Insurance Premiums Increase 130%?

Got my Homeowners policy renewal yesterday. My insurance went from 2100.00 a year to 5000.00 per year!!!!!

We are on a bayou about 5ft deep in Pt. Washington that has never flooded to my knowledge but the townhome is on Eastern Lake and the "property" flooded during Opal. Doesn't make a lot of sense to me either.

People who lived in "inland" waterfront properties on the western side of the panhandle didn't have any flooding during Frederick, Erin, Opal, etc. BUT when Ivan hit just west of Pensacola Bay, the storm surge was funneled directly up bay, wiped out the I-10 bridge, and sent water flooding into the inland waterways. Most all the properties along the bay AND the along miles of inland waterways received some type of flood damage--many homes were destroyed. People said, "I've lived here for X number of years, and we NEVER had flooding before." I wouldn't discount the chance of a hurricane doing the same in the Destin channel.

Why Never to say "Never"

Got my Homeowners policy renewal yesterday. My insurance went from 2100.00 a year to 5000.00 per year!!!!!

OUCH! Yippie...I felt your pain!

You aren't going to get that kind of funneling effect in Choctaw Bay. It's essentially a shallow rectangle- The north shore of the bay is 20-25 miles long, and the bay is about 5 miles wide. The kind of flooding that took out the I-10 bridge during Ivan and caused so much damage to downtown Mobile during Katrina happened in areas where the bays are essentially triangular- a wide area where they empty out into the Gulf, and an extremely narrow point on the north head of the bay.

Choctaw Bay as it is, you're talking about waterfront and low-lying properties getting some sort of normal storm surge. What happens in funneling is that you get a wall of water possibly 30 feet higher than official storm surge as the water from the base of the triangle gets pushed toward a single point, and it was the movement of such a huge amount of water toward such a small area that caused the Bay damage that it did.

Choctawhatchee Bay gets pretty high at my house during storm surge - we planned for that when we built the new house, and thankfully it didn't come over the porches during Ivan. One can expect the causeway on 331 to be under water too - my husband got caught between the little bridge and the big bridge during just after Opal passed

If something like Katrina hit closer to us...all bets are off.

"BTW an agent in Destin also told us that Citizen's was the only company that covered wind."

That is not true. My insurance is with Nationwide and they cover wind. The deductable is higher when the claim is a result of wind. 2% of the value of your home is the wind deductable. Otherwise, the deductable is $1000.00.

"BTW an agent in Destin also told us that Citizen's was the only company that covered wind."

That is not true. My insurance is with Nationwide and they cover wind. The deductable is higher when the claim is a result of wind. 2% of the value of your home is the wind deductable. Otherwise, the deductable is $1000.00.

But how close to the Gulf are you? That's a key determining factor regarding whether they'll insure you or not. And the deductible. Our deductible would, like, buy an S-500.

But how close to the Gulf are you? That's a key determining factor regarding whether they'll insure you or not. And the deductible. Our deductible would, like, buy an S-500.

And what is that?

And what is that?

http://images.google.com/images?q=tbn:K3TqPCG35OUJ:www.laroyale-sa.ch/images/limousine/s500.jpg
Mercedes S500


...I know nothing about BR's home, but keep in mind, the deductible is based on insured value of the home and its contents, not the land. I know their are some pricey homes around here, and I would not doubt for a moment that some deductibles may buy a Mercedes S500.

The 2% deductible has been around for a while and is nothing new. The new part is that construction costs have skyrocketed over the last few years, esp the last 12 months, and that changes the costs of replacement. My guess is that most people do not have enough coverage to replace their homes, unless they bought the policy in the last six months.

But how close to the Gulf are you? That's a key determining factor regarding whether they'll insure you or not. And the deductible. Our deductible would, like, buy an S-500.

Would it include a Brabus?

BR...are you being paid for product placement? You are good.

Would it include a Brabus?

BR...are you being paid for product placement? You are good.

What's a Brabus? Answer me in the lounge please though

But how close to the Gulf are you? That's a key determining factor regarding whether they'll insure you or not. And the deductible. Our deductible would, like, buy an S-500.

Within 1500 feet. I am in the "danger zone"!

The criteria is whether you are within 2,500 ft. of the water's edge. Most people are insured for replacement of their homes (plus contents) at the average cost of per sq. ft. construction. Obviously, this does not cover land costs, which are the biggest part of one's property value if you are near the water. I figure that the value of our house, which is a very large one, is about one-quarter of the overall value, with the land being the big nut. Of course, we don't know if land near the water will be as highly desirable as it has been historically if all these storms continue to ravage coastlines. My bet is that it will be, however, because there's only so much of it. We have watched coastlines erode and topple for years in CA and people are still bidding against each other to snap the land up. I know we wanted a house that at least had a very good view and reasonable proximity to the beach, or none at all. And we have had no damage at all, but for some storm surge on the ground floor and into the swimming pool during Ivan. A cleanup, but okay. Still worth it, for our nickel.

The homeowner's annual meeting for our condo is scheduled for next month and we've already been warned that our dues are going up. Insurance premiums, of course. It will be "interesting" to see what we'll be shelling out from now on in.

I think we're all finding out that paradise does not come without its price.

The criteria is whether you are within 2,500 ft. of the water's edge. Most people are insured for replacement of their homes (plus contents) at the average cost of per sq. ft. construction. Obviously, this does not cover land costs, which are the biggest part of one's property value if you are near the water. I figure that the value of our house, which is a very large one, is about one-quarter of the overall value, with the land being the big nut. Of course, we don't know if land near the water will be as highly desirable as it has been historically if all these storms continue to ravage coastlines. My bet is that it will be, however, because there's only so much of it. We have watched coastlines erode and topple for years in CA and people are still bidding against each other to snap the land up. I know we wanted a house that at least had a very good view and reasonable proximity to the beach, or none at all. And we have had no damage at all, but for some storm surge on the ground floor and into the swimming pool during Ivan. A cleanup, but okay. Still worth it, for our nickel.

This is actually not the criteria. Each insurance company has their own criteria. Many will NOT insure anything South of Hwy 98. Some have the 1500 foot rule and others have the 1000 foot rule. Most will not write anything in the Destin or South Walton area south of Hwy 98 anymore, some won't write policies at all.

Insurance companies will ONLY pay up to the insured value of the house and contents, so if you bought your house 10 years ago and paid 175,000 (just a number thrown out) and your structure is still only valued at .. say 100,000, then think again on what you think you will collect.

Each year, I call my builder and ask him what it would cost to rebuild my house, and that is the new figure I give my agent for insurance. I didn't do that this year because the cost of homes has not appreciated as much as in the past.

Citizens Insurance has asked its Board to increase the avg rates 15.9% in Feb and an additional 48.4% later in 2006. :shock:

read article attached