Homeowners insurance rates

After months of trying to address homeowners insurance rates isses, goods news will soon satisfy Floridian. Rising insurance and property taxes were the 2 main issues affecting the local Floridian real estate market. Any modifications alleviating the burden of homeowners will benefit the Miami real estate market as a whole.


Private insurers will soon deliver rates reductions ranging from 10 to 50%. Private insurers will be able to buy lower cost back up insurance and therefore pass the savings to their clients. The windstorm portion of the insurance will be reduced drastically, from 27% to 73.5%. Areas closest to the waterfront might see substantial insurance savings, 50% for single family homes and 38% for condos.


These premiums rate cuts follow the Insurance Reform Bill passed by the Florida legislature this January. Insurance companies will incorporate these savings by March 15 th 2007, to be effective immediately or when renewed by the latest as of june 1 st 2007.

Published by MLR Realty contributor Eric Harari

Real estate news, Miami Florida real estate.

The latest statistics released by the Commerce department indicates that construction of new homes has slowed to the lowest rate in 10 years. The number of new house started in January dropped from 2.3 million last year to 1.4 million, a 38% decline.

This data covers the whole territory but of course regions fared slightly differently. According to analysts there are fundamental reasons for the drop that are not only related to harsh weather.

• The following are some of the statistics:

• The Northeast market has a 9% increase.

• The West Coast market has declined by 29%.

• The Middle West dropped by 15%.

• The South’s market is down 10%.

• Counties within those regions also fared differently as well.

Compared to last year, new building permits have also dropped dramatically. This week’s data follows 2 months of improvement and we see an increase of new home construction for November and December 2006. 15 % of all homes sold in the United States are new homes; however this data does not apply to the whole real estate market. Other real estate analysts have pointed to a significant sign of improvement in the market for previously owned homes thus confirming that the market is stabilizing.

This data, by definition is general and does not affect the different real estate markets the same way. In Miami the last few months have shown a definitive signed of improvement. Miami homes fared better than Miami condos; all condos in prime locations fared better than in class 2 locations. South Beach’s condo market proved to be flexible where as other Miami condo market’s such as Brickell and Aventura where definitely among the weakest of areas.

Published by MLR Realty contributor Eric Harari