Myrtle Beach ~ Skyrocketing insurance premiums hit condo owners
Condominium projects in all price ranges and areas of the Grand Strand are getting hit with skyrocketing premiums.
Here are some examples:
• Sweetwater in Murrells Inlet – 3 BR condo – this year owners will pay a $3,850 for homeowners association insurance on top of monthly HOA fees of $185.
• Park West in Socastee – garden home - monthly HOA fees would have risen to $569 from $239, but Beazer Homes, which is still selling in the development, agreed to cover the increase through next year.
• Winchester at Wachesaw East in Murrells Inlet - premiums have jumped from $103,000 to $270,000 a year for 128 units.
• South Bay Lakes in Surfside Beach - premiums rose from $213,000 to $929,900 for 496 units. The deductible also went up from 2 percent to 5 percent for wind and hail.
• Townhomes at Wynnbrooke in Murrells Inlet – an 81 percent increase in premiums; residents charged a $450 special assessment.
• The Edgewater project in North Myrtle Beach - premiums increased from $400,000 to $1.1 million. Homeowners had to pay a special assessment and HOA fees are doubling.
• The Cross Gate condos in Deertrack, Surfside Beach - premiums rose from $51,000 to $149,000 at the 75-unit project.
Source: Jenny Burns, The Sun News, Myrtle Beach, SC
Doesnt it always seem that as things improve, they get more expensive? As I read more folks are choosing SC as a destination, I read this too?
on August 27th, 2006 at 1:17 pm from stewart
Murrells Inlet was a great place until the insurance companies got involved. We own two condos and are selling both now. Headed inland.
on August 29th, 2006 at 6:41 pm from Steve
I have a scheduled closing on a condo in Wynnbrooke on Sept 28 as a vacation home.
This makes me think twice about buying property in in this area.
on September 6th, 2006 at 11:15 am from Jeff Nalewajk
Hello Jeff - The increase in insurance premiums is a concern for everyone. Grand Strand cities and State legislators are all working to lower rates.
For a buyer - the important thing is to know, in advance, what your expenses will be. No surprises. If you love the property and it all costs out, go for it.
on September 6th, 2006 at 12:06 pm from Art
Does anyone know if you can get a refund of a downpayment on a condo if you bought in the presale stage. The condos are the Preserve at St. James, not even built until this spring. $$ invested but cannot afford with the insurance going up and want a refund? ANyone else have a similar situation? This is the Harelson group by Century 21 marketing the project.Thanks for your comments.
on September 10th, 2006 at 3:42 pm from MB resident
RE: Refunds - Check your contract and talk with your realtor, but I doubt if there’s a refund clause for increased insurance premiums.
In general, preconstruction involves a shared risk.
The builder takes out construction loans and commits to complete the project based on a non-refundable deposits and signed contracts.
The buyer puts down a non-refundable deposit and gets a guaranteed price, hoping that the property will increase in value before its completion.
Generally, deposits are refunded only when the builder doesn’t fulfill his side of the bargain.
It all works great when the market is strong. But in a market slowdown, everyone gets squeezed. And sometimes they take losses.
on September 11th, 2006 at 9:41 am from Art
I bought a house one year ago and the disclosure form signed by seller said it was “not” in a flood zone. My lender looked at flood maps and said it was and I have to have flood insurance. Should the sellers have known they were in a flood zone - what about their agent. I don’t think I’ll be able to sell this home since it is in a flood zone. Is it too late to sue the realtor or sellers because we did settle and sorry now. The realtor told us she was sure it must be flood X and then she said oh you need flood insurance regardless.
on October 22nd, 2006 at 2:29 pm from Nancy
Why do you not have a “Forward” key on your newsletter…as a realtor, there is information that may interest some of my clients…can do cut and paste but it would be much easier with a button…also, give you additional exposure…/RJM
on August 1st, 2007 at 6:38 am from Richard J Myers