.

New Insurance Rules May Affect Florida Home Sales

Insurance for homes built before 1982 now requires a 4 point inspection done by a Florida licensed inspector.

New rules from Citizens Insurance may affect the sale (or purchase) of your St Petersburg home.

Starting September 1, 2012, Citizens requires a 4-point inspection for any new or renewal of a homeowner’s insurance policy on a house 30 years or older – i.e., built before 1982, which covers the majority of homes.

The four “points” of the inspection are:

1.) plumbing,

2.) electrical,

3.) HVAC (heating and air conditioning)

4.) and the roof.  

The inspection must be completed by an appropriate Florida licensed inspector and photos must accompany the report.  

It appears that a new 4 point inspection report will need to be done with each annual renewal. In addition to a certification that all four systems are in good working order, there are some other requirements to note:  

  • all roofs will need to have at least 3 more years of expected life;
  • no polybutylene pipes;
  • and if the house has single strand (aluminum branch) wiring, separate documentation of remediation must be provided and certified by a licensed electrician.

Three remediation methods are allowed: 1) entire home rewired with copper; 2) connections repaired via COPALUM crimp; or 3) connections repaired via AlumiConn.

The aluminum wiring situation is similar to the knob-and-tubing situation in older homes. Most real estate sales contracts will state that all systems need to be operating properly but that the seller/owner will not have to upgrade to new codes unless an item needs repair.

However, if the contract is subject to financing, the lender is going to require insurance. If the buyer can’t get insurance for the home, the loan won’t be approved, so the financing clause will allow the buyer to walk away.

So, it’s better to address this issue before you put the home on the market.

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

cherylwithac October 25, 2012 at 05:27 PM
Besides, who wants to relocate to a state where they can't afford homeowner's insurance? It sounds like a rather crazy thing to do. Won't the "boomers" think about that part of the Florida real estate equation? And all of this chaos was caused by the real estate frenzy, when people were playing roulette in the real estate market.
Deborah Weatherby October 25, 2012 at 05:38 PM
I apologize, we live in Sarasota county and we have the lowest inventory of real estate since 1998 and only 15% are short sales or foreclosures. and you are right, we will probably never see the high prices that existed a few years ago and that hurts. However it does make Florida more attractive as homes are now more affordable, medium price in S'sota for homes is around 170K about the same for condos. Thats affordable. We made the same mistake thousands of others did and paid for it dearly with our savings, but one must always look forward.
cherylwithac October 25, 2012 at 11:58 PM
It seems to me that low inventory by definition equals low sales, hence fewer retirees moving into Florida--unless they want to rent a condo during their golden years. I said it before, and I'll say it again: the Florida Housing Frenzy has RUINED Florida for our lifetimes. The low inventory is a reflection (albeit indirectly) of the greed that reigned when properties went sky high. People can't or won't sell their homes in Florida anymore because they're underwater on them. There's nothing for "boomers" to buy.
MARY STOCKMAN January 05, 2013 at 12:20 PM
AND WHILE WE ARE ON THE SOBJECT OF HOMES IN FLORIDA--WHATS UP WITH THESE PROGRAMS THAT THE GOVERNMENT GAVE MONEY TO OUR COUNTY,HILLSBOUGH CO,PASCO CO,PINELLIS CO ETC.? TO HELP POOR PEOPLE BUY A HOME? I TOLD THEM MY SISTUATION, THEY TOLD ME TO ATTEND THE CLASS, WHICH I DID, EVERYTHING THEY TOLD ME TO DO,I AM TALKING ABOUT THE NSP AND THE USDA PROGRAMS,WHERE THE LOW INCOME FAMILIES CAN GET A PIECE OF THE AMERICAN DREAM BY OWNING A HOME? YEA RIGHT,I WORKED ON MY CREDIT FOR MONTHS AND NOW HAVE GOOD CREDIT,NOW THEY TELL ME I DONT MAKE ENOUGH MONEY ON SSDI,WHAT A RIP!!
Ray Vasri May 21, 2014 at 08:53 AM
Thank you for such a great info. I was able to come across this online service that allows you to easily edit your PDF documents. (http://goo.gl/US0thD) You can fill out PDF form, save it, fax it, and email it. You might want to try, it was good!

Boards

More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something
See more »