The Citizens Property Insurance Corporation is described as the“ last” option for insurance within the state of Florida. However, Citizens was also described by many as being out of money before Hurricanes Helene and Milton reached the Florida shores.
California’ s own“ insurer of last resort” named the FAIR Plan had upwards of $ 336 billion of property exposure a year ago with just a cash surplus between $ 300 and $ 700 million, as per the California Assembly Insurance Oversight Committee. L. A. County fires might cost $ 30 to $ 50 billion for the FAIR Plan.
Hurricane Helene and Milton might’ ve caused more than $ 200 billion dollars’ worth of damage in Florida, North Carolina, and elsewhere, according to The Real Deal.
Who will bail out FEMA first so that FEMA can bail out the National Flood Insurance Program, Citizens, SBA, FAIR Plan, and others? Please note that only 1 % to 6 % of U. S. homeowners( under 2 % in California) have flood insurance coverage protection. If flooded without flood insurance, the homeowners are likely to receive nothing, sadly.
Will Underwater Homes Soon Follow?
There were more than 70,000 homes damaged or completely destroyed by the devastating floods from just Hurricane Helene in North Carolina a few months ago. Some other estimates are as high as 125,000 damaged homes in North Carolina.
In numerous states across the nation over the past year, the number of damaged or destroyed homes from fires, floods, or wind damage probably number somewhere in the few hundred thousand range. A rather large number of these properties either had no insurance in place or not enough coverage protection.
Many insurers also are completely denying insurance coverage payout claims from distressed property owners for a wide variety of reasons. As a result, many homeowners, landlords, tenants, and commercial property owners will just walk away from their property and mortgage obligations. If so, these future foreclosures become sales comparables for the homes that did survive.
At some point, the future home values will start to fall and more homeowners will be living in figurative“ underwater” homes where the mortgage debt far exceeds the current market value.
Should you, your family, or friends be in challenging situations like any of these shared scenarios, please research as many different potential solutions as possible and reach out to local knowledgeable thirdparty advisors to minimize your losses and to maximize your gains.
MEET RICK TOBIN
Rick Tobin has worked in the real estate, financial, investment, and writing fields for the past 30 + years. He’ s held eight( 8) different real estate, securities and mortgage brokerage licenses to date and is a graduate of the University of Southern California. He provides creative residential and commercial mortgage solutions for clients across the nation. He’ s also written college textbooks and real estate licensing courses in most states for the two largest real estate publishers in the nation; the oldest real estate school in California; and the first online real estate school in California. Please visit his website at Realloans. com for financing options and his new investment group at SoCal Real Estate Investors for more details.
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