Citizens Insurance – Possible Solutions To South Florida Insurance Crisis

Citizens Insurance – Possible Solutions To The Miami-Dade, Broward & Palm Beach Counties Insurance Crisis

Created By Our Legislature & Citizens

Maybe you’ve had your home recently inspected by Citizens; and if not, you will. They are looking at your homes “wind mitigation integrity” and all that’s important to them is the exterior, that is, “what protects all your windows & doors and the roof”.

So what can you do when Citizens either wants to a) increase your premium exorbitantly, or in the worst case b) cancel your homeowner’s insurance policy?

1) You can be subjected to lender, forced placed insurance at even more exorbitant rates and those policies have NO protection for you whatsoever, they only protect the lenders.

2) You can replace your roof and hurricane strapping and other wind mitigating, structural components and remodel accordingly; AND install impact windows and doors or hurricane shutters and door protections all around your home.

So, how can you pay for this?
The increased premiums, if you don’t remodel, are not financeable. So let’s hope you’ve saved a lot of money. Sure you’ll pay it monthly to your escrow account, however that’s only over 10-12 months and your mortgage payment may go up to “shock level”, becoming unaffordable, leading to default.

Fortunately there may be a solution if:

a) You can credit-income qualify to refinance your mortgage at today’s very low rates; and
b) You have some equity in your home.

FHA 203-K Refinancing: Allows you to finance your upgrades and remodeling into one, long term 30-Yr fixed rate mortgage. In most cases, an Owner-Occupied property (1-4 units) can be refinanced up to 96.5% (or more, maybe up to 110%) of the Rehab Value. Include your new roof, shutters, windows & doors and anything else … kitchen & bathrooms for example … that can be accommodated. The Rehab can also include cosmetic updates. AND the benefits to you the homeowner are many … 1) You will have a better, more valuable home; 2) You will qualify for and get the best possible insurance rates and maybe even be able to get away from Citizens; 3) Your new mortgage could be an asset to your property in a future re-sale … Did you know that an FHA loan is the ONLY Assumable, Fixed Rate mortgage product on the market since the 1980s? As long as your buyer (the new borrower) qualifies to assume your loan, you get released from liability on the loan at time of sale…!!! And when next do you think there’ll be 30-yr fixed rate mortgages around 4% or less?
Conventional Conforming Rehab Refinancing: If you don’t want FHA (for whatever unknown, ill-advised reason) there are lenders doing similar, Rehab/Refinance, Conventional mortgages up to 95% Owner-Occupied; AND YES … 75% – 80% on Investor or Second Home properties, 1-4 units.

If you’d like more information on this article and its contents please feel free to contact the author and he will be able to refer you to his team of real estate lending professionals that can also help you.

Thank you, Steven C. Epstein, P.A. – Accelerated Realty, Inc. – 6796 SW 62nd Ave., South Miami, FL 33143 – Office: 305-328-9524 Ext. 103 – Fax: 305-459-1802 – Cell/Text: 305-546-5132 – Email

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About the Author

Steven Epstein
Steven is a Residential REO expert and his experience dates back to the S&L Crisis of the 1980s. He has worked for companies such as the Keyes Company, Century 21, Coldwell Banker, and Prudential Florida Realty to name a few. Since the Housing Crisis of 2007, Steven has represented banks, mortgage lenders, and Servicers as both a listing and selling agent to prepare, market, sell, and close over 170 assets in the last 3 1/2 years.

3 Comments on "Citizens Insurance – Possible Solutions To South Florida Insurance Crisis"

  1. Ladies & Gentlemen,Boys & Girls; Thanks for reading my article, please feel free to reach out by phones or emails with all your real estate questions. Steve E

  2. Great article Steve!
    I couldn't agree with you more. It is crazy what is going on with insurance, especially Citizens! I've seen some good rates from a challenger in the market place…
    And yes, we (Wells Fargo), the Nations leader in Purchase and Renovate Loan Financing and Renovation Loan REfinancing, can do the FHA 203(k) Refinance at 97.75% loan to value based upon the AFTER IMPROVED value of the home! And we also provide the Conventional Renovation Loan REfinancing…and yes, available for investors and second homes as well.

    It is a great service you are providing!

    Dennis Hearing
    NMLSR #892525

    • thank you sir. I hope to be able to send you many buyers & after they repair their homes to code, many Sellers for those Buyers and in the meantime, if you can, please think of my for all your Listing referrals. Best, Steve E

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