Currently, more than 1.5 million Florida policyholders are insured through Citizens Property Insurance Corporation, with property value caps of $2 million. The state-backed insurer may be dropping more than 7500 homes that value more than $1 million, since the cap is about to be lowered. The main thinking behind this strategy is losses could be catastrophic, should a hurricane hit.
For the average homebuyer purchasing coastal homes in Florida, this may not mean a lot, but it means rate increases and coverage declines. You may want to speak with your Tampa Realtor, when you are in the process of purchasing a home in Tampa. Since many coastal areas exist in the Tampa-St. Petersburg-Clearwater area, many homeowners could be affected.
Sinkhole policies will increase more than 30%, while standard coverage will increase an average of 6%. When calculating your costs of home ownership, it’s important to be aware of these very recent changes in homeowner policies. A Realtor can find the lowest-priced coverage, since they’re aware of the ever-changing marketplace.
Citizen’s was created for those who couldn’t find coverage, through insurers in the private market, so it’s important to shop insurance, as you search for your new home. For most people, finding their dream home won’t be deterred by higher insurance costs, but qualifying for a mortgage may require higher income levels or lower debt load.
It’s important to factor in this increase for high-risk areas, since coastal areas are most affected. Tampa homes that are further inland won’t be quite as affected and there are those which are outside of high-risk hurricane coverage areas. Your Realtor can show you plenty of great homes, which won’t be as greatly affected. This can save you money and headaches, during the home-buying process.