WOW - Insurance - "Sticker Shock!"

Hello Dante.

I know it's shocking but the figures you were quoted are very competitive given the square footage you are purchasing and the existence of the effiency unit. Living here is incredibly expensive; we have a small masonry house, no a/c and $350/month electric bills!

The prices look to be in the ball park.

You could consider not having collision and comprehensive on your truck. That would save you $600 - $800.

Jim

Sounds about right...our home on STT is in the 250-300k range and our yearly insurance is $5500 - not on the water but we do have a lot of windows/glass. Our car is a 2004 SUV and costs $1000 a year for insurance.

Dante:

We have a condo on STT and pay about $4,500. per year for insurance. Also we're from New Jersey....you don't want to know what we pay for auto insurance here (lol).

Regards,

F.I.

Some of my friends own their homes outright (no loan) and do not carry replacement insurance or have wind and flood exceptions which cuts your insurance cost.(self insured) However you need to be prepared to maybe cover the cost of a new roof on your own.

Yes, self-insurance is popular with people who own their homes free and clear. Mortgage companies require insurance (including windstorm) be kept in place. When you think about the $$ you pay out month after month, year after year on windstorm insurance, you can see why some homeowners are willing to risk having to cover some damage out of pocket if we do get hit with a major storm.

Welcome to the Islands, mon!
For what it's worth...
Windstorm (Hurricane) Coverage is unbelieveably high here. Very high for frame construction (if you can get it), a little better for mixed, and the least for all concrete. For a very, very general ballpark idea of what to expect to pay, take the purchase price times 80%, and that result times 3%, to get your annual premium. For new policies, everyone requires hurricane shutters as well. You can look at increasing your windstorm deductible from 2-3% to maybe 5% if the lender will allow it. Most FNMA lenders require a 2% deductible in their guidelines, but allow 3% because most insurers don't offer 2% so it is impracticable (yes, correct word) to demand it. Some local banks will allow even 10% deductible for windstorm. You can also look at increasing the other hazards deductible as well (as most insurers will quote you with a $500.00 deductible and you don't notice because you fell off your high heels with the windstorm portion). If you have a mortgage and you cancel your hazard/windstorm coverage, keep in mind that a lender will force place insurance on the property which is aboaut 30% higher in cost. If you have a high loan-to-value mortgage, this will not be inyour best interests. If you have a low balance, it may be preferable, but it only covers the lender and will not pay for reconstruction. I haven't heard anything yet, but I can't imagine we won't have a significant increase in premiums due to Katrina and Rita.