The Anna Maria Island Sun Newspaper


Vol. 16 No. 49 - October 5, 2016

REAL ESTATE

Flood insurance do we even want to know

 

It's finally October and so far, our area has again been spared from the "big one." Although we did experience flooding during Hurricane Hermine last month it was not crushing. However, none of that matters when it comes to the premium for your flood insurance where you will not be spared.

Let's start with a little recap here for anyone who has deleted the details from their minds. In 2012 after hurricanes Katrina, Sandy and other major storms plunged the flood insurance program deeply into debt, Congress enacted the Biggert-Waters Flood Insurance Reform Act of 2012. The act was designed to remove government discounts and bring insurance rates charged for risky properties up to levels reflecting actual risk. However, many homeowners of those risky properties received such large increases in their 2014 renewals that Congress was pressured to throttle back on the rate increases. In addition, there was a fear of the housing market located in flood zones collapsing.

The congressional fix was a 25 percent annual limit on rate increases for properties in flood hazard zones paid for with a new surcharge imposed on all property owners. This temporary reprieve did stop the bleeding and the drama until now.

So this year as many of you already may know the flood insurance rates are increasing for all policyholders as the National Flood Insurance Program continues to dig itself out of the $24 billion in debt it has incurred. Out of the National Flood Insurance Program's 5.1 million policies, about 1.8 million are written for properties in Florida.

Nationwide the flood insurance premiums are increasing an average of 9 percent excluding some surcharges and fees said a spokeswoman for the Federal Emergency Management Agency back in April of this year. The increases are based on if the home was built prior to the 1980s, are in flood hazard zones or have been paying artificially low premiums since flood zone maps were first created in the 1980s.

The good news is homeowners won't endure annual flood premiums immediately jumping five or six times, but year after year of flood rate increases of 9 percent to more than 20 percent are expected. Home buyers can expect their flood rates will double within four or five years, with the rates eventually reaching the government's unsubsidized level.

And for most homeowners, flood insurance coverage is not an option since homeowners with mortgages backed by a federal lending guarantor such as Fannie Mae or Freddie Mac are required to carry flood insurance if they lie in a special flood hazard zone. Special flood hazard zones are defined as being typically near the ocean or Gulf of Mexico, the Intracoastal Waterway, canals, rivers or other low-lying areas.

And because bad news follows other bad news a couple of weeks ago Florida regulators approved a rate hike for Citizens Insurance "the insurer of last resort." Although private insurers have come into the State in recent years, Citizens still has nearly 500,000 customers. These homeowners can expect their rates to increase by an average of 6.4 percent next February. Citizens officials said they needed to raise rates to deal with rising claims associated with water loses not associated with storms in spite of the fact that Florida has been relatively hurricane free for the past ten years.

It seems that sometimes you just can't get a break, even without storms the rates keep going up. Don't be crushed by the latest crushing news; enjoy your water view and remember it's almost November.

Real Estate Transactions
Real estate transfers of June 2016

Sponsored by Alan Galletto Island Real Estate

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

Anna Maria

16-07-11 625,000 525,000 122 Oak Ave 1176 3 Br/2 Ba SFR 16-07-08 745,000 689,000 405 Spring Ave 1696 4 Br/3 Ba SFR 16-07-01 899,000 850,000 302 Tarpon St 1878 3 Br/2 Ba SFR 16-07-05 1,099,000 919,000 525 Kumquat Dr 2288 3 Br/2 Ba SFR 16-07-22 1,200,000 1,100,000 116 Peppertree Ln 1996 3 Br/2.5 Ba SFR
16-07-14 1,250,000 1,153,500 229 Chilson Ave 1597 3 Br/3 Ba SFR 16-07-21 1,250,000 1,170,000 238 Lakeview Dr 2281 3 Br/2 Ba SFR 16-07-25 1,745,000 1,600,000 909 N Shore Dr 1868 3 Br/3 Ba SFR 16-07-25 3,500,000 3,300,000 825 N Shore Dr 3486 3 Br/4.5 Ba SFR
16-07-21 620,000 580,000 218 Palmetto Ave 1648 52x100 Duplex
16-07-15 399,000 350,000 710 N Shore Dr 60x85 Vac.
16-07-07 495,000 470,000 401 S Bay Blvd 76x105 Vac

Bradenton Beach

16-07-01 1,495,000 1,495,000 106 4th St S 3000 6 Br/5 Ba SFR 16-07-01 379,900 349,000 1301 Bay Dr N #5a 1079 2 Br/2 Ba Condo
16-07-28 610,000 585,000 1417 Gulf Dr N #1417 1524 3 Br/2.5 Ba Condo

Cortez

16-07-26 1,800,000 1,720,000 12614 Baypointe Ter 4677 3 Br/3.5 Ba SFR
16-07-12 123,500 107,500 12334 Baypointe Ter 110 x 151 Apx Vac.

Holmes Beach

16-07-11 489,000 475,000 406 Bay Palms Dr 1332 2 Br/2 Ba SFR 16-07-06 549,000 490,000 308 56th St 1080 2 Br/1 Ba SFR 16-07-12 579,000 575,000 208 Haverkos Ct 2181 65x98 3 Br/2.5 Ba SFR 16-07-18 619,000 620,000 5802 Imperiore Ave 1020 2 Br/2 Ba SFR 16-07-20 650,000 650,000 304 60th St #B 1150 3 Br/2 Ba SFR 16-07-15 849,000 790,000 206 67th St 2139 4 Br/3 Ba SFR 16-07-27 999,000 975,000 307 74th St 1676 3 Br/3.5 Ba SFR
16-07-11 1,299,000 1,185,000 671 Key Royale Dr 2885 221x78 3 Br/2.5 Ba SFR
16-07-19 2,190000 1,800,000 512 59th St 4544 6 Br/4.5 Ba SFR 16-07-11 2,399000 2,100,000 625 Key Royale Dr 3118 4 Br/3.5 Ba SFR
16-07-05 375,000 350,000 3215 Gulf Dr #3215 672 1 Br/1.5 Ba Condo
16-07-01 360,000 360,000 600 Manatee Ave #205 1187 2 Br/2 Ba Condo
16-07-01 389,000 375,000 3402 Gulf Dr #3 359 2 Br/2 Ba Condo
16-07-18 415,000 392,000 5806 Gulf Dr #204 1078 2 Br/2 Ba Condo
16-07-15 499,900 485,000 6006 Gulf Dr #111 1154 2 Br/2 Ba Condo
16-07-11 395,000 367,500 3009 Avenue E 751 2 Br/1 Ba Villa
16-07-26 469,000 425,000 5613 Guava St #A&B 1580 57x105 Duplex

Source: Mid Florida Multiple Listing Service


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