Insurance companies are tightening their underwriting guidelines and limiting coastal exposure, in addition to jacking prices way up.
Here are the changes to note:
- Markel – One of the more affordable companies will NOT insure any home built in the 1980’s or that is known to have or have had polybutylene plumbing. Even if it’s all been removed and replaced – NO.
- Frontline – Another very affordable option will not insure anything built prior to 2005. Or give a homeowners policy on a roof more than 15 years old. Most company’s limit is 20 years. (You can still get a dwelling policy – but the coverage is nowhere as good, and the price is higher)
- Farmers Insurance – They have pulled out of Florida completely. Who knows what other coastal community might be next?
- NCIUA – This is becoming one of the better options but has a cap of $750,000. So additional riders are needed, which can get costly.
- Under-insured – Most homes today are underinsured. At a meeting with our President and General Contractor recently, he quoted the base square footage price for building a new home today at a minimum of $300 per sqft!
With Nationwide pulling out of coastal markets, Farmer’s doing the same in FL, and many others really tightening their guidelines, we could really use a few years of very minimal hurricane activity!
If you need more information on the best insurance options for your OBX home, do please call Steve Bonday at 252-331-8233 or email at [email protected].
Mid-year is upon us and not much has changed since the last report. I did notice an interesting trend regarding CASH in our marketplace. Here’s the deal. There have been 136 home sales in Duck and Corolla since January.
What a mild winter we have had here at the beach so far. We are not complaining, that’s for sure.
What an interesting few years in the real estate world, and the world in general! I got to spend a good bit of time with my niece and nephew over the last 18 months and do a little bit of traveling. After 26 years in the business, I was so grateful and fortunate to have the opportunity to still assist some new and past clients while enjoying that precious time with family!
Let’s talk about INVENTORY. Most people don’t realize that inventory level is the key determining factor for real estate prices. If I had a dollar for every time someone asked about the bridge in relationship to values, I would have a whole lot of dollars! And yes, there are a lot of factors that play into value.
Although it sounds reasonable to think with all the guests coming, it would be better to just sell the home in the fall or spring, take a look at these 5 reasons you could be missing out by waiting.
