Florida Home Prices are Up but Homeowners Insurance Issues Remain.
Miami and Tampa are used in the twenty city composite to determine the rate. Both Florida cities scored higher increases in home prices than the national average. Miami clocked in at a nice increase of 7.4% while the Tampa area homes were said to increase 5.9% in the past year. Areas that suffer the largest declines in real estate prices during recessions, also tend to experience the steepest recoveries. Florida home prices had decreased an average of 60% during the recession that started in 2008.
Florida real estate prices can move much quicker, in both directions than most other states. This is mainly because Florida experiences a greater number of people moving in and out of the state, than most places. Florida newcomers should be aware that the price they pay for any home in Florida could be much higher, or much lower when they need to sell in the future.
Florida insurers quick to take away discounts, become stingy when it’s time to give them
Citizens Insurance is the state backed insurer of last resort for Florida homeowners. When no other insurance company will insure your Florida home, you can usually get homeowners insurance by applying to them. Recently, Citizens and other Florida homeowner insurance companies embarked on a campaign to inspect the homes of their policyholders because they felt that too many homeowners were receiving discounts for hurricane protection improvements, that they weren’t entitled to. As a result, three out of every four homes that were inspected experienced increases that averaged $800 a year.
Homeowners took the matter to court and a judge ruled that the forms the insurers were using were faulty. It turns out that the forms were designed in such a way that there were boxes to check off for items that would deny discounts, but no boxes at all for items they found that would give the homeowner discounts they were entitled to, but not receiving.
Prospective new Florida residents should become familiar with homeowners insurance in Florida before buying a home. In some areas you may be required to carry homeowners, wind, flood and sinkhole insurance just to get a mortgage. Insurance in Florida can be a huge expense, even on a lower priced home. With the increase in destructive weather events and issues in Florida like sea level increases, already expensive Florida coverage is only going to go higher.