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Not only property tax which is jumping up by larger percentages per year in some regions, but also flood insurance in those areas that FEMA is mandating increased coverage (Biggert-Waters Flood Insurance Act).
"But at least 820,000 homeowners will still get hit with rate increases of up to 18 percent each year until the program is collecting enough revenue to cover a $24 billion [FEMA] shortfall created by a series of catastrophic storms...."
So...not only property tax but now insurance considerations may be considerable factors in where some of us choose to live in retirement.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Quote:
Originally Posted by newenglandgirl
Not only property tax which is jumping up by larger percentages per year in some regions, but also flood insurance in those areas that FEMA is mandating increased coverage (Biggert-Waters Flood Insurance Act).
"But at least 820,000 homeowners will still get hit with rate increases of up to 18 percent each year until the program is collecting enough revenue to cover a $24 billion [FEMA] shortfall created by a series of catastrophic storms...."
So...not only property tax but now insurance considerations may be considerable factors in where some of us choose to live in retirement.
I don't think the idea of considering insurance costs is new, this is simply a reaction by insurers to recent disaster claims. After 9/11 my business insurance went from $300/year to $1,400. Right after the 2001 Nisqually earthquake in Seattle they stopped selling earthquake insurance. When they resumed the premiums were far higher. All of those claims have to be paid for somehow, the companies are not going to reduce their profit if they don't have to.
When planning a place to live on a lower income in retirement flood insurance, earthquake insurance, crime rate, availability of fire departments, and potentially one of the most costly, poor credit.
I've had firsthand bitter experience with living in an "insurance problem" area because of proximity to water. As a result I absolutely refuse to consider moving to anywhere within at least 5 miles of anything that an insurance company considers "water" as a risk factor.
A great example is my last house which was about 3000 ft from the end of a canal. Not waterfront but within an "X" flood zone which is not the worst by any means. I used to pay about $2000/yr for homeowners insurance (which is about average) and $300/yr for flood insurance. I got non-renewed by my longtime insurance company and discovered that no other "regular" homeowners company will write a policy for any house within 2 miles of "any water". So I had to get what's called excess lines (high risk) insurance and the lowest premium available from any of those companies was $4000+ per year; that was with a $5000 deductible and a 5% windstorm deductible. Flood insurance had gone up to just under $400/yr by the time I sold it but of course the max available ($250K) would not have covered a total loss of ANY house on Long Island.
(If you're planning on retiring and have a house on or near the water, it may be prudent to put it on the market sooner rather than later, because if you wait too long you may have trouble selling it at all.)
OMG. That is awful. So now we retirees on limited incomes cannot live near water, cause of flooding possibilities.
We also can't live in forested areas cause of possible fires. We can't live where it rains a lot because of landslides and mud. No living in a sinkhole area either, parts of FLA), and tornado alley leaves out alot of states. Then there are hurricanes on the coasts, and also earthquakes in CA and the San Andreas Fault which would leave out alot of the state.
So, where the heck can we live and not pay enormous insurance costs??? Yuma, AZ where the only danger would be frying in the sun. Retirement choices are getting fewer and fewer due to hungry insurance monsters who live by "what if".
Our property tax has risen a bit over the years but not very fast and not very high. If nothing else, our Social Security and pension COLAs more than cover it. Thankfully, hurricanes and flooding are not issues although the sporadic, relatively nearby tornadoes do, I'm sure, factor-in. We definitely serve excitement on occasion here in the Ozarks.
It's nothing we can't handle and refinancing last year for a significantly lower interest rate on our mortgage probably bought us an easy decade of "relief." We live on the shore of a large lake and that's not liable to rise more than a few feet in rainy weather which still gives us a large cushion.
OMG. That is awful. So now we retirees on limited incomes cannot live near water, cause of flooding possibilities.
We also can't live in forested areas cause of possible fires. We can't live where it rains a lot because of landslides and mud. No living in a sinkhole area either, parts of FLA), and tornado alley leaves out alot of states. Then there are hurricanes on the coasts, and also earthquakes in CA and the San Andreas Fault which would leave out alot of the state.
So, where the heck can we live and not pay enormous insurance costs??? Yuma, AZ where the only danger would be frying in the sun. Retirement choices are getting fewer and fewer due to hungry insurance monsters who live by "what if".
Maybe where you live now is the best place of all!
(If you're planning on retiring and have a house on or near the water, it may be prudent to put it on the market sooner rather than later, because if you wait too long you may have trouble selling it at all.)
Yeah, because oceanfront property all along the Eastern Seaboard is undesirable property.
But seriously, the people who buy such property are well aware of the risks and the associated cost of insurance.
Quote:
Originally Posted by PhxBarb
OMG. That is awful. So now we retirees on limited incomes cannot live near water, cause of flooding possibilities.
We also can't live in forested areas cause of possible fires. We can't live where it rains a lot because of landslides and mud. No living in a sinkhole area either, parts of FLA), and tornado alley leaves out alot of states. Then there are hurricanes on the coasts, and also earthquakes in CA and the San Andreas Fault which would leave out alot of the state.
So, where the heck can we live and not pay enormous insurance costs??? Yuma, AZ where the only danger would be frying in the sun. Retirement choices are getting fewer and fewer due to hungry insurance monsters who live by "what if".
Hey, if you (that's a generic you) don't want to pay for insurance, then don't ask someone else for the money to purchase the property. If a bank or some other financial entity is providing you with the money to live in an "at risk" area, they are going to want their interests in the property protected. It's a simple concept.
If someone doesn't need a mortgage, there's no requirement to purchase insurance. But then, of course, it's your money at risk if a flood/hurricane/earthquake/etc. damages or destroys your house, not the banks.
Build a dome home. It may not lower your insurance costs, but the chances of needing a repair are slim to none. An earthquake might bring one down - but not much of anything else will.
So, where the heck can we live and not pay enormous insurance costs??? Yuma, AZ where the only danger would be frying in the sun. Retirement choices are getting fewer and fewer due to hungry insurance monsters who live by "what if".
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