Stormy Weather

If you’re house hunting in coastal Florida, there’s more to think about than just the quality of the schools and the crime rate.

You also need to consider storm surge, strong winds, flooding and insurance costs as well as governmental regulations that could impact your home value, says Sarasota builder/remodeler Joseph Angeleri of Joseph Angeleri Inc.

“Before you make an offer on a home,” Angeleri says, “check its age and see if it’s up to code for hurricane compliance. Check to see if you’re in a wind zone that makes it difficult to buy homeowners insurance.”
Also, he adds, find out if the home is in a floodplain. Angeleri and other experts say homeowners need to know upfront about the costs and potential hazards of coastal living.

“Buying a home is typically the largest single investment people ever make,” says Julie Rochman, president and CEO for The Institute of Business and Home Safety (IBHS), a Tampa-based nonprofit research organization supported by the insurance industry. “While researching a neighborhood or town, it’s absolutely critical for you to learn what natural disasters, such as wildfire, windstorms, hail, or flooding may impact the area.”

The Institute runs the Fortified for Safer Living (FSL) program, which focuses on helping builders construct stronger, more disaster-resistant structures. The Institute recently unveiled new guidelines to protect property from the effects of hurricanes.

The guidelines, which are available on the Web site www.disastersafety.org, were updated based on information gleaned from the group’s field research in the aftermath of hurricanes Gustav and Ike in 2008.

“IBHS wants to help property owners take control and minimize their risk by making their homes and businesses more hurricane-resistant,” Rochman says. “The guidelines provided in the brochures are based on research that has identified the areas of a building most at risk from hurricane-force winds and rains.”

Green building programs such as the Florida Green Building Coalition (FGBC) encourage builders to comply with FSL standards, which concentrates on vulnerable areas such as the building envelope, foundation, roof and elevation.

Protecting homes from hurricane damage is actually a green concept because a home that can better withstand the ravages of time and/or disasters will have less of an environmental impact over its lifetime. Stronger, long-lasting building products and materials need not be replaced as often so you’ll use fewer raw materials and, therefore, less energy will be consumed manufacturing those products.

Homeowners can also use information on the Institute’s Web site to guide them in retrofitting their homes to enhance their sturdiness.

“Buyers need to know what they’re getting into,” says Angeleri, who is an FGBC member. Homeowners insurance in Florida can be difficult to obtain and costly, he says. Plus, flood damage isn’t usually covered.

The cost of buying flood coverage will vary, depending upon how much insurance is purchased, what the policy covers and the location of the property. If the home you like is located in an area at high risk for flooding, and if you plan to get a mortgage through a federally regulated or insured lender, you’ll be required to purchase a flood insurance policy. 

Flood insurance premiums are calculated based on several factors, including the age of the home and the number of floors in the home. The Federal Emergency Management Agency (FEMA) manages the National Flood Insurance Program, which makes federally backed flood insurance available.

Finding out how you’ll insure your new home is the most important step, says Sarasota remodeler John King. “Homebuyers need to do this before they even make an offer,” says King, who is president of Rampart Homes. “Then, they need to have a home inspector evaluate how structurally sound the home is.”

Make sure you talk to a qualified remodeler who has done multiple FEMA projects, King says. Get an appraisal, and understand that an appraisal for the bank is not the same as an appraisal for FEMA, he adds.

“A bank appraisal won’t qualify for a FEMA appraisal,” King notes. “FEMA appraisals are not worried about market value. FEMA appraisals are worried about what it will take to replace the home in a like manner at today’s cost. So if the home has plaster walls and terrazzo floors, which are very expensive today, those things add a lot of value to the replacement costs.”

If the home needs to be updated, King says, find a remodeler who understands all the local, state and federal rules and has experience in “hardening” homes. Although a home can be retrofitted to be more storm-resistant—which adds resale value—the regulations are complicated, and you’ll need to bring the home up to code.

And here’s something else to think about before you buy. “The FEMA flood maps are being digitally enhanced,” says King. “And in 2011, thousands of people who right now live in a zone that doesn’t require flood insurance are going to be in the floodplain, and are going to be required to get flood insurance.”

King says it’s vital for buyers to understand the costs of homeownership in Florida – especially the costs of owning waterfront property. He says some homebuyers who have consulted with him “had no idea there were all these rules, regulations and quirks in the system that could ultimately get them in difficult situations.”  

Before you buy, think about what remodeling you want to do now and might want to do in the future. “FEMA says you can do project one now and then project two later, as long as they aren’t directly related,” King says. “Otherwise, the 50 Percent Rule takes effect.”