The great debate continues to rage on about tax reform and more especially about the portability issue within the State of Florida of Homestead Exemption and 3 percent Save Our Homes cap. The Florida governor, Charlie Crist, has been pushing the legislature to remain in session until they pass a significant reform package and they did indeed agree to extend their session.

The interesting thing is that some of them on the Democratic side might be doing some foot dragging, while claiming to be looking thoroughly at proposals. Since they are in full control they essentially could stop any reforms from happening in this session. The huge risk is that they will certainly anger voters, who have literally demanded that the legislature take action and take action now. There have been many ideas and proposals, but to date, there is nothing firmed up to bring to a vote.

The portability issue, (more specifically of the Save Our Homes cap,) is major, since most of us are feeling locked in our homes, because a move would eliminate that 3% cap and the tax implications would change drastically. There have been some who are willing to vote for it, but would limit it to port within the county. In my opinion, that is way too restrictive and the new law should allow portability anywhere within the state. 

I do know one thing, if they don’t take action and do allow the session to expire, there is going to be hell to pay!  

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Like many other people residing in the state of Florida, the recent property insurance rate adjustments are driving me crazy, and it is with god reason. My recent adjustment for the coming year increased by 130%. I read in yesterday’s paper that the new Governor of Florida, Charlie Crist yesterday signed a bill that “he and others hope will lower Floridians property insurance costs”. By signing it, it means that the state could end up paying billions of dollars, should a major hurricane hit and do extensive damage. The savings, estimated to be between 5 to 20 percent, depending on whether one resides inland or on the coast, are not expected to take place for a while.

One of the things that I think about doing is dropping coverage completely and self insuring. To me it makes perfect sense, since we rode out Wilma, with wind gusts up to 150 miles per hour, and sustained no damage other then vegetation. We live less than a mile from the coast and certainly got the brunt of the storm, but there was not one shingle that lifted!

Because my mortgage is so small, ($100,000) compared to the value of the property, and the dirt underneath the house is worth upwards of $300,000, with me willing to take all the risk I feel that the lender shouldn’t have a problem, but they do. Somewhere in the paperwork, I signed a clause stating that should I drop coverage, the lender has the right to procure it for me and I have to pay their cost. (You have to bet that their cost will be twice mine, despite my increases).

I just don’t get it, my land is worth more than three times the mortgage and I still have to insure my home, by paying an outrageous premium. I think that the whole thing is a complete scam. The insurance companies are claiming that they are going broke, while purchasing more and more real estate and buying and building more buildings. The skyline of Hartford changes annually and it’s because of the insurance companies and all their acquisitions.

What galls me even more is the fact that should I ever have a claim, and I never have in all the years living down here, they will go out of their way to nickel and dime me. They will tell me that I didn’t meet my deductible, or this or that wasn’t covered in the policy. I have heard horror stories from honest people just trying to make a legitimate claim, following a tragedy.

The insurance companies are going broke? Hell, we’re the ones going broke paying their silly premiums!

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I never ceased to be amused (and amazed) while reading about the justification for the ever-increasing insurance rates when the insurance companies refer to Florida as ‘the most dangerous place in the world’. I find myself wondering whether they’ve ever been to Iraq…or maybe South Africa, Afghanistan, or even California, (everyone out there carries a gun).

I know…I know what you’re saying. Come on Mel, they’re not talking about safety as far as getting mugged or killed goes. They’re talking about the Hurricanes (oh those monstrous things) and how Florida is liable to be underwater with the next ‘big one’.

Believe me I don’t make light of the terrible damage that a category 4 or 5 hurricane will do. Between living on the coast of New England for most of my life and having lived here in Naples, Florida during the last 15 years, I’ve been through many and I fully understand the devestation that they can cause. But come on…Tell me that is justification for doubling and tripling our insurance premiums, and they have the nerve to try and get us to believe that these premiums still lag behind the risk.

I say that it’s all BS, as the insurance company executives sit up in their ivory towers, in their massive skyscrapers that they own for cash in Hartford, thinking Florida: The Most Dangerous Place In The World, while sipping on their margaritas.

Search The Greater Naples Area MLS For Your Next Home

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There are ten different states that Florida has agreements for “mutual recognition” for licensees. They are Alabama, Arkansas, Colorado, Georgia, Indiana, Kentucky, Mississippi, Nebraska, Oklahoma and Tennessee.

The term “mutual recognition” basically means to get a real estate license, it is a much simplier process for those who already hold a license, but does not mean that because you are licensed in one of those states, it is valid in another. The process differs from state to state, and it is strongly advised that you check with the state that you are thinking about becoming licensed in. There is also additional information available at: www.myflorida.com/dbpr/re/mut_ree.shtml.

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