Suprise! (rental, how much, new home)

[SoFLGal]

Originally Posted by Skunk Workz

Every agent I called quoted me the exact same price, and told me that no one but Citizens would actually cover a house this old. When we purchased the house the only company I could get to write the policy was State Farm (That should have been a clue!). They've since "withdrawn from the coast".

I'll definitely be calling around tomorrow to see if I can find something else.

Due to the age of your home I highly doubt you'll find anyone to pick you up other than Citizens, unfortunately.

It's my understanding that if you have a Citizens policy it's the same no matter who quotes it I have Citizens on my rentals and it's the same no matter who I ask.

My insurance is under $800 per year but my home is newer. It's disappointing they tag so so heavily for owning a historic home, as I'd like to own one some day.

[Harbor Hopper]

Question is, do you really need $312k in coverage? Would it really cost that much to replace? If not, have them reduce your coverage to bring the price down. In 2008, Citizens originally had my dwelling coverage at $190k, which is way more than it would cost to rebuild an 1800 sqft 3 bd/2ba home. I had them reduce it to $140k I think, which is more than enough. I just got my renewal last week and it increased by $70 this year, which I didn't think was too bad. It's now just over $1400. Flood is about $500 since we're on a gulf access canal.

[Skunk Workz]

Originally Posted by Harbor Hopper

Question is, do you really need $312k in coverage? Would it really cost that much to replace? If not, have them reduce your coverage to bring the price down. In 2008, Citizens originally had my dwelling coverage at $190k, which is way more than it would cost to rebuild an 1800 sqft 3 bd/2ba home. I had them reduce it to $140k I think, which is more than enough. I just got my renewal last week and it increased by $70 this year, which I didn't think was too bad. It's now just over $1400. Flood is about $500 since we're on a gulf access canal.

I certainly don't want that much coverage. I actually talked to my agent last week about all of my policies. I asked the same question, if we needed / had to have that much coverage, and was told that that it couldn't be covered for less.

Mind you that this is a 3/2 ~1900 sq foot house. It's a nice old place, but nothing spectacular.

Our flood is $1000. We aren't on a canal, but the property is at 6-7 ft, and the house is at 8 or 9 ft above sea level. There are canal or river front homes within a block each direction.

[Skunk Workz]

Originally Posted by SoFLGal

Due to the age of your home I highly doubt you'll find anyone to pick you up other than Citizens, unfortunately.

It's my understanding that if you have a Citizens policy it's the same no matter who quotes it I have Citizens on my rentals and it's the same no matter who I ask.

My insurance is under $800 per year but my home is newer. It's disappointing they tag so so heavily for owning a historic home, as I'd like to own one some day.

It certainly diminishes the value of older places. At this point the difference between my mortgage and escrow payment is going to be about $70. As a resale I think it's going to be tough to move.

[gypsychic]

Skunk - is your older home also frame? That makes it even worse. Sadly, I agree with you that it really diminishes the resale value of these older homes. I have been through this with my own homes. We now have a 1950's concrete block/stucco home that's built like a bunker and all renovated, and still have to pay $1,800 HOI (last year's premium) plus $1,100 for flood (house at 9 ft, 2 blocks from bay).

I really think Florida is in crisis mode with this insurance, and it doesn't help that I read several articles a while back about how it's the reinsurance companies causing the ins. companies to charge such high rates, and that they were computed on "faulty" storm models!

Anyway, to others reading this, if Citizen's is your only choice, it won't matter WHO you call, quote will be the same, and they don't just let you "reduce" your coverage. Also, for most lenders, coverages on flood and regular HOI have to match - I have this issue every year with my lender.

[Harbor Hopper]

Originally Posted by gypsychic

Anyway, to others reading this, if Citizen's is your only choice, it won't matter WHO you call, quote will be the same, and they don't just let you "reduce" your coverage.

My experience was just the opposite. One call to Citizens and I got my replacement coverage amount reduced by around 25%, since I could prove that it wouldn't cost that much to replace my older, simple home.

[nphomeowner]

Insurance was one reason we didn't look at any homes built before 2006. After reading all of this I'm real glad. It is really horrible though that it will affect the resale value of the older homes. I know it did for us, there were some that I just loved but didn't even go to see them in person.

[gypsychic]

Originally Posted by Harbor Hopper

My experience was just the opposite. One call to Citizens and I got my replacement coverage amount reduced by around 25%, since I could prove that it wouldn't cost that much to replace my older, simple home.

How did you prove it - do you mean you got an appraisal? I guess that is the variable here. I think most people are stuck.

[Skunk Workz]

Originally Posted by gypsychic

Skunk - is your older home also frame? That makes it even worse. Sadly, I agree with you that it really diminishes the resale value of these older homes. I have been through this with my own homes. We now have a 1950's concrete block/stucco home that's built like a bunker and all renovated, and still have to pay $1,800 HOI (last year's premium) plus $1,100 for flood (house at 9 ft, 2 blocks from bay).

I really think Florida is in crisis mode with this insurance, and it doesn't help that I read several articles a while back about how it's the reinsurance companies causing the ins. companies to charge such high rates, and that they were computed on "faulty" storm models!

Anyway, to others reading this, if Citizen's is your only choice, it won't matter WHO you call, quote will be the same, and they don't just let you "reduce" your coverage. Also, for most lenders, coverages on flood and regular HOI have to match - I have this issue every year with my lender.

Yea, it's frame as well so that certainly doesn't help at all.

[Randy Forbes]

Originally Posted by nphomeowner

Insurance was one reason we didn't look at any homes built before 2006. After reading all of this I'm real glad. It is really horrible though that it will affect the resale value of the older homes. I know it did for us, there were some that I just loved but didn't even go to see them in person.

We've limited our search to 2007 build date and newer, fueled by hurricane construction standards, and their more favorable insurance rates. Also, it certainly doesn't hurt to have the newest in safety (windows, etc.) and energy efficiency.

Honestly though, it's looking more and more like we'll be settling on a home with a 2011/2012 build date (I sure hope it's not a 2013/2014...).