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And it's only getting worse, multiple carriers left La on 1-1-2024
Posted on 2/1/24 at 8:19 am
Posted on 2/1/24 at 8:19 am
La ranks as one of the worst states on insurance premiums for 2024!
LINK
La ranks as one of the worst on insurance premiums for 2024!
Tough to be a RE Investor and homeowner in these markets. Time to spend money elsewhere.
LINK
La ranks as one of the worst on insurance premiums for 2024!
Tough to be a RE Investor and homeowner in these markets. Time to spend money elsewhere.
This post was edited on 2/1/24 at 8:20 am
7
Posted on 2/1/24 at 8:36 am to southside
Florida has become a nightmare.
There are still claims that haven’t been paid out following Hurricane Ian. That’s been 2+ years ago. There are still homes with tarps on the roof in Punta Gorda and Naples.
This has lead many to believe that if a major storm comes through the insurance companies may be insolvent. Meaning; they’ll collect premiums but make no payouts.
There has been a sharp increase in the number of people who own their homes outright choosing to self insure. Taking the money that would go towards homeowners insurance and instead putting it into something like a high yield savings account. Then crossing their fingers that they get lucky.
This whole mess is going to have disastrous consequences for the state of Florida if it is not reeled in. People and businesses are actively looking to leave the State. Ron DeSantis doesn’t know it yet; but, surging home/auto insurance and exploding property taxes are probably gonna cost him his job.
There are still claims that haven’t been paid out following Hurricane Ian. That’s been 2+ years ago. There are still homes with tarps on the roof in Punta Gorda and Naples.
This has lead many to believe that if a major storm comes through the insurance companies may be insolvent. Meaning; they’ll collect premiums but make no payouts.
There has been a sharp increase in the number of people who own their homes outright choosing to self insure. Taking the money that would go towards homeowners insurance and instead putting it into something like a high yield savings account. Then crossing their fingers that they get lucky.
This whole mess is going to have disastrous consequences for the state of Florida if it is not reeled in. People and businesses are actively looking to leave the State. Ron DeSantis doesn’t know it yet; but, surging home/auto insurance and exploding property taxes are probably gonna cost him his job.
This post was edited on 2/1/24 at 8:39 am
Posted on 2/1/24 at 8:38 am to southside
quote:
Tough to be a RE Investor and homeowner in these markets. Time to spend money elsewhere.
According to my insurance company, my home replacement value is 52% higher than appraisal value (which actually has land involved making it worse).
It’s already tough to be a homeowner here.
Posted on 2/1/24 at 8:44 am to southside
Self-insure seems like a good answer for those able to save up the replacement value of their home and put it into some kind of low-risk fund that can at least keep up with normal inflation.
Posted on 2/1/24 at 8:51 am to PetroBabich
quote:
Self-insure seems like a good answer for those able to save up the replacement value of their home and put it into some kind of low-risk fund that can at least keep up with normal inflation.
That’s the challenge, many of these people are on fixed incomes or retired. The house they spent $125,000 on a little more than 10 years ago is now worth $500,000.
The $3-4,000 per year they are socking away won’t do much of anything other than a roof replacement. They dont have a spare half million hanging around. Plus the property taxes have greater than doubled too.
Posted on 2/1/24 at 9:50 am to PetroBabich
quote:
Self-insure seems like a good answer
better be all cash on house. and one little roof leak during a storm can cause an easy water damage claim of 50k-100k with the quickness on most homes. Not saying not to but know real well the risk assumption you are taking.
Posted on 2/1/24 at 11:17 am to southside
Mine just went up 50%. Price of being able to live in this dump state. But hey.... the food is good, right?
Posted on 2/1/24 at 11:22 am to southside
quote:Where are you seeing anything referencing this? Its not in your link
multiple carriers left La on 1-1-2024
quote:That'll happen when you're in one of the most litigious states in the country and happen to be in a hurricane prone area.
La ranks as one of the worst states on insurance premiums for 2024!
Posted on 2/1/24 at 11:26 am to southside
I checked out that link and ran my options for my house in Covington.
Only option was Kin.
Pricing was comparable to what I’m paying now.
Problem with Kin is that it’s not backed by the LA guaranty fund. So if this dump of a company goes under and you have a claim with them, the LA guaranty find does NOT step in and pay for their insolvency.
This company is worst than the other dog shite companies writing policies here. At least those are backed by the LA Guaranty fund
Only option was Kin.
Pricing was comparable to what I’m paying now.
Problem with Kin is that it’s not backed by the LA guaranty fund. So if this dump of a company goes under and you have a claim with them, the LA guaranty find does NOT step in and pay for their insolvency.
This company is worst than the other dog shite companies writing policies here. At least those are backed by the LA Guaranty fund
Posted on 2/1/24 at 11:33 am to PetroBabich
quote:The problem with that line of thought is that there's so few people who can actually save up enough money to afford a major loss without either wiping out their life's savings or having to pull money out of their retirement accounts. Its one thing to be well off and self insure your fishing/hunting camp, whole different ballgame talking about people's actual residence.
Self-insure seems like a good answer for those able to save up the replacement value of their home and put it into some kind of low-risk fund that can at least keep up with normal inflation.
Posted on 2/1/24 at 11:45 am to wiltznucs
quote:Where are houses en masse worth 4X what they were 10 years ago?
The house they spent $125,000 on a little more than 10 years ago is now worth $500,000.
Posted on 2/1/24 at 12:30 pm to Big Scrub TX
quote:
Where are houses en masse worth 4X what they were 10 years ago?
The entire gulf coast of Florida, extending from Cape Coral north all the way to Tarpon Springs.
I’ll give you a personal example. I purchased a modest 2000 sqft home in September 2007 for $225,000. The exact same home located directly across the street sold at the bottom of the market in 2011 for $119,000.
I sold the home in July 2021 for $425,000. The current estimate on the home is in excess of $500K.
Obviously, it depends on when you bought it. But, 2.5 to 4X is not uncommon in this area at all.
This post was edited on 2/1/24 at 12:38 pm
Posted on 2/1/24 at 1:00 pm to southside
My homeowners insurance has gone in two years from 2,400 to 4,700 to 6,200
Just got my flood insurnace bill this week. In two years, it has gone from 648 to 779 to 906.
Thankfully I bought this house before prices went crazy and I got a low interest rate.
But... that's the thing. If I move somewhere else, I'm going to have to pay for for the same size house, plus higher interest rate, and that probably exceeds or comes close to exceeding the additional insurance costs here. Plus my kids would have to start over, etc.
It's a rock and a hard place. The time to leave was probably 5 years ago.
Just got my flood insurnace bill this week. In two years, it has gone from 648 to 779 to 906.
Thankfully I bought this house before prices went crazy and I got a low interest rate.
But... that's the thing. If I move somewhere else, I'm going to have to pay for for the same size house, plus higher interest rate, and that probably exceeds or comes close to exceeding the additional insurance costs here. Plus my kids would have to start over, etc.
It's a rock and a hard place. The time to leave was probably 5 years ago.
Posted on 2/1/24 at 1:00 pm to wiltznucs
here in central texas, it's even worse. the result of so many years of zero percent interest rates. Big asset price spikes in real estate, stocks, cars etc.
Posted on 2/1/24 at 1:02 pm to wiltznucs
I know. Same boat here.
Problem is yeah you can sell it for a huge upside profit, but you can’t afford the upgrade.
So all we have is money on paper that you really can’t do anything with.
The days of living in a house and selling to upgrade appear OVER.
Now you are bette Todd just stating where you are and enjoying your sub 4% 30 yr internet rate.
At least the kids will have a nice asset to sell when I’m gone.
Problem is yeah you can sell it for a huge upside profit, but you can’t afford the upgrade.
So all we have is money on paper that you really can’t do anything with.
The days of living in a house and selling to upgrade appear OVER.
Now you are bette Todd just stating where you are and enjoying your sub 4% 30 yr internet rate.
At least the kids will have a nice asset to sell when I’m gone.
Posted on 2/1/24 at 1:04 pm to biscuitsngravy
quote:It's WORSE than 4X in 10 years? nah
here in central texas, it's even worse.
Posted on 2/1/24 at 1:28 pm to Big Scrub TX
The insurance on my rent houses went from 17k to a proposed 36k at renewal in April. When I picked them up in 2020 it was 9k. To add to my aggravation the last year of insurance we paid in full and then about 1/2 through they said ohh yea btw we think your houses are worth more so you owe us more right now. POS companies...somethings gotta change.
This post was edited on 2/1/24 at 1:33 pm
Posted on 2/1/24 at 2:12 pm to NOLAGT
quote:Oh, I know insurance can be up that much - but average home values are nowhere near up that much.
The insurance on my rent houses went from 17k to a proposed 36k at renewal in April. When I picked them up in 2020 it was 9k. To add to my aggravation the last year of insurance we paid in full and then about 1/2 through they said ohh yea btw we think your houses are worth more so you owe us more right now. POS companies...somethings gotta change.
The problem is the re-insurance market. 2022 killed many of the investors there, and so 2023 started as a so-called "hard market". Returns that should have been 8-10%, jumped to like 25% unlevered. Essentially, just not enough money in the space to write what is needed, so the price has to go up. It should start normalizing, but it could be slow. Bonds getting killed the past 2 years has been pretty destabilizing.
Posted on 2/1/24 at 8:07 pm to NOLAGT
quote:
The insurance on my rent houses went from 17k to a proposed 36k at renewal in April.
I keep thinking about dabbling in rentals, stuff like this keep me on the sideline.
Posted on 2/2/24 at 8:03 am to TJG210
quote:
I keep thinking about dabbling in rentals, stuff like this keep me on the sideline.
It's tough right now. Buying with these higher interest rates(even with cash) and insurance premiums would make it near impossible, IF you follow the numbers and not your emotions.
This post was edited on 2/2/24 at 8:04 am
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