In a significant move, two insurers from Florida have launched a fresh insurance program aimed at providing “affordable, turnkey insurance options” for homebuyers facing challenges in the state.
Earlier this month, Security First Insurance and Embark MGA unveiled a new program that incorporates insurance quotes into the homebuying and mortgage qualification process. This initiative aims to simplify the process for homebuyers seeking coverage while purchasing a property, addressing the growing challenges faced in the Sunshine State.
The Significance of the Situation
Florida is currently facing a significant insurance crisis, causing homeowners to urgently seek coverage options.
Insurance costs have surged in recent years, fueled by an increase in the frequency and intensity of extreme weather events, rampant litigation, and pervasive fraud. Due to the increasing threats associated with climate change, private insurance companies have reduced their coverage or completely exited the Sunshine State, leaving residents with few alternatives other than the state’s last-resort insurer, Citizens.
Security First and Embark announced that their new program arrives “at a pivotal moment for builders in Florida.” Recent surveys conducted by the two companies indicate that many homebuyers in the state view insurance as a significant obstacle when it comes to buying a property.
The recently launched homeowners’ insurance program from the two Florida companies features a HO5 type, which is recognized as the most extensive coverage option in the market, often referred to as a comprehensive policy.
Typically, HO5 policies cover the primary residence, additional structures on the property, personal possessions, liability protection, medical payment coverage, and loss of use protection.
The collaboration with Embark MGA has facilitated the preloading of builders’ home inventory, community specifics, and model information, allowing for “precise, bindable” insurance quotes “without the necessity for extensive applications,” according to the companies.
The platform facilitates the electronic exchange of insurance details with mortgage and title partners, aiming to minimize delays in the closing process.