[Need_affordable_home]

Please read below, it speaks all that I have to say. I do want to add that anyone looking to buy in Florida to wait a few months and see if the insurance increases will countinue by failure to repeal the 1980 Senate bill.
If so, we could see a very sudden and sharp drop in house prices by 50% or half price. The drop will be even more in some cities that were more inflated to begih with and I can see costal areas taking an especially big hit. That $149k house(1225 feet^2) in Ocala could drop to $75k because insurance could be over $10,000 a year! No one could afford that or would pay for that. Therefore they would buy with 100% down. I would try and get a loan from my parents with the condition I honor the loan even if the house gets flattened by a hurricane. No one would honor the bank's loan, they would just walk away and let the bank forclose whats left of the destroyed house. For this reason, banks wont loan you if you arent insured. You might be able to get private financing but they will require/charge like 33-50% downpay and like 15% interest to "protect" themselves because they know people will walk away. Their strict requirements will ensure they make more profit than loss. Does anyone know what day we will find out if the Senate bill got repealed or not(if not, big problem!) How far do you think prices will then drop? I already said 50% or more!

http://homepics.realtor.com/image9/http/ocala/listings/large/004/242660a.jpg (broken link)

Imagine paying over $10k a year hurricane insurance on that $149k house!

Originally Posted by SunshineState

I don't live on the water nor do I have Citizens Insurance and my house is valued at $225K. I pay $3200 for Homeowners ins. (no flood either) and $2900 for my property taxes. People are complaining because obviously they haven't been as lucky as you. Here's more facts for you. My brother also does not live on or near the water, no flood and his homeowners insurance on Citizens Insurance for a 900sq foot home valued at $190k is $5800 per year and if Senate Bill 1980 is not complety repealed it will increase 200% over the next three years making his homeowners insurance $11,600 to insure a 900sq foot home! Now that's worth complaining about!!!

Actually, a 200% increase is triple! That would make his insurance cost $17,400 a year! This would cause a very, very, very big crisis! I can see thousands upon thousands of houses getting forclosed as people just walk away. Those who are almost done with the morgage will try to borrow from family and friends to own the house free and clear(paying them back of course) and cancel the rip-off insurance! Others will be happy to sell their house for half the price instead of lose it all by walking away. There will be willing buyers at half price, those who can afford to pay 100% down. $95k for a $190k house would be a pretty good price even at the risk of being uninsured. My parents would cancel their own home insurance(they own free and clear) but they will lose all their equity they had in the house as it halves in value. If this happens, theres no point ever selling it, they can keep the house for the rest of their lives or till a hurricane demolishes it away then sell the land for what little value it has and they are welcome to move to Oil city and be near me. Very bad insurance crisis in Florida, I feel so bad for my parents, I told them to sell the house last year when it was still worth alot.

[tallrick]

I hate to say this, but if insurance continues to increase and home prices come down I will be staying in Florida. Putting up with heat, humidity, insects, bad drivers is a small inconvenience compared to sky high taxes and being trapped in one's home by SOH amendment.

[chisoxfan]

Originally Posted by Need_affordable_home

Does anyone know what day we will find out if the Senate bill got repealed or not(if not, big problem!)

The special legislative session on homeowners insurance begins Jan. 16. We'll know something that week.

[spotrod]

Buying new home in Florida: Insurance Premium = $3500.00 Bucks
1st Insurance renewal $7500.00 Bucks
2nd Insurance renewal $10,500.00 Bucks
3rd Insurance renewal $$$$$$$$$$$$$$$$$$$$...Priceless!!!

[dlh891]

I posted this in another thread but I will repeat it again. I just sold my house in Tampa for $300,000 and the new owner's insurance was only $1400 or so, mine never went over that while I lived there either.

Obviously we must have been lucky where we lived but I also own another house in Tampa and the insurance bill recently came to $1100 for next year.

[Need_affordable_home]

Originally Posted by tallrick

I hate to say this, but if insurance continues to increase and home prices come down I will be staying in Florida. Putting up with heat, humidity, insects, bad drivers is a small inconvenience compared to sky high taxes and being trapped in one's home by SOH amendment.

That would be a bad thing for all Florida homeowners as they will lose equity, those who bought recently will have negative equity and may just walk away as their mortgage would be more than the house is worth and they couldnt afford the tripled insurance! Id say theres a good chance the insurance increases will be capped at a low percent or the Florida government knows well enough the chaos it would create, something they dont want!
If insurance increases make their way, and house prices halve, my dad might buy a few in a great forclosure auction(for like $150k), maybe ill live in one and me and dad will rent the others. We would have to be uninsured and pray we dont lose it all to a major hurricane! There will be tons of renters paying big money to rent as they cant afford to own thanks to insurance.

Originally Posted by chisoxfan

The special legislative session on homeowners insurance begins Jan. 16. We'll know something that week.

If the increases follow and house prices plummet, I might just stay in Florida and get a deal. I wont wait for prices to bottom out, if this will take a few years, ill be in Oil city and when theres a nice big house in Florida for under $100k, I might move back. Ill also have enough for a 100% downpay

[TriMT7]

Originally Posted by Need_affordable_home

ill be in Oil city

Just make sure you VISIT "Oil City" before you go there. The town is part of the Pennsylvania rust belt and has a slew of EPA regulated "Brownspot" sites due to its (former) oil seaped past.


I did a real estate search in Oil City... A 7 bedroom home built in 1917 for less than $50k?

If it sounds to good, it usually is. Don't get stuck with a money pit! Shop around for sure!!

[fsi001]

I own several homes in and around Spring Hill Florida. All of my properties taxes and insurance have only gone up between $100-$200.00. I can't understand why mine all stayed low and everyone elses have gone up so much. My homes have all gone up in value too, but the only thing is; I did not have any claims against my properties during the past(2 year) hurricane season, except for my personnal home. But my insurance only went up $200.00/year. I don't know if this insurance thing is only a few people or 90% of the people. I have Citizens on one, State Farm and GMAC on mine. I don't know what's going on, but it could just be related to the media too. Blowing this out of proportion like they do everything else. The media never tells the whole story, just the bad stuff. Friends of ours insurance when up $3000 per year but they also had a frivalous insurance claim of $40,000 during the huricanes. So maybe it only affected people that had claims. I don't know.

[dlh891]

Originally Posted by fsi001

I own several homes in and around Spring Hill Florida. All of my properties taxes and insurance have only gone up between $100-$200.00. I can't understand why mine all stayed low and everyone elses have gone up so much. My homes have all gone up in value too, but the only thing is; I did not have any claims against my properties during the past(2 year) hurricane season, except for my personnal home. But my insurance only went up $200.00/year. I don't know if this insurance thing is only a few people or 90% of the people. I have Citizens on one, State Farm and GMAC on mine. I don't know what's going on, but it could just be related to the media too. Blowing this out of proportion like they do everything else. The media never tells the whole story, just the bad stuff. Friends of ours insurance when up $3000 per year but they also had a frivalous insurance claim of $40,000 during the huricanes. So maybe it only affected people that had claims. I don't know.

Ah ha! I knew I wasn't the only one that wasn't getting killed in insurance. I also have made no claims, just went out and fixed what needed to be fixed after the storms.

[SunshineState]

Senate Bill 1980 will be one of the things discussed in the Special Session of the legislation and that is why Citizens has put a "hold" on the next increase. If Senate Bill 1980 is NOT repealed the increases will go through. I urge each and every person iving in Florida who does not want their insurance to go up 200% to write their legislators and demand this bill be repealed! As for those of you NOT on Citizens Insurance don't think for one minute that if Citizens gets an increase that large that their not going to be in line wanting an increase too!!!