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Housing market gurus?

Discussion in 'Too Hot for Swamp Gas' started by Chompsuey, Jul 14, 2021.

  1. GCNumber7

    GCNumber7 GC Hall of Fame

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    Yeap, insurance is a huge issue in FL and it will only get worse. And it’s not the hurricanes, it’s the lawyers.
     
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  2. gtr2x

    gtr2x GC Hall of Fame

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    Well maybe if the insurance companies would actually pay claims in a timely fashion, the lawyers would have fewer disgruntled homeowners to work with.
    Never know how good your insurance company is till u have a claim. The cheapest isn't always the best route
     
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  3. jeffbrig

    jeffbrig GC Hall of Fame

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    Oh, it's not quite that simple. My wife is actually one of those lawyers. She's worked on both sides, and even ran an insurance company's in-house legal division for a few years. Oh, I've heard some stories. Outright insurance fraud has been relatively rare in her career, though there have been a few. By far, the most common cause for a lawsuit is bad claims handling on the part of the insurance company. Wrongful denials, failure to make a coverage decision, bad estimation/adjusting, etc. Yes, it get expensive when the lawyers have to get involved. But the real question is WHY do they have to get involved so often?
     
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  4. philnotfil

    philnotfil GC Hall of Fame

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    Because the insurance companies have higher profits when they stiff their customers?
     
  5. littlebluelw

    littlebluelw Premium Member

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    Billboards.
     
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  6. wgbgator

    wgbgator Premium Member

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    A Van Down By the River
    Yeah, I think most of the things that go to court are instances where the company paid some damages, but denied others they are willing to argue they are not contractually obliged to cover. There are people like public adjusters who will take claims on spec, so they basically get a chunk of a potential settlement or judgement. Insurance companies loath public adjusters, so generally the lawyers are deployed because they dont want to legitimize their profession and settle with them without some kind of fight.
     
  7. G8trGr8t

    G8trGr8t Premium Member

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  8. GatorFanCF

    GatorFanCF Premium Member

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    Good post.
    1. Attorneys/Billboards “something for nothing”
    2. Poor claims handling by carriers/lazy agents not explaining how policy contract really works.
    3. Cheesy contractors finding “wind damage” everywhere
    4. Wildfires out West, Floods, Hurricanes more than expected, leading to
    5. Losses by re-insurance companies (the BIG guys who insure the insurance companies).

    2020 $500 million in Florida property losses
    2021 $1 Billion in Florida property losses, Year-to-date. No bueno
     
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  9. littlebluelw

    littlebluelw Premium Member

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    Indeed no bueno.
    NAIC Data: Florida Property Lawsuits Total 76% of Insurer Litigation in U.S.
     
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  10. GatorNorth

    GatorNorth Premium Member Premium Member

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    Agree.

    we had some non-storm insured damage last year at our Florida beach place-in 2 places actually

    when I called in my claim I said “this damage may be unrelated and might actually be separate claims. Combination of the two rendered place unusable.

    inspector does report. Said second damage spot needed a separate claim (huh? I already told you that when I called it in) and needed RE-inspection (wait, it’s in your report informationally).

    Insurance company waits a month, sends next guy out. Then assigns a different adjuster.

    So we start second adjustment. A month goes by with nothing happening, 2d adjuster finally returns my several unanswered calls and says “oh sorry, since the first adjuster is already working on your residence I’ve flipped this over to her.

    so now we are 3 months into a process that was to take 4-6 weeks including repairs. And repairs hadn’t even started.

    3 months later, we finally finished.

    6 months for a 6 week job, solely to frustrate me into giving up. Cancelled my insurer as soon as the final check cleared.
     
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  11. GatorFanCF

    GatorFanCF Premium Member

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    As an earlier poster said “I could tell you stories…” So, here’s one: Friend of mine (about 12 years ago) here in Central Florida had roof damage after a bad storm - called his carrier. Adjuster comes out, inspects the roof and his report says “not storm related - claim denied.” Now, my friend (RIP) was a stand-up guy but was very frustrated because he could see shingles on the ground and other results from the wind.

    Plus - his neighbors were all getting their roofs replaced left and right. So, he calls the carrier and disputes the first adjuster and asks for a second. Different guy comes out, same result. So, my friend’s wife works for an attorney. Attorney (who has nothing to do with this type of law) writes a letter on his letterhead to the insurance carrier about how his client is being treated unfairly, etc. Guy had a new roof in two weeks.

    FYI: this guy had a policy for many years and it only had a $500 deductible across the board. There was no separate 2% wind deductible. I think the carrier said “Whoa, we got a claim on one of these policies” and worked and worked to try to minimize their expense. And, when I say “carrier” I mean it could easily have been some manager who bonus was predicated on a certain loss ratio and he was watching all claims like a hawk, knowing a $12,000 roof claim like this one could be the difference between two weeks in Europe or a nice weekend in Tallahassee.
     
  12. slightlyskeptic

    slightlyskeptic GC Hall of Fame

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    I can certainly see people being priced out of the market. My wife and I went through the Parade of Homes this past weekend just for kicks and the prices being asked were idiotic. I saw some badly designed houses that were jammed into each other going for close to a million. Even nothing to write home about town homes were starting at a half million. And these houses weren't in pricey places like Winter Park (a Winter Park town house we saw was going for almost 5 million). They were in Lake Nona and not the high end part.

    I don't know where people starting out are supposed to live these days. Apartments around us are starting at 1600/mo for a studio and going up to 3000/mo. It's nuts.
     
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  13. l_boy

    l_boy 5500

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    I'm not a real estate professional or expert. But I do live in TX!!

    I've been amazed by the recent run up in home prices. For years in the 2000's when real estate nationwide was rising, TX was much more subdued. Our home value rose little from 1998- mid 2000s. I think partly why texas was more subdued was massive new home construction. Lots of room to expand.

    Post 2010 house price started to finally increase. Then we refinanced in later last year house price was around $350k, which was about double what we paid in 1998. Last week I checked it is up to $450k. It has skyrocketed the last 9 months.

    Some of it is the specifics of the neighborhood. It finally was 100% built out years ago. Plus 20 years ago it was considered remote, now not so much.

    Due to covid, homebuilding dropped, which lead to less supply, and then more demand as people wanted to move.

    The problem with cashing in on your inflated house is you then have to live somewhere else, and those prices are inflated too. House prices aren't like stock prices, they don't drop a lot. People just stop selling. People are hesitant to sell at a loss, or sell at a much lower number than previously, so they just sit there. Selling and moving to temporary housing and waiting for a price crash will likely fail. Plus it is possible that if prices stall, it could be due to higher interest rates, which will increase your mortgage payment.

    Rates are ridiculously low right now. I started to refi, but found out I have to wait a year after my last cash out. TX has goofy and annoying refi laws.
     
  14. philnotfil

    philnotfil GC Hall of Fame

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    Biden to allow eviction moratorium to expire Saturday

    It's going to be a bumpy ride, but this needs to be done so the markets can adjust.
     
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  15. gtr2x

    gtr2x GC Hall of Fame

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    Sounds familiar.:mad:
    We had damage claims on 2 properties, took 6 mo to resolve one, 2 and a half years the other. We got nowhere until attorneys were involved. Both claims ended up costing the insurance co more than if they had simply settled up from the beginning.

    Today's challenge is finding an insurance company that actually resolves claims in a timely fashion.
     
  16. GatorFanCF

    GatorFanCF Premium Member

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    Quotes above: “Today's challenge is finding an insurance company that actually resolves claims in a timely fashion.”

    They exist. Everyone wants premium service at a baseline price. Nothing new, of course.

    There are different insurance carriers and different agencies, just like if you want a burger:
    Krystal
    McDonalds
    Wendy’s
    BK
    Steak n Shake
    IN and Out
    Five Guys
    Locally made (TEAK in Orlando)
    Ruth Chris

    Understandably, folks don’t have the time to investigate and consider the perfect insurance company for them. So, most people default to price and are then surprised the resulting experience is less than stellar. Caveat Emptor.
     
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