Trust This. Florida’s Insurance Woes

Trust This Newsletter

Halleloo! Hereโ€™s to another week of dropping ๐Ÿ’pollen ๐ŸŒบ counts ๐ŸŒผ and cool nights ๐ŸŒ ! Enjoy it (and th

โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ
Powered by Axios HQ

MyLandTrustee Logo

Trust This.

By Joseph E. Seagle, Esq. โ— Apr 29, 2022

Smart Brevityยฎ count: 3 mins...860 words

Halleloo! Hereโ€™s to another week of dropping ๐Ÿ’pollen ๐ŸŒบ counts ๐ŸŒผ and cool nights ๐ŸŒ ! Enjoy it (and the love bugs) while it lasts.

Situational awareness: College Park Main Street will celebrate ๐ŸŒธ Spring Fest ๐ŸŒท on April 30 from 5-11 pm on Edgewater Drive. Join us there for good food, fellowship, and music ๐ŸŽธ !

1. BFD: A special session to help Florida homeowners

Illustration of a house being inspected by a hand holding a magnifying glass and another hand holding measuring tape

The governor has called back the Florida legislature to Tallahassee for another special session. This one is to deal with the simmering homeownersโ€™ insurance crisis facing the state. It starts on May 23 and is set to only last one week.

What's next: Hurricane season opens on June 1, five days after the session ends.

Why it matters: Since 2017, weโ€™ve lost six property and casualty insurers to liquidation, and another two filed for liquidation this year. Others are leaving the state, some are teetering on the edge of liquidation, and more are non-renewing policies or raising rates on properties to a point that theyโ€™re unaffordable. For each of the past two years, the industry has paid out over $1 billion in losses each year.

We have heard from numerous homeowners in the past month, complaining of being dropped or seeing their rates increase three- and four-fold over last yearโ€™s premiums. These stories have been more prevalent than at any other time since Citizens Insurance โ€” the insurer of last resort โ€” was created to back-stop the industry.

Yes, but: Sweeping changes made in 2021 havenโ€™t had the effect that the legislature had expected to help lower rates and losses.

Tips to avoid non-renewal :

  • Update your roof

  • Get a wind mitigation report and follow its recommendations

  • Get a โ€œFour-Pointโ€ inspection and follow its recommendations to maintain or improve the propertyโ€™s components that lead to the biggest claims.

What to do if you receive a non-renewal notice or if your insurer leaves the state:

  • Contact your agent to discuss options immediately.

Our thought bubble: Weโ€™re hopeful the Legislature will use this special session to accomplish something that will help Florida homeowners.

2. Agents, brokers, and others still going to jail for fraud

Illustration of an inmate with a barcode on the back of his uniform

Weโ€™re seeing more press releases about real estate agents, short sale negotiators, and other real estate professionals going to jail for fraud and other crimes related to the profession.

Why it matters: Real estate agents, loan officers, title agents, lawyers, and appraisers who survived the Great Recession remember how many fellow professionals went to jail back for bad acts back then. Professionals coming into the business after that period may not understand that their actions can have some big consequences.

Whatโ€™s new: Nothing. What was illegal then is still illegal.

  • Failing to file and pay taxes on commissions by funneling them through shell companies is still tax fraud.

  • A real estate broker who lies about listings, and then steals the buyersโ€™ deposits is still committing fraud.

  • A real estate agent who lies about using funds for real estate investments and then applies them for another purpose is still engaging in money laundering.

  • Short sale negotiators and investors who lie to get a lender to take a short payoff are still committing bank fraud.

  • Manipulating values for short sale purposes is still civil fraud.

Our thought bubble: We receive requests sometimes from real estate investors, buyers, sellers, and mortgage lenders, asking us to do things that we know are illegal. When we point out why itโ€™s illegal, weโ€™re often told, โ€œBut Iโ€™ve done it many times before at other title agencies!โ€ If someone is asking you to do anything and not show it on the settlement statement or tell the lender, then itโ€™s probably illegal.

3. Catch up quick

In this illustration, a house drops from a water faucet.
  1. As weโ€™ve written recently, home affordability is out of reach in many Florida metros. Redfin this week confirmed othersโ€™ data when it reported that Orlando buyersโ€™ income needed to afford a home increased 43.8% since last March. Redfin

  2. More sellers are dropping their prices. The Title Report

  3. Higher interest rates donโ€™t just discourage buyers. They discourage sellers who prefer to hang onto that low rate on their current home rather than taking on a higher rate on a new home. Fortune

4. Pic du jour

Illustration of a no symbol broken apart

Unfortunately, we canโ€™t post this weekโ€™s picture, because it was sent to me to seek legal advice. But I can say that, before you contractually waive those inspections, be sure you go up in the attic and snoop around. You never know when youโ€™ll find a roof shoddily constructed a few feet above the old roof โ€ฆ without a permit.

5. Parting shot

A locked lock with cryptocurrency symbols on it

Instead of paying for โ€œtitle lockโ€ insurance, most county recording offices offer free services that will alert you whenever a document is recorded that contains your name. For instance, in Orange County, you can go here to sign up.

We hope you found this helpful โ€” any feedback is appreciated and can be shared by hitting reply or using the feedback feature below.

  • Was this email forwarded to you? Subscribe here. (see link below this box to unsubscribe)

  • Have an idea or issue to share? Email us.

Be on the lookout for our next issue! ๐Ÿ‘‹

Was this edition useful?

Thumbs upThumbs down

Leave feedback

Your responses are anonymous

Powered by

This edition is powered by Axios HQ.

Share:

Subscribe to Our Newsletter

More Posts

House with Graph, Real Estate Newsletter

Trust This. FL’s Tax Crisis โ€” Fed’s Next Move โ€” Toxic Leaders

๐Ÿ‘‹ Happy Friday! Tomorrow is National Wreaths Across America Day. For information on how you can part โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ

Trumpโ€™s Effect on COVID EIDL Loan Forgiveness

Trust This. Trump and EIDL loans โ€” IRS ERC Denials โ€” Game of Work in Real Estate

๐Ÿ‘‹ Happy Friday! Tomorrow is December 7, the 83rd anniversary of the attack on Pearl Harbor, a day th โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ

Political Influence on Real Estate

Trust This. 22% Eye Moves Post-Vote – Job Law Shifts – Market from Plenty.

๐Ÿ‘‹ Happy Friday! Next week is ๐Ÿฆƒ Thanksgiving, and our offices will be closed on Thursday and Friday. โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ โ€Œ