Florida – Emergency Insurance Assessment

Due to the unprecedented hurricane seasons of 2004 and 2005, the Florida Hurricane Catastrophe Fund has exhausted nearly all reserves accumulated since 1993. To rebuild its hurricane emergency funds, the state of Florida has issued an Emergency Order requiring all licensed property and casualty insurance companies, including mortgage guaranty insurers, to collect from Florida policy holders a special assessment of 1% of direct written premiums as of January 1, 2007. Depending on when their systems are updated, the special assessment may appear as ‘Surcharge' and will be included in the total amount due.

This assessment will apply to both new and renewal premiums on insured loans (including hazard, flood and MI) secured by properties located in Florida. The initial assessment period is for one year; however, Florida has the option to renew it. The assessment will appear as follows:

The insurance commitment and certificates for loans on properties located in Florida will include the 1% assessment effective January 1, 2007. Bills for premiums that are due and payable January 1, 2007 will include the 1% assessment.
The special assessment is required for all Florida loans that close on or after January 1, 2007. If the insurance commitment/certificate is issued prior to January 1st, and the loan closes after that date, the 1% assessment will be required in addition to the total amount due as shown. The following condition will be hard-coded in the UW Portal and used by the underwriters for Florida loans underwritten prior to January 1st:

Effective 1/1/07 a 1% surcharge applies for all hazard, flood and MI insurance policies. If a loan does not close prior to 1/1/07 updated policies will be required and the loan must be satisfactorily re-underwritten.

For additional information, please refer to the website for Florida's Office of Insurance Regulation at http://www.floir.com/hurricanes/fhcf.htm.

Homestead:much more than just a tax break

The most commonly known benefit to claiming your primary residence in Florida as Homestead is a tax benefit. By claiming your property as Homestead, you have two tax benefits: the first one is that you are exempt from paying property taxes on the first $25,000 of the assessed value of the residence.The second one is that your annual property taxes are capped at a maximum increase of 3% per year (may vary in each county). In order to qualify for Homestead exemption in 2007, you must occupy the residency prior to December 31st, 2006 and apply prior to March 1st, 2007 (if you are planning on purchasing a home soon, make an effort to close prior to December 31st so you can qualify for the tax break). You can apply for Homestead by visiting any of the property appraiser's offices or on-line at your county's property appraiser's website. You will need the following documents to qualify:
1. Proof of Ownership: Recorded Warranty Deed, Co-op Propriety Lease, Notice of Proposed Taxes or Tax Receipt.
2. Proof of Permanent Florida Residence (preferably dated prior to January 1 of the tax year for which you are filing): Florida's Driver's License or Florida I.D. Card, Florida Voter's Registration; or Recorded Declaration of Domicile.

And the sometimes overlooked benefit of claiming your Florida residence as Homestead is that of asset protection. The Florida Constitution exempts homestead property from levy and execution by judgment creditors with unlimited monetary protection. However, Homestead is not protected against tax liens, mortgages, homeowner association assessments, or from mechanics liens associated with labor or materials to repair or improve the homestead property.

Miami "The Sunshine State"

To your right, the Freedom Tower, where the first Cuban immigrants arrived to become American citizens. Do I sound like a tour guide? Well, that may be because eight years ago I had the opportunity to work as a tour guide in Miami, a city where great shopping and white sand beaches are the main attraction. But working as a tour guide, I learned that Miami has a lot more to offer, so allow me to give you a few recommendations of places to visit next time you fly down to the Sunshine State.
Let's start our tour in Downtown Miami. Take a boat tour from Bayside to see up close the homes of the rich and famous. Since real estate is our business, hop on the Downtown monorail (free ride) and watch from up high the old and new construction in contrast.
Continue your tour through Coconut Grove, one of Miami's oldest cities. Watch on your left Miami's first airport , where PanAm used to be the only airline. After being one of the most poor areas of Miami, Coconut Grove became one of the most expensive pieces of real estate thanks to the 1930's mafia. Adjacent to Coconut Grove is one of the cities with most charm: Coral Gables. Banyan trees give shade to streets with spanish names and houses built of coral. On Sundays, The Biltmore Hotel, where Al Capone used to stay, offers one of the cities best brunches with buffet tables wrapping around the pool.
Just drive a little further and you'll be in "LA CALLE OCHO" (8th St with a flavor of Cuba). Stop for a Cuban coffee (cortadito) to give your day a jolt and watch the Cuban culture at its best with folks playing chess and smoking cigars. Finish up your tour in South Beach (notice I say finish the tour, not the day). South Beach doesn't sleep and neither will you. Spend all day lying on the beach or just watching people go by (you can spend all day watching people go by and don't get bored). When the sun sets, have dinner at one of Lincoln Rd's amazing restaurants and then it's off to Salsa! Dance all night at any of Miami's great clubs (Level and Bash are great choices). If you like salsa (and even if you don't it is still a scene to watch), don't miss Mango's on Ocean Dr. On Sundays, Nikki's Beach is the place to see and be seen. This Miami's hot spot is right on the sand, perfect after a day of sun and fun.
And at last, my favorite place: The Everglades, wich means "The Never ending river of grass". While most people think it is a swamp the Everglades is one of the world's slowest moving rivers(it moves one mile per day). Take an air boat ride through the river's sawgrass and watch the most exotic birds fly by and maybe spot a few alligators.
And ok, I know you can't miss the opportunity of being in Florida and not going shopping, so just for kicks, the most popular malls are the Aventura Mall in NE Miami-Dade, Sawgrass (an outlet mall in SW Broward), and the Dolphin Mall in NW Miami-Dade.

Are you involved in mortgage fraud and don't even know it?

Right About Real Estate Podcast - Are you involved in mortgage fraud and don't even know it?