Live Your Best Life In A Tropical Climate
In light of the recent hurricanes of 2017, Florida has gotten a bad wrap.
We feel sorry for those that live there because of the havoc laid down on the state.
But we shouldn’t be pitying Florida.
In fact, the real estate market is booming and people are moving to this lovely state in droves.
And why do you ask? It is affordable in an age where not too many places are.
The climate of the real estate market does not reflect the recent climate of the state.
Let’s take a look at why purchasing a home and the homeowners insurance Florida residents need is a must.
It isn’t hard to see why people vacation in Florida.
The amusement parks, the sunny beaches and amazing nightlight help.
But why is it that people are moving here?
Homeowner insurance in Florida is not very expensive and guess what? Neither are the homes!
Exiting Expensive States
There is a movement right now among Millennials (people 35 years old down to about 18 years old).
It is the exiting of expensive states into states where housing is more affordable.
The truth is that the new generation of home buyers just can’t afford to get into the market.
Millennials have good paying jobs, and have waited longer than any other generation to get married.
But there are a couple of problems with trying to buy in more expensive states.
One is that saving up for a down payment is really hard.
If you are looking to purchase a 400 thousand dollar home, and you don’t want to pay PMI’s or mortgage insurance, you need 80 thousand dollars for a down payment.
Now most people don’t have that sort of money. Let’s take a different example.
If you are looking at a home for 350 thousand dollars and you want to put down only 10%.
You will still need to save at least $35,000 because there are also closing costs.
So you get my drift?
The other problem with states like California for example are the higher taxes.
You are paying more in taxes living there than some other states.
Plus now there are new laws in affect that make it harder to make your property taxes a tax deduction.
Where Do We Start A Family?
Many people right now are asking themselves the question: “where should we live to start a family?”.
Most people want it all, a nice home in that neighborhood where everyone knows each other.
A close community but also a vast array of things to do. And don’t forget the job market!
There must be plenty of jobs and so on and so forth.
This place sounds like a dream. A very expensive dreams. But it doesn’t have to be.
Florida has more than a few idyllic towns if you don’t mind a little southern hospitality and beautiful weather most of the year.
Getting the homeowners insurance you need is easy in Florida.
It isn’t a state law, but lenders will require you to have it.
You’ll want the extra windstorm protection as well.
Here are a few great towns in Florida where you should consider buying your next home:
- Gainesville, Florida is a place where people go to explore the real south.They call it the Berkeley of the South because of it’s progressive nature. It is a college town, and this makes for great jobs and a fun night life environment. You can purchase a home here for around $200,000 easily. Get that three bedroom two bathroom home with new granite countertops you have always wanted. You can upgrade later to one of their communities located on a gold course. Spend your time biking around town and getting to know the small businesses located here. Gainesville is located a couple hours north of Orlando and about an hour west of Jacksonville. It is centrally located and not beach front. This will protect you from any worries of hurricanes. They tend not to make there way that far inland.
- Tampa Florida is a large city and has a group of even smaller towns surrounding it. Tampa is a gem of Florida. It not only is home to major league sports teams, but tons of attractions. It sits on a small inlet from the ocean. You are enough inland to escape those huge storms but still very close to the beaches. It has a special attractions to it and many people flock here for jobs and the down to earth feel. Forbes magazine called this town “one of the best outdoor cities in America”. People bike and hike here year round. You can easily purchase a nice home for a family of four for around $300,000 comfortably. The housing market has many homes under even $200,000. Depending on what parts of Tampa you want to live in, homes can get up into the millions. Like most large cities, the surrounding suburbs offer a quieter type of living. But commuting into Tampa will be a great idea if you are looking for a great job. According to Wallet Hub, Tampa ranked #18 in all of the United States for a place to find a job. This means that the job market is really great here.
More Cities On The Rise
- Tallahassee, Florida is the University town that is also the Capitol. If you thought Miami was the capitol of Florida, you aren’t alone, but indeed Tallahassee is the little treasure of the north. Located in the northeastern part of Florida, you are close to other states like Georgia and Alabama. There are a few Universities here that keep jobs and industry alive as well as new technology. Florida A&M and the University of Florida are the main schools here. This brings the average age of Tallahassee Down quite a bit and keeps the area young and vibrant. With plenty to do at night and a great sports complex, you will never run out of things to do. You can purchase a home here in the mid 200 thousands and if you can afford more, you will be able to find a great neighborhood with a great school. Getting the homeowners insurance Florida residents need will be easy here because you are far out of range for any natural disasters. The crime rate here is also low making homeowners insurance cheaper. Tallahassee is a must see if you are looking for a great place to raise a family.
City by the water…
- St. Petersburg, Florida is located near Tampa and is known as “the sunshine city”. You can get more days of sunshine here than almost any other place on earth. A waterfront city located on the Gulf Coast, beautiful scenery is just what you sign up for. It is a popular tourist destination where people can fish and boat and play golf. If you are looking for great schools, St.Petersburg has a ton of those. purchasing a home here will cost you around $350,000 for a nice suburb. You can go as low as $200,000 but you won’t be as close to the things you love to do and the great schools you want. With a population of over 250 thousand residents, St.Petersburg can stand on its own economically and thrives from tourism that is ever growing here. Get a glimpse of the nightlife by walking the docks. This town is located on a Peninsula that jets out from Tampa Bay. Water and boats are just a way of life for people here. If you love the beach and want a safe place for your family, St.Petersburg is your town.
First of all, homeowners insurance is not the law in Florida.
But lenders will require you to have it if you can’t just pay for your home with cash.
And let’s face it, who can?
Homeowners insurance is also simply a great idea.
You will be protecting your home and your family in case of a natural disaster or robbery.
Here are the facts about homeowners insurance in Florida:
- When you purchase a home, home lenders require you to have a minimum amount of coverage in order to protect what they are financing.
- Homeowners insurance is in place in case a disaster such as a fire occurs and your home is destroyed. You will need it insured to pay off the loan on the home and recover damages.
- Homeowners insurance covers four basic types of insurance: structure, personal belongings, liability, and additional living expenses.
- The location of your home, the construction type, roof slope and many other features contribute to how much your homeowners insurance will be.
Here is what you could have covered with the right cheap homeowners insurance policy:
- Damage to your home, including permanent structures on your property—unless your policy specifically excludes the cause of the damage
- Damage to personal property, meaning the items in your home that are not attached to the dwelling, due to causes outlined in your policy
- Liability coverage for legal matters or accidents that occur on your property
- Loss of use, which allows you to maintain your lifestyle at another residence while your home is being repaired without incurring additional costs
- Limited coverage for items such as stolen jewelry—the amount of coverage varies depending upon state of residence, and you always have the option to increase this coverage.
- Additional coverage available for more valuable items (jewelry, fur, silverware, etc.). If coverage above the limited coverage amount is required, a “rider” should be purchased. This coverage offers a broader range of perils.
How You Can Save
- Monitored home alarm system- having an alarm system could deter burglaries and looks great to insurance companies.
- Doors fortified with security locks- having a deadbolt lock is a sure-fire way to save you money.
- Smoke detectors- this is not only a super safe idea for your family but could literally save lives.
- Sprinkler system- these are more expensive to install, however this could save you money and pay off if something in your home catches fire.
- Gated community- Living in a gated community usually means a safer environment in general.
- Retirement community- retirement communities usually have their own security in place.
- Newly purchased home- Newly purchased homes usually come with sprinkler systems, smoke detectors and good quality locks.
- Age of home discount- depending on the age of your home, you could save on your insurance.
Hurricanes And How They Affect Florida
We all want to know about hurricanes in Florida.
After recent events of 2017, maybe you are scared that these monsters will tear down your house and everything you have built.
The truth is, large hurricanes like the ones from 2017 are not “the norm” in Florida.
Florida is hit every year by hurricanes this is true. But there are different sizes and categories and that is what you want to watch for.
A category 4 or 5 like you may have seen on the news in 2017 are very rare.
Here is how the categories are set up:
Hurricanes are classified into five categories, based on their wind speeds and potential to cause damage.
Category 1: Winds 74-95 miles per hour
Category 2: Winds 96-110 miles per hour
Category 3: Winds 111-130 miles per hour
Category 4: Winds 131-155 miles per hour
Category 5: Winds greater than 155 miles per hour
Most of the time, Florida gets category 1 and 2 storms.
These can still be damaging, tearing down palm tree branches and shaking you up a bit. But they will not tear down a home.
There have only been 3 category 5 hurricanes to ever hit the United States.
And generally a category 4 will hit every few years but bypass much of the state.
You will still need windstorm protection from your homeowners insurance don’t get me wrong.
The good news is that the further inland you live, usually the better.
The storms dissipate when they come in on to the main land.
Here are some terms you should know before asking about homeowners insurance in Florida.
- Extended Replacement Cost: Additional coverage for replacement value of your property. If labor and material costs rise you may not be able to replace your property to its previous condition at the market value.
- Fire Insurance: Coverage that pays for loss associated with fire.
- Flood Insurance: Additional coverage that covers for loss associated with flood waters. This coverage may be mandatory depending on the zoning laws of your area.
- Homeowners Insurance: A policy in which covers the homeowner’s property and also liability coverage for anyone injured at his property.
- National Flood Insurance Program (NFIP): An insurance risk pool that helps defray the insurance companies costs associated with severe flooding.
- Premium: The cost of the policy that must be paid in order to be covered.
- Property Damage Coverage: Coverage for any damage to your property such as broken windows.
- Beach and Windstorm Policy: State sponsored insurance risk pool to provide coverage for hurricanes or other coastal storms.
- Burglary and Theft Coverage: Additional coverage that pays for loss due to criminal theft.
- Cash Value: The actual value of property at the time of loss also considered the market value. It does not consider replacement value or amount owed.