Hi Richard, You really should contact and insurer or insurers to get the answers about rates and whether east of 181 would be less than west of 181.
Personally, I think decent rates can be found based on lots of different issues - age of the property for example.
Good luck...... more
Rates vary according to agency you choose, area you live in, age of the home, type of upgrades the home has, package concept (home, cars, boat...) and even your credit score. If you pick a specific area and home, ask your Realtor to ask the owners how much they are paying, most will share that information with you. However, even that could be drastically different if you insure the home. Sorry I couldn't be that much help!
If the owner doesn't reside at the property then a traditional homeowners policy will not suffice. The best type of policy would be a landlord policy. Similar to a homeowners with an allowance for nonowner residents. We write these all the time but the situtation is usually reversed where the parents buy a house and the adult children live in the home.... more
I can't answer about the Gulf, but I am oceanfront here in the Nags Head Kitty Hawk, NC coast. 80% of all homes here are in a flood zone and are required by the lender to have flood insurance, so it's very common here to have it. It's not all that expensive and it is all based on elevation above sea level. Higher is better and cheaper, this is the height of the ground, not the house on stilts (pilings). My house is about 200 ft from the ocean and is 1 lots back from it and I pay $430/yr for the max coverage of $250k. If you go back farther flood ins rates drop slowly and $250 is not uncommon. Those oceanfront homes can pay $2000 in some cases if the elevation is not high enough to reduce it. And again, FEMA flood only covers to a max of $250k. Those owners that must have flood to cover a million dollar home must go to Llyods of London, or some other private insurance co, and that can easily run $10-20k / year.... more
Jt the reason being is the insurance is to cover the cost to rebuild the home to it's existing status. The loan and it's rating are based on the loan to value ratio which the bank wants to make sure stays the same or better because it affects the rating for investment purposes of the securities sold against it. Also a mortgage loan is securitized by a occupiable home.
So say your home is worth $400,000 at the time of the $100,000 loan. The Insurance company figures it would cost $300,000 to rebuild the home to the standards set forth by their industry at time of the loan. Your loan is based off a 25% loan to value so it has basically minimal risk to the bank as long as is has enough hazard insurance to again keep these same or similiar ratios ( 33% ltv for insurance terms). If you have only $100,000 in hazard insurance then your loan to value (from an insurance standpoint for the loan) is 100% and you don't have the ability to rebuild the home unless you have $200,000 laying around, thus the bank has a much higher risk.
I hope this explanation helps Jt.... more
You either need to find a home in an area with lower insurance rates, or reduce the purchase price of the home so that your payment is in line with your maximum mortgage amount. Do you have a lender you are working with that can help you determine the right purchase price to be looking for? Are there areas maybe outside of flood/wind categories that make those insurance rates high you could be looking at? If you are looking in Mobile or Baldwin County I'd be glad to help you find the right area or house for the payment you need. Please contact me at (251) 459-4764 or email@example.com.
In a perfect world you would like to think so, but the reality is that the answer to your question is "No". In our current market, there are many areas in Mobile that have a fairly high inventory of foreclosed homes that are selling below the so called Fair Market Value. In many cases, very far below.
I am a RealtorÂ® in Mobile and there are several others that read and respond to questions asked on this forum on a regular basis. I would be happy to provide a CMA for you, a report that should give you an idea of what your home should sell for, and I'm sure several others who will respond to this later would gladly offer the same. You could take the opinion of what your home should sell for into account vs whatever you are looking to put into it to take it from where it is now to where you want it to be. My guess is that you will probably be disappointed in the answer.... more
I have a home in Gulf Shores within 600 yards of the beach with about 1600 to 1700 sq feet of living space. Insurance is $4700.00 this year with taxes running $1250.00 with a homestead exemption. For rental purposes the tax would be twice this amount. Larger homes would have higher taxes and insurance costs.
Hope this helps!
RE/MAX of Gulf Shores