Amendment 1 could improve insurance rates nationwide, real estate appraisers say

This November, Florida voters will be asked to grant a tax break to homeowners who “improve the property’s resilience to flood damage” by preventing the property’s appraised value from increasing due to the Flood Mitigation Improvement Project.

One result, if passed by 60% of eligible voters, could be a statewide reduction in insurance rates, said Broward County real estate appraiser Marty Kiar.

“If you could get an incentive to make your home better, maybe suffer less damage from a flood where it’s much better protected, there’s less risk for insurance companies,” Kiar said. “And hopefully that would result in savings for everyone.”

It could potentially “lower insurance rates in the future,” he said.

In 2019, the nonprofit research group First Street Foundation found, “Increasing tidal flooding caused by sea-level rise eroded the relative value of real estate by $15.9 billion between 2005 and 2017. Of the 18 states analyzed so far, Florida has seen the biggest loss in relative home values ​​at $5.4 billion.”

That Report the 20 hardest hit cities in 18 states including Miami Beach, Hollywood, Fort Lauderdale, Key Largo, Jacksonville and Key West.

“Rising water damages homes in many ways,” Duval County real estate appraiser Jerry Holland told Local 10 News. “It might not obliterate the structure, but if water gets in there and does more damage to the slab, it can get very expensive. If something can be done where the house is either raised, or a new house is built that raises the elevation, or some type of retaining wall to prevent flooding, then you know in the long run, there will be less insurance damage, and that will benefit us all.”

The November constitutional ballot comes at a volatile time in Florida’s personal property insurance market.

RELATED LINK: ‘An existential dilemma’: Florida homeowners find themselves in dire straits as another major insurer pulls out

It also comes after Hurricane Ian, as experts say a spate of claims could hit homeowners across the state.

RELATED LINK: What you should know about Florida’s insurance market, with Ian likely to add more turmoil

“What we’ve always seen is when the insurance companies get hit by these big storms and damages, they sort of have to reimburse all of us,” Holland said. “Typically, insurance rates are affected by the level of losses within the state. So if there is something we can do that will minimize losses when we prevent and have less property damage from rising waters, it will help everyone who has insurance in the state of Florida. The long-term effect should be that insurance rates don’t go up.”

“The fact that lawmakers are thinking about how to better protect us from rising seas and King Tide and the effects of climate change, I think that’s an excellent thing,” Kiar said, adding, “And your home, so is it.” quite the most valuable asset we all have.”

voting question:

  • LIMITATIONS ON VALUATION OF PROPERTY USED FOR RESIDENTIAL PURPOSES. Propose an amendment to the state constitution, effective January 1, 2023, to authorize legislatures to prohibit by common law the consideration of alterations or improvements to properties used for residential purposes to determine the home’s resistance to flood damage improve the estimated value of such property for ad valorem tax purposes.

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https://www.local10.com/vote-2022/2022/10/20/amendment-1-could-improve-property-insurance-rates-statewide-property-appraisers-say/ Amendment 1 could improve insurance rates nationwide, real estate appraisers say

Sarah Y. Kim

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