Sarasota, Florida (PRWEB) January 11, 2013
Sarasota Bay Real Estate lauded recent moves by the Florida state government to institute reforms on home insurance coverage. These initiatives’ coming through will significantly contribute to further strengthening the Sunshine State’s real estate market which has been on the mend in 2012, the full service realty firm said.
Floridian business and industry leaders, Sarasota Bay Real Estate noted, are hopeful that the state government will soon be able to resolve the overexposure of Citizens Property Insurance Corp., the state-run insurer of last resort in Florida, and make private insurance more affordable to homeowners. An estimated 1.47 million Florida homeowners are holding Citizens Property insurance policies, some 90,000 of which are in the Manatee and Sarasota counties.
There’s a widespread belief that the non-profit Citizens Property is overexposed which can result in unpaid claims resulting in premium “hurricane” taxes in case a super storm, which Florida hasn’t had in seven years, hits. Should this happen, Floridians can be made to absorb the payment shortfall via a “hurricane tax,” a possible levy that few state residents are aware of. The chairperson of the Florida Senate’s banking and insurance committee has set a one-month deadline for Florida Insurance Commissioner Kevin McCarthy to present a plan on how to reduce the current exposure of Citizens Property.
To reform the state-backed insurer, authorities are already trying to lure more private insurance companies to Florida and encourage competition that will hopefully reduce cost of coverage. Officials at Citizens Property itself have responded to state legislators’ efforts to send back some of the insurer’s policy holders to the open market. They have opened a $350-million loan facility to encourage private insurers to absorb as many as 300,000 Citizens Property policy holders.
Addressing Escalating Home Insurance Cost
Soaring home insurance premiums is one of the pressing items in the agenda of the Florida state legislature when it convenes this March 2013, Sarasota Bay Real Estate said. It noted that many homeowners associations are already feeling the pinch of escalating insurance costs. At the golf community of Village Green in Sarasota, for instance, the condo homeowners are facing trebled cost of premiums this 2013.
The rates aren’t only being raised by private insurance companies. In fact, even the state-run Citizens Property is set to impose higher premiums for 2013. This after state insurance regulators approved a 10.8 percent hike in Citizens Property insurance policy rates last fall. The third largest home insurer in Florida, State Farm Insurance, has also been granted authority to increase premiums by 6.9 percent for homeowners renewing their insurance policies with this private firm.
Substantial rate increases have been imposed on homeowners in 2011, and seventy-three applications for rate hikes have been received by the state Office of Insurance Regulation through September of 2012. Homeowners will have a strong representation Sen. Nancy Detert (R–Venice) on their concerns about the unabated increases in home insurance rates. Senator Detert, a member of the Florida Senate’s banking and insurance committee, has decried that property insurance is now higher than property taxes paid by many of the state’s residents.
About Sarasota Bay Real Estate
Sarasota Bay Real Estate is a full service real estate brokerage in Sarasota Florida owned by Sarasota real estate broker, Christina Miller, and marketing professional, Roy Hunter. Together they, and their team of well-experienced agents, provide the best-in-class real estate marketing services for the properties in the company’s inventory.
Sarasota Bay Real Estate Internet assets receive more than 1,000 visits from perspective home buyers a day due to the wealth of local community information published by the company. Through a direct feed from the Sarasota MLS, Sarasota Bay Real Estate publishes the most current real estate information on the Internet for the Sarasota, Florida, market.
Contact information for Sarasota Bay Real Estate can be found at http://sarasotabayrealestate.com