Home Owner Insurance

Is Cloth Wiring insurable for Homeowners Insurance?

by Raymond J. Sanchez

Cloth Wiring Insurance

Insuring a home today in Florida is becoming an increasing hard objective especially when it comes to older homes.  Broward and Dade county adopted (FBC) Florida Building Code standards in 1994 while the rest of the counties followed suit in 2002.  Most older homes built in Florida were built by (SBC) Standard building code  and do not meet the standards of most insurance companies.   A 4 point inspection qualifies older homes for homeowners insurance.  Today we are going to discuss “Cloth Wiring” and how most inspectors misclassify this common problem especially in South Florida.  So the question is Cloth Wiring insurable for Homeowners Insurance?

Cloth Wiring is considered a fire hazard for most insurance companies due to the  the wiring overheating the cloth and starting a fire. The cloth wiring that most electricians consider dangerous is where the cloth is the only outside barrier to the metal conductor. Cloth wiring considered extremely dangerous and replaced immediately. Most cloth wiring found in houses may not be dangerous. They usually have Romex wrapped around the wire and it would be covered by cloth sheathing.  Below is an example of what is found in most 4 point inspections.


Cloth wiring insurance

Cloth wiring Insurance

Cloth wiring insurance

Cloth wiring Insurance

If you have a 4 point inspection and it comes back with cloth wiring. You will need an electrician to inspect the wiring and determine if it is necessary to replace. Most electricians will not see the need to replace the wiring as long as the wiring is covered in romex.

So to answer the question about is cloth wiring insurance for home-owners, the answer is yes by most accounts.  Most insurance companies still will not accept a letter from the electrician deeming the wiring safe,  their is still a limited market that would be able to write the insurance with great coverage.  Always make sure that you call your agent to discuss the requirements and price quotes before proceeding.  If you have any further questions about Cloth wiring insurance please call Florida Statewide Insurance, Inc. at 954-734-7429 for cloth wiring questions or any other insurance you may be interested in.

6.6 Million Homes in the United States at Risk of Hurricane Storm Surge Damage

In a recent article published on CoreLogic, more than 6.6 million homes on the Atlantic Coast and Gulf Coast are at risk of storm surge inundation from a hurricane. An estimated $1.5 trillion is needed for a total reconstruction, should this natural disaster strikes and affects these homes.

The analysis from CoreLogic finds that around 3.8 million homes situated on the Atlantic Coast and an additional 2.9 million homes on Gulf Coast are prone to hurricane storm surge flooding. In terms of total reconstruction cost value (RCV), an estimated $939 billion will be needed for affected Atlantic Coast homes while $549 billion will be allotted for Gulf Coast homes.

What are the most vulnerable states to hurricane storm surge flooding?

Yes, you guessed it right. Florida has the highest total number of properties at different risk levels. Around 2,509, 812 properties in Florida are prone to the destructive effects of hurricane storm surge. Aside from Florida, other states that have the highest total number of properties at risk are Louisiana, New York, New Jersey, Texas, and Virginia.

In terms of total reconstruction cost value (RCV), the five states that have been found by CoreLogic to have the highest RCT for homes at risk are the following: Florida with $491,119,183,016, New York with $177,398,620,779, Louisiana with $162,096,659,527, New Jersey with $126,829,146,685, and Virginia with $91,049,049,641.

You can find more information on the study by clicking here.

How to protect your South Florida property investment?

You may be required by law to have a flood insurance coverage for your South Florida property if it is situated in an area with a high risk of flooding. You should be aware that flood insurance is not included in homeowner’s insurance policies. This is purchased separately.

Flood insurance providers in Florida conduct studies on flood risks by studying topographical maps that show flood risks in areas like lowlands, floodways, and floodplains. In South Florida, residents enjoy the benefits of living close to the coast, but this location is so flat that a sea level rise of 5 to 7 inches can lead to destructive problems, according to Dr. Leonard Berry, former director of the Center of Environmental Studies at Florida Atlantic University.

If your property is situated in an area where there is high risk of flooding, you should get the best and most affordable flood insurance in South Florida. If you need a flood insurance quote for your South Florida property, contact us through 954-734-7429. We’ll make sure that your property gets the right coverage at the right price!