Florida Real Estate Rise Being Hampered by Increasing Insurance Prices
Real estate analysts and insurance executives suggest Florida’s property-insurance market is in a difficult situation, as increasing carrier losses and higher monthly premiums endanger the state’s flourishing real-estate sector.
Long-term property owners are facing astronomical premium increases or warnings that their coverage will be discontinued. Out-of-state property purchasers who migrated to Florida during the coronavirus outbreak are shocked at the current cost of property ownership. To shore up their accounts, insurers who are drowning in debt are reducing coverage in some regional areas.
Why the Cost Increases?
Several factors have influenced these price hikes. Back-to-back hurricanes Irma and Michael in 2017 and 2018 respectively wreaked havoc on the state, resulting in $30 billion worth of insurance claims. The expense of reinsurance, which is taken out by insurers to offset part of the inherent risk of the coverage they offer, is increasing. Excessive insurance claim lawsuits and a surge of suspected sham roofing claims are also at play.
What Florida Commercial Real Estate Buyers Should Know
Buying real estate is likely to be the biggest financial investment you make in life. It’s essential that you collaborate with qualified professionals at each step of the purchasing process to secure your investment. Each person in your team, including your real estate lawyer, financial lender, property insurance carrier, and real estate agent, plays an important role in a successful commercial real estate transaction.
Retaining a knowledgeable, experienced commercial real estate lawyer from the start will help you avoid expensive errors later on. Before making a purchase, you may want to bring your real estate lawyer on board and meet with them prior to signing any documents.
Experienced Legal Help for South Florida Commercial Real Estate Transactions
You’ll need an accomplished South Florida commercial real estate lawyer if you’re looking to invest in commercial property in South Florida. For all of your commercial real estate necessities, Mark Schecter is the legal advocate to call. You’ll need a lawyer who is able to confront well-funded insurance companies, commercial property owners, and unscrupulous real estate agents, whether you’re local or from out-of-state.
It’s critical to consider every detail involved in finding a commercial property that meets your company’s needs, making an offer, and closing the transaction. For urgent assistance, contact Mark Schecter today by calling (954) 779-7009. Don’t wait to reach out — we are available today to assist your business with any commercial real estate needs you have.