South Florida Investing

[Bryan Beal]

I'm looking for a REI with experience down in the South Florida markets, specifically Broward County. We're trying to break into that market but we're being PUMMELED by taxes and insurance quotes. If someone has any rental property down there I'd love to hear from you.

[David Collier Jr]

@Bryan Beal.. Coincidentally insurance is what I do. Have many investment clients. To give you an idea, my duplex in Pompano with no hurricane credits carries a premium of $4,000. That is on a DP3 (Dwelling tenant occupied) with wind coverage. Of course purchasing cash you can go ex wind and cut that in half or more. 

Not many zip codes require flood actually. Just depends where you are looking as you may be close to homes on the water. With an elevation certificate flood is actually not very expensive. 

The insurance market in S FL is in a restructure if you will. There are many carriers that are taking on massive losses due to water damage claims (old cast iron pipes beyond life expectancy). Many carriers are non renewing, limited or excluding water (very important to check that detail). If you are updating plumbing (I did) your carrier options open a bit. 

Basically the rates are based on the characteristics of the home. If you are buying an older home with older roof 25-30 years, original electric and plumbing, your going to be looking at placing coverage in the ""surplus lines" market vs admitted carriers (backed by the state). 

If you're seeing rates at $6k your looking at homes in high risk areas with old characteristics. Keep in mind once you remodel or update, you can re-shop your policy and have any premiums paid prorated and refunded. Its just the cost of doing business. 

If a $2k insurance premium difference is making or breaking your deal, in my opinion its the wrong deal. 

If you get an offer accepted and need to shop your rate happy to help.