Insurance Premiums Increase 130%?

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

  1. Advance The Man

    Advance The Man Beach Lover

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    I am selling all of my income producing properties this year. The six unit is the first to go. I think the real difficulty is finding not someone who wants to buy it, but someone who can find insurance. I'm sticking with vacant land and other paper investments.

     
  2. SHELLY

    SHELLY SoWal Insider

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    I know what you're talking about--the days of "renting for fun and profit" in Florida (residental and vacation) are numbered.
     
  3. Franny

    Franny Beach Fanatic

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    Sorry..I just saw your question. We rent our townhome on Eastern Lake long term. so of course we do it ourselves.
     
  4. Franny

    Franny Beach Fanatic

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    So did we. And another company is picking up our rental property in July per our agent.
     
  5. Franny

    Franny Beach Fanatic

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    We are on a bayou about 5ft deep in Pt. Washington that has never flooded to my knowledge but the townhome is on Eastern Lake and the "property" flooded during Opal. Doesn't make a lot of sense to me either.
     
  6. Franny

    Franny Beach Fanatic

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    Hey we have vacant land for sale Advance Man when you are ready!! :D
     
  7. yippie

    yippie Beach Fanatic

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    Got my Homeowners policy renewal yesterday. My insurance went from 2100.00 a year to 5000.00 per year!!!!!
     
  8. SHELLY

    SHELLY SoWal Insider

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    People who lived in "inland" waterfront properties on the western side of the panhandle didn't have any flooding during Frederick, Erin, Opal, etc. BUT when Ivan hit just west of Pensacola Bay, the storm surge was funneled directly up bay, wiped out the I-10 bridge, and sent water flooding into the inland waterways. Most all the properties along the bay AND the along miles of inland waterways received some type of flood damage--many homes were destroyed. People said, "I've lived here for X number of years, and we NEVER had flooding before." I wouldn't discount the chance of a hurricane doing the same in the Destin channel.

    Why Never to say "Never"
     
  9. SHELLY

    SHELLY SoWal Insider

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    OUCH! Yippie...I felt your pain! :eek:
     
  10. beachmouse

    beachmouse Beach Fanatic

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    You aren't going to get that kind of funneling effect in Choctaw Bay. It's essentially a shallow rectangle- The north shore of the bay is 20-25 miles long, and the bay is about 5 miles wide. The kind of flooding that took out the I-10 bridge during Ivan and caused so much damage to downtown Mobile during Katrina happened in areas where the bays are essentially triangular- a wide area where they empty out into the Gulf, and an extremely narrow point on the north head of the bay.

    Choctaw Bay as it is, you're talking about waterfront and low-lying properties getting some sort of normal storm surge. What happens in funneling is that you get a wall of water possibly 30 feet higher than official storm surge as the water from the base of the triangle gets pushed toward a single point, and it was the movement of such a huge amount of water toward such a small area that caused the Bay damage that it did.
     
  11. ShallowsNole

    ShallowsNole Beach Fanatic

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    Choctawhatchee Bay gets pretty high at my house during storm surge - we planned for that when we built the new house, and thankfully it didn't come over the porches during Ivan. One can expect the causeway on 331 to be under water too - my husband got caught between the little bridge and the big bridge during just after Opal passed :eek:

    If something like Katrina hit closer to us...all bets are off. :sosad:
     
  12. yippie

    yippie Beach Fanatic

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

    That is not true. My insurance is with Nationwide and they cover wind. The deductable is higher when the claim is a result of wind. 2% of the value of your home is the wind deductable. Otherwise, the deductable is $1000.00.
     
  13. Beach Runner

    Beach Runner beats on hood

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    But how close to the Gulf are you? That's a key determining factor regarding whether they'll insure you or not. And the deductible. Our deductible would, like, buy an S-500.
     
  14. Amp22

    Amp22 Beach Fanatic

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    And what is that?
     
  15. Smiling JOe

    Smiling JOe SoWal Expert

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    http://images.google.com/images?q=tbn:K3TqPCG35OUJ:www.laroyale-sa.ch/images/limousine/s500.jpg
    Mercedes S500


    ...I know nothing about BR's home, but keep in mind, the deductible is based on insured value of the home and its contents, not the land. I know their are some pricey homes around here, and I would not doubt for a moment that some deductibles may buy a Mercedes S500.

    The 2% deductible has been around for a while and is nothing new. The new part is that construction costs have skyrocketed over the last few years, esp the last 12 months, and that changes the costs of replacement. My guess is that most people do not have enough coverage to replace their homes, unless they bought the policy in the last six months.
     
  16. Miss Kitty

    Miss Kitty Meow

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    Would it include a Brabus? :D

    BR...are you being paid for product placement? You are good.
     
  17. Jdarg

    Jdarg SoWal Expert

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    What's a Brabus? Answer me in the lounge please though:oops:
     
  18. yippie

    yippie Beach Fanatic

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    Within 1500 feet. I am in the "danger zone"!
     
  19. DBOldford

    DBOldford Beach Fanatic

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    The criteria is whether you are within 2,500 ft. of the water's edge. Most people are insured for replacement of their homes (plus contents) at the average cost of per sq. ft. construction. Obviously, this does not cover land costs, which are the biggest part of one's property value if you are near the water. I figure that the value of our house, which is a very large one, is about one-quarter of the overall value, with the land being the big nut. Of course, we don't know if land near the water will be as highly desirable as it has been historically if all these storms continue to ravage coastlines. My bet is that it will be, however, because there's only so much of it. We have watched coastlines erode and topple for years in CA and people are still bidding against each other to snap the land up. I know we wanted a house that at least had a very good view and reasonable proximity to the beach, or none at all. And we have had no damage at all, but for some storm surge on the ground floor and into the swimming pool during Ivan. A cleanup, but okay. Still worth it, for our nickel.
     
  20. Mermaid

    Mermaid picky

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    The homeowner's annual meeting for our condo is scheduled for next month and we've already been warned that our dues are going up. Insurance premiums, of course. It will be "interesting" to see what we'll be shelling out from now on in. :sosad:

    I think we're all finding out that paradise does not come without its price.
     

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