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Old 01-11-2012, 06:20 AM
 
Location: Cape Coral, FL
646 posts, read 1,434,252 times
Reputation: 374

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Answer: Yes. Yes, it is.

I usually write to help others relocate here, tell them about the area and the great deals that are available. Everyone should know what to expect when purchasing a home, especially in Florida.

Has anyone really thought about buying and finding out what insurance would run them in years to come on their home? No. It is impossible to calculate what the future holds, esp. in the insurance industry. I ask this, because our property insurance has doubled in less than a 4yrs period. I just received a note that my mortgage jumped $182/mth. For many that is a huge hike for monthly costs, that are unexpected.

Insurance in our state needs reform. I have read many articles about what would happen if we had another Hurricane move through and what that would mean for our Florida Tax payer. It is quite scary.

I just thought I would share my personal experience. I must add that we haven't been through a hurricane here, we have no claims on our insurance. Nothing. They claim that "building materials" have gone up. I joked around and asked which ones and he said, "WOOD!". Really? I live in a CBS home, with a few sticks holding up my roof. Does it really cost 50k more to build my home today vs. last year?

As you can tell, I'm annoyed at this. I don't think it is right that they can raise your rates as much as they do without reason. Sure, they must need the money, but so do the Residents of Florida.

Do your homework when buying. Know that the property insurance will go up as values go up. Know that your insurance will go up substantially. Buy a home you can afford.
I'll get off my soapbox now. Thanks for listening and as always, make it a great day!!!


Rebuilding costs fuel insurance price hikes - Sun Sentinel

Insurance a hot topic on Florida
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Old 01-11-2012, 07:34 AM
 
Location: Cape Coral, Florida
693 posts, read 1,698,852 times
Reputation: 364
Quote:
Originally Posted by CCRESI View Post
Answer: Yes. Yes, it is.

I usually write to help others relocate here, tell them about the area and the great deals that are available. Everyone should know what to expect when purchasing a home, especially in Florida.

Has anyone really thought about buying and finding out what insurance would run them in years to come on their home? No. It is impossible to calculate what the future holds, esp. in the insurance industry. I ask this, because our property insurance has doubled in less than a 4yrs period. I just received a note that my mortgage jumped $182/mth. For many that is a huge hike for monthly costs, that are unexpected.

Insurance in our state needs reform. I have read many articles about what would happen if we had another Hurricane move through and what that would mean for our Florida Tax payer. It is quite scary.

I just thought I would share my personal experience. I must add that we haven't been through a hurricane here, we have no claims on our insurance. Nothing. They claim that "building materials" have gone up. I joked around and asked which ones and he said, "WOOD!". Really? I live in a CBS home, with a few sticks holding up my roof. Does it really cost 50k more to build my home today vs. last year?

As you can tell, I'm annoyed at this. I don't think it is right that they can raise your rates as much as they do without reason. Sure, they must need the money, but so do the Residents of Florida.

Do your homework when buying. Know that the property insurance will go up as values go up. Know that your insurance will go up substantially. Buy a home you can afford.
I'll get off my soapbox now. Thanks for listening and as always, make it a great day!!!


Rebuilding costs fuel insurance price hikes - Sun Sentinel

Insurance a hot topic on Florida
That is totally insane. The odds of having to rebuild an entire house that is not either in a flood plain or directly on the ocean or some other body of water that would have a huge storm surge is astronomical. The likelihood of a house built by concrete block is not very high in any location for that matter, even if it did wipe out the house, chances are the slab would still remain. The cost of a shell of a home with CBS construction and a truss roof is far less than $20,000 for materials and we all know construction workers don't make much in Florida, so I don't get the logic. I own a CBS home that was built in 1963, it has not sustained any hurricane damage in almost 50 years and I, nor my family has filed a claim on this house in the almost 20 years we have owned it. I would say the home owners insurance goes up on average every 2-3 years. It should be the other way around, 20 years with no claims should equal a reduction in premiums. Honestly over 20 years, I could have put my insurance money in CDs, stock market, or some other interest bearing account, and right now if something happened and my house got destoyed I could pay cash, to have my house rebuilt, replace all my contents, and still have money left over. The money is in the property, definitely not the house or contents. A hurricane may destroy the house, but the land it was built on is still mine.
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Old 01-11-2012, 08:26 AM
 
518 posts, read 1,039,540 times
Reputation: 213
Just another reason to pay cash for your house and take the risk of loss on your own dime. If you can afford that option.Most home Insurance is nothing but legal organized crime. The large amount of home insurance claims are for floods and that is paid for by us the tax payers.
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Old 01-11-2012, 08:36 AM
 
Location: Cape Coral, FL
646 posts, read 1,434,252 times
Reputation: 374
Exactly!

Crazy to think they can just do this to people. Just annoyed to think that they are even doing this to those that are scraping to get by.


Let's say a house just like mine goes for roughly $120k in today's market. Insurance believes it will take $260k to rebuild. That is a big difference. Just give me 120k and I'll buy another home. pfft.


I don't have the answers. I just know something needs to be done. People aren't happy about this one bit.
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Old 01-11-2012, 11:25 AM
 
Location: Cape Coral
5,495 posts, read 6,074,975 times
Reputation: 2215
Really what we are paying for are all the disasters that happen throughout the country. If the insurance companies don't pass on the costs they will close their doors. Even places that never have natural disasters are paying high rates.
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Old 01-12-2012, 05:04 AM
 
Location: Twin Cities, MN 55337, Outing, MN 56662, and Cape Coral, FL 33904
96 posts, read 176,001 times
Reputation: 57
I'd shop around for another insurer. We are closing on a house down there later this month and I was pleasantly surprised with the total premium. $1175 per year. Good coverages, average deductibles (2% hurricane). 3/2/2 1720 sqft late '70s built cbs construction. 2010 roof and all up to date inside and outside. This is on a G/A canal not too far from the intersection of Santa Barbara and Cape Coral Pkwy. Construction/re-building costs are low right now. I'd look at the re-build coverage and lower it if possible. Our place could be re-built for less than $200k easily. No need to over-insure a house. Agents want a higher commission so they push over-insurance.
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Old 01-12-2012, 06:41 AM
 
Location: The Conterminous United States
22,553 posts, read 47,173,674 times
Reputation: 13382
Quote:
Originally Posted by rikoshaprl View Post
Really what we are paying for are all the disasters that happen throughout the country. If the insurance companies don't pass on the costs they will close their doors. Even places that never have natural disasters are paying high rates.
That's not true. You lived in two very expensive places. I assure you that it is not the same everywhere. I think you'd be astounded at the COL in other areas. Florida businesses rely on people that are use to paying through the nose, unfortunately. Don't get me wrong, you probably save on some things by living in Florida but it is far more inexpensive to live elsewhere.
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Old 01-12-2012, 06:46 AM
 
Location: Cape Coral, Florida
693 posts, read 1,698,852 times
Reputation: 364
Quote:
Originally Posted by hiknapster View Post
That's not true. You lived in two very expensive places. I assure you that it is not the same everywhere. I think you'd be astounded at the COL in other areas. Florida businesses rely on people that are use to paying through the nose, unfortunately. Don't get me wrong, you probably save on some things by living in Florida but it is far more inexpensive to live elsewhere.
Maybe places like Michigan, Ohio, Oregon, etc where a decent portion of the population lives in poverty. A lot of people that move to Southwest Florida are coming from places like New York, Rhode Island, New Jersey, and Connecticut where the cost of living is 50% higher.
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Old 01-12-2012, 06:53 AM
 
Location: Cape Coral, Florida
693 posts, read 1,698,852 times
Reputation: 364
Quote:
Originally Posted by st468 View Post
I'd shop around for another insurer. We are closing on a house down there later this month and I was pleasantly surprised with the total premium. $1175 per year. Good coverages, average deductibles (2% hurricane). 3/2/2 1720 sqft late '70s built cbs construction. 2010 roof and all up to date inside and outside. This is on a G/A canal not too far from the intersection of Santa Barbara and Cape Coral Pkwy. Construction/re-building costs are low right now. I'd look at the re-build coverage and lower it if possible. Our place could be re-built for less than $200k easily. No need to over-insure a house. Agents want a higher commission so they push over-insurance.
Something seems wrong with your insurance. $1175 is less than just the flood insurance on the house I bought in the Cape a couple months ago and your area is more prone to floods and storm surge. A 2% deductible for hurricanes doesn't sound right either. You could have a total loss of $200,000 and your deductible would only be $4000? Or even just a content loss of $35,000 and your deductible is only $750? If you are not massively under insured, do you mind giving me the name of your insurance company, I'd like to get a quote.
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Old 01-12-2012, 08:54 AM
 
Location: Cape Coral, FL
646 posts, read 1,434,252 times
Reputation: 374
Quote:
Originally Posted by st468 View Post
I'd shop around for another insurer. We are closing on a house down there later this month and I was pleasantly surprised with the total premium. $1175 per year. Good coverages, average deductibles (2% hurricane). 3/2/2 1720 sqft late '70s built cbs construction. 2010 roof and all up to date inside and outside. This is on a G/A canal not too far from the intersection of Santa Barbara and Cape Coral Pkwy. Construction/re-building costs are low right now. I'd look at the re-build coverage and lower it if possible. Our place could be re-built for less than $200k easily. No need to over-insure a house. Agents want a higher commission so they push over-insurance.

My premium started at 1100, now it is up to 2k. I shopped around. Don't get too comfy at 1175/yr! Know that where there is a will, there is a WAY....they will increase your coverage amount, your premium will go up. Esp. on the water. I'm on a dry lot. I have a newer home and I'm paying as if I bought a cardboard box beachside. gahhhh.

When you have a mortgage, you are required to keep the minimum coverage, which is where they have mine set at now. CRAZY.
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