Buying a Home in Tampa Bay? 5 Insurance Deal-Breakers to Look For
The Tampa Bay real estate market is competitive. When you finally find that dream bungalow in Seminole Heights or that perfect pool home in Clearwater, the excitement takes over. You make an offer, it gets accepted, and you start measuring for curtains.
But then comes the "Insurance Contingency."
In Florida, the insurance market has very specific "deal-breakers" that can turn a dream home into a financial headache. Many buyers don't realize that if a home is uninsurable, you can't get a mortgage.
Before you fall in love with a property, here are the 5 things you (and your Realtor) need to check to avoid a last-minute crisis.
1. The "Magic Number" for Roofs
In most states, a roof is "old" when it leaks. In Florida, a roof is "old" when it hits a specific birthday.
Shingle Roofs: If it is 15+ years old, you will struggle to find coverage. Even if it looks perfect, many carriers will require you to replace it before they bind the policy.
Tile/Metal Roofs: These have a longer lifespan (usually 20-25+ years), but age is still the #1 factor carriers look at.
Pro Tip: Ask for the "permit date" of the roof immediately. Don't rely on the listing saying "Newer Roof."
2. The Plumbing: "Poly" is a Problem
If the home was built between the mid-70s and mid-90s, check for Polybutylene Plumbing (often called "Poly").
These pipes are prone to bursting from the inside out. Almost no private insurance carrier in Florida will write a new policy for a home with Poly pipes. If the 4-Point Inspection finds them, you will likely need to re-pipe the home (costing $5,000 - $10,000) before closing.
3. The Electrical Panel
Certain electrical panel brands from the 70s and 80s are automatic "Do Not Bind" flags for insurers due to fire risks.
Watch out for: Federal Pacific, Zinsco, and Sylvania.
The Fix: A panel swap is usually a quick fix ($1,500 - $2,500), but you need to negotiate who pays for it—you or the seller.
4. Water Heaters: The 15-Year Rule
This is a smaller issue, but a common one. If the water heater is older than 15 years, many carriers will ask for it to be replaced. It’s not a deal-breaker, but it’s an extra expense you should budget for.
5. Prior Claims History (CLUE Report)
The house has a history, and that history follows the address, not the owner. If the previous seller filed two water damage claims in the last three years, you might be inheriting a "high-risk" property designation. Ask your agent to run a CLUE Report (Comprehensive Loss Underwriting Exchange) to see if there are any ghosts in the property's past.
Don't Let Insurance Kill the Deal
This sounds scary, but it doesn't have to be. Issues with roofs or panels don't mean you can't buy the house, it just means you need a plan.
I work directly with buyers and Realtors to review 4-Point Inspections before you are stuck in a contract. I can tell you exactly what needs to be fixed to get the best rate.
Found a house? Send me the address or the inspection report. I’ll give you the honest "Insurance Reality Check" within 24 hours.