A recent topic of concern in our area (and probably throughout the Southeastern United States) is rising rates for home owners insurance. Due to the extensive damage caused by hurricanes the past few years, insurance companies have raised rates considerably.
In fact, just this week state regulators OK'd State Farm's 52.7 percent statewide average rate hike, after State Farm amended an initial request that called for a 71.5 percent hike. Other insurers have already raised their rates and I'm sure most who haven't already are preparing to do so. This becomes a major factor when consumers are determining how much they can afford to spend on a new home - a factor that wasn't that much of a concern even one year ago.
We feel the pain as much as anyone. In fact we feel the pain several times over because in addition to being home owners ourselves, we also own several rental properties and rates for investment properties are even higher than for owner occupied properties. Another way we feel the pain is in our "business". Increased rates translate into consumer wariness towards making a new purchase - reduced activity in the market means a reduction in our incomes.
Now, don't think that I am complaining. That's really not my intention. I'm simply being a realist as I make adjustments within my own budget. That's what I am hoping you, as a potential buyer or seller, are doing as well... simply "counting the costs" and adjusting accordingly. Rather than getting all worked up and alarmed over the increase in rates, I am thankful that insurance is even available. Think about it. Without insurance, a hurricane could literally destroy your life. With insurance (assuming there is no loss of life) it can only destroy your "things" which the insurance will replace.
When I count the costs and consider the options, I will gladly (though reluctantly) pay for the insurance and cut costs elsewhere in my budget to make up the difference...
Now if we could only get our legislators to do the same. But that's a topic for another time.
ABOUT THE BLOG OWNER
TIMOTHY H. FENNELL, PA
Tim Fennell is a Florida licensed Real Estate Broker with Legends Land and Realty, Inc. in Jacksonville, Florida.
His strong background in business development, real estate investments, counseling and marketing greatly enhance his skills as a Listing and Internet Marketing Specialist.
Tim and his wife, Susan, have over 30 years experience in Jacksonville Real Estate sales, marketing and investing. Both are Accredited Consultants in Real Estate (ACRE®). When you're ready to be consulted with, rather than sold to, give Tim and Susan Fennell a call.
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