Homestead Status?

[crobbins]

I lived in Atlanta and have owned a house in SoWal for 3 years but just got a letter suggesting that my property may not be in a 'Homestead' status, thus limiting my ability to get insurance through Citizens. I've called my insurance company but haven't heard back yet -- does anyone know if this is just something administrative or could it be an issue? I've reviewed the conditions under which you gain Homestead status and none of them seem to fit a rental house owned by someone outside of Florida. I'm sure there's something I'm missing -- anyone know off the top of your head?
Thanks!

[Joe]

As of March 2007 Citizen's will only be insuring primary residences that are homesteaded. Because you live out of state you cannot homestead your Sowal property and will no longer qualify for Citizen's Insurance (in most cases).

Citizens insurance to drop some properties

The state-run insurer will be verifying the homestead status of its policies because it will soon no longer cover second homes and most investment properties.

http://www.miami.com/mld/miamiherald/business/15832967.htm

[crobbins]

Oh boy. Thanks.

[Miss Kitty]

Oh boy. Thanks.

I was thinking of something a little harsher than Oh boy. :pissed:

[Starfish]

I, too, live in a suburb of Atlanta and receieved the same notice from Citizens last week. I called them and the agent I spoke with said they are reviewing all of their policies to determine the validity of the homestead status they currently have on record. She said that they would be getting back with all of those who are no longer insurable by Citizens and indicated there would be some type of referral to another agency which will insure second homes. There are too many second home owners to exclude them from insurability, however, the premium will most likely increase quite a bit. At our annual homeowner's meeting in October they said the premium for the condo association would probably increase 500%.

It's a trade off and has to be weighed against the desire to live a the coast. We were down last week. There's nothing like 30-A!! We love it. We may have to sacrifice in other areas, but want to stay connected to that piece of paradise.

Best wishes!

[Smiling JOe]

As I mentioned a few weeks ago, we may see more people "moving" to Florida to claim Homestead exemption and be able to buy home insurance.

[crobbins]

I guess the article says you will be able to get insurance if you can't find it anywhere else for a 25% uplift........guess I'll be paying $10,000 in insurance on my house soon!

[seacliffes]

Here is the Citizens link:
http://www.citizensfla.com/agent_portal/technical_b/pdf/ATB025-06/Homestead_faq.pdf

I spoke to my agent concerning this and the agent indicated they will be shopping the policy to other insurers as required by Citizens. Since no insurer will insure beach property the policty will then go back to Citizens who will insure it as the insurer of last resort. Depending on "deficits" these non homestead properties are elgible for a 10% surcharge.

Marty

[Just_In_Thyme]

I was told the same thing from my agent

[tariail]

I also live in metro Atlanta and received the same notice. I believe it said something about coverage would likely be higher for non-homestead, and of course, we wouldn't qualify for homestead on the FL house either. Apparently they are going to make it higher premiums to get coverage if it's not your residence, and possibly even harder to get the coverage. I'm guessing that it would probably be really hard to get it, in the future, if high claims have been paid. Thanks for all the feedback from various agents' comments, etc., to help us understand what this really means, i.e. between the lines.

[yippie]

WOWAH EVERYONE!!! I spoke with a friend of mine at the insurance commissioner's office.

Citizens jumped on the gun when they sent those letters out. My understanding is the State will NOT let Citizens cancel, non-renew or refuse to insure anyone unless there is another company that will write them.

There is NO other company at this time that will write insurance of last resort.

Just hang tight for a little while. Citizens caused a HUGE problem when they sent those letters out and we need to wait and see what the ultimate outcome is.

[Miss Kitty]

WOWAH EVERYONE!!! I spoke with a friend of mine at the insurance commissioner's office.

Citizens jumped on the gun when they sent those letters out. My understanding is the State will NOT let Citizens cancel, non-renew or refuse to insure anyone unless there is another company that will write them.

There is NO other company at this time that will write insurance of last resort.

Just hang tight for a little while. Citizens caused a HUGE problem when they sent those letters out and we need to wait and see what the ultimate outcome is.

Thanks yippie. Have we met, yet?

[yippie]

OK. This is what I got from my friend:

Here is some information regarding the Citizens Homestead changes.



One of the results of the actions of the 2006 Legislative Session was to
amend F.S. 627.351. Effective March 1, 2007 the law goes into effect and
there are some dramatic changes regarding the homestead status of a
property to be insured or renewed with Citizens.



We have already started to receive calls. Citizens has mailed out about
200,000 letters to their insured's and some 500,000 more will be going
out in about a week.



The first of two dramatic changes will be a property that does not have
homestead status cannot be written or renewed unless the property owner
provides Citizens with a sworn affidavit stating the agent has made his
or her best effort to obtain coverage. The property also must have been
rejected for coverage by at least one authorized insurer and at least
three surplus lines insurers.



The second will be the manner in which any future assessments are levied
upon the Citizens policyholders. In the event of an assessment Citizens
will levy an immediate assessment against the premium of each
non-homestead policyholder, up to 10 percent of the premium. If this
assessment is insufficient to resolve the deficit, Citizens will levy an
additional assessment against ALL policyholders (including the
non-homestead policyholders up to 10 percent of the premium.


The reason the letters are going out this far in advance of the
effective date of the law change is to give policyholders and their
agents time to address the issue. The definition of homestead property
is contained in the F.A.Q.s


Agents should all be fully aware of every change as they have all been
kept fully informed by Citizens in their agent mailings and Bulletins.
If an agent calls us regarding this matter we should inform them they
should call their Citizens Service Representative.

You can start this process immediately and provide this to Citizens and you should be fine.