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Old 03-03-2024, 03:02 PM
 
21,615 posts, read 31,180,666 times
Reputation: 9775

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Quote:
Originally Posted by sinatras View Post
Property value has little to nothing to do with property insurance premiums. Insurance premiums are based on dwelling replacement cost, claims history, credit history and of course location. None of which necessitate a $28,000 premium for a 2k sq foot condo in Florida or anywhere in the US. This is exactly why condo prices are plummeting in Florida. And soon to be SFHs as well.

Thanks Meatball for doing nothing to fix this!
They don’t consider value, but the same factors that make your home’s value what it is, such as the age, condition, and location of your home, are certainly major factors in what your insurance premium will be. This means there will be a major difference in premium between a small condo worth 400k than a sprawling oceanfront condo worth millions.

Also, condo prices aren’t plummeting. As of January, 2024, condo prices in Broward County (where the above referenced condo is) has a median sale price up 24% from one year ago.

Let's make sure we’re providing accurate information here.
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Old 03-03-2024, 03:08 PM
 
Location: South Tampa, Maui, Paris
4,474 posts, read 3,842,069 times
Reputation: 5322
Quote:
Originally Posted by kidyankee764 View Post
They don’t consider value, but the same factors that make your home’s value what it is, such as the age, condition, and location of your home, are certainly major factors in what your insurance premium will be. This means there will be a major difference in premium between a small condo worth 400k than a sprawling oceanfront condo worth millions.

Also, condo prices aren’t plummeting. As of January, 2024, condo prices in Broward County (where the above referenced condo is) has a median sale price up 24% from one year ago.

Let's make sure we’re providing accurate information here.
A "sprawling oceanfront condo"? We are talking about a 2,000 square feet, 2-bedroom condo here. NOT SPRAWLING whatsoever. There is absolutely NO JUSTIFICATION requiring a $28,000 insurance premium for that condo. NOTHING. I could understand a premium like that (and higher) for a "sprawling" 6,000 sq ft oceanfront mansion and grounds, yes.

As for condo prices:

https://www.redfin.com/news/florida-...ices-dropping/
https://www.insurancejournal.com/new.../28/762682.htm
https://www.msn.com/en-us/money/real...31a806eb&ei=15
https://www.wptv.com/money/real-esta...in-report-says
https://fortune.com/2024/02/27/flori...insurance-hoa/
https://www.moneytalksnews.com/flori...minium-prices/

Let's make sure we’re providing accurate information here.
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Old 03-03-2024, 05:02 PM
 
18,426 posts, read 8,258,982 times
Reputation: 13757
Quote:
Originally Posted by Corrie22 View Post
well, you got it........it was $1million 20 years ago

"In 2004, Ms. Orman and Ms. Travis bought their primary home, a 2,175-square-foot condo with big windows and 600-square-feet of outdoor space, in Hillsboro Beach, Fla., for $954,000. "

https://www.copytk.com/suze-orman-s-portfolio-of-homes
her unit is 201

same building......$2,100,000

1063 Hillsboro Mile #303,
Hillsboro Beach, FL 33062

https://www.redfin.com/FL/Hillsboro-.../home/42011220
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Old 03-03-2024, 07:08 PM
 
5,581 posts, read 2,304,086 times
Reputation: 4804
Quote:
Originally Posted by Corrie22 View Post
her unit is 201

same building......$2,100,000

1063 Hillsboro Mile #303,
Hillsboro Beach, FL 33062

https://www.redfin.com/FL/Hillsboro-.../home/42011220
High price because it's oceanfront . Insurance doesn't insure the land. Value to rebuild the unit, minus the value of the land, is the focus of insurance.

Strip off the price of the land to determine the value of the insured property.
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Old 03-03-2024, 07:20 PM
 
21,615 posts, read 31,180,666 times
Reputation: 9775
Quote:
Originally Posted by sinatras View Post
A "sprawling oceanfront condo"? We are talking about a 2,000 square feet, 2-bedroom condo here. NOT SPRAWLING whatsoever. There is absolutely NO JUSTIFICATION requiring a $28,000 insurance premium for that condo. NOTHING. I could understand a premium like that (and higher) for a "sprawling" 6,000 sq ft oceanfront mansion and grounds, yes.

As for condo prices:

https://www.redfin.com/news/florida-...ices-dropping/
https://www.insurancejournal.com/new.../28/762682.htm
https://www.msn.com/en-us/money/real...31a806eb&ei=15
https://www.wptv.com/money/real-esta...in-report-says
https://fortune.com/2024/02/27/flori...insurance-hoa/
https://www.moneytalksnews.com/flori...minium-prices/

Let's make sure we’re providing accurate information here.
First of all, I’m not suggesting a high insurance premium is appropriate or justifiable. But this thread was worded to purposely mislead readers to believe it’s a simple condo that isn’t worth several million dollars in a tony suburb overlooking the ocean. There is a difference.

I’d consider a 2,500 square foot condo sprawling. That’s twice the size of our investment condo in Sarasota County (which isn’t oceanfront and we pay 2400 a year on for an insurance premium).

As for the price of condos, the local market data in Broward County, where her condo is located, shows the YOY increase. You showing me news articles that includes data from Pensacola means very little.
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Old 03-03-2024, 09:10 PM
 
Location: Honolulu/DMV Area/NYC
30,612 posts, read 18,192,641 times
Reputation: 34462
Quote:
Originally Posted by LKJ1988 View Post
I would never have a condo. Owners can be left on the hook for some pricey repairs blare.
Same's true with a single family home.

I would be hesitant about buying in an older condo without doing some serious due diligence. But the same is true for buying an older single family home. That said, some things for each ownership type can mitigate my concerns regarding older units, namely the date of repairs/replacement for major things that we know come due at some point (e.g. piping, roof, etc.).
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Old 03-03-2024, 09:16 PM
 
Location: Honolulu/DMV Area/NYC
30,612 posts, read 18,192,641 times
Reputation: 34462
Quote:
Originally Posted by LKJ1988 View Post
Not even close. Never put any money in my house since i got it 20 years ago bro. New roof coming up maybe in 4 years but since i never get much rain i can live without one.
Do you think condos in your area (where you don't get much rain) would be in need of new roofing more frequently than your home?

In my experience, single family home ownership gives the individual owner(s) greater flexibility of when to initiate certain projects as they come up, but I haven't seen any significant variance in terms of the kind of repairs that are needed for otherwise similarly situated property types. Thus, a condo association may ultimately vote to start repairs on needed patchwork earlier than a single family home owner might do (of course, the reverse could be true), but this doesn't inherently equal less cost for the single family home owner overtime. In fact, it could mean more for the single family home owner due to inflation, etc.
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Old 03-03-2024, 09:46 PM
 
15,822 posts, read 14,463,105 times
Reputation: 11892
Never had to replace a hot water heater, central AC, windows, roof (which you mentioned), siding, paint, etc? Never had termites? Just a few things I can think of off the top of my head that a homeowner would have to pay for themselves, that condo owners would pay for collectively.

You seem to be unduly lucky.

Quote:
Originally Posted by LKJ1988 View Post
Not even close. Never put any money in my house since i got it 20 years ago bro. New roof coming up maybe in 4 years but since i never get much rain i can live without one.
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Old 03-04-2024, 05:09 AM
 
30,395 posts, read 21,215,773 times
Reputation: 11954
I have done some stuff that i wanted to do over the years. But nothing like having a 75k bill forced on me for big time repairs on a condo building.
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Old 03-04-2024, 06:08 AM
 
Location: South Tampa, Maui, Paris
4,474 posts, read 3,842,069 times
Reputation: 5322
Quote:
Originally Posted by kidyankee764 View Post
First of all, I’m not suggesting a high insurance premium is appropriate or justifiable. But this thread was worded to purposely mislead readers to believe it’s a simple condo that isn’t worth several million dollars in a tony suburb overlooking the ocean. There is a difference.

I’d consider a 2,500 square foot condo sprawling. That’s twice the size of our investment condo in Sarasota County (which isn’t oceanfront and we pay 2400 a year on for an insurance premium).

As for the price of condos, the local market data in Broward County, where her condo is located, shows the YOY increase. You showing me news articles that includes data from Pensacola means very little.
Suze's condo is a 2 bedroom, 2100 heated sq feet home. We can agree to disagree on what is a "sprawling" home; however never ever have I seen a 2 bedroom, 2100 sq foot real estate listing described as "sprawling".

I did not word anything to mislead anyone. $28,000 is an outrageous premium for a 2100 sq foot 2 bedroom condo whether oceanfront or not.

Yes, condo prices are falling in Florida. Which is what I said in my post.
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