[wolflover]

Ok, right now I am so angry I cannot see straight. This is my homeowners insurance horror story:

We have lived in the Florida panhandle for about 8 years now. We purchased 4.5 acres in the country, high and dry, and purchased a double wide manufactured home. It's a very good one and was the top of the line 8 years ago, but it is still a double wide.

Our homeowners insurance for the first 6 years was approximately $700.00 per year. Not wonderfully low, but manageable. After Katrina, our homeowners insurance was CANCELED or NON-renewed. Uh helloooooooo, we have never made a claim. So, we found another insurance carrier, but the only way to get insured was to pay $2100.00 up THREE times what we had been paying. Now, what is fair about this? WE have made no claims, we, in the panhandle have been lucky and not had a direct hurricane hit, thank God. I feel for the Katrina victims more than you know, however, WE did not make any claims and our area was not hit. We do not live near the beach, we are 30 miles north of Panama City, we are so high and dry, our well had to be dug down 250 feet to get to the spring water.

We are 49 and 52 years old, (me and my husband), he is retired military. We had to borrow the money just to pay for homeowners insurance last year. We simply did not have $2300.00 laying around the house. PLUS to even be able to get insured, we had to get rid of our go-cart and our mini-bike. This is because the insurance company told us to get rid of them or they will not insure us. Supposedly because someone might ride on them on our property and we might get sued. Now lets see, WE are all of a sudden having to pay THREE times the rate just to be insured but then we are told what we are allowed to have on our own property. My goodness, we are grown-ups here, mature adults with no children living with us. How does an insurance agency have the right to tell us what to do, just so we can be screwed and have to pay out the butt just to be insured?

Last year, we were all very blessed and had a great and mild hurricane season, so we were hoping our rates would go down at least a little bit! But NO!, instead we have been canceled again. Now, after checking around we cannot find anyone to insure us except for the government backed insurance agency. Guess what though? The rates have gone UP now to $2300.00 AND they will not insure our outbuildings, nor the contents of our home, just the home itself. WHAT!!!!!????!!!! Ok, my husband and I have been married for 30 years and we have accumulated a lot of stuff. We have both had to work ourselves half to death to have what we do have. No one has ever given us anything, no goverment handouts, NOTHING!

One has to hate being in the middle class in this country. With this insurance issue if you are really poor and have nothing anyway, you do not need insurance and if you do lose what little you have, the goverment will supposedly step in and HAS from what I've seen in many cases. THose who were UNinsured, recieved many government benefits.

Those who are rich, of course, can afford to pay these outrageous insurance rates. But the majority of people who are in the middle class are just plain screwed! We have enough that it needs to be insured, yet we cannot afford the insurance rates. Well, with this latest development, we are now having to borrow the money again this year and had to put my husbands truck (which WAS paid off), up for collateral to get yet another loan just to pay homeowners insurance. I cannot even begin to describe how mad we are about this!

Next year, we hope to have enough equity built up in our home equity loan just so we can use it to pay for insurance. So, instead of being able to do any home improvements or repairs that may arise, we have to use it to pay for homeowners insurance. AGAIN, homeowners insurance that will only cover my house, not my three outbuildings with a LOT of money invested inside and out, NOT my furniture, clothing, appliances, computer, tv's or anything else that we have worked ourselves half to death for.

I also do not understand something else. AOL had an article from a major publication about which states had the highest insurance rates. Texas came in number one and Florida was like 5 or 6. Then it went on to advise what those AVERAGE homeowners insurance rates were. I nearly passed out by reading that the average homeowners insurance rates in Florida are $929.00!! How on earth is it that WE are having to pay $2300.00 and NOT even have our contents or outbuildings covered? Our home is only going to be covered by what we owe which is $70,000 and the average home price in Florida is probably at least $200,000!!! WHY do we have to pay nearly three times the average Florida homeowners rate? We are older, but not senior citizens, we have NEVER made a homeowners insurance claim, we are not irresponsible people AND my husband served 26 years in the Navy defending his country.

Again, I ask WHY???????

Does anyone here know why? Does anyone here have any solutions? Does anyone know where to turn? Any help and advice would be greatly appreciated!

WolfLover

[macguy]

Originally Posted by wolflover

Ok, right now I am so angry I cannot see straight. This is my homeowners insurance horror story:

We have lived in the Florida panhandle for about 8 years now. We purchased 4.5 acres in the country, high and dry, and purchased a double wide manufactured home. It's a very good one and was the top of the line 8 years ago, but it is still a double wide.

Our homeowners insurance for the first 6 years was approximately $700.00 per year. Not wonderfully low, but manageable. After Katrina, our homeowners insurance was CANCELED or NON-renewed. Uh helloooooooo, we have never made a claim. So, we found another insurance carrier, but the only way to get insured was to pay $2100.00 up THREE times what we had been paying. Now, what is fair about this? WE have made no claims, we, in the panhandle have been lucky and not had a direct hurricane hit, thank God. I feel for the Katrina victims more than you know, however, WE did not make any claims and our area was not hit. We do not live near the beach, we are 30 miles north of Panama City, we are so high and dry, our well had to be dug down 250 feet to get to the spring water.

We are 49 and 52 years old, (me and my husband), he is retired military. We had to borrow the money just to pay for homeowners insurance last year. We simply did not have $2300.00 laying around the house. PLUS to even be able to get insured, we had to get rid of our go-cart and our mini-bike. This is because the insurance company told us to get rid of them or they will not insure us. Supposedly because someone might ride on them on our property and we might get sued. Now lets see, WE are all of a sudden having to pay THREE times the rate just to be insured but then we are told what we are allowed to have on our own property. My goodness, we are grown-ups here, mature adults with no children living with us. How does an insurance agency have the right to tell us what to do, just so we can be screwed and have to pay out the butt just to be insured?

Last year, we were all very blessed and had a great and mild hurricane season, so we were hoping our rates would go down at least a little bit! But NO!, instead we have been canceled again. Now, after checking around we cannot find anyone to insure us except for the government backed insurance agency. Guess what though? The rates have gone UP now to $2300.00 AND they will not insure our outbuildings, nor the contents of our home, just the home itself. WHAT!!!!!????!!!! Ok, my husband and I have been married for 30 years and we have accumulated a lot of stuff. We have both had to work ourselves half to death to have what we do have. No one has ever given us anything, no goverment handouts, NOTHING!

One has to hate being in the middle class in this country. With this insurance issue if you are really poor and have nothing anyway, you do not need insurance and if you do lose what little you have, the goverment will supposedly step in and HAS from what I've seen in many cases. THose who were UNinsured, recieved many government benefits.

Those who are rich, of course, can afford to pay these outrageous insurance rates. But the majority of people who are in the middle class are just plain screwed! We have enough that it needs to be insured, yet we cannot afford the insurance rates. Well, with this latest development, we are now having to borrow the money again this year and had to put my husbands truck (which WAS paid off), up for collateral to get yet another loan just to pay homeowners insurance. I cannot even begin to describe how mad we are about this!

Next year, we hope to have enough equity built up in our home equity loan just so we can use it to pay for insurance. So, instead of being able to do any home improvements or repairs that may arise, we have to use it to pay for homeowners insurance. AGAIN, homeowners insurance that will only cover my house, not my three outbuildings with a LOT of money invested inside and out, NOT my furniture, clothing, appliances, computer, tv's or anything else that we have worked ourselves half to death for.

I also do not understand something else. AOL had an article from a major publication about which states had the highest insurance rates. Texas came in number one and Florida was like 5 or 6. Then it went on to advise what those AVERAGE homeowners insurance rates were. I nearly passed out by reading that the average homeowners insurance rates in Florida are $929.00!! How on earth is it that WE are having to pay $2300.00 and NOT even have our contents or outbuildings covered? Our home is only going to be covered by what we owe which is $70,000 and the average home price in Florida is probably at least $200,000!!! WHY do we have to pay nearly three times the average Florida homeowners rate? We are older, but not senior citizens, we have NEVER made a homeowners insurance claim, we are not irresponsible people AND my husband served 26 years in the Navy defending his country.

Again, I ask WHY???????

Does anyone here know why? Does anyone here have any solutions? Does anyone know where to turn? Any help and advice would be greatly appreciated!

WolfLover

Can I ask you where you live?

[sunrico90]

I live in Navarre (house) and my HOI is $1,500, the rates increased within the past 3 years. Most mobile homes have a greater HOI than a house due to the construction.

Some articles that my help:

What you can do to your home
to better withstand a storm.

On May 5, 2006, the Florida Legislature passed Senate Bill 1980 which provides policy reforms and funding intended to stabilize and enhance the property insurance market. The Governor signed this bill into law on May 16, 2006. A key provision in the bill provides $250 million for the Florida Comprehensive Hurricane Damage Mitigation Program, a new program to perform free home inspections and provide matching grants to qualified homeowners who choose to harden their homes against wind damage.

Low-income homeowners who otherwise meet the requirements of the program may be eligible for a grant of up to $5,000 and are not required to provide a matching amount to receive the grant. $7.5 million of the $250 million is designated for grants to manufactured home communities and mobile home parks.

The Department of Financial Services (DFS) is responsible for this program which began in August. For more information, visit the program website by clicking on the MySafeFloridaHome link provided. If you prefer to call, the number is 1-800-342-2762.

Check the following: http://www.myfloridainsurancereform.com/related.htm

http://www.myflorida.com/dbpr/lsc/mo...ks_forms.shtml

http://www.hsmv.state.fl.us/mobilehome/mobile1.html

http://www.hsmv.state.fl.us/mobilehome/

[SunshineState]

Originally Posted by sunrico90

I live in Navarre (house) and my HOI is $1,500, the rates increased within the past 3 years. Most mobile homes have a greater HOI than a house due to the construction.

Some articles that my help:

What you can do to your home
to better withstand a storm.

On May 5, 2006, the Florida Legislature passed Senate Bill 1980 which provides policy reforms and funding intended to stabilize and enhance the property insurance market. The Governor signed this bill into law on May 16, 2006. A key provision in the bill provides $250 million for the Florida Comprehensive Hurricane Damage Mitigation Program, a new program to perform free home inspections and provide matching grants to qualified homeowners who choose to harden their homes against wind damage.

Low-income homeowners who otherwise meet the requirements of the program may be eligible for a grant of up to $5,000 and are not required to provide a matching amount to receive the grant. $7.5 million of the $250 million is designated for grants to manufactured home communities and mobile home parks.

The Department of Financial Services (DFS) is responsible for this program which began in August. For more information, visit the program website by clicking on the MySafeFloridaHome link provided. If you prefer to call, the number is 1-800-342-2762.

Check the following: http://www.myfloridainsurancereform.com/related.htm

http://www.myflorida.com/dbpr/lsc/mo...ks_forms.shtml

http://www.hsmv.state.fl.us/mobilehome/mobile1.html

http://www.hsmv.state.fl.us/mobilehome/

The My Safe Florida Homes currently is only doing inspections, NO money has been given for work to be done at this time. Also if you look closely into the program grants will only be given to select homes in the most vunerable parts of Florida (South Florida) and to qualify for the low income grant you must make below poverty level. It is a broken plan from the start.

[SunshineState]

Originally Posted by wolflover

I also do not understand something else. AOL had an article from a major publication about which states had the highest insurance rates. Texas came in number one and Florida was like 5 or 6. Then it went on to advise what those AVERAGE homeowners insurance rates were. I nearly passed out by reading that the average homeowners insurance rates in Florida are $929.00!! How on earth is it that WE are having to pay $2300.00 and NOT even have our contents or outbuildings covered? Our home is only going to be covered by what we owe which is $70,000 and the average home price in Florida is probably at least $200,000!!! WHY do we have to pay nearly three times the average Florida homeowners rate? We are older, but not senior citizens, we have NEVER made a homeowners insurance claim, we are not irresponsible people AND my husband served 26 years in the Navy defending his country.

Again, I ask WHY???????

Does anyone here know why? Does anyone here have any solutions? Does anyone know where to turn? Any help and advice would be greatly appreciated!

WolfLover

I am not sure where AOL got its information but I am in the THICK of the insurance crisis. I have met with the Governor twice and Kevin McCarty with the Office of Insurance Regulation among others. I can tell you that Florida has the highest insurance second to California and next is New York, and then Mississippi. My insurance here is over $3,000 (1800 sq foot), my parents is almost $4,000 (1600 sq foot) and my brother's is $8700 (970 sq foot home) we all live in Pasco County, which is the second highest rates in Florida second to Monroe County in the Keys. I think the biggest problem you are having in the Panhandle is the fact that you have sub-standard building codes and when companies buy re-insurance from overseas markets they don't want to insure homes that they don't think will withstand a storm. That is why in Special Session the building code exemption was removed from the Panhandle starting in 2008. I know you don't think this includes you because you have a mobile home but they categorize you by the area (Panhandle) not necessarily by what you live in hardened home or not. If you want to vent you should come to Tallahassee this coming Tuesday and speak in from of the Insurance and Banking Committee. They start at 9:00am. THEY are the lawmakers that are making decisions on our insurance future in Florida. EVERYONE should be standing in line to tell them to take back control of Florida over these insurance rapists!

[wolflover]

Originally Posted by macguy

Can I ask you where you live?

We live in Youngstown which is about 25-30 miles north of Panama City. We are not near the water and are on high and dry ground.

[in2dadark]

Knowing what we know about mobile homes, would you want to assume that responsability if you owned an insurance co.?

My HOI (here in S. Fla) actually went down from 1600 to 1200 on my cbs home. And it is going down below 1k on the next renewal..

[HistoricHomeOwner]

It seems that everyone is having a nightmare in Florida. Hopefully, mine is about to be better. Sorry that this is sooooo long but here is a letter I wrote to our mortgage company in regard to one of our homes:

We purchased our home in 2005. Since the inception date of the loan we have had a great pay history. Unfortunately, due to circumstances beyond our control, we will undoubtedly encounter difficulties due to the astronomical homeowner’s insurance premium being demanded of us.
Our home was originally insured through Citizens Property from June 2005 through August 2006. This company was formed by the state of Florida for Florida homeowner’s that have difficulty obtaining insurance through private carriers due to a “high-risk” status. Citizens Insurance is considered a last resort insurer for Florida homeowners.

In August of 2006 we were notified by Citizens Insurance that we were part of a state-wide “depopulation” program and that our policy was being transferred to a private insurance carrier. Within a few days of receipt of the Citizen’s letter we received another letter from Southern Oaks Insurance based out of Jacksonville, Florida informing us that they had agreed to take our policy from Citizens Insurance for the policy period of September 2006 through September 2007. They further informed us that our new yearly premium was $2,428.00. We could not believe that the insurance premium was a $500.00 increase from the previous year. Unfortunately, when we contacted Citizens about coming back to them for insurance we were advised that if we had an “offer of insurance” from another carrier, regardless of premium, that we no longer qualified for insurance through them. We were upset to say the least. Little did we know what was down the path.

On a Monday near the end of October 2006 we were contacted by a home inspector that stated he represented our new insurance carrier, Southern Oaks Insurance. He advised that company policy stated that all homeowner’s policies had to have a home inspection on behalf of the insurance company. We agreed and set the following Friday as the day for him to come out and inspect the home. However, when we arrived home from work the next day, Tuesday, we were surprised to find his card in the door with a note that read he had been at the home and would forward his report to the insurance company. Not thinking anything further we went on with life as usual.

In November of 2006 we received a letter from Southern Oaks Insurance stating that due to the home inspection report the new replacement cost was deemed to be nearly $500,000.00 and that as a result our new premium was being raised to $7,344.00 for the year. We laughed at first, equating replacement cost to fair-market value not knowing insurance lingo. We knew that there was no way that our home was worth $500,000.00 and that surely this was a typographical error or something.

The following day we called Southern Oaks and advised them that our home was in no way worth $500,000.00 and that our mortgage was only $128,000.00 and that was all we wanted to carry on it. We were advised by a representative that the replacement value was not a reflection of the fair-market value and that we had no choice but to insure it at this replacement value regardless of what our mortgage was. We inquired as to what the determining factor was in assessing the replacement value of the home. We were informed that the inspector stated that there were two chimneys at the home. We immediately rebuttled that those were mentioned only because the inspector did not follow through with our agreed upon meeting time and did not gain inside access to the home. Therefore, the only thing he could mention in regards to the home were the two chimneys and that was no basis for assessing the replacement value at nearly a half-million dollars. The only things other than the two chimneys you can see from outside of our home are the windows, doors and wood siding. We were furious. We immediately called your insurance department to inquire as to worst case scenario. We were informed that we had to insure the home at the replacement value and that if we could not pay the new premium, insurance would be taken out on HomEq’s behalf at the aforementioned replacement value for most likely the same type of premium or higher. We asked the insurance department representative if there was anyway that the replacement cost could be adjusted. He advised, “No.” We felt helpless.

This was a win-win situation for Southern Oaks Insurance. If we agreed to pay this new premium they were running around their office patting each other on the back citing their great quarterly profit reports. But, if we refused to or failed to be able to pay this astronomical premium they didn’t have to assume this “high-risk” property. See, a win-win situation for this fledgling company and their some 26,000 new policies. Furthermore, Citizens could wash their hands of a great deal of these “high-risk” properties by denying insurance coverage because of valid “offers of insurance.” No matter that we were being offered insurance that was four times that of our normal premium through Citizens. There was no way that we could afford this new premium.

Blah, blah, blah you get the point...

[macguy]

Originally Posted by HistoricHomeOwner

It seems that everyone is having a nightmare in Florida. Hopefully, mine is about to be better. Sorry that this is sooooo long but here is a letter I wrote to our mortgage company in regard to one of our homes:

We purchased our home in 2005. Since the inception date of the loan we have had a great pay history. Unfortunately, due to circumstances beyond our control, we will undoubtedly encounter difficulties due to the astronomical homeowner’s insurance premium being demanded of us.
Our home was originally insured through Citizens Property from June 2005 through August 2006. This company was formed by the state of Florida for Florida homeowner’s that have difficulty obtaining insurance through private carriers due to a “high-risk” status. Citizens Insurance is considered a last resort insurer for Florida homeowners.

In August of 2006 we were notified by Citizens Insurance that we were part of a state-wide “depopulation” program and that our policy was being transferred to a private insurance carrier. Within a few days of receipt of the Citizen’s letter we received another letter from Southern Oaks Insurance based out of Jacksonville, Florida informing us that they had agreed to take our policy from Citizens Insurance for the policy period of September 2006 through September 2007. They further informed us that our new yearly premium was $2,428.00. We could not believe that the insurance premium was a $500.00 increase from the previous year. Unfortunately, when we contacted Citizens about coming back to them for insurance we were advised that if we had an “offer of insurance” from another carrier, regardless of premium, that we no longer qualified for insurance through them. We were upset to say the least. Little did we know what was down the path.

On a Monday near the end of October 2006 we were contacted by a home inspector that stated he represented our new insurance carrier, Southern Oaks Insurance. He advised that company policy stated that all homeowner’s policies had to have a home inspection on behalf of the insurance company. We agreed and set the following Friday as the day for him to come out and inspect the home. However, when we arrived home from work the next day, Tuesday, we were surprised to find his card in the door with a note that read he had been at the home and would forward his report to the insurance company. Not thinking anything further we went on with life as usual.

In November of 2006 we received a letter from Southern Oaks Insurance stating that due to the home inspection report the new replacement cost was deemed to be nearly $500,000.00 and that as a result our new premium was being raised to $7,344.00 for the year. We laughed at first, equating replacement cost to fair-market value not knowing insurance lingo. We knew that there was no way that our home was worth $500,000.00 and that surely this was a typographical error or something.

The following day we called Southern Oaks and advised them that our home was in no way worth $500,000.00 and that our mortgage was only $128,000.00 and that was all we wanted to carry on it. We were advised by a representative that the replacement value was not a reflection of the fair-market value and that we had no choice but to insure it at this replacement value regardless of what our mortgage was. We inquired as to what the determining factor was in assessing the replacement value of the home. We were informed that the inspector stated that there were two chimneys at the home. We immediately rebuttled that those were mentioned only because the inspector did not follow through with our agreed upon meeting time and did not gain inside access to the home. Therefore, the only thing he could mention in regards to the home were the two chimneys and that was no basis for assessing the replacement value at nearly a half-million dollars. The only things other than the two chimneys you can see from outside of our home are the windows, doors and wood siding. We were furious. We immediately called your insurance department to inquire as to worst case scenario. We were informed that we had to insure the home at the replacement value and that if we could not pay the new premium, insurance would be taken out on HomEq’s behalf at the aforementioned replacement value for most likely the same type of premium or higher. We asked the insurance department representative if there was anyway that the replacement cost could be adjusted. He advised, “No.” We felt helpless.

This was a win-win situation for Southern Oaks Insurance. If we agreed to pay this new premium they were running around their office patting each other on the back citing their great quarterly profit reports. But, if we refused to or failed to be able to pay this astronomical premium they didn’t have to assume this “high-risk” property. See, a win-win situation for this fledgling company and their some 26,000 new policies. Furthermore, Citizens could wash their hands of a great deal of these “high-risk” properties by denying insurance coverage because of valid “offers of insurance.” No matter that we were being offered insurance that was four times that of our normal premium through Citizens. There was no way that we could afford this new premium.

Blah, blah, blah you get the point...

Is that the historic home you are referring to? You may have yourself a real problem. Owning a registered historic property ties your hand regarding what you can do with it. You may not be able to sell it for any price and end up deeding it the city just to get rid of it. I'm not kidding, I believe there are a few tax benefits to such a property but they may not be worth it. I had a friend who owned a place he wanted to sell to a developer. Someone opposed to the development in the area tried to block the sale by claiming the building, an old motel, was a building with historical significance.

After screwing him around for two years they were successful and his three million dollar sale was off. He was essentially stuck with the property, no one would ever buy a property they can't even do revocation to without asking someone else's permission. I believe he did ultimately end up turning it over the city and walking away. It sounds like fun to own such a property but it can come with a host of headaches most people would not want to deal with.

[HistoricHomeOwner]

Originally Posted by macguy

Is that the historic home you are referring to? You may have yourself a real problem. Owning a registered historic property ties your hand regarding what you can do with it. You may not be able to sell it for any price and end up deeding it the city just to get rid of it. I'm not kidding, I believe there are a few tax benefits to such a property but they may not be worth it. I had a friend who owned a place he wanted to sell to a developer. Someone opposed to the development in the area tried to block the sale by claiming the building, an old motel, was a building with historical significance.

After screwing him around for two years they were successful and his three million dollar sale was off. He was essentially stuck with the property, no one would ever buy a property they can't even do revocation to without asking someone else's permission. I believe he did ultimately end up turning it over the city and walking away. It sounds like fun to own such a property but it can come with a host of headaches most people would not want to deal with.

Well, I believe there would be issues if there were an historic easement on the property or if this was in a historic district. Neither of which is the case. According to state guidelines there is nothing that states that the house can be restricted to any degree. This mostly happens in historic districts and with that you buy into these types of problems.

All of our problems started because of the depopulation program and the fact that some idiot inspector came out and did an exterior inspection and concluded that the home would cost a half million dollars to replace. I have learned quite a bit about insurance since this fiasco started. Namely, the overestimating that all of these insurer's are doing. Also, the fact that not only did they insure my home for $467,000.00 for the home itself and the outbuildings, but the fact that the contents of my home was insured for $235,000.00. I mean you've got to be kidding me. That is $702,000.00 worth of insurance. Pleeeeeeez.....

Now that I have a good understanding of what they are doing I know how to counteract their tactics. Like get an appraisal with a replacement cost estimate and insuring the contents of the home for actual cash value (ACV) instead of replacement value. It just makes me sick that middle-class homeowners are getting hammered. Just be as informed as possible. And thank God that I am not in a historic district nor is there a historic easement on my property.