Daytona Beach, FL Renters Insurance

Why should I purchase Renters Insurance?

Well, if you don’t rent a property from someone else…GOOD NEWS…you don’t need it. But if you are a tenant and you’re still wondering why you might need renters insurance, ask yourself these questions:

1. Do any of my possessions hold a significant dollar value?

2. If any of my possessions are lost, damaged, or stolen, would I like to be compensated for their lost value?

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If you answered yes to one or both, renters insurance makes sense. It’s a great way to protect your furniture, high ticket items like your 80 inch LED TV, gaming system, and other personal items of value in the event of a hurricane, fire, or theft. However, it’s important to note that renters insurance will not protect you in the case of a flood. For that, you’ll need a separate flood insurance policy.

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Most landlords and rental agencies in the Spring Break Capitol of the World allow you the choice of purchasing renters insurance or not. But many are now starting to require tenants to have liability coverage and content coverage. This helps to protect the landlord in the event of litigation.

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Daytona Beach Condo Insurance (HO6)

What’s covered under the condo’s master insurance policy?

If you’re looking into buying condo insurance in Daytona Beach (also known as HO6), the first thing you should do is understand the condo’s master policy, what’s covered and what’s not. Typically, condo owners are responsible for the interior while the association is responsible for the exterior.

BankRate has a helpful article that points out two types of master policies.

1. Bare walls-in – Covers all real property from the exterior framing inward, but does not cover the fixtures and installations within the condo unit. So, things like granite countertops, bathroom and kitchen fixtures, and the flooring are not covered by the master policy. This condo owner will probably have the greatest coverage need.

2. All-in. Covers fixtures, installations or additions within the interior surfaces of the perimeter walls, floors and ceilings of individual units. This condo owner will probably have a more limited coverage need.

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The article also suggests that when insuring your condo, make sure you have coverage for contents and structural items. Not sure which is which? Imagine turning your condo upside down. Everything that falls is a content. Everything that stays is interior structure.

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Examples of content:

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• Clothing

• Furniture

• Electronics

• Appliances

• Household items

Examples of structure:

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• Lighting

• Flooring

• Carpeting

• Cabinetry

• Countertops

If I have an unattached storage unit, does my condo policy cover it too?

Yes, partially. It works the same way as a homeowners insurance policy works. Since your belongings aren’t in your condo, an insurance company considers your belongings “offsite.” When you store personal property offsite, your insurance company will insure 10% of its value.

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If my condo is located in a special hazard flood zone, do I need flood insurance too?

It depends. If you own your condo free and clear (and have no other liens), the answer is no. But if you have a mortgage, the answer is yes. It doesn’t matter whether your condo is on the ground floor or the 20th floor…your lender is going to require that a flood insurance policy is in place. Of course the risk level decreases the higher up your condo is located.

Here’s some good news: typically the condo association purchases a flood policy so you wouldn’t need to have the extra policy. If for some reason the association does not have a flood policy (which is highly unlikely) and you have a mortgage, your lender is going to require you to purchase a flood policy to protect their interest in your condo.

Are there occasions when you should purchase it? Sure. There is always a chance that mold can climb up through exterior walls especially when the power has gone out and flood waters are high, damaging your condo. Also, if you’re the “cautious type” and want an added layer of protection over your assets, purchasing a flood policy is a good idea.

What if my neighbor’s pipe breaks and floods into my condo? Will my assets be protected?

In condo living situations, this happens frequently. The answer is yes, if you have your own condo insurance. Insurance companies typically treat this situation as follows: It doesn’t really matter who’s pipe it is, your insurance pays for damage to your place, and his/her insurance pays for damage to his/her place. If you or your neighbor do not have your own condo policies, the situation will probably go to litigation, depending on the depth of damage.

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A flood insurance policy will not cover damages from a pipe that burst. Flood insurance covers damages from heavy rains, when rivers overflow, when ocean waves come onshore, when snow melts too fast, or when dams and levees break.

Like homeowner’s insurance, condo insurance companies offer discounts that you can take advantage of, most notably for gated communities, manned security guards, and newer construction in Daytona Beach.

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Condo master policies can be difficult to understand so choose a knowledgeable insurance agent who can clearly explain it to you.

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Flood Insurance in Daytona Beach

What is a flood?

According to FloodSmart.gov (the official site of the National Flood Insurance Program), a flood is a general and temporary condition where 2 or more acres of normally dry land or two or more properties are inundated by water or mudflow. Your flood risk isn’t just based on history: it’s based on many factors that include current weather patterns, natural changes in the environment, and recent development in your community.

By now you’ve probably gathered that insurance for homeowners, renters, and condo-owners will not reimburse you for your losses in the event of a flood. A separate policy specifically for floods is needed.

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Why do I need Flood Insurance in Daytona Beach?

Technically, you don’t have to purchase flood insurance if you own a home “free an clear.” You also don’t have to purchase flood insurance if you rent. However, there are times when other entities require that you purchase flood insurance as part of an agreement with them. For example:

• If you’re financing a home or currently have a mortgage and your home or condo is located in zones VE, AE, and A, your lender will mandate that you purchase flood insurance because they have an interest in your home, since they’re lending you money to eventually own it.

  • To find out your flood risk, visit www.volusia.org.

  • Do not use this map as the sole reason for purchasing or not purchasing flood insurance. Consult with an agent first.

• Some condo associations in Daytona Beach located in flood zones VE, AE, and A may mandate that you purchase flood insurance as a prerequisite to live there.

• While many landlords are requiring their tenants to purchase renters insurance, some landlords in flood zones VE, AE, and A take it a step further and require tenants to purchase flood insurance.

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Even if your home, condo, or rental is located in Zone X (an area less likely to be flooded than zones VE, AE, and A, still you should strongly consider purchasing flood insurance. Here’s why:

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Facts about Floods and Associated Risks

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• In the past 5 years, all 50 states have experienced floods or flash floods.

• Everyone lives in a flood zone.

• Homeowners’ insurance does not cover flood damage.

• If you live in a Special Flood Hazard Area (SFHA) or high-risk area and have a federally backed mortgage, your mortgage lender requires you to have flood insurance.

• Just a few inches of water from a flood can cause tens of thousands of dollars in damage.

• Flash floods often bring walls of water 10 to 15 feet high.

• A car can easily be carried away by just two feet of rushing water.

• New land development can increase flood risk, especially if the construction changes natural runoff paths. The development of Daytona Beach and other cities in Florida changed the natural runoff paths of the Everglades and are more susceptible to flooding.

• In a high-risk area, your home is more likely to be damaged by flood than by fire.

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Facts about Flood Insurance Policies & Claims

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• Even though flood insurance isn’t federally required, anyone can be financially vulnerable to floods. In fact, people outside of mapped high-risk flood areas file over 20-percent of all National Flood Insurance Program flood insurance claims and receive one-third of Federal Disaster Assistance for flooding.

• From 2005 to 2014, total flood insurance claims averaged more than $3.5 billion per year.

• When Daytona Beach participates in the Community Rating System (CRS), you can qualify for an insurance premium reduction discount of up to 45% if you live in a high-risk area and up to 10% in moderate- to low-risk areas.

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• Since 1978, The NFIP has paid nearly $50 billion for flood insurance claims and related costs (as of 2/17/15).

• There are currently more than 5.3 million flood policies in force across more than 22,000 communities in the U.S.

• The two most common reimbursement methods for flood claims are: Replacement Cost Value (RCV) and Actual Cash Value (ACV). The RCV is the cost to replace damaged property. It is reimbursable to owners of single-family, primary residences insured to at least 80% of the building’s replacement cost.

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• Federal disaster assistance is usually a loan that must be paid back with interest. For a $50,000 loan at 4% interest, your monthly payment would be around $240 a month ($2,880 a year) for 30 years. Compare that to a $100,000 flood insurance premium, which is about $400 a year ($33 a month).

• A Preferred Risk Policy provides both building and contents coverage for properties in moderate- to low-risk areas for one low-price.

• In most cases, it takes 30 days after purchase for a policy to take effect, so it’s important to buy insurance before the storm approaches and the floodwaters start to rise.

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If inland flooding from tropical storms and hurricanes can be a major threat to communities hundreds of miles from the coast, think about how “at risk” your property on the World’s Most Famous Beach. Of the city’s 65 square miles, 9.6% is water. The Atlantic Ocean sits right on the edge of Florida’s “Space Coast” and the Halifax River bisects the city. Plus Reed Canal and the Tomoka River could overflow their banks in a severe storm.

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Private Market Flood Insurance – An Alternative to FEMA Flood Insurance

If you’re finding that your FEMA flood insurance policy doesn’t provide you with enough value, then ask for private market flood insurance (PMFI). PMFI is a simple alternative to FEMA flood insurance. Up until 2015, no one was really offering PMFI except on high value homes. But today, FEMA has some competition which is great if you’re stuck paying 5 or 6 thousand dollars for a FEMA flood policy. Sometimes PMFI companies can quote a premium that’s significantly less and save the day. Here are some of the benefits of private market flood insurance:

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• Lower premiums for most older homes and businesses

• No surcharges for seasonal homes

• Identical coverage as FEMA policies

• Same claims adjusters as FEMA policies

• Quote your own premium instantly

• Same day policies available

• No elevation certificates required

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Wait…what’s an elevation certificate? We’re glad you asked!

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Daytona Beach, Florida Elevation Certificate Info

Structures built in a Special Flood Hazard Area – including A, AE, and AH zones – or a Coastal High Hazard Area – including VE zones – must have a FEMA Elevation Certificate to prove that the structure meets the required Base Flood Elevation. A FEMA Elevation Certificate is required during construction before the first permanent horizontal member is placed. A final construction Elevation Certificate is also required. The Elevation Certificate is also required for new flood insurance policies from the National Flood Insurance Program. Elevation Certificates can be prepared by local, licensed surveyors.

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Many homes in Daytona Beach (especially in the historic districts of Daytona Beach Surfside, El Pino Parque, Seabreeze, South Beach Street, and South Peninsula) were built prior to the FEMA map creation date, so you may be eligible for a “grandfathered” rate. Across the state of Florida, 1978 is typically when FEMA began creating their flood maps. Check to see when your map was created or contact us. We may be able to help.

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Auto Insurance – Daytona Beach, FL

5 Ways to Get a Better Car Insurance Rate in Daytona Beach

Probably the second-most common type of insurance we quote for residents of Daytona Beach is auto insurance. Home insurance being the first. But it’s not just for residents. Business owners in Daytona can also count on us for a competitive commercial auto insurance quote. Either way, EVERYONE wants to know how they can save on auto insurance.

One thing you should know first and foremost is that the “call, click, and save” era of car insurance may be hurting you in the long run. Shopping online and naming your own price could get you a low rate but eventually it may hurt you if you drop your coverage levels.

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1. Keep coverage at appropriate levels. Insurance companies will start to see you as someone that does not value a product if you keep very low coverage levels, so over time keeping coverage levels higher will net you better discounts.

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2. Don’t jump ship between carriers. Staying with the same company for at least one or two years is favorable to your rate.

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3. Pay premiums off in full.

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4. Use auto pay or an electronic draft if you make monthly payments.

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5. Do not make frivolous claims. If the damage is on $700 and your deductible is $500 it’s probably not a good idea to call in that claim.

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