Your lender won't close on a home loan until you show proof of homeowners insurance, and in Florida that step can take longer than buyers expect. Inspections, flood zones and hurricane season can all slow things down. Here's what to do, and when, so insurance doesn't hold up your closing on Amelia Island.
As soon as you're under contract
- Call your agent right away. Don't wait until the week of closing. Starting two to three weeks out gives time to compare carriers and handle any inspection requirements.
- Ask the seller for existing reports. A recent wind mitigation inspection, four-point inspection or elevation certificate can save you time and money.
- Find out the roof's age and type. Carriers look closely at the roof, and an older roof can limit your options or raise your premium.
- Check the flood zone. If the home is in a high-risk flood zone and you have a federally backed mortgage, your lender will require flood insurance.
During your inspection period
- Older homes may need a four-point inspection covering the roof, electrical, plumbing and HVAC before a carrier will write the policy.
- A wind mitigation inspection documents storm-resistant features that can lower your premium. It's often worth ordering alongside your home inspection.
- Get real quotes, not estimates. If a carrier needs repairs before writing the home, you want to know while you can still negotiate with the seller.
Before closing day
- Bind your homeowners policy with an effective date on or before closing, and send the binder or evidence of insurance to your lender and title company.
- Set up flood coverage if needed. Flood policies normally have a 30-day waiting period, but that wait is generally waived when the coverage is required for a new mortgage. It's still smart to line it up early.
- Watch the weather. Florida insurers stop writing new policies when a named storm threatens the area. During hurricane season, bind as early as you can.
- Confirm how the premium is paid. Most buyers pay the first year at closing or through escrow. Make sure the lender has the right invoice.
Buying a condo?
Your association's master policy covers the building, but you'll need a condo (HO-6) policy for your unit's interior, belongings and loss assessments. Ask the association for a copy of the master policy so your coverage fills the gaps. If you plan to rent the unit by the night or week, tell your agent up front. See our vacation rental insurance page.
Higher-value and waterfront homes
Oceanfront, marsh-front and Intracoastal homes often need higher limits, a closer look at the hurricane deductible and flood coverage above NFIP limits. Our high-value coastal home insurance page explains what to look for.
We'll help you close on time
Under contract on Amelia Island, in Yulee or anywhere in Nassau County? Call (904) 807-4554 as soon as you have a property address. We'll quote homeowners and flood together and send your binder straight to your lender. See our homeowners and flood insurance pages for more.
This article is general information, not a substitute for your policy documents or your lender's requirements. Coverage varies by policy and carrier.