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Clearwater Home Owners Insurance - What's the answer?

By
Real Estate Agent with Charles Rutenberg Realty

 

 

We have a lot of debate here in Clearwater, Florida regarding the cost and availability of property insurance on our homes and condos- but this same debate is taking place all over Clearwater / St Petersburg / Tampa Bay Florida...

How do we handle the skyrocketing cost of Clearwater area insurance?

Those of us that are Clearwater home owners and condo owners  have seen the amount we pay for taxes and insurance skyrocket. I remember my surprise a few years ago when I realized the amount we paid for our home's property taxes and insurance was now larger than our home mortgage principal and interest payment each month.

A few years back, voters in Florida passed Save our Homes - a measure that caps our home's property taxes for your primary residence - the goal was to prevent long time residents and those retired on fixed income to be forced out of their homes due to rising property taxes. Well ironically - who would have guessed that it would be the property insurance on our Clearwater homes that would cause many to have to do that.

Like many local real estate agents, we've received those distressing calls from a friend or neighbor on a fixed income asking us about the real estate market and about coming to sell their home because they are in the hole each month with no way to keep up.

We all keep searching for answers - The National Hurricane Conference which ended this past Friday was held in New Orleans.  While there they discussed this issue at length. One of the concerns voiced by one of the chief economists, Robert Hartwig, was the growing exposure insurance companies have in Florida (reaching $7 Trillion)- just look at all the new construction on our beaches, especially places like Clearwater Beach.

Did you know that insurance companies lost $10 Billion because of Hurricane Andrew in 1992 and lost another $10 Billion in Florida in 2004 and $4 Billion in 2005.

When Jack & I were newly married we lost everything in a fire in our home so we truly appreciate the value of insurance - but I also appreciate the value of the company being there to quickly and fairly settle your claim.

I hope we see some innovative solutions to our current system because I'm concerned about the effect the status quo will have on all of us - especially on our real estate market.

What do you think we should do about property insurance for our homes in our coastal communities like Clearwater, FL?

Cyndee & Jack Haydon

Your Real Estate Consultants.....for Life

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We also have an additonal Real Estate Resource for Clearwater and Clearwater Beach home and condo information- Visit http://www.ClearwaterHomeConnection.com/ Let us know if you're looking for a Clearwater Home or a Clearwater Beach Condo or whatever else you're looking for. We can help!

Show All Comments
Terry Haugen STAGE it RIGHT! 321-956-2495
Stage it Right! - Melbourne, FL

Hi Cyndee!  The reason we have this crisis is because a few years ago the legislature allowed the insurance companies to separate Florida from the rest of the country.  So we now have Allstate Floridian, etc.  Now when Allstate has Florida claims, those are stand alone against the premiums collected, whereas if the claims were posted against Allstate nationwide the claims hit wouldn't even make a dent in the profit margin.  That gave the insurance companies the ability to whine about how much they shelled out in claims and how it cut into their profits, and why they had to raise rates, whereas the parent companies are raking in billions in profit, with few claims compared to Florida.  It all stinks.  And now we have a legislature that has mandated no insurance company can cancel a policy UNLESS they lower their rates.  So, Allstate Floridian lowered their rates 5 measly % and then canceled 106,000 policies statewide.  There will be no relief in sight.  Charlie Crist was the insurance problem to begin with, his campaign promise was that he would fix it, and the resulting solution is puney rate decreases and mass cancelations.  The stress of dealing with outraged customers is what caused me to leave the insurance industry.  Its a nightmare!

Terry Haugen - STAGE it RIGHT!

Apr 09, 2007 02:12 PM
Cyndee Haydon
Charles Rutenberg Realty - Clearwater, FL
727-710-8035 Clearwater, Beach Short Sales Luxury Condos &Homes

Terry,

Thanks for your insight. I agree with you that when the legislature allowed the insurance companies to separate from the rest of the country that was a strategically bad move! Obviously we needed to balance our risk with the rest of the country. Terry, do you think there's a way we could get back to a nationwide risk pool? You're right it is a big mess and one that is really impacting home owners at all levels. 

Apr 10, 2007 01:44 AM
David A. Podgursky PA
THE PODGURSKY GROUP @ Re/Max Direct - Boynton Beach, FL
THE PODGURSKY GROUP - Make the Right Move!

I Still don't know how Insurance companies LOSE money

I had a client - a real pain - he did not believe in insurance

he would just let what happened happen and collect from FEMA

it was an interesting strategy because damages have alawys been small for him

it is a necessary evil but I believe it is something that will be dealt with this calendar year

Apr 10, 2007 03:46 AM
Cyndee Haydon
Charles Rutenberg Realty - Clearwater, FL
727-710-8035 Clearwater, Beach Short Sales Luxury Condos &Homes

David,

Great to hear from you! I agree, what amazes me is how at times people with "no insurance" end up getting Disaster help like FEMA and it can seem it's even better that those with insurance. Like you, I hope we do see progress this calendar year.

 

Apr 10, 2007 01:51 PM
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