Coastal Closing Curveballs
A 5% wind/hail deductible usually means 5% of this amount — not 5% of the claim.
What is the dwelling coverage amount / Coverage A?
On a $400,000 dwelling, a 5% wind/hail deductible is $20,000 out of pocket.
This type of carrier may offer the best or only quote on a tough property, but is not backed by the state guaranty fund.
What is a non-admitted or E&S carrier?
Non-admitted does not automatically mean bad, but lender acceptance should be confirmed early.
A new roof does not automatically qualify as this stronger coastal construction standard.
What is a Fortified roof?
Fortified requires specific installation standards, documentation, and certification.
This can make a home harder to insure even when the roof “looks fine” and the inspection does not call it failed.
What is roof age?
Many carriers care about documented roof age, not just visible condition.
This loss settlement method subtracts for age and depreciation.
What is Actual Cash Value / ACV?
A roof or dwelling claim paid on ACV may leave the borrower with a much larger out-of-pocket gap.
A property that looks like a regular house but is actually this type of structure may require a completely different insurance market.
What is a manufactured home, mobile home, or modular home?
Construction type matters. A misclassified property can cause major delays close to closing.
During hurricane season, carriers may stop allowing new policies to be bound when a named storm enters this area.
What is the binding restriction zone / moratorium zone?
Even a ready-to-close loan can get delayed if insurance was not bound before the storm restriction.
This insurance value is not the same thing as purchase price, appraised value, or loan amount.
What is replacement cost?
Insurance is based on what it costs to rebuild the home, not what the home sells for.
This older plumbing material is a common underwriting concern and can make coverage harder to place.
What is polybutylene plumbing?
Some carriers will decline homes with polybutylene unless it has been replaced.