every word of their large and complex policies, they may not even be aware of what is NOT covered. Since policyholders are unable to negotiate policy language, they are left with a choice of accepting the changes, purchasing new endorsements or seeking a different carrier.

Examples of common policy exclusions include:



Eliminating Your Rights to Appraisal – For 200 years, policies have included the binding appraisal process to settle disputes between insurance companies and the insured over amount of loss or value of damaged property. Many insurers are restricting or eliminating this provision, which provides important consumer protections.

 

Giving You a Sinking Feeling – Many policies no longer cover damage from sinkholes unless the sinkholes are deemed “catastrophic,” usually meaning large and sudden. But slowly occurring sinkholes can cause catastrophic damage to a home and its value. Damage can run into the hundreds of thousands, often more than the value of the home, leaving many homeowners with no other choice than to walk away from their mortgages.

 

Requiring You to See Through Walls – Most insurance claims deal with water damage, often stemming from damage behind walls or under slabs that doesn’t become noticeable for weeks or months. Citizens and other insurance companies now deny claims for leakage occurring over more than 14 days, even if it is hidden from sight. In fact, Citizens has just announced plans to further expand its water exclusion.

 

Eliminating Coverage for Mold – Where there is water damage mold often forms. Though it is recommended that water be removed and damaged areas dried within 48-72 hours, company insurance adjusters often are unable to visit the home within that time. No matter the reason, if mold forms, most companies will no longer cover the cost of its removal.

 

Leaving Screened Structures Uncovered – Popular in Florida, screened enclosures used to be covered under most homeowner insurance policies. Many carriers have now added exclusions that remove screened structures from coverage.

 

Re-Defining “Falling Objects” – Typically, damage from falling objects in a home or condo (such as floor damage from a falling light fixture or fan) is covered. Citizens’ new condo policy, however, only covers such damage if the falling objects come down from the sky through your roof or walls. Great coverage for meteorites, but little else.

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Interested in REO Listings In Spring Hill FL FL or a foreclosure in Spring Hill FL?

What’s an REO?

“REO” or Real Estate Owned are properties which have completed the foreclosure process and are currently owned by the bank or mortgage company. This is different than real estate up for foreclosure auction.

If you buy a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees added during the foreclosure process. The buyer must also be able to pay with cash in hand. Finally, you’ll accept the property 100% as is.That could involve existing liens and even current denizens that need to be evicted. This process is generally known as “buying on the court house steps” This can be a very risky process and is generally more reserved for experienced investors with large capital and experience who also usually have a higher risk tollerance and is usally not for the amateur.

A bank-owned property, by contrast, is a more tidy and attractive option. The REO property did not find a buyer during foreclosure auction. The lender now owns it. The bank will see to the elimination of tax liens, evict occupants if needed and generally organize for the issuance of a title insurance policy to the buyer at closing. These are generally listed for sale in the local Hernando MLS systems, and can be a great value when acompanied with the guidance of an experienced realtor such as The Spring Hill FL Sales Team.

Note that REOs may be exempt from typical disclosure requirements. For example, in Florida, it is optional for foreclosures to have a Property Disclosure Statement, a document that ordinarily requires sellers to tell you about any defects they are informed of. By hiring Agent Trust Realty, you can rest assured knowing all parties are fulfilling Florida state disclosure requirements.

Am I assured a low price when purchasing a Foreclosure property in Spring Hill FL?

It is frequently believed that any REO must be a good deal and an opportunity for easy money. This isn’t always true. You have to be prudent about buying a repossession if your intent is make money. While it’s true that the bank is often eager to offload it promptly, they are also motivated to minimize any losses.

When considering what to pay for a foreclosure, carefully analyze comparable sales in the neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to prepare the house for resale. There are bargains with potential to make money, and many people do very well buying and selling foreclosures. However there are also many REOs that are not good buys and may not be money makers.

All set to make an offer on A Foreclsoure in Spring Hill FL FL?

Most banks have a department dedicated to REO that you’ll work with when buying REO property from them. Usually the REO department will use a listing agent to get their REO properties listed on the local MLS.

Before making your offer, you’ll want to contact either the listing agent or REO department at the bank and learn as much as you can about what they know concerning the condition of the property and what their process is for getting offers. Since banks typically sell REO properties “as is”, it may be in your best interest to include an inspection contingency in your offer that gives you time to check for unseen damage and retract the offer if you find it. If, as a buyer, you can provide documentation proving your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This holds for any type of real estate offer.)

Once you’ve made your offer, it’s customary for the bank to respond with a counter offer. At this point it will be your decision whether to accept their counter, or offer a counter to the counter offer. Be aware, you’ll be dealing with a process that probably involves a group of people at the bank, and they don’t work evenings or weekends. It’s not unusual for the process of offers and counter offers to take days or even weeks. Agent Trust Realty is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no unnecessary delays.