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Residential and Commercial Foreclosure Property Owners Face Hike

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By : John Cutts    99 or more times read
Residential and commercial foreclosure property owners as well as owners of non-foreclosed real estate are preparing for a potential increase in insurance rates in North Carolina. Reports stated that those who own rental dwellings or vacation houses are the most likely to be affected by the proposed increase.

Property owners have complained about the proposed hike, arguing that the number of foreclosed properties, including Greensboro foreclosure homes and distressed properties in various areas of the state, is at record high and a rate increase at this period will be detrimental. They further asserted that, with property values continuing to decline, there should be no rate hike for insurance policies.

Business owners have weighed in on the issue, asserting that the rise in North Carolina foreclosure listings has resulted in financial difficulties for majority of state residents, and a rate hike will just be too much. The claims were made after the announcement that the state Rate Bureau has recommended a 21% increase in rates for home policies.

The Bureau has responded by stating that the proposed rate increase was based on anticipated losses. With the number of residential and commercial foreclosure property continuing to rise in the state, insurance companies are reportedly expecting losses in the coming months. The Rate Bureau also stated that they need a premium that will be enough to get carriers to continue doing business in the area.

The rate hike is projected to affect more than 570,000 properties in the state, including those that were purchased from listing of foreclosed homes, with rental dwellings believed to be the sector that will take the biggest hit. However, proponents of the hike stated that it will only affect rental houses that have four units or fewer, and large apartment structures will not be affected. A public meeting was recently held to address the issue and to allow property owners to express their views about the proposal.

Reports revealed that the rate hike will average by around 20%, but will vary depending on region, regardless of the status of residential and commercial foreclosure property numbers. Reports also speculated that the coast will experience the highest increase if the proposal is approved.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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