Building Replacement Costs for Sarasota (Lakeland, Bradenton: sales, insurance, mortgage)

[Jenny Walker]

My insurance agent has jacked up the value of my home way beyond reason. Up till this year my flood insurance valuation was always approximately $30,000 less than my HO insurance. I only owe $28,000 on my mortgage yet the mortgage company is demanding I have insurance coverage for a $300,000 property for both flood and HO insurance. This would cost me an additional $500/year for flood insurance. If someone offered me $200,000 for my house it would be sold instantly. You don't even insure the cost of the land. The agent says the value is placed on replacement cost not value. So, I'm asking for a replacement value ball park figure. My home is a one story stucco. I paid $112,000 twenty years ago.

[TamRE]

It doesn't hurt to check around with other homeowner insurance agencies. I always recommend AAA Insurance. They can give you quotes from a variety of agencies to find you the best rate with the same coverage.

Here is an article you may want to read about flood insurance.
What You Should Know About Flood Insurance

[Sunshine Rules]

You might talk to Mandy at Assure Insurance. She's in Bradenton but handles customers in both Manatee and Sarasota counties. Her office phone is: 739-5121. Mandy found rates for insurance for our home that beat all of the others.

Another one you might try is Great Florida Insurance. They have an office in Sarasota but I usually use the Lakeland Ranch branch. Phone is 750-9005.

Federal flood insurance is required for federally backed home loans of properties identified within a 100-year flood plain and offered through FEMA (Federal Emergency Management Agency). Under the national flood insurance program, a residential home can be insured for up to $250,000 and up to $500,000 for non-residential properties. Your home probably falls within that category.

What some people may not realize is that your "regular" insurance policy covers wind damage by hurricanes or tropical storms but not water damage caused by the flooding that typically occurs with these heavy rain producing weather systems.

The national flood insurance program is (again) at risk of expiring on September 30th of this year unless Congress acts to extend the program. Approximately 5.6 million homes and businesses are currently covered by flood insurance.

After Sept. 30, the national flood insurance program would not have authority to issue new or renewed policies unless a new flood insurance program is enacted. HR 1309 - Flood Insurance Reform Act of 2011 was passed by the House but has not been voted on as yet by the Senate. If Congress fails to implement a bill by Sept. 30th, lenders will not be funding mortgages on homes in flood zones that do not have flood insurance in place. This could have a negative impact on home sales in states such as Florida.

Considering the current lack of cooperation in Congress between the 2 parties, If I had a home in a flood zone and needed or wanted to carry flood insurance, I would be renewing it before Sept. 30th just in case.

[coastal chic]

Originally Posted by Jenny Walker

So, I'm asking for a replacement value ball park figure. My home is a one story stucco. I paid $112,000 twenty years ago.

The amount you paid for it 20 years ago is irrelevant. Depending on the size, the cost to build a new home is around $100/ SF of living space + $50/ SF for garage/ porch spaces. That's for a pretty basic house.

[sware2cod]

If you want to lower the price of your flood insurance, consider insuring the home only, but not the contents(furniture, clothing, personal items, food, art, electronics, etc). Get a quote both ways. Also look into increasing your deductible. Then decide if you want to take the risk of removing insurance of the contents once you see how much cost savings to you.

I removed insurance for my contents for flood and wind. Am more than willing to accept the risk. I was unable to remove the contents coverage for the standard home insurance policy (fire, theft, etc)...the insurance company for that policy does not have an option where you can remove it.