The Anna Maria Island Sun Newspaper

Vol. 12 No. 19 - February 22, 2012

REAL ESTATE

Surplus lines – make your voice heard

What do Punxsutawney Phil and Citizens Insurance have in common? One is a cute little rodent that makes predictions and one is a government agency that also likes to predict the future, only their predictions aren't so cute.

This month the Florida House passed a measure that would allow less regulated surplus lines insurance carriers to take over polices from Citizens Property Insurance Corp. Surplus lines insurance carriers operate outside the safety net that pays claims when insurers fail.

They are not subject to prompt payment rules and have no limits on rate increases. Also, surplus lines policies are not backed by the Florida Insurance Guarantee Association, which covers claims if an insurer becomes insolvent and, as stated, are not subject to state prompt payment rules. The companies also do not have to apply to the state Office of Insurance Regulation for a rate increase.

The possibility of this happening has led consumer advocates and lawmakers from both political parties to question whether such companies should be allowed to assume homeowner policies from Citizens. Part of the concern is that Florida's seniors and indeed the average busy homeowner may find their choice of staying in Citizens or participating in a surplus lines company complicated to understand.

That being said, not all surplus lines insurance companies are bad. Some of them include some of the largest and most reliable insurers in the world, and the proposed legislation does have some built in protection for Florida residents. To participate, the surplus lines companies need 50 million in reserves compared with $15 million for other companies, a high rating from industry analysts and enough reinsurance to cover damages from two once-a-century storms.

In addition, existing Citizens customers who want to stay will not be forced out, and those who do decide to leave can come back if they are unhappy. On a positive note allowing the surplus lines industry to take large number of policies from Citizens all at once could provide a broad enough revenue base for companies which would make them more willing to drop rates for homeowners.

The reason the Florida House has proposed this bill (HB245) is the old story of attempting to reduce the size of Citizens and therefore reduce the financial risk to both Citizens and Florida residents in the event of a major hurricane, even those who do not live on the coast.

Although currently Citizens appears to be well capitalized with about $6 billion, top lawmakers still consider the state owned insurer of last resort to be a financial risk. In addition, since Citizens rates have been kept low, it has discouraged other carriers to participate in the marketplace.

I agree the choices will be complicated for the average Florida homeowner and will require individuals to actively educate themselves. For the moment this conversation is far from over. The bill still needs to pass several more committees and the Florida Senate ,which it is on track to do. So if you agree or disagree with the proposed legislation, you still have time to make your voice heard.

In early February Punxsutawney Phil predicted another six weeks of winter –right around the same time the Florida House approved surplus lines. Looks like its Groundhog Day all over again, only with a different rodent.

Real Estate Transactions
Real Estate Transfers from Jan. 1 to 31, 2011
Sponsored by Alan Galletto Island Real Estate

Sold Date | List Price | Sold Price | Address | Provision | Property Style

Anna Maria

Sold Date List Price Sold Price Property Address SFUA Lot Size Property Description
01/24/2012 115,000 115,000 512 Spring Ave # 9 456 1 Br/1Ba Condo, short sale
01/09/2012 2,490,000 2,200,000 703 North Shore Dr. 962 2 Br/ 1.5 Ba SFR
01/19/2012 499,000 445,900 801 Jacaranda Rd. 1972 50x121 3 Br/2 Ba SFR
01/25/2012 899,000 790,000 402 South Bay Blvd. 1953 3 Br/2 Ba SFR
01/30/2012 549,900 538,000 111 Peppertree Lane 1680 83x106 2 Br/2.5 Ba SFR
01/30/2012 659,000 590,000 247 Willow Ave. 1405 Irreg. 3 Br/2 a SFR
01/05/2012 795,000 650,000 60 North Shore Dr. 4172 215x134 4 Br/2 Ba Vac
01/27/2012 399,000 340,000 117 North Bay Blvd. 56x110 Vac

Bradenton Beach

01/11/2012 94,500 87,000 107 Eighth St. S. # 3 420 1 Br/1.5 Ba Condo, bank owned
01/13/2012 424,900 390,000 1906 Gulf Dr. N. # 205 1096 2 Br/2 Ba Condo
01/24/2012 150,000 150,000 1603 Gulf Dr. N. # 2 540 1 Br/1 Ba Condo
01/25/2012 280,000 250,000 1000 Gulf Dr. N. # 8 450 1 Br/1 Ba Condo
01/26/2012 124,900 110,000 117 Seventh St. N. # 35 594 1 Br/1 Ba Condo
01/27/2012 285,000 270,000 1325 Gulf Dr. N. # 168 1120 2 Br/2 Ba Condo, short sale
01/27/2012 149,000 135,000 2312 Avenue C # 5 651 2 Br/1 Ba Condo
01/27/2012 125,000 102,000 107 Eighth St. S. # 5 440 1 Br/1 Ba Condo
01/12/2012 329,000 293,500 113 Eighth St. S. 1008 50x100 2 Br/1.5 Ba SFR
01/30/2012 399,500 376,500 307 Gulf Dr. N. 2158 50x100 4 Br/4 Ba Inc
01/31/2012 424,900 410,000 106 Seventh St. S. 3004 100x100 8 Br/7 Ba Inc

Cortez

01/09/2012 579,000 540,000 3840 Mariners Wy. # 516c 2227 3 Br/2.5 Ba

Holmes Beach

01/09/2012 249,000 215,000 4001 Gulf Drive # 111 1106 2 Br/2.5 Ba Condo
01/12/2012 399,000 370,000 213 67th S.t # 5 936 2 Br/2 Ba Condo
01/13/2012 645,000 617,500 610 Foxworth Lane 2081 3 Br/2 Ba SFR
01/18/2012 699,000 515,000 525 75th St. 2994 90x123 3 Br/4 Ba SFR, short sale
01/27/2012 1,950,000 1,800,000 104 Sunset Lane 2577 80x326 3 Br/2 Ba SFR
01/30/2012 574,000 550,000 307 63rd St. # A 1766 3 Br/3 Ba SFR
01/31/2012 2,649,000 2,100,000 2808 Avenue E 2350 4 Br/3 Ba SFR
01/06/2012 365,000 335,000 6250 Holmes Blvd. # 67 1536 3 Br/2.5 Ba TH
01/27/2012 325,000 301,000 6250 Holmes Blvd. # 27 1536 3 Br/2.5 Ba TH

Source: Manatee County Property Appraiser’s Office


AMISUN ~ The Island's Award-Winning Newspaper