Insurance Premiums Increase 130%?

Discussion in 'Real Estate' started by tivoli, Feb 1, 2006.

  1. tivoli

    tivoli Beach Lover

    Joined:
    Jul 10, 2005
    Messages:
    86
    Likes Received:
    4
    Location:
    Evansville, IN & Seagrove Beach, Part-Time
    Today's Wall Street Journal Marketplace today
    indicates the Florida Panhandle along the Gulf
    Coast, premiums could rise by nearly 130%. WOW! :bang:
    Citizens Insurance is in a financial pinch, with a deficit
    in 2005 that could hit $1 billion or more. Stated some
    insurance companies have stopped writing new coastal
    homeowners policies in states of NY and MA.
     
  2. Smiling JOe

    Smiling JOe SoWal Expert

    Joined:
    Nov 18, 2004
    Messages:
    31,648
    Likes Received:
    1,771
    Mine increased 80% two weeks after Hurricane Ivan (2004) (only about 3 months into my contract) and another 80% in July '05. It would not surprise me if it goes up another 130% to cover losses.
     
  3. SHELLY

    SHELLY SoWal Insider

    Joined:
    Jun 13, 2005
    Messages:
    5,775
    Likes Received:
    802
    I watched this train coming down the tracks for the last couple of months. The real "unknown" is how it's going to shake out in the vacation rental market as owners try to pass costs along to their customers.

    My heart breaks for the poor "in land working stiffs" in the area who are going to take a hit in order to subsidize beach house/condo insurance.
     
  4. Coast is Clear

    Coast is Clear Beach Lover

    Joined:
    Jun 26, 2005
    Messages:
    83
    Likes Received:
    0
    Location:
    Atlanta/Seaside
    My premium only went up 20% which I was very thankful for. I am not directly on the water, but about 3 minute walk.

    I spoke to a friend who has a house on St Simons in GA, and their wind policies are astronomical in comparison. A multiple of my premium.
    He is on a marsh.

    So while Citizens is bad, private policies in other states might be much worse.
     
  5. Franny

    Franny Beach Fanatic

    Joined:
    Mar 27, 2005
    Messages:
    4,048
    Likes Received:
    205
    Location:
    Pt. Washington
    We just received notice of a 100% increase on our house in Pt Wash but only 10% for our rental near the gulf?? :dunno:
     
  6. imasunbum

    imasunbum Beach Fanatic

    Joined:
    Oct 16, 2005
    Messages:
    412
    Likes Received:
    1
    Franny, who to you have your rental near the gulf with, if I may ask?
     
  7. DBOldford

    DBOldford Beach Fanatic

    Joined:
    Jan 25, 2005
    Messages:
    990
    Likes Received:
    15
    Location:
    Napa Valley, CA
    Ours went up 250 percent and another friend said they had a 380 percent increase, although I wonder if she did the math right on that one. It's not a happy event, but the pain is shared by everyone in the State, not just people on the coast. After all, wind damages can be as bad or worse inland as on the water. Also, as bad a rap as Citizens gets, at least they are there for us. Florida really does take care of folks in this department, requiring that carriers provide coverage or providing an alternative. Could be a lot worse.
     
  8. Beach Runner

    Beach Runner beats on hood

    Joined:
    Jul 9, 2005
    Messages:
    15,300
    Likes Received:
    804
    Location:
    Near the ATL and in SoWal as often as possible
    Ours has been cancelled every year because of being too close to the Gulf, so every year we have to scrounge around for new coverage. I can't even deal with it right now. It's SO expensive. I'll be like Scarlett O'Hara and deal with it another day. If I computed the percent increase, I might faint!

    Where's my mint julep?
     
  9. Wastin Away

    Wastin Away Beach Lover

    Joined:
    Sep 20, 2005
    Messages:
    189
    Likes Received:
    14
    We just got new insurance on our home which is about 50 yards from the Gulf. It cost us about 150.00 more than what we had been previously paying with the same coverage. The company we went through is Kite Insurance out of Pennsacola. They have been great. Their number is 850-434-8123. You can ask for Kelly Ballard or Chantelle Dupuis. The coverage we got also included wind insurance.
     
  10. Smiling JOe

    Smiling JOe SoWal Expert

    Joined:
    Nov 18, 2004
    Messages:
    31,648
    Likes Received:
    1,771
    I have been hearing that Citizens is the only carrier with wind coverage. Reading this, I am learning differently. Anyone else have another company for wind?
     
  11. Sheila

    Sheila SoWal Insider

    Joined:
    Jan 13, 2005
    Messages:
    5,784
    Likes Received:
    226
    Location:
    Snellville, GA., Seacrest/Seagrove as often as we
    We got a notice from Citizen's in December informing us that on our renewal date our policy would be assumed by Florida Peninsula Insurance Company.
     
  12. Wastin Away

    Wastin Away Beach Lover

    Joined:
    Sep 20, 2005
    Messages:
    189
    Likes Received:
    14
    We were told the same thing until we started looking on our own. Our previous insurance broker (out of Destin) told us that he could not find any other coverage but I guess he just didn't try hard enough. Our business has gone elsewhere.
     
  13. Smiling JOe

    Smiling JOe SoWal Expert

    Joined:
    Nov 18, 2004
    Messages:
    31,648
    Likes Received:
    1,771
    I think they told you that because they don't want to cover homes in the area. This is happening very often. That is easier to say rather than NO, we don't want your home business, but do you have a need for auto coverage? By the way, your autos are not covered by natural disasters in most cases. :shock:
     
  14. Beach Runner

    Beach Runner beats on hood

    Joined:
    Jul 9, 2005
    Messages:
    15,300
    Likes Received:
    804
    Location:
    Near the ATL and in SoWal as often as possible
    We got Lexington (one policy that covers everything) when NorthPointe cancelled us last month (excuse: we were not on a well-traveled road). I was afraid to get Citizen's after all of the negative things I've read about it on this board. But Lexington will only insure your house if the house itself is appraised for $500,000 or more.

    BTW an agent in Destin also told us that Citizen's was the only company that covered wind.
     
  15. SHELLY

    SHELLY SoWal Insider

    Joined:
    Jun 13, 2005
    Messages:
    5,775
    Likes Received:
    802
    When asking advice on insurance companies from neighbors, ask if they've had experience filing a damage claim, getting a prompt inspection of the damage and received <fair> restitution in a timely manner.

    There's a lot of difference between a company who will provide "service" mentioned above and a company whose "service" ends at greeting you with a smile and giving you a mousepad and starlight mint as you hand over the premium check.
     
  16. DBOldford

    DBOldford Beach Fanatic

    Joined:
    Jan 25, 2005
    Messages:
    990
    Likes Received:
    15
    Location:
    Napa Valley, CA
    Wastin' Away, thank you for the information on the insurance carrier in Pensacola. I called them, they took the vital info and promised to get back to me with a quote in 20 minutes. Seems that it is not true that Citizens is now the only option in Florida for wind insurance. I'm not happy that our carrier in Destin told us this without bothering to do the homework. Our agent was a real dynamo, but is out on disability now. So we plan to change the whole kit & kaboodle over to this company if the price is right. Mucho thanks!
     
  17. Rita

    Rita margarita brocolia

    Joined:
    Dec 1, 2004
    Messages:
    5,318
    Likes Received:
    897
    Location:
    Dune Allen Beach
    We went through an Allstate agent to get Citizens, also thinking we had no other choice. :dunno:
     
  18. Lady D

    Lady D SoWal Insider

    Joined:
    Jun 21, 2005
    Messages:
    6,156
    Likes Received:
    186
    Location:
    Memphis, Tennessee, United States
    :eek: I am sure sorry for you guys living along the Gulf. I often think I would like to live down there but I am not so sure! Franny, that sounds to me like they got things backwards on your policy. I would think the 100% increase would be on the gulf rental property, we have been to Pt. Washington to Eden Gardens. Are you on that back water there? And I grumble about our Mayor here and how he is making it hard on everyone to get by. It is constantly a property tax increase and our gas part of our utilities went up 70% they say due to the hurricanes down along the gulf. That is the excuse they used as to why they went up that much. To me it is all greed! This city is totally mismanaged as to who is running everything here! Our city is around 5 million in debt and the county also and it is because of mismanagement. Someone right now is trying to recall the city mayor here. Don't see that happening though. He will have to be 6 feet under before he is out of office!
     
  19. Advance The Man

    Advance The Man Beach Lover

    Joined:
    May 19, 2005
    Messages:
    54
    Likes Received:
    0
    +190% on a six unit rental property 25 miles inland in NE Florida!
     
  20. SHELLY

    SHELLY SoWal Insider

    Joined:
    Jun 13, 2005
    Messages:
    5,775
    Likes Received:
    802
    They Feel Your Pain!
     

Share This Page