tag:blogger.com,1999:blog-2740556909864494483.post8671642173027566691..comments2024-03-22T16:30:48.999-05:00Comments on Key West Properties: Key West Real Estate Horror Story No. 9 Gary Thomashttp://www.blogger.com/profile/03006513292595034076noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2740556909864494483.post-27425676252652454132017-07-27T04:56:39.969-05:002017-07-27T04:56:39.969-05:00Dear Anon, Most of the houses in the historic dis...Dear Anon, Most of the houses in the historic district were built to withstand the elements or our specific environment - the wind, the heat, the rain. And most were also built in recognition of where the houses were located with regard to elevation. Those houses survived the elements for over a hundred years because of how well they were built. It was not until recent years that lenders required flood and windstorm insurance. <br /><br />I know certain elevations are more risky than others to be flooded. A cash buyer can decide for himself whether to purchase flood insurance for homes located in more "risky" locations. Similarly, a cash buyer can decide whether to assume the risk of a houses being damaged during a windstorm. Buyers who finance are stuck with having to pay outrageous premiums. <br /><br />I cannot understand why buyers here must purchase both flood and wind insurance while buyers in Colorado for example are not. I remember a huge flood in Colorado in 1965 that devastated much of the Denver area including western suburbs and the near downtown area where Cherry Creek and the Platte River meet. Today the federal government requires flood insurance for new home purchases, but this is not enforced in areas across the country like the downtown Denver area which is still at risk as it was in 1965. But lenders in Key West enforce the flood insurance mandate here. <br /><br />In the July 1990 we had a horrendous hailstorm in Denver that caused over a Billion dollars in damage. I owned four apartment buildings that incurred over $30,000 in damage to the roofs and interiors. My regular fire and liability insurance paid for my damages. These types of policies still cover owners today across most of the US including areas in the Midwest were there are tornadoes. I do not understand why the Keys area treated differently than tornado alley as to being required to have a windstorm insurance as well as a general policy. I know there must be a "reason" other than the know "risk", but I do not understand why one area is required to have a special policy when most of the US is not. <br /><br />I used to travel to the Phoenix area on a weekly basis. I experienced one huge flooding event and remember another dust storm event that was beyond imagination. Both caused tremendous damage. I bet that lenders do not require windstorm insurance in Arizona even though there is a very known risk. Every few years we see sudden mass flooding in Phoenix. I will be that lenders do not enforce federal flood insurance mandates after the homeowner's initial policy expires.<br /><br /><br />GaryGary Thomashttps://www.blogger.com/profile/03006513292595034076noreply@blogger.comtag:blogger.com,1999:blog-2740556909864494483.post-86689143923937098212017-07-26T18:58:07.073-05:002017-07-26T18:58:07.073-05:00Hi Gary, What are your thoughts regarding wind ins...Hi Gary, What are your thoughts regarding wind insurance and flood insurance in Key West? Thank you.Anonymousnoreply@blogger.com