Florida
Related: About this forum'We do not have insurance. We have an insurance bill': Condos hit with 563% rate increase
Source: USA Today
'We do not have insurance. We have an insurance bill': Condos hit with 563% rate increase
Mark Harper, USA TODAY
Sat, December 2, 2023 at 5:15 AM EST·8 min read
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For Baker and many other Florida condo owners, the very concept of insurance to ease worries during times of distress seems lost, especially after the 2021 collapse of the Champlain Towers South in Surfside and the two-punch combo of the 2022 hurricane season: Ian and Nicole.
The latter storms just over a year ago pounded a seawall outside the Marbella Condominiums, then destroyed a pool and deck area. And the Surfside disaster, which killed 98 people, shined a light on structural safety, delayed maintenance and the need for the state to enact more strict regulations to prevent future collapses.
As bad as all of that was, for Baker, the real disaster arrived in December 2022: the property insurance bill for Marbella, where he serves on the condo associations board.
For the 24-unit building, property insurance jumped from $40,534 for 2022 to nearly $269,000 a 563% increase. And Rob Lasch, another Marbella board member, said hes expecting another increase when the policy offer arrives, which could be any day now.
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Read more: https://finance.yahoo.com/news/not-insurance-insurance-bill-condos-101500766.html
Original USA Today link (login required): https://www.usatoday.com/story/money/personalfinance/real-estate/2023/12/02/daytona-beach-shores-condo-insurance-increase/71770152007/?gnt-cfr=1
no_hypocrisy
(48,687 posts)Where do they go now?
JoseBalow
(5,028 posts)we can do it
(12,770 posts)Stargazer99
(2,926 posts)nevergiveup
(4,815 posts)My son and X live north of Durango and both of their condo dues have exploded because of the increases in insurance rates.
dutch777
(3,447 posts)Really have to feel for folks on a budget that's only help is SS COLA increases that aren't near enough for this kind of reality.
raising2moredems
(705 posts)The state cannot afford to subsidize P&C insurance much longer. We'll see the great exodus.
dutch777
(3,447 posts)there will be an exodus but who you going to sell your FL property to if the buyers do their homework and realize they don't want endless double digit insurance cost fee raises year after year, or no one willing to insure and having their mortgage lender walk away due to no insurance?
lpbk2713
(43,201 posts)Gotcha.
They're waiting to pounce on you.
JoseBalow
(5,028 posts)Much of it will be underwater within a few decades
CaptainTruth
(7,191 posts)In most of the area where I live major development is on the inland side of the coastal road (usually US 1 or A1A). On the ocean side there is typically a wide beach with vegetation-covered dunes behind it, with no buildings. The dunes are protected habitat, with walkways over/through them to avoid damage to them. The beach, dunes, & roadway provide a buffer that helps protect the buildings on the inland side from storm surges.
In Daytona Beach, & on the barrier island, in Daytona Beach Shores, there are large buildings on the *ocean side* of the coastal road (A1A through Daytona Beach Shores), they're literally right on the edge of the beach, with nothing to protect the buildings from storm surges.
The first time I drove through Daytona Beach I was appalled. For hundreds of miles you can drive on US 1 (or A1A) & enjoy a beautiful view of the beach & ocean, it's a beautiful drive, but when you get to Daytona Beach your view of the ocean is obstructed by a wall of concrete. It's a row of condo buildings, many of which are 15-20+ stories tall. I'm sure developers made a killing selling "beachfront property," but to me it's irresponsible.
JPK
(684 posts)All along A1A from Ponte Vedra Beach to Daytona the beach side of A1A, hidden from the casual driver going south, are multi million dollar mansions built right on the beach on top of the dunes that are a barrier that protects the interior. Our insurance rates also contribute to covering these expensive beachside properties in the event they suffer storm damage. They may pay a premium but all of our money goes into the insurance company's cash pool. And who do you think will get financial priority when after the storm leaves?
CaptainTruth
(7,191 posts)I must say, I find myself having very little sympathy for folks who bought property *right on the beach* & are now facing major property insurance increases.
Maybe make better life choices? Just a thought.
SWBTATTReg
(24,033 posts)to FL, I had thought about it at one time, but changed my mind. My heart goes out to my friends that still live in FL. Jesus, holy moly!
JPK
(684 posts)I own my house outright so I don't have to pay the outrageous prices insurance companies are demanding here. Our insurance for our 85 year old house, fifteen miles from the beach, went from $2400/year to $5500/year. And that was with an insurer of last resort. On top of that we would have been required to buy flood insurance in order to be accepted. Our 1/5 of an acre lot has a small corner of our back yard that is in Zone B of the local flood plain. (there's A, B and C). We decided to just drop it. We are retired and on fixed income so if our house became unlivable for some weather related damage we would just sell the dirt and move to an apartment. We are fortunate to own our house and can do that. I feel bad for those in SW Florida and the Panhandle whose properties were destroyed or majorly damaged. They still own on their property and must have insurance for their mortgage. Now they are victimized again by investors that buy up properties cheap. The insurance companies stiff them, Under reimburse them, then they can't pay the rate increases and can't afford the repairs. Under Florida insurance regulations, you as the property owner must prevent any further damage to the property while you wait, sometimes years to rebuild. I can't conceive of how much a new home owner has to pay now with a new house costing $350k and up, add property taxes and then housing and flood insurance to their monthly cost of owning a home here. The Florida politicians are in the pocket of the home builder associations as well as the property investors here.
I might add, it also is automobile insurance as well. At least 1/4 of the cars on our highways here have no insurance.
CaptainTruth
(7,191 posts)I paid cash for my house, so no mortgage. After our insurer went bankrupt & was taken over by the state I gave up, we don't have homeowner's insurance.
We paid our insurer about $50,000 in premiums over 10 years, with no claims. I'm a contractor so I could do a LOT with $50k. I would have been much better off if I had invested that money with a 30%-40% return (that's my minimum target range).
Insurance is just not worth it. I have SO many customers I work for who have had their claims denied by insurance. One customer had a new roof installed a few years ago (50 year roofing) & the combination of Nicole & Ian last year tore off a bunch of their ridge caps, at least a few hundred feet. The insurance company sent out an inspector, who agreed the damage was due to the hurricanes, but the company refused to pay for repairs. So, WTF are the homeowners paying for???
In another recent case a customer had hail damage to their roof. Their insurance company sent an inspector who documented the damage & agreed the roof needed to be replaced. Their insurance company agreed & paid for replacement of the roof.
HOWEVER, one thing that most homeowners don't seem to realize is that even if their insurance company honors a claim & pays for repair work, 99% of the time (in my experience) they HAVE to use the "contractor" the insurance company specifies & it will be the worst lame-ass low-quality cheapest "contractor" the insurance company can find. The work will be crap.
In this case the insurance company's lowest-bid "contractor" removed the roof the day before a major storm was expected & did a half-assed job tarping the roof. When the storm came, water poured into their house. Drywall fell off the ceiling. All their fabric furniture was soaked & ruined. Their beautiful hardwood floors, which were just a few years old, were ruined & had to be torn out. And of course, they couldn't live in their house for weeks.
But oh yea... "The insurance company honored the claim!" Please, freaking spare me!!! As a contractor who bases my business reputation on high-quality work, it truly pains me to see crap work in the field & I have yet to see any "insurance company work" that I would accept on my own home, or my customers' homes. None of it meets my standards of quality... so WTF are they (& I) paying for???
RKP5637
(67,112 posts)The jerk in his white boots and lifts is a lost cause. He'll go after minority groups to look tough (which he isn't) but real problems he can't invent he's a waste, a complete loser.
steve2470
(37,468 posts)Sure, $40 a month may not sound like much, but to people on a limited income (as many of my fellow condo dwellers and I are), it will eventually become a very big deal. Hopefully not to the point where we have to move out.
It is so criminal that DeSantis and his buddies in the Florida Legislature won't do anything about this. Even these idiots have beachfront condos and houses that MUST HAVE insurance. How many people can absorb a huge reconstruction bill after a hurricane or tornado ? Not many.