I recently received an article that I wanted to share. Insurance in Charleston is difficult to manage unless you have the help of a great agent. Charleston insurance and coastal insurance will be a topic of conversation for some time to come. Here is some advice given to me by my State Farm insurance agent, Paula Hampton.
Understanding the value of your home
How to determine your homeowners coverage
Your home may be the biggest investment you’ll ever make. So if you are serious about protecting that investment, here is some important information to consider when determining the coverage amount for your home.
Make sure that your home is insured for at least 100% of its estimated replacement cost
To determine your amount of homeowners coverage:
- Get an estimate of the replacement cost of your home
- Select the coverage amount that best fits your needs
We recommend that you purchase an amount of coverage at least equal to the estimated replacement cost. But the choice is yours. Determining your home’s estimated replacement cost is important because this will ultimately determine which policy options are available to you. Since it is impossible to predict today what the cost will be to replace your home in the future, it’s important to have enough coverage to account for unforeseen circumstances.
Understand the difference between market value and replacement cost
Market value is the amount a buyer would pay for a home, including the land, regardless of how much it would cost to rebuild the home. Replacement cost for this purpose is the rebuilding cost necessary to repair or replace the entire home.
Replacement cost IS NOT:
- The market value of the home
- The home’s purchase price or the cost of the land
- The outstanding amount of any mortgage loan
When buying a new home, be sure to obtain a replacement cost estimate
Before you purchase a new home, make sure that you determine the appropriate amount of coverage needed. Here’s how:
- Ask if a replacement cost estimate is available when you have the home appraised
- Or, consult with your local builder association or a reputable builder for an estimate
- You can also check with your insurance agent to help you with this process
Be aware of any architectural details or unique building materials that may affect your estimated replacement cost, such as:
- Upgraded bathrooms or kitchens (including cabinets)
- Finished or partially finished basement
- Additional rooms or living space
- Custom molding or arched windows
- Other unique features
A contractor or appraiser can help estimate your home’s replacement cost
Building contractors or professional replacement cost appraisers are a good source for obtaining an estimated replacement cost for your home. Estimates from these sources should reflect your home’s features, like those mentioned above. If you are unable to obtain a detailed estimate from these sources, your insurance agent can discuss other options for estimating the replacement cost of your home.
Review your policy annually to make sure that your coverage meets your needs
Have you recently remodeled or improved your home?
When you upgrade or improve your home, you may increase your home’s estimated replacement cost. Your agent will then help you adjust your policy to meet your coverage needs. Check your policy’s provisions for notification requirements of any remodeling or additions that increase your home’s value.
Has the rate of inflation risen since your last appraisal?
Many policies provide coverage that automatically adjusts every year in an effort to compensate for increases in construction costs for your area. However, certain conditions such as severe weather can increase the demand for labor and materials, and raise costs beyond normal inflation. It is important to update your coverage amount each year to keep up with the changing economy.
What influences building costs in your area?
Market conditions in your area may impact the amount it will cost to rebuild your home if you experience a loss. Replacement cost estimates are influenced by supply of labor, demand for labor, and the cost of construction materials. Keeping up with the current market conditions in your area and changing your coverage amount accordingly, will help you maintain coverage at least equal to 100 percent of the estimated replacement cost coverage for your home.
Saturday January 23rd, 2010 12-4 PM
Come out and enjoy a day on Folly Beach while tasting everything the restaurants have to offer. There will be booths set up from each restaurant where you can sample their menu and talk to the chefs and find out how they make their magic. Center Street will be closed which always means a good time and many memories. There will also be fun activities such as:
Hot Dog Eating Contest
Live Music w/ the Hawkes
When you are choosing a real estate company to work with, make sure that you are using the best. In 2009 no company sold more Folly Beach real estate than Dunes Properties. Our staff has the knowledge and professionalism that you would expect from a leader.
Nobody knows Folly Beach better!
Below is a summary of the real estate market for Folly Beach, SC for the entire year of 2009.
There was a total of 64 properties sold on Folly Beach in 2009. That is down 28% from a total of 83 in 2008. It is also a far cry from the totals of years past. Folly Beach has a history of regularly selling over 100 properties. Will this be the new normal sales volume?
The average sales price in 2009 was $477,000,down 10% from $531,000 in 2008 and off 30% from a 2006 peak of $680,000. The average difference between sale price and list price was roughly 10%.
There were 3 sales of condominiums under $200,000 in the Palmettos, Pelican Pointe, and Marsh View Villas. The lowest Mariners Cay condominium sold for $215,000. The lowest lot on the island sold for $295,000 and was a full street to street lot. A 3 bedroom condominium at the Charleston Oceanfront Villas sold for $675,000, and an oceanfront lot sold for $775,000. The most expensive home sold for $1.2 million and was an oceanfront triplex.
The price of the average home sale is very low relative to the location of Folly. We are beginning to see rock-bottom prices and when homes are priced right, they are being put under contract immediately. People are taking advantage of the low prices and making the move onto the island that they previously thought was out of reach.
There is still high inventory with nearly 400 homes for sale. Sellers are eager to talk to qualified buyers and the leverage is absolutely in the buyers favor. If you are interested in buying on Folly Beach, or want to talk to an expert on selling you home, contact me here.
Happy New Year!
As much as I don’t like wishing my time away – I am glad to see the end of 2009 ( and will be really glad to see the end of this cold snap! Man – a week of high temperatures in the 40’s, sheesh.)
2010 promises to be good to Charleston. Housing sales are up, Boeing is coming to town, expanding the assembly line of the 787 Dreamliner and the US Dept of Energy has announced they are utilizing a site at the former Charleston Naval Base as a test bed for offshore wind turbines. Jobs, Jobs, Jobs! To read click here.
|What better place to celebrate the New Year than at one of Charleston’s only oceanfront venues. We have a fun-filled evening planned with amazing food, fun libations, live entertainment from the Calvin Taylor band and DJ Josh, and a spectacular fireworks show at midnight! Open Bar – $75 per person.|
|6th annual world famous Great Meatball drop at midnight. Ring in the new year with all your friends and bring yourself good luck by taking a bite of some grade A beef!|
|Live music with the Hed Shop Boys. Champagne toast at midnight.|
|Folly Beach Crab Shack will host the Islander’s Shag Club Dinner which is open to everyone. The raw bar will be open for a New Year’s party with a homecoming show for Nathan and drink specials.|
|Chill & Grill||Annual customer appreciation party. FREE BOOZE!!! Boom Boom Club night.|
|Planet Follywood New Years Eve Party! Cash Giveaway! Balloon drop and music by Dan Clamp.|
|New Years Eve bash with live music by Jonathan. Champagne toast at midnight.|
|New Years Eve party with Champagne toast.|
Saturday December 19th 1:00 PM
Come celebrate Christmas with all your Folly Beach friends this Saturday December 12 at the Folly Beach Christmas parade. The bridge will close at 1:00 and the parade will travel down Center Street.
Prizes will be awarded for the following categories:
1st, 2nd, and 3rd overall
After the parade, meet Santa and the mayor at Folly River park. A fun time is guaranteed for kids of all ages!!
Here is your Folly Beach Real Estate report for November 2009. 8 Properties sold this month on Folly Beach, bringing the total this year to 55. November was tied with July for the most monthly sales of 2009. The sales included a Mariners Cay condominium for $260,000, a Charleston Oceanfront Villa for $760,000, and a deepwater property on the Folly River for $935,000.
A bright spot for homeowners was that 5 of the sales in November were for $700,000 or more, showing that the higher end properties are still in demand. If you are interested in buying or selling on Folly Beach, let an experienced professional guide your way.
There is a great new article in my November E-Newlsetter regarding the New Homebuyer Tax Credit.
While it may not be right for you at this time, you might have friends and family to share it with. Click here to go to my website, then click on E-Newsletter at the top.
27 Seagrass Lane is located on Wild Dunes, just 12 miles north of Charleston, SC. This custom home has over 4000 sq ft, a gourmet kitchen, two living rooms, over 1300 sq ft of decks and porches and is offered totally furnished. The Seagrass neighborhood offers owners a private dock on deep water and a boardwalk to the beach. Wild Dunes offers owners access to two championship golf courses, a world class tennis facility, fitness center, dining, and miles of beach. Click on the address or photo below and then select slideshow.