What you need to know before you retire to Florida
First off please understand that what we inform you of here is FACT about problems you may encounter if you have plans to move, retire, to the State of Florida. Issues even your realtor is reluctant to tell you but if your aware and ask the realtor they must tell you by law. This is for most, and in some cases, the deciding factor on affordability that you do not what to find out while in the buying process since in will come about after you sign a contract.
We are doing this article because so many in their golden years are finding they cannot, or can no longer, afford to live here in Florida due to ever rising Insurance and Taxes. Some still think that Florida is a value like it was YEARS ago. No More! Matter of fact Floridas Home Owners Insurance rates may be the highest in the country.
Florida is considered a risk State due to hurricanes and flood. Both of which have not been seen in about 11 years and if you notice variations in weather patterns have shifted where other states, that pay much lower rates, have had all the problem nature has to offer. Yet Florida is punished, maybe because State Government allows constant raises without cause. In other words "In 11 years we had no claims". Politics, maybe. Im not going to get into politics...yet.
Lets get to the point:
Always keep this in mind if your retiring, a sad but true FACT. A retired couple up in age must realize that yes you and yours each receive you Social Security checks BUT a good portion will be lost when life ends for one of you. So you cannot depend on two checks to pay your bills. If you did you will be moving soon due to the loss of income.
Lets create a actual situation:
If you moved to Florida now and purchased a 100.000.00 home your taxes would be about 3000.00 per year, your Home Owners Insurance about 4500.00 per year and Fema Flood Insurance about 500.00 per year. So far your down 8000.00 per year or about 666.00 per month. And this is on only a 100.000.00 home which is not much of a home these days in Florida. And dont forget you have auto insurance, utilities, food, maybe association fees etc etc. These figures are based upon a no mortage purchase but even if you have a mortage payment that payment would be LOWER then your insurance rates. See its not mortgage rates that make Florida expensive, its INSURANCE THEN TAXES that force even Floridas retired to leave the state. And rest assured every year these rates rise but your income does not. Combined a retired couple in the example above would pay somewhere between 1100.00 and 1300.00 per month. Thats without a mortage and no other loans.
The Insurance Scam:
Very few homes built from the 70s on ever are totaled due to construction. What you read about are the older wood frames and mobile homes in most cases where total destruction is involved. This is what the insurance companies dont say when they cry about their losses making you believe you can sustain the same damages. The Fear Factor!
I live in a area that took a direct overhead 150 mph hurricane hit. I lost several roof tiles BUT NOT THE ROOF. Trees and shrubs of course. A wood fence went down next door.Rain but nothing came in the home. What am I getting at? The INSURANCE DEDUCTABLES which range from 4500.00 to 8000.00. This means you pay these figures, out of pocket, before insurance kicks in reducing the insuance companies liability where in many cases the insurance company end up with no out lay at all! Example a very nice high grade wooden fence on the property we speak of is under the deductable and a roof on a 100.000.00 home, which is a small home, is about 8000.00. So the insurance company has no outlay at all BUT you have out of pocket costs. In essence if you pay insurance of 4500.00 per year and you pay a high deductable..what did the insurer pay..nada. In most cases you end up paying out of pocket more then the insurance company did. Now heres the kicker when the insurers shows proof of their losses to get a rate raise before the state they show your 4500.00 claim, what they dont say is "but it didnt cost us a dime due to the deductable the home owner had to pay first".
We all know that the Insurance Industry has been allowed to rob the public for years.Its big business and politics, we all know it. Our best protection in knowledge and we want our seniors to know what they are facing so they can retire to a comfortable and affordable life. Florida was once a great affordable place to retire but it is not any longer for everyone.
And believe me you dont want to know about Florida Goverment and Politics. When did a election ever go smooth?
