Where waterfront property always demands a premium price
now it comes at an even higher price!
There are approximately 16 million households along the Gulf of Mexico and the Atlantic seaboard. In fourteen of the top fifteen states, homeowner’s insurance rates have risen by at least 44 percent in recent years. Florida has seen rates soar 91 % from 2003 – 2010* and now have the dubious accolade of being hit with the highest homeowners insurance rates in the nation. In general it’s the coastal regions which are seeing the largest increases, however nationwide the cost of homeowners insurance has risen 36% from 2003-2010* with more hikes expected in the aftermath of Irene and Sandy, and the recent catastrophes in tornado alley.
As claims have been on the rise with 39% of nationwide homeowners insurance claims payments paid out between 2004 to 2001 compared to 25% from 1997 to 2003, severe weather is seen as the major cause. However, insurers in an attempt to lure customers to more profitable life and auto insurance, appear to have been selling homeowners insurance too cheaply. Some regulators may also have been holding prices down in some states too, according to Rober Hartwig, president of the Insurance Information Institute of New York.
Should insurance be subsidized by the tax payers? But why should people in other areas without the cycles of huge storms be burdened with the costs of others?The general feeling is that people who want to live in areas constantly battered with mammoth storms causing damage in the billions should pay for it. But wouldn’t the areas frequently hit by horrendous fires caused by lightening also be subject to higher premiums in that case? Where will this it all end?
If you live in NY and your dream is to own a home on the waterfront, a lakefront property may well be the solution. We have several luxury waterfront listings currently available
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