Special Edition: Legislators roll back Citizens premiums, insure vacation properties - TALLAHASSEE, Fla. - Jan. 23, 2007

Charged with the daunting task of reducing homeowners’ insurance premiums for millions of Florida property owners, the Florida Legis­lature last night passed a 167-page bill that could lower premiums between 5% and 40% and provide other insurance relief to millions of property owners. Gov. Charlie Crist is expected to sign the legislation today.
“Florida’s 160,000 Realtors® congratulate the governor for his commitment to reducing prop­erty insurance costs, and to the Legislature for acting in a truly non-partisan manner to provide relief to those who call Florida home,” says Nancy Riley, 2007 president of the Florida Association of Realtors (FAR). “This is a good first step in re-energizing the housing sector of our economy so buyers can take advantage of very attractive interest rates. But there’s more work to be done in order to create a vibrant and competitive insurance market.”
Here’s how legislators intend to make that happen:
Lower rates
• Allow property owners to exclude windstorm coverage from their policies;
• Allow policyholders to exclude contents coverage;
• Remove the requirement that Citizens Prop­erty Insurance Corp. charge the highest premi­ums in the state;
• Repeal Citizens’ Jan. 1, 2007 rate increase and freeze rates at the Dec. 31, 2006 level.
• Eliminate the cap on deductibles so a hom­eowner can choose a deductible other than the standard 2%, 5% or 10% in current law. However, the policyholder must execute a written statement demonstrating understanding and intent, and must obtain approval by a lender if the deductible is more than 10% on a home valued under $500,000.
• Allow non-homestead properties to be eli­gible for Citizens coverage effective March 1, 2007;
• Authorize Citizens to write multi-peril poli­cies in the windstorm pool, which will result in a direct decrease in premiums for at least 110,000 policyholders.
Protect policyholders
• Require all Florida-only insurance company subsidiaries to have a surplus of at least $50 million in liquid assets to help ensure that poli­cyholders receive payment when they need it;
• Require insurance companies to evaluate the hurricane-security of a structure rather than the date of construction when determining risk and establishing premiums. Age of the home may not be used as the sole reason for rejec­tion of coverage;
• Require insurance companies to give at least 100 days written notice, or written notice by June 1, whichever is earlier, for any non-renewal, cancellation or termination of a homeowners policy that would be effective between June 1 and Nov. 30;
• Require insurance companies to expedite payment of claims following a storm. Insurers must pay or deny a property insurance claim within 90 days of notice of the claim with an exception for factors beyond the control of the insurer.
• Prohibit excess profits by property insurers.
Expand the market
• Require any insurance company that writes homeowners policies in other states and writes auto insurance in Florida to sell homeowners insurance in Florida effective Jan. 1, 2008;
• Allow Citizens to write statewide commercial insurance policies and to determine policy lim­its and premiums;
• Allow Citizens to sell traditional homeowners policies to 350,000 customers who currently buy only windstorm coverage from Citizens;
• Enable insurance companies to purchase additional backup insurance from the state’s Hurricane Catastrophe Fund at rates lower than on the private reinsurance market;
• Repeal a law that had called for insurers to pay extra into the fund to build up its reserves;
• Allow state regulators to waive a deposit requirement for foreign-based reinsurance companies to lure more worldwide reinsurers to sell coverage to Florida companies.
“Today, property owners in Florida are very happy,” says John Sebree, FAR’s vice presi­dent of Public Policy. “The goal of the one-week special session was to lower property insurance rates. It’s what the citizens were seeking and what the governor promised.
“But this is just the beginning of meaningful reforms,” he adds. “Available and affordable property insurance remains a key issue for Florida Realtors, and FAR will press legislators for additional reforms during the 2007 legisla­tive session that begins March 6.”
To read the legislation in its entirety, visit http://snipurl.com/185co

Crist proposes emergency rule so that insurance rates don't rise

TALLAHASSEE, Fla. (AP) – Jan. 30, 2007 – Gov. Charlie Crist proposed an emergency rule Monday to guarantee insurers do not raise property insurance rates or cancel policies before a law he signed last week to lower rates goes into effect on June 1.
Crist will ask the Cabinet to approve the measure during its meeting Tuesday. It’s designed as a stopgap measure to prevent any filings for rate increases or cancellations within the next 60 to 90 days, which is when companies are expected to make their rate filings in accordance with the new law.
“The governor wanted to prevent companies from circumventing the intent of the law,” Crist’s spokeswoman Vivian Myrtetus said.
Under the bill passed by the Legislature during a special session, private insurance companies have access to more and cheaper reinsurance from the state. Private companies have less risk with the state providing more backup coverage in the case of a catastrophic hurricane.
The legislation forces companies to pass on to customers the savings they get because of the lower risk. There will be a 25 percent statewide average savings for customers in the private market outside of State Farm, the state’s second largest insurer, lawmakers said.
Customers of State Farm will get a statewide average decrease of 7 percent, lawmakers said.
Sam Miller, spokesman for the Florida Insurance Council, said insurance companies did not know Crist would sign the emergency rule.
“We didn’t know about it,” Miller said. “I can’t say we’re totally surprised. We’ll just have to look at it. Obviously it’s a pretty serious step the state’s taking.”
Miller also questioned the need for the rule because the Office of Insurance Regulation has the authority to turn down requests for rate increases.
Justin Glover, a State Farm spokesman, said the measure wouldn’t affect the company because it already received approval for an average statewide rate increase of 50 percent last fall.
Lawmakers went into special session after they were bombarded with complaints from residents who have seen their homeowners insurance costs soar since the destructive hurricane seasons of 2004 and 2005, which brought eight hurricanes to the state and cost $36 billion in damage.
Now, lawmakers have decided to lower rates, but with a cost. Should a catastrophic storm or season of storms hit the state, policyholders will be hit with assessments on their policies to help the state pay for the damage.

CITIZENS TELL LEGISLATORS: LOWER OUR PROPERTY TAXES

And next on the agenda for the Florida legislators would appear to be curbing the escalation of our property taxes. Over the last few years, property taxes have soared to stratospheric heights, creating another hurdle for Florida homeowners. And the voices being heard in the following article include homesteaded residents who benefit from $25,000 annual homestead deduction and are limited by the "Save Our Homes Act" that caps annual property tax increases to a maximum of 3%. This article also makes mention of the tax burden being weighed upon the "rental" owners who enjoy neither of the previously mentioned tax benefits and are subject to the ad valorem taxes doled out by the local county tax assessors. And these increases have been significant over the past 3 years. I only hope the powers that be in Tallahassee recognize the impact that non-homesteaded Florida homeowners have upon the overall economic picture of the State and will address this issue for the benefit of ALL property owners. Here's the latest...

PANAMA CITY - Taxpayers lined up Thursday night to unload their horror stories for about a dozen state legislators - and did they ever. But amid all the anger and dismay emerged a chorus of ideas for dealing with the problem pervading the state: skyrocketing property tax rates.

Sen. Don Gaetz, a Republican from Niceville, hosted a three-hour forum at Gulf Coast Community College as the first leg of a statewide "tax tour" featuring a panel of legislative leaders on both sides of the political aisles and from both branches of government. Local property taxes overall for the state have increased by 83 percent since 2001. The meetings are intended to collect suggestions from citizens and property owners about how to fix the problem in the 2007 legislative session or possibly via a special election. In Panama City, Gaetz and company got their wish, with an overflowing crowd.

South Walton resident Emmett Hildreth said he would like to see a cap on property taxation tied to population growth and inflation. "One great American said, 'The power to tax is the power to destroy,'" Hildreth said, referring to a phrase written in 1819 by former Supreme Court Chief Justice John Marshall. "I think what we?re seeing in Florida today is destruction," Hildreth said. "We're in a crisis, and this problem needs fixing. It's up to the Legislature to lead the way."

Doubling the homestead exemption from $25,000 to $50,000 would not help, Bay County resident Mike Cazunas said. Currently, Floridians are permitted to take off $25,000 from the taxable value of their primary residence, and the taxable value of the homestead may rise by only 3 percent each year. But rental units and businesses still are subject to oftenegregious increases, Cazunas said, creating inequity in the tax laws. "Whether it's a cap on spending or a cap on all properties, it is the same thing; you need to get the equity back in there," he said. Among other ideas, speakers encouraged state and local government officials to curb unnecessary spending, add exemptions for military veterans, adjust Panama City Beach's bed tax and the gasoline tax, and adjust the state's formula for education spending.

Elected officials weighed in on the problem. In Bay County, County Commission Chairman Mike Nelson said, the millage rate has not been raised since 1990 and this year was cut by 2.75 mills, reducing revenue projections by some $28 million for last year. Changes in property valuations since then showed another $5.3 million drop in projected revenues. "In many instances, property values increased so much that if the county took our millage to zero, property taxes still would have risen by sometimes 100 to 200 percent," Nelson said. County Commissioner George Gainer said the St. Joe Co., the county's largest landowner, should be paying more in property taxes, and he added the state needs to get a grip on the number of community redevelopment agencies, or CRAs, that are being created. A CRA is an area in which property tax increases over time are funneled back into that area for aesthetic or infrastructure improvements there. Gainer said Bay County recently cut a check to the Panama City Beach CRA for $12 million. "It makes it hard to cap spending if you keep allowing all these CRAs to pop up all over the place," Gainer said .

A view of Destin from the Maui Perspective

I recently returned from a trip to Kapalua, Maui and as always, the island provided spectacular ocean views and sunsets daily, with a scattering of rainbows over the shrouded mountaintops. During my stay, I indulged in a number of local real estate publications and drove through numerous south and west Maui areas to satisfy my curiosity and compare our Destin and 30A markets with those of Maui. What I found is this - Destin is still very much a bargain. What the Destin market offers in the way of infrastructure is far greater than that of south and west Maui. From dining to shopping, beaches to clear blue waters and the casual lifestyle appeal, Destin offers
every bit as much and more than this tropical beauty of an island. The south shore drive from Lahaina to Kahalui provides for some spectacular views of the Pacific as well as the surrounding island of Lanai. But as I drove and absorbed the vistas, I reflected on my many casual drives down Scenic Gulf Drive or 30A. The beauty of the natural dune lakes that provide unparalleled views over the pure white sand dunes and outflows to the Gulf. The buzz that occurs with every venture to Seaside or Rosemary Beach. And nothing surpasses the unique styles and designs of our up and coming local area architecture. In the case of the Maui to Destin price comparisons, Destin definitely holds the upper hand. I'll take a meal at Zampieri's Harbor Grille over Roys at Kahana any time. And the home prices in Maui would give Destin
homeowners a sense of excellent value. I won't go into a full blown price anaylsis, but I will say, I feel great about my ownership in Destin and I recognize, even moreso, the value that currently exists in our market. Maui was indeed a wonderful trip. And I came home feeling even better than when I left. Here's looking forward to a great 2007...Mark Evans, Eimers Group Real Estate & Land

"2007" a Basis for Optimism

A REALTOR, a Rabi and a Boat Captain walk into a bar; from a table in the back of the room a question rings out, “so tell us what's the future of this real estate market?” The Rabi and the Boat Captain turn and dash out of the bar leaving the REALTOR to answer. Sounds like the beginning of a good joke, but more times than I can count…that REALTOR has been me. This is a great question, one that we all are asking ourselves.

We are now 30 days into 2007 - in these 30 days my agents have shown more property to more serious
buyers than we had in the six months prior. We've written offers, had most accepted and are preparing several to close quickly. Some might say…”So why is this news?” It's news because it has been a long time since the Eimers Group, as well as most other real estate agencies, have had this much activity. The good news is that it is proving to be more than just a tease. As I am speaking with other agents and brokers throughout this area, I hear the sentiment echoed…whew!
2006 was a very unique selling or as the case was “non-selling” year. The future of 2007 holds some real promise and how the next two quarters play out may or may not be within our control.
“non-selling” year. The future of 2007 holds some real promise and how the next two quarters play out may or may not be within our control.

Within our control are the following:
1. Sellers need to be sure they are keeping their prices consistent with this market.
2. Buyer's expectations to buy at below fair market values need to re-evaluate those expectations.
3. REALTORS should clearly depict the strengths and weaknesses of this market to:
a. Buyers entering or re-entering this new robust market.
b. Sellers preparing to price or re-price their homes for this market.
4. Increased communication between all of us; agents, buyers and sellers, in an effort to insure a win-win real estate sale for all.
5. Facing Facts: This is a buyers market. There is too much inventory, and the rules of supply and demand do apply here.
a. Sellers need to price properties accordingly.
b. Buyers need to understand there is a difference between reasonable and unreasonable expectations.
c. The excesses of 2004-2005 are gone for everyone. That anomaly came and went. Some people did experience some amazing successes, but that time
is over. If your property did not sell during that time, it was overpriced then. If it was overpriced then, consider your position in today's market. It is time to adjust to this market.
d. If you bought in 2004-2005, in all likelihood you paid more than you can sell it for today.
6. Property Taxes: We must become more vocal with our elected officials, and we must stop accepting the status quo.
7. Insurance Rates: There is definitely activity in Tallahassee addressing this issue. We must not sit back and wait for something positive to happen. We need to continue to show our discontent with this issue. These are the addresses to the Florida House of Representatives http://www.flhouse.gov/ and the Florida Senate http://www.flsenate.gov/ . Please visit these sites and let your voices be heard. We can make the difference.

Outside our control:
1. When the FED will again drop interest rates.
2. Inflation, unemployment, the price of oil, the strength and health of our nation's economy.
3. Acts of Mother Nature
As you see, there is more that we can do than things we cannot do. I am only one of many REALTORS in this market; I am passionate about where I live, where I have raised all of my children and where I hope, that as they grow into adults will have a future here.
I think that this real estate market may be more a matter of a self-fulfilling prophesy than anything else.
The real facts are that this really is a beautiful place, truly paradise, somewhere everyone wants to be. So let's stop shooting ourselves in the foot and again get excited about all of the wonderful reasons to be here.

THE ROAD TO PROPERTY TAX REFORM

Florida's property tax system is broken. We must have legislative change in order to correct this unfair and unaffordable problem. I and many others support new property tax reform legislation that is in dire need of implementation this year.

I submit to you a list of ideas I and many other Floridians support, most of which were presented to Governor Bush's Tax Reform Committee in Orlando.

1. Portability of homesteads

2. An additional 25,000 homestead exemption

3. Cap all properties similar to homesteaded properties

4. Use a 5 year moving average on non homesteaded properties

5. Limit the growth of the budgets of all taxing authorities by linking them to the CPI plus the percentage of population growth

6. Shorten the length of time a Community Redevelopment Agency may be in existence

7. Change the "highest and best use" to "value in use"

8. Reassess property only at time of sale

9. The average differential in those homes that have been homesteaded for years and those for a short time is approximately 40% statewide.

A. Assess all homesteaded properties at a 60% level

B. Those with levels below the 60% level will retain that level until sold

10. Establish a Marine Merchant Classification to protect concerns like marinas and boatyards from escalating property values brought about by development of condominiums and other waterfront communities.

Rick Barnett
Bay County Property Appraiser

Make the most of your time on the Emerald Coast

The Eimers Group and At Your Service Destin have joined forces to offer a truly unique and different approach to property management. Both the Eimers Group and At Your Service Destin have a reputation of providing unparallel customer service and exceeding their customer expectations. We are constantly looking for new ways to provide additional services to our clients and to distinguish ourselves from the rest of the industry. The end result for our customer is whether they buy, sell, own, or rent their property we can now cater to all their individual needs and be their single point of contact for the entire time they own that property.
At Your Service Destin manages luxury properties for absentee second home owners and for individuals that are selective as to whom they rent their property. At Your Service Destin provides professional specialty services that allow vacationers and part-time residents to truly make the most of their time spent on our Emerald Coast. Imagine arriving at your home with your groceries and beverages of choice waiting for you, and the biggest decision you have to make is to either go to the beach or the pool. At Your Service Destin is an all-encompassing company for everything you need to truly be able to unwind, relax, and enjoy your vacation. Rest assured in knowing that every detail has been taken care of for you by an experienced professional who is licensed, bonded and insured.
A few things that distinguish our service from others is that we don't rate properties….Every property is in top quality and provides the most sought after locations and latest amenities. In addition, all guests are carefully screened and a representative from At Your Service Destin personally meets each guest at the house to ensure all expectations are met. Establishing a portfolio of Luxury properties allows us to charge a management fee that is well below current market rate and be selective as to which properties we take under management. Currently we manage properties located in Crystal Beach, Regatta Bay, Emerald Shores, Destiny East, and Destiny By The Sea.

Architectural Style - Split Level

A Modern style that architects created to sequester certain living activities--such as sleeping or socializing--split levels offered a multilevel alternative to the ubiquitous style in the 1950s. The nether parts of a typical design were devoted to a garage and TV room; the midlevel, which usually jutted out from the two-story section, offered "quieter" quarters, such as the living and dining rooms; and the area above the garage was designed for bedrooms.

Basic Steps for Staging Your Home

When considering putting your home on the market for sale, the term “STAGING” seems to be the latest buzz word. Staging is nothing more than preparing your home for sale and has shown to bring top dollar at the closing table. It sets the flow and mood of your home, giving potential buyers a better idea of how it can work for them. As a former Estate Management Consultant myself, I know there are many professionals out there who specialize in Home Staging. But with a little elbow grease and time, you can prepare your home by following these simple steps:

1. Clean Your Home From Top to Bottom- Look at your home through a buyer's eyes and try to remember your first impression of your property before you bought it. You only get one chance for that first impression, so let buyers know that you are proud of your home.*Pay special attention to the kitchen and bathrooms

2. Remove Excess Furniture - It makes the rooms look larger and easier to walk around.

3. Remove Clutter - Put the magazines, newspapers and toys away. Keep countertops and vanities clear and put small appliances and other items away. It's also best to depersonalize your home and remove family photos. It gives the buyer a sense of how they can make it their own. While you're at it, it's a good idea to put away valuables and breakables.

4. Let There Be Light - Open the curtains and blinds…it's so much more welcoming to walk into a well lit home.

5. Remodeling - If you plan to do any remodeling, keep colors simple and neutral. Many home improvement stores rent tools and offer advice for some of your projects. Remember, you're catering to a variety of people and they may not share your same tastes.

6. The Front Entrance and Exterior - Again, de-clutter the porch and keep any furnishings simple. Clean up the lawn and flower beds. Tidy up around the pool for any tripping hazards and make sure it looks clean and inviting. flower beds. Tidy up around the pool for any tripping hazards and make sure it looks clean and inviting. How's the paint on the front door? A fresh coat of paint can do wonders. Remember, first impressions…

7. What's That Smell? - If you have pets, love to cook with a lot of spices or smoke open some windows and air out your home. Offensive smells are a huge turn off when walking into a house. If you smoke, try to go outside for that fix while your home is on the market. Febreze is a wonderful product that really does help eliminate odors. Keep cat litter boxes cleaned daily and keep after any other pets. Keep in mind that some people don't like pets or might be allergic.

8. Speaking of Pets - If you can, make arrangements to have your pet visit a friend or family member's home while it's being shown. Or, try gating off an area.…try not to let them run freely in the house. You wouldn't want them to get out or hurt anyone.

9. Don't Forget The Garage - Clean it up so a buyer can see how much room it has. Don't let it be a dumping ground. If you're storing items from the house…Keep It Organized!

10. The Daily Sprucing Up - Make the beds and quickly tidy up every morning before you head out the door for any last minute showings

CRIST PUTS FOOT DOWN ON INSURERS

The ink is barely dry on the transfer of power paperwork in Tallahassee and the insurance shake-up has begun. Gov.Crist has taken the issue to task and come out swinging the proverbial axe towards the insurance companies that have raked homeowners, throughout the state, over the coals. It's good to see a hardline, proactive stance favoring the general public and it would seem the issue is in good hands from the consumer prespective. Kudos to the new administration for heading straight to the heart of a very contentious matter. Here's the latest on the insurance fiasco of Florida...

TALLAHASSEE (AP) - Floridians' property insurance rates must go down - even if it means the state will have a greatly expanded role in providing the coverage, Gov. Charlie Crist said Thursday as he endorsed several ideas lawmakers are already working on to fix the state's insurance woes. Crist didn't propose specific legislation, but laid out broad goals for what he wants lawmakers to do when they meet in a special session next week. "Any bill that reaches my desk must require a meaningful and broad-based rate reduction for homeowners," Crist said. "And I believe it will, from what I've seen."

Crist was speaking of a wideranging array of lawmaker proposals. They include extending more backup coverage to private insurers; required rate rollbacks for the state's largest insurer, Citizens Property Insurance Corp.; and prohibiting companies from selling some types of insurance but refusing to sell wind coverage. All the ideas Crist endorsed are already being considered by either the House, the Senate or both.

Crist also made it clear that he isn't trying too hard to find a way for insurance companies to come out of the session happy. "We must prohibit excess profits by these companies," said Crist, a Republican taking on his first major challenge as governor. 'We must require them to return those excessive profits to the policy holders." He campaigned on bringing down premiums that have doubled or tripled after eight hurricanes affected Florida in 2004 and 2005. Rate decreases didn't accompany a quiet 2006 storm season, sparking widespread complaints from homeowners and businesses who are struggling to pay for coverage or find it.

Crist also said he wants to dramatically expand the role the state plays in insurance. For one, Crist envisions making the state the ultimate underwriter of all risk above a certain catastrophic amount, an idea initially proposed by Senate Democrats. Under that proposal, which is being included in a bill the Senate is working on, state government would guarantee that it would pay claims in the event of a major storm, like a Hurricane Andrew or Katrina, that causes tens of billions of dollars in damage. That should make companies more willing to sell policies here because they will know they won't be on the hook should there be a massive storm. "The more we define the exposure, the more companies come back," said Sen. Dan Webster, R-Winter Park. And companies wouldn't have to factor the prospect of a huge storm into premiums, backers of the idea say.

Crist also believes the state should take over more of a role from private insurers by expanding the role of Citizens, a company the state created to sell wind policies to people who can't find private coverage. It has grown to be the largest insurer in the state with more than 1.3 million policies. Crist said the company should be able to cover things besides wind damage, thus building a broader premium base. He also backs plans to automatically roll back one recent Citizens rate increase and delay another, keeping the company's rates at last year's levels.
Typically, Republicans have been loathe to endorse a broader role for government in providing services, generally saying that private companies almost always do a better job at everything. But asked about whether Republicans were abandoning their principles, Webster said another conservative principle - that private homeownership is a good thing - is at risk if something isn't done to lower rates. Insurance companies say they lost more than $35 billion in Florida in the hurricane seasons of 2004 and 2005 - and that they've generally only pulled in less than $5 billion a year in premiums, meaning those two seasons wiped out years of profits.

Northwest Florida Daily News