The Anna Maria Island Sun Newspaper

Vol. 13 No. 24 - March 27, 2013

REAL ESTATE

Mixed reviews on flood insurance reforms

 

Just when you think you’re out they pull you back in. No I don’t mean The Godfather - just our other old friend flood insurance.

Not too long ago I wrote about coming changes in the National Flood Insurance Program. I pointed out that federal officials’ attitude regarding the cost of this program which essentially subsidizes flood insurance for private citizens is changing and to expect modifications to the decades old program.

In July of last year the President signed into law the Biggert-Waters Flood Insurance Reform and Modernization Act of 2012. This act reauthorizes and reforms the National Flood Insurance Program for five years though September 2017. The bill includes many program reforms some good and some not so good depending on how the property is utilized.

The good part which the National Association of Realtors has come out in favor of is the five year extension of the program. Prior to this the National Flood Insurance Program had been operating under stopgap extensions experiencing shut downs twice for several weeks. When flood insurance coverage is lapsed because the program is not extended, property sales that are contingent upon acquiring flood insurance cannot go forward possibly creating a domino effect of properties waiting for the one ahead of them to close. The NAR considers this a victory since it will bring certainty to half-a-million real estate transactions nationwide.

The new law also allows multifamily residential properties of five or more residences to purchase flood insurance and will now allow the escrow of flood insurance premiums by lenders. Also, individuals who pay their flood insurance premiums directly can now pay in installments rather than the current single annual payment.

However, there is a down side and like everything else it relates to money. The new law has reforms in premium rate structure. Specifically it phases out subsidies for second homes, business properties, severe repetitive loss properties or substantially improved/damaged properties. Rates for these properties will increase by 25 percent per year until premiums meet the full actuarial cost. New flood insurance policies must be based on actuarial rates and the annual cap on premium rates for all properties is being raised from 10 to 20 percent.

This law went into effect January 1st and is now just starting to be felt on Anna Maria with non-primary residences already getting premium increases and commercial properties starting in August. And typical of any new federal ruling the murky nature of the regulation has a lot of people confused and asking questions.

My question was how does this law affect waterfront condominium units that can have both full time and part time residents? So far there are conflicting answers to this question ranging from local government officials to building management companies with a lot of people in the insurance business not clear on all of the regulations. Unfortunately we may not know the answer until it’s time to renew the policies. FEMA is apparently holding the strings to this insurance puppet and hopefully they will provide clear guidelines going forward.

I knew it wouldn’t take long for me to be writing about insurance again I just thought it wouldn’t be this soon. It seems like Citizens Insurance and National Flood Insurance have become part of our everyday vocabulary on Anna Maria pulling us back in almost every day, sounds like a job for The Godfather.

Real Estate Transactions
Real Estate Transfers from December 2012 and January 2013
Sponsored by Alan Galletto Island Real Estate

Sold Date | List Price | Sold Price | Address | Provision | Property Style

Anna Maria

12/14/2012 399,000 370,000 113 North Bay Blvd. 56.5x110 Ac
12/07/2012 799,000 779,000 811 S Bay Blvd. 2541 75x155 3 Br/2 Ba SFR
12/13/2012 1,300,000 1,100,000 104 Willow Ave.# A 1906 57x100 4 Br/3.5 Ba SFR
12/14/2012 469,000 469,000 118 Palmetto Ave. 707 48x50 2 Br/2 Ba SFR 12/14/2012 812,500 785,000 416 Spring Ave. 1546 52x145 3 BR/2.5 BA SFR
12/18/2012 950,000 800,000 104 Magnolia Ave. 2012 75x145 3 BR/3 BA SFR 12/27/2012 1,299,000 940,000 204 Oak Ave. 3318 73x110 4 BR/3.5 BA SFR
12/28/2012 575,000 540,000 512 Magnolia Ave. 1742 51x145 3 Br/2 Ba SFR
12/28/2012 1,995,000 1,750,000 103 Palmetto Ave. 1930 115x100 2 Br/1.5 Ba SFR
12/31/2012 899,000 900,000 212 Oak Ave. 3780 72x148 5 Br/5 Ba SFR
01/18/2013 725,000 690,000 300 N Shore Dr. 1500 4 Br/3 Ba SFR
01/08/2013 675,000 520,000 834 S Bay Blvd. # A 50x223 Ac
01/08/2013 675,000 520,000 834 S Bay Blvd. # B 50x223 Vac

Bradenton Beach

12/18/2012 389,000 351,000 2317 Avenue C # 300 1620 82 & 85x106 Inc
12/13/2012 319,000 290,000 1000 Gulf Dr. # 2 480 1 Br/1 Ba Condo

Cortez

12/14/2012 124,900 124,900 9604 Cortez Rd. #422 1218 2 Br/2 Ba Condo, Reo/Bank owned
12/20/2012 420,000 380,000 3860MarinersWy.#411 2227 3 Br/3 Ba Condo
01/07/2013 499,000 450,000 4004 128th St. W. #902 1628 3 Br/3 Ba Condo
01/18/2013 349,000 335,000 4112 128th St. W.#603 1762 2 Br/2 Ba Condo
01/25/2013 775,000 713,000 12923 Yacht Club Pl. 2784 4 Br/2 Ba/2 Half Baths SFR

Holmes Beach

12/06/2012 397,000 373,000 3013 Avenue F # U22 984 2 Br/1 Ba Condo
12/07/2012 730,000 625,000 212 52nd St 2656 3 Br/3 Ba Condo, Short Sale
12/27/2012 259,900 240,000 600 Manatee Ave. #225 1176 2 Br/2 Ba Condo
12/28/2012 210,000 193,000 3000 Gulf Dr. # 4 756 1 Br/1 Ba Condo
12/28/2012 600,000 500,000 204 52nd St .# 204 2656 4 Ba/3 Ba Condo, Short Sale
12/05/2012 1,189,000 1,100,000 642 Key Royale Dr. 4252 4 Br/5.5Ba Condo
12/05/2012 549,000 520,000 300 67th St. 1300 50x 100 3 Br/2 Ba SFR
12/07/2012 559,000 550,000 522 72nd St. 1949 100x17 3 Br/2 Ba SFR
12/10/2012 599,000 565,000 310 66th St. 1974 3 Br/3 Ba SFR
12/11/2012 439,000 415,000 215 66th St. 1114 54x105 3 Br/2 Ba SFR
12/14/2012 499,000 485,000 5802 De Palmas Ave. 1520 50x101 3 Br/3 Ba SFR
12/17/2012 489,000 450,000 5608 Holmes Blvd. 1040 2 Br/1 Ba SFR
12/19/2012 629,000 592,000 113 75th St. 1819 3 Br/2.5 Ba SFR
12/19/2012 494,000 469,500 212 81st St .# A 1200 90x90 3 Br/2 Ba SFR
12/21/2012 439,000 430,000 205 77th St. # B 900 2 Br/2 Ba SFR
12/26/2012 379,000 325,000 5903 Flotilla Dr. 1226 2 Br/2 Ba SFR
12/28/2012 399,900 363,750 503 71st St. 1884 95x97 3 Br/2 Ba SFR
12/31/2012 549,000 525,000 3705 Gulf Dr. # B 1227 3 Br/2 Ba SFR
12/31/2012 539,000 525,000 302 67th St. 1450 50x100 3 Br/2 Ba SFR
12/31/2012 1,000,000 800,000 303 68th St. 2000 4 Br/3 Ba SFR
12/31/2012 632,500 507,100 520 74th St. 3232 100x121 3 Br/3.5 Ba SFR, Short Sale
12/31/2012 995,000 940,000 516 83rd St. 1710 3 Ba/2 Ba SFR
01/14/2013 429,000 350,000 5200 Gulf Dr. # 304 1057 2 Br/2 Ba Condo, Short Sale
01/31/2013 425,000 410,000 5200 Gulf Dr. # 502 1169 2 Br/2 Ba Condo
01/15/2013 550,000 525,000 306 56th St. # 2 1620 3 Br/2 Ba SFR
01/18/2013 559,000 500,000 303 74th St. # A 1912 85x109 3 Br/3 Ba SFR
01/18/2013 749,000 700,000 4804 Gulf Dr. 3000 50x90 6 Br/4.5 Ba SFR
01/23/2013 598,000 550,000 208 67th St. 1443 75x105 3 Br/2 Ba SFR
01/24/2013 439,000 405,000 8316 Marina Dr. 1440 83x110 2 Br/2 Ba SFR
01/25/2013 645,000 580,000 520 Bayview Dr. 1970 87x118 3 Br/3 Ba SFR
01/30/2013 559,000 536,750 515 42nd St. 1590 3 Br/3 Ba SFR
01/15/2013 299,900 275,000 212 77th St. 85x98 Vac

 

Source: Manatee County Property Appraiser’s Office


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