Insurance Premiums Increase 130%?

[tivoli]

Today's Wall Street Journal Marketplace today
indicates the Florida Panhandle along the Gulf
Coast, premiums could rise by nearly 130%. WOW! :bang:
Citizens Insurance is in a financial pinch, with a deficit
in 2005 that could hit $1 billion or more. Stated some
insurance companies have stopped writing new coastal
homeowners policies in states of NY and MA.

[Smiling JOe]

Today's Wall Street Journal Marketplace today
indicates the Florida Panhandle along the Gulf
Coast, premiums could rise by nearly 130%. WOW! :bang:
Citizens Insurance is in a financial pinch, with a deficit
in 2005 that could hit $1 billion or more. Stated some
insurance companies have stopped writing new coastal
homeowners policies in states of NY and MA.Mine increased 80% two weeks after Hurricane Ivan (2004) (only about 3 months into my contract) and another 80% in July '05. It would not surprise me if it goes up another 130% to cover losses.

[SHELLY]

I watched this train coming down the tracks for the last couple of months. The real "unknown" is how it's going to shake out in the vacation rental market as owners try to pass costs along to their customers.

My heart breaks for the poor "in land working stiffs" in the area who are going to take a hit in order to subsidize beach house/condo insurance.

[Coast is Clear]

My premium only went up 20% which I was very thankful for. I am not directly on the water, but about 3 minute walk.

I spoke to a friend who has a house on St Simons in GA, and their wind policies are astronomical in comparison. A multiple of my premium.
He is on a marsh.

So while Citizens is bad, private policies in other states might be much worse.

[Franny]

We just received notice of a 100% increase on our house in Pt Wash but only 10% for our rental near the gulf?? :idontno:

[imasunbum]

We just received notice of a 100% increase on our house in Pt Wash but only 10% for our rental near the gulf?? :idontno:
Franny, who to you have your rental near the gulf with, if I may ask?

[Donna]

Ours went up 250 percent and another friend said they had a 380 percent increase, although I wonder if she did the math right on that one. It's not a happy event, but the pain is shared by everyone in the State, not just people on the coast. After all, wind damages can be as bad or worse inland as on the water. Also, as bad a rap as Citizens gets, at least they are there for us. Florida really does take care of folks in this department, requiring that carriers provide coverage or providing an alternative. Could be a lot worse.

[Beach Runner]

Ours has been cancelled every year because of being too close to the Gulf, so every year we have to scrounge around for new coverage. I can't even deal with it right now. It's SO expensive. I'll be like Scarlett O'Hara and deal with it another day. If I computed the percent increase, I might faint!

Where's my mint julep?

[Wastin Away]

We just got new insurance on our home which is about 50 yards from the Gulf. It cost us about 150.00 more than what we had been previously paying with the same coverage. The company we went through is Kite Insurance out of Pennsacola. They have been great. Their number is 850-434-8123. You can ask for Kelly Ballard or Chantelle Dupuis. The coverage we got also included wind insurance.

[Smiling JOe]

We just got new insurance on our home which is about 50 yards from the Gulf. It cost us about 150.00 more than what we had been previously paying with the same coverage. The company we went through is Kite Insurance out of Pennsacola. They have been great. Their number is 850-434-8123. You can ask for Kelly Ballard or Chantelle Dupuis. The coverage we got also included wind insurance.I have been hearing that Citizens is the only carrier with wind coverage. Reading this, I am learning differently. Anyone else have another company for wind?

[gotothebeachmom]

I have been hearing that Citizens is the only carrier with wind coverage. Reading this, I am learning differently. Anyone else have another company for wind?

We got a notice from Citizen's in December informing us that on our renewal date our policy would be assumed by Florida Peninsula Insurance Company.

[Wastin Away]

We were told the same thing until we started looking on our own. Our previous insurance broker (out of Destin) told us that he could not find any other coverage but I guess he just didn't try hard enough. Our business has gone elsewhere.

[Smiling JOe]

We were told the same thing until we started looking on our own. Our previous insurance broker (out of Destin) told us that he could not find any other coverage but I guess he just didn't try hard enough. Our business has gone elsewhere.I think they told you that because they don't want to cover homes in the area. This is happening very often. That is easier to say rather than NO, we don't want your home business, but do you have a need for auto coverage? By the way, your autos are not covered by natural disasters in most cases. :shock:

[Beach Runner]

I have been hearing that Citizens is the only carrier with wind coverage. Reading this, I am learning differently. Anyone else have another company for wind?
We got Lexington (one policy that covers everything) when NorthPointe cancelled us last month (excuse: we were not on a well-traveled road). I was afraid to get Citizen's after all of the negative things I've read about it on this board. But Lexington will only insure your house if the house itself is appraised for $500,000 or more.

BTW an agent in Destin also told us that Citizen's was the only company that covered wind.

[SHELLY]

When asking advice on insurance companies from neighbors, ask if they've had experience filing a damage claim, getting a prompt inspection of the damage and received <fair> restitution in a timely manner.

There's a lot of difference between a company who will provide "service" mentioned above and a company whose "service" ends at greeting you with a smile and giving you a mousepad and starlight mint as you hand over the premium check.

[Donna]

Wastin' Away, thank you for the information on the insurance carrier in Pensacola. I called them, they took the vital info and promised to get back to me with a quote in 20 minutes. Seems that it is not true that Citizens is now the only option in Florida for wind insurance. I'm not happy that our carrier in Destin told us this without bothering to do the homework. Our agent was a real dynamo, but is out on disability now. So we plan to change the whole kit & kaboodle over to this company if the price is right. Mucho thanks!

[Rita]

We went through an Allstate agent to get Citizens, also thinking we had no other choice. :idontno:

[Lady D]

:eek: I am sure sorry for you guys living along the Gulf. I often think I would like to live down there but I am not so sure! Franny, that sounds to me like they got things backwards on your policy. I would think the 100% increase would be on the gulf rental property, we have been to Pt. Washington to Eden Gardens. Are you on that back water there? And I grumble about our Mayor here and how he is making it hard on everyone to get by. It is constantly a property tax increase and our gas part of our utilities went up 70% they say due to the hurricanes down along the gulf. That is the excuse they used as to why they went up that much. To me it is all greed! This city is totally mismanaged as to who is running everything here! Our city is around 5 million in debt and the county also and it is because of mismanagement. Someone right now is trying to recall the city mayor here. Don't see that happening though. He will have to be 6 feet under before he is out of office!

[Advance The Man]

+190% on a six unit rental property 25 miles inland in NE Florida!

[SHELLY]

+190% on a six unit rental property 25 miles inland in NE Florida!

They Feel Your Pain! (http://www.flatoday.com/apps/pbcs.dll/article?AID=/20060205/BUSINESS/602050315/1003)

[Advance The Man]

I am selling all of my income producing properties this year. The six unit is the first to go. I think the real difficulty is finding not someone who wants to buy it, but someone who can find insurance. I'm sticking with vacant land and other paper investments.

They Feel Your Pain! (http://www.flatoday.com/apps/pbcs.dll/article?AID=/20060205/BUSINESS/602050315/1003)

[SHELLY]

I am selling all of my income producing properties this year. The six unit is the first to go. I think the real difficulty is finding not someone who wants to buy it, but someone who can find insurance. I'm sticking with vacant land and other paper investments.

I know what you're talking about--the days of "renting for fun and profit" in Florida (residental and vacation) are numbered.

[Franny]

Franny, who to you have your rental near the gulf with, if I may ask?
Sorry..I just saw your question. We rent our townhome on Eastern Lake long term. so of course we do it ourselves.

[Franny]

We got a notice from Citizen's in December informing us that on our renewal date our policy would be assumed by Florida Peninsula Insurance Company.
So did we. And another company is picking up our rental property in July per our agent.

[Franny]

:eek: I am sure sorry for you guys living along the Gulf. I often think I would like to live down there but I am not so sure! Franny, that sounds to me like they got things backwards on your policy. I would think the 100% increase would be on the gulf rental property, we have been to Pt. Washington to Eden Gardens. Are you on that back water there? And I grumble about our Mayor here and how he is making it hard on everyone to get by. It is constantly a property tax increase and our gas part of our utilities went up 70% they say due to the hurricanes down along the gulf. That is the excuse they used as to why they went up that much. To me it is all greed! This city is totally mismanaged as to who is running everything here! Our city is around 5 million in debt and the county also and it is because of mismanagement. Someone right now is trying to recall the city mayor here. Don't see that happening though. He will have to be 6 feet under before he is out of office!
We are on a bayou about 5ft deep in Pt. Washington that has never flooded to my knowledge but the townhome is on Eastern Lake and the "property" flooded during Opal. Doesn't make a lot of sense to me either.

[Franny]

I am selling all of my income producing properties this year. The six unit is the first to go. I think the real difficulty is finding not someone who wants to buy it, but someone who can find insurance. I'm sticking with vacant land and other paper investments.
Hey we have vacant land for sale Advance Man when you are ready!! :biggrin:

[yippie]

Got my Homeowners policy renewal yesterday. My insurance went from 2100.00 a year to 5000.00 per year!!!!!

[SHELLY]

We are on a bayou about 5ft deep in Pt. Washington that has never flooded to my knowledge but the townhome is on Eastern Lake and the "property" flooded during Opal. Doesn't make a lot of sense to me either.

People who lived in "inland" waterfront properties on the western side of the panhandle didn't have any flooding during Frederick, Erin, Opal, etc. BUT when Ivan hit just west of Pensacola Bay, the storm surge was funneled directly up bay, wiped out the I-10 bridge, and sent water flooding into the inland waterways. Most all the properties along the bay AND the along miles of inland waterways received some type of flood damage--many homes were destroyed. People said, "I've lived here for X number of years, and we NEVER had flooding before." I wouldn't discount the chance of a hurricane doing the same in the Destin channel.

Why Never to say "Never" (http://www.pensacolanewsjournal.com/news/special/ivan/graphics/graphic1_full.jpg)

[SHELLY]

Got my Homeowners policy renewal yesterday. My insurance went from 2100.00 a year to 5000.00 per year!!!!!

OUCH! Yippie...I felt your pain! :eek:

[beachmouse]

You aren't going to get that kind of funneling effect in Choctaw Bay. It's essentially a shallow rectangle- The north shore of the bay is 20-25 miles long, and the bay is about 5 miles wide. The kind of flooding that took out the I-10 bridge during Ivan and caused so much damage to downtown Mobile during Katrina happened in areas where the bays are essentially triangular- a wide area where they empty out into the Gulf, and an extremely narrow point on the north head of the bay.

Choctaw Bay as it is, you're talking about waterfront and low-lying properties getting some sort of normal storm surge. What happens in funneling is that you get a wall of water possibly 30 feet higher than official storm surge as the water from the base of the triangle gets pushed toward a single point, and it was the movement of such a huge amount of water toward such a small area that caused the Bay damage that it did.

[ShallowsNole]

Choctawhatchee Bay gets pretty high at my house during storm surge - we planned for that when we built the new house, and thankfully it didn't come over the porches during Ivan. One can expect the causeway on 331 to be under water too - my husband got caught between the little bridge and the big bridge during just after Opal passed :eek:

If something like Katrina hit closer to us...all bets are off. :(

[yippie]

"BTW an agent in Destin also told us that Citizen's was the only company that covered wind."

That is not true. My insurance is with Nationwide and they cover wind. The deductable is higher when the claim is a result of wind. 2% of the value of your home is the wind deductable. Otherwise, the deductable is $1000.00.

[Beach Runner]

"BTW an agent in Destin also told us that Citizen's was the only company that covered wind."

That is not true. My insurance is with Nationwide and they cover wind. The deductable is higher when the claim is a result of wind. 2% of the value of your home is the wind deductable. Otherwise, the deductable is $1000.00.
But how close to the Gulf are you? That's a key determining factor regarding whether they'll insure you or not. And the deductible. Our deductible would, like, buy an S-500.

[Amp22]

But how close to the Gulf are you? That's a key determining factor regarding whether they'll insure you or not. And the deductible. Our deductible would, like, buy an S-500.

And what is that?

[Smiling JOe]

And what is that?

http://images.google.com/images?q=tbn:K3TqPCG35OUJ:www.laroyale-sa.ch/images/limousine/s500.jpg
Mercedes S500


...I know nothing about BR's home, but keep in mind, the deductible is based on insured value of the home and its contents, not the land. I know their are some pricey homes around here, and I would not doubt for a moment that some deductibles may buy a Mercedes S500.

The 2% deductible has been around for a while and is nothing new. The new part is that construction costs have skyrocketed over the last few years, esp the last 12 months, and that changes the costs of replacement. My guess is that most people do not have enough coverage to replace their homes, unless they bought the policy in the last six months.

[Miss Kitty]

But how close to the Gulf are you? That's a key determining factor regarding whether they'll insure you or not. And the deductible. Our deductible would, like, buy an S-500.

Would it include a Brabus? :biggrin:

BR...are you being paid for product placement? You are good.

[jdarg]

Would it include a Brabus? :biggrin:

BR...are you being paid for product placement? You are good.

What's a Brabus? Answer me in the lounge please though:oops:

[yippie]

But how close to the Gulf are you? That's a key determining factor regarding whether they'll insure you or not. And the deductible. Our deductible would, like, buy an S-500.


Within 1500 feet. I am in the "danger zone"!

[Donna]

The criteria is whether you are within 2,500 ft. of the water's edge. Most people are insured for replacement of their homes (plus contents) at the average cost of per sq. ft. construction. Obviously, this does not cover land costs, which are the biggest part of one's property value if you are near the water. I figure that the value of our house, which is a very large one, is about one-quarter of the overall value, with the land being the big nut. Of course, we don't know if land near the water will be as highly desirable as it has been historically if all these storms continue to ravage coastlines. My bet is that it will be, however, because there's only so much of it. We have watched coastlines erode and topple for years in CA and people are still bidding against each other to snap the land up. I know we wanted a house that at least had a very good view and reasonable proximity to the beach, or none at all. And we have had no damage at all, but for some storm surge on the ground floor and into the swimming pool during Ivan. A cleanup, but okay. Still worth it, for our nickel.

[Mermaid]

The homeowner's annual meeting for our condo is scheduled for next month and we've already been warned that our dues are going up. Insurance premiums, of course. It will be "interesting" to see what we'll be shelling out from now on in. :(

I think we're all finding out that paradise does not come without its price.

[yippie]

The criteria is whether you are within 2,500 ft. of the water's edge. Most people are insured for replacement of their homes (plus contents) at the average cost of per sq. ft. construction. Obviously, this does not cover land costs, which are the biggest part of one's property value if you are near the water. I figure that the value of our house, which is a very large one, is about one-quarter of the overall value, with the land being the big nut. Of course, we don't know if land near the water will be as highly desirable as it has been historically if all these storms continue to ravage coastlines. My bet is that it will be, however, because there's only so much of it. We have watched coastlines erode and topple for years in CA and people are still bidding against each other to snap the land up. I know we wanted a house that at least had a very good view and reasonable proximity to the beach, or none at all. And we have had no damage at all, but for some storm surge on the ground floor and into the swimming pool during Ivan. A cleanup, but okay. Still worth it, for our nickel.

This is actually not the criteria. Each insurance company has their own criteria. Many will NOT insure anything South of Hwy 98. Some have the 1500 foot rule and others have the 1000 foot rule. Most will not write anything in the Destin or South Walton area south of Hwy 98 anymore, some won't write policies at all.

Insurance companies will ONLY pay up to the insured value of the house and contents, so if you bought your house 10 years ago and paid 175,000 (just a number thrown out) and your structure is still only valued at .. say 100,000, then think again on what you think you will collect.

Each year, I call my builder and ask him what it would cost to rebuild my house, and that is the new figure I give my agent for insurance. I didn't do that this year because the cost of homes has not appreciated as much as in the past.

[Smiling JOe]

Citizens Insurance has asked its Board to increase the avg rates 15.9% in Feb and an additional 48.4% later in 2006. :shock:

read article attached