Avoid These Four Costly Insurance Errors When Moving to West Palm Beach, Florida
Are you planning a move to West Palm Beach, Florida? It’s natural to think about transferring your current home insurance policy to your new location. However, this approach can be a costly mistake, potentially costing you upwards of $30,000 annually.
Many homeowners assume their existing insurance provider can seamlessly transition their policy to their new home in West Palm Beach. Yet, this assumption can lead to significant issues, especially with national insurance companies like State Farm, USAA, and Allstate. These companies often avoid writing policies for coastal homes in Florida, particularly those including vital coverages like wind or flood insurance.
You might be offered a “wind policy” through the Florida Windstorm Underwriting Association (FWUA), considered a last-resort option. These policies typically come with higher premiums (30-40% more than standard market rates), exorbitant deductibles (up to $30,000 for a $500,000 home), and minimal coverage.
It’s crucial to be fully aware of your policy details and deductibles. Discovering a $30,000 wind deductible or a lack of coverage for personal property or loss of use after a disaster can be devastating.
Another critical point is that every property in West Palm Beach lies within a flood zone. Even properties in X flood zones, where lenders don’t mandate flood insurance, face risks. Nearly 30% of flood claims come from these areas, with average damages exceeding $28,000. An X zone flood policy can be as affordable as $250 annually, offering essential protection at a minimal cost.
Concerned about the costs of insurance in West Palm Beach? Remember, Florida boasts some of the nation’s lowest property taxes. For example, a client, Mike, who moved from Cleveland, OH, found substantial savings in Florida. He previously paid $10,000 in property taxes and $1,000 in home insurance. In West Palm Beach, his property taxes dropped to $4,000, though his home insurance rose to the same amount, netting an annual savings of $3,000 – and no snow!
To further reduce your insurance costs, consider a Wind Mitigation Form. This document, completed by a licensed contractor, identifies features in your home that mitigate wind damage, often leading to insurance credits. Other factors like a monitored burglar/fire alarm system, updates to your home’s roof, plumbing, electrical, and HVAC systems, living in a gated community, having a good credit score, no claims in the past three years, or qualifying for a senior discount (usually over 50) can also lower your premiums. Combining your auto and home insurance through the same agency can save you an additional 10%.
Don’t delay in securing the right insurance for your new home in West Palm Beach. Click below to get started and protect yourself from unforeseen losses and high deductibles. Take advantage of these lower rates and discounts while they last. Click here to begin.
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