MY WIFE AND I BOUGHT

Submitted by Jerry on Fri, 07/06/2007 - 05:32

MY WIFE AND I BOUGHT OUR FIRST HOME ABOUT TWO YEARS AGO. THE HOUSE WAS BUILT IN 1947, AND BEING IGNORANT OF SUCH THINGS WE DID NOT FORSEE THIS BEING A MAJOR INSURANCE ISSUE. WHEN WE BOUGHT THE HOUSE WE WERE REQUIRED TO PROVIDE A INSURANCE BINDER TO THE FINANCE COMPANY. WE WERE GIVEN A BINDER FROM A INSURANCE AGENCY THROUGH CITIZENS WHICH IS THE STATE OF FL.'S INSURANCE PROVIDER FOR THE UNINSURABLE, AS WE NOW UNDERSTAND. WE HAVE BEEN CANCELLED SEVERAL TIMES FOR CONCERNS THAT THEY PULL OUT OF THE AIR BASICALLY AND ARE NOW PAYING A VERY HIGH RATE BECAUSE EVEYTIME THE POLICY WAS REWRITEN RATES INCREASED. WE HAVE BEEN REFUSED BY ALL OF THE TRADITIONAL COMPANIES , SO MY QUESTION IS ARE THERE ANY OPTIONS THAT I HAVE OVER LOOKED? AND IS IT LEGAL TO REFUSE TO INSURANCE BASED ON THE AGE OF A HOME? IF NOT HOW ARE ALL OF THESE OLD HOMES FINANCED? PLEASE HELP I AM A MY WITS END, WE ARE CONSIDERING SELLING THE HOME IF WE CANNOT COME UP WITH A SOLUTION TO THIS MESS WE HAVE GOTTEN INTO.
THE HOUSE IS A BLOCK HOME WHICH HAS BEEN INSPECTED. AND NEEDED REPAIRS AND UPDATED PERFORMED.

Posted: 06 Jul 2007 07:13 Post Subject: FHA..

Well, I don't know whether it would suit your cause...but yeah there is something called a Federal Housing Administration Loan which repairs your family properties. People who buy houses that need a lot of upliftment are benefited by this loan. I hope you'll check this out!
regards, Maestro-hollowman

Posted: 06 Jul 2007 07:32 Post Subject: know more about its benefits

Hi friend!
Yes, its quite true that you may save your money if you finance the cost of updating features to your existing home within an FHA-insured home buying system. This is often referred to as an Energy efficient Mortgage.
Try visiting a consultant to know more about its benefits. Thanks for forwarding your problem at the forum, Fatman

Posted: 06 Jul 2007 08:58 Post Subject:

It seems that you are quite in a jam. But as you may know, the overall insurance premiums have increased in Florida during the last two years following Katrina. And the insurance companies had lost a great deal of money in settling those insurance claims arose after the mishap. Maybe they are charging you high because they think that these old houses are more susceptible to natural disasters.

Regards,
Juanita

Posted: 06 Jul 2007 10:17 Post Subject: try it out!

Hi, I remember something called a Title 1 home improvement loan. It might be of some help to you. Norma

Posted: 06 Jul 2007 10:53 Post Subject: HO-8 might work!

Hi !

I'd agree to Juanita under the said circumstances. But as we all know the finding insurance for old homes is a tough job.

We must understand the fact that the standard home owner's insurance is not meant to cover the old homes, rather they are meant to cover the standard buildings.
We must also keep it in mind that we would never recover the actual replacement cost of our homes but we may only look for realising the actual market value in case our home falls under a major catastrophy. So you may naturally understand that you need not look for any HO-1 policy as they are meant to merely cover your home from natural disasters like the storms, flood, fire etc.

Rather you ought to look for a form of insurance called the HO-8 which is inclined towards replacements/ repairs. I understand from your words that this might well be the kinda policy that you might think of considering. Hope things work out well for you.. Evan

Posted: 06 Jul 2007 11:14 Post Subject: Wish you come up with more..

My friend...I'd a broker-friend for years, I'm into a different profession though...so would like to ask you a simple question...do you really know why the insurers are reluctant to cover old houses?

If they gotta offer you a truly competitive coverage they gotta charge you a pretty high premium for that as well as calculate the chances of a catastrophic loss worth around $1000 a year. Yeah, if the place has been reviewed under the recent times then some companies might agree to cover it , while other still have the choice of opting out. Some of the relevant reasons for this denial could be looked upon as the sewage system, the plumbing and even the wiring since they might individually lead to fatal consequences more often. But yes, you might be a bit fortunate if the laws in your state don't support such choices.

I wish you keep visiting these forums with such important queries from time to time...as they might prove helpful to our community.
Thanks,
Carson Drew

Posted: 09 Aug 2007 04:24 Post Subject:

Each company has underwriting guidelines, and, in florida, they get to pick and choose what kind of structure and age of structure and even value of the structure that they choose to insure.
Due to the age of the home there are very few companies willing to write.
especially if the home isnt well maintained, which, is the reason why they are cancelling you over and over, right?
even citizens, the insurer of last resort has underwriting guidelines.
because the home was built in 1947 you needed to provide them with a four point insurance inspection in order to obtain the coverage. if the agent provided you with the binder without having the four point insurance inspection, get a new agent fast, they dont know what they are doing.
the four points of that inspection are
roof
electrical
plumbing
hvac
these all need to show that they have been updated in the last 30-45 years. if all of these have not, then you are ineligable for coverage with citizens and if the agent wrote you the policy, they knew you would be cancelled.
there are almost no companies that will write a policy for you without proof of updates, well, there is one, its crap coverage and you pay more than citizens.
as someone else mentioned before, its an HO8.
but, there is only one company that will sell you the coverage with out entire proof of updates, so, dont think cause it is crap there is a cornacopia of companies you can go with. if you are with your lenders force placed at this time, this may be cheeper, check with agents who can underwrite with tapco, they have two ho8's forms available.

FYI
at the present date citizens premiums are much lower than other companies due to the house bill that went into effect in january 07.
so, if you cant afford citizens now, getting a loan and fixing up the house will not lower your premiums, just make you eligable.

thats a fact jack.
-fla agent

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