When members of our community think of moving of purchasing a home in Florida, invariably they picture living on or near the beach.Ã‚Â Their wish list starts with either a water view or a house on a canal.Ã‚Â The expected cost of such a location is usually significantly underestimated as well. As I shall explain, that cost is about to escalate dramatically for all coastal areas of the US.
Since we are only eight miles across at our widest point, the beaches and water access is never far away. Most who come and explore quickly decide they would rather locate in one of our gayborhoods instead.
Tampa Bay was initially developed during the height of the American Arts and Crafts era. We feature period bungalows, English Tudor and Spanish revival homes that rival those of southern California.Ã‚Â We have done here what we always do, we went into neglected historic areas and revitalized them. As a result, many of those neighborhoods are considered the most desirable in the city. WhatÃ¢â‚¬â„¢s more, the early builders were smart, they built on the higher ground where no flood insurance is required.
The neighborhoods we have renovated may now experience even greater appreciation thanks to the Ã¢â‚¬Å“ Biggert Waters Flood Insurance Reform Act of 2012Ã¢â‚¬Â. Following hurricane sandy, the nationl Flood Insurance program was close to bankruptcy. The Act was designed to stop subsidizing any of the cost of flood insurance. The act goes into effect October1st. And the cost, especially to new buyers, can be prohibitive. One example that I know was a modest home that sold this year for $200,000. The prior onwerÃ¢â‚¬â„¢s policy for flood cost $1,339. This year the same coverage escalated to $8,859. And that is just for the flood portion of the homeowners insurance.
So if you are thinking of moving to a costal area anywhere, not just Florida, make certain your real estate professional explains all insurance costs. Fortunately for us, most of our gayborhoods are high and dry. And just a few minutes for the sandy Gulf Coast beaches.
Greg Burton, CIPS
Sail Away Realty,Ã‚Â St Petersburg and Gulfport, Florida