Buying a home is exciting—but in today’s Florida market, insurance is one of the most misunderstood parts of the process. Many buyers are surprised to learn that the current insurance costs the sellers pay are often NOT what the buyer will pay.
With a little early planning, those surprises can usually be avoided.
Why the Seller’s Insurance Cost Isn’t Always a Good Guide
One of the most common assumptions buyers make is using the seller’s current insurance premium as a budgeting benchmark. While it feels logical, it can be misleading.
Sellers who have owned their homes for many years may:
- Have older policies with lower rates
- Be grandfathered into coverage no longer available
- Have credits or structures that don’t transfer to a new owner
When ownership changes, insurance is typically re-underwritten, and the premium can change—sometimes significantly.
A Real-World Planning Step That Saves Time (and Stress)
When Patrick works with buyers, he often takes one extra step before the inspection period begins: he asks a trusted insurance contact to provide a tentative insurance quote for the buyer—based on the home as it exists today.
This early estimate helps answer a critical question:
Does this home still work financially once current insurance costs are factored in?
Getting that information early allows buyers to:
- Confirm affordability before moving forward
- Avoid last-minute surprises during underwriting
- Adjust expectations, terms, or strategy if needed
It also helps sellers by reducing the chance of contract delays or cancellations tied to insurance issues discovered too late.
What Typically Affects Insurance Costs
While every home is different, insurance premiums are commonly influenced by:
- Roof age, type, and remaining life
- Wind mitigation features and documentation
- Hurricane protection (impact glass, shutters, doors)
- Claims history associated with the property
- Electrical, plumbing, and HVAC systems
These factors matter whether you’re buying or selling.
Why Timing Matters—Especially for Buyers
Insurance is often finalized after inspection, but waiting until then can compress timelines and create pressure. A preliminary quote during the inspection period helps ensure:
- The mortgage comfortably supports insurance and taxes
- There’s time to explore options if adjustments are needed
- Buyers can move forward with confidence, not guesswork
This isn’t about locking in a final number early—it’s about planning well.
A Note for Sellers
Sellers can benefit from this awareness too. Understanding how your home may be viewed by insurers allows you to:
- Gather roof and permit documentation in advance
- Address maintenance items that may raise concerns
- Reduce the chance of buyer hesitation later in the process
Preparation often leads to smoother transactions for everyone involved.
Good Planning Prevents Surprises
Insurance doesn’t need to be intimidating—but it does need to be considered early. Whether you’re buying your first home, moving up, or preparing to sell, understanding how insurance really works can save time, money, and stress.
At Team Allard Realty, we believe informed decisions make for smoother moves—and better outcomes.