Property Insurance going up? (Matlacha: how much, house, buying)

[fiege1224]

I just got my flood insurance policy renewal. It went up 25%. I am homesteaded with a new home. I would expect that increase for the next 4 years. But that is about what everything is going up lately. Most of my bills are rising 15 to 25%. But my ss went up less than 2%.

[Samiamnh]

That is really outrageous...there has not been a major storm in the area in many years.The insurance companies are raking in billions

[MartyGras]

Originally Posted by fiege1224

I just got my flood insurance policy renewal. It went up 25%. I am homesteaded with a new home. I would expect that increase for the next 4 years. But that is about what everything is going up lately. Most of my bills are rising 15 to 25%. But my ss went up less than 2%.

There is a misunderstanding about the increase in flood insurance.

If you live in a pre Firm house your insurance will increase by 25% per year until you reach the actual cost of insurance.

As an example if your insurance was costing $1000 per year but the real cost should be $3000 your insurance cost will increase by $250 or 25% of $1000 the first year and in year two the increase will be 25% of $1250 or $312.50 and so on until you reach the moving target of $3000.

Gary

[MartyGras]

Originally Posted by fiege1224

I just got my flood insurance policy renewal. It went up 25%. I am homesteaded with a new home. I would expect that increase for the next 4 years. But that is about what everything is going up lately. Most of my bills are rising 15 to 25%. But my ss went up less than 2%.

Just curious what is your BFE and flood elevation?

Gary

[leigh9090]

We don't live on Sanibel but homeowners insurance rates are something we all deal with. Four years ago when we bought our house we were told Citizens was the only one that would cover us. The rates seemed huge given the size of the house, etc.

Fast forward to now.... I missed the opt-out letter for Heritage to assume us from Citizens. I called my local company and all of a sudden there are other companies to choose from, one that is Six or seven hundred cheaper, same coverage. Go figure.

[hiknapster]

I'm not affiliated with Citizens, I don't even write home insurance in Florida. But I want to bring up some points. People tend to think about premiums and how low they can get them without ever thinking about the coverage they have or if they will be able to get help if something were to happen. It's typical short-sightedness. Citizens may be bad but are the other companies going to be better? Will they have the money to pay you in the event of a loss? Citizens is no guarantee, either, but they are often considered a better bet than some of those very small, untested companies.

Citizens Insurance: New, untested market emerging - Sun Sentinel

Just some points to ponder.

[loki2330]

Originally Posted by luvtobewarm

Hey thanks - I get it now. Just got bogged down in terminology. Can you tell me what the difference is in homes built prior to 1974? OUrs was built in 84, but just wondering. Also...have the rates been adjusted for CC? We just bought our home a couple months ago - when would a rate increase come through? We have Citizens although we were going to shop around. Our agent had told us we had to go through citizens, but am not sure that was true.
I found a good thread in the Punta Gorda forum. Trying to muddle my way through it.

Get rid of citizens, theyre the highest around if you want I can give you the name of the company I use, im paying like 1200 and house is in cape on fresh water, 2200 sq ft with pool.

[CapeGroves]

Originally Posted by loki2330

Get rid of citizens, theyre the highest around if you want I can give you the name of the company I use, im paying like 1200 and house is in cape on fresh water, 2200 sq ft with pool.

Ok, give us some names!

[leigh9090]

Originally Posted by hiknapster

I'm not affiliated with Citizens, I don't even write home insurance in Florida. But I want to bring up some points. People tend to think about premiums and how low they can get them without ever thinking about the coverage they have or if they will be able to get help if something were to happen. It's typical short-sightedness. Citizens may be bad but are the other companies going to be better? Will they have the money to pay you in the event of a loss? Citizens is no guarantee, either, but they are often considered a better bet than some of those very small, untested companies.

Citizens Insurance: New, untested market emerging - Sun Sentinel

Just some points to ponder.

Not shortsighted at all. BTW, the coverage offered was actually somewhat larger than Citizens.
The long and short of it is that there are a lot of people who simply cannot afford the crazy rates. It's been out of control for a long time.

[hiknapster]

Originally Posted by leigh9090

Not shortsighted at all. BTW, the coverage offered was actually somewhat larger than Citizens.
The long and short of it is that there are a lot of people who simply cannot afford the crazy rates. It's been out of control for a long time.

So if the company goes bankrupt before paying your claim can you foot the bill for a total loss? And if you can, do you want to?

My point is the people that can't afford the rates are probably the same people that can't afford to lose everything or take the sort of hit, either.

Also, small companies that aren't that financially healthy don't have the sort of reserve, are more apt to argue about routine claims, denying or giving you less than you'll need.

Just playing devil's advocate knowing that not everyone always thinks things through when they find a bargain-basement rate.

Florida property owners are quick to call prices out of control but notice how all but these small upstart companies and Citizens are insuring property. There's a reason for that. Folks complain that their insurance companies are making hand over fist but if you don't have a company with the means to be there for their customers...