Is a Wind Insurance Waiver Right for You?
With wind insurance rates continuing to climb, many of our Florida Home Equity borrowers are exploring whether they can avoid this growing expense, especially those with significant equity in their properties.The short answer? Maybe. But like many financial decisions, the full answer involves a closer look at the risks and responsibilities involved.
Why Borrowers Are Asking
For some, this isn’t just about saving money. Choosing to self-insure—opting out of wind coverage—means accepting the full financial risk of rebuilding if a major storm causes damage.As your lender, we take your request seriously because it affects both of us. You're trusting your resources to recover in the event of a loss, and we’re asked to assess how that risk might impact the loan we’ve made together.
How We Evaluate Wind Insurance Waivers
When we review a request to waive wind insurance, we look at more than just home equity. We consider:- Whether the land value exceeds your loan balance, which offers us basic protection,
- If the home was built to current Florida building codes, which helps reduce risk, and,
- Whether you have adequate financial reserves, including liquid, accessible assets, to fully recover from a loss—without jeopardizing your long-term financial health.
Let’s Talk Before You Decide
Every property and financial situation is unique. Because of the complexity involved in wind waiver requests, we strongly encourage you to speak directly with your insurance agent as well as one of our risk specialists before moving forward. Additionally, signatures will be required on forms provided by both First American Bank and your insurance agent.We’ll walk you through what documentation is needed and help you understand what waiving insurance really means in practical, financial terms.
To get started, contact one of our Risk Specialists at 847-586-2211 or email [email protected].
Choosing to self-insure is a big decision—and we’re here to help you make it with clarity and confidence.
