Property Tax & Homeowner's Insurance Questions
 

Regarding property taxes if an owner is not homesteading: Is there a way to calculate how much property tax will be based on the sale price of the home if a buyer is not homesteading? A Village sales agent told me to figure the property tax will be approximately 1.5% of the sale price of the home. Does that number sound correct?

Regarding homeowner's insurance if an owner is going to rent out the house for part of the year: A Village sales agent said that to save money on homeowner's insurance, an owner who is going to rent out the house for part of the year, and then stay in the home during non-rental times, should not mention to their insurance company that the home is being rented out for part of the year. The owner should just state to their insurance company that this is a vacation home that the owner will be using part of the year. But is it legal not to tell one's homeowner's insurance company that a house will be rented out for part of the year?

For example, say I don't tell my insurance company that I am renting out my home during snowbird season. If an accidental fire breaks out while the house is being occupied by tenants, could my insurance company deny paying a claim because the house was temporarily occupied by tenants, and I did not disclose this information to the insurance company to save money on my homeowner's insurance premium?

I don't know the answer to the first question but a friend of mine had experience with the second. He rented his house, did not tell his insurance company, and it burned down. The insurance company denied payment and he is still fighting it

I wouldn't take any chances. It's always best to protect yourself. What if a tenant would get hurt while in your home????

I would have to agree with you. I am just a TV wannabee, so I have no idea what the difference is in the homeowner's insurance premium if an owner lives in the house year round versus if the owner rents it out part of the year, but I don't think I would want to take a chance with trying to get one over on an insurance company. I think it was rather irresponsible of the TV sales agent to suggest such a thing to a potential buyer.

There are companies that will write secondary/rental. Do not lie...that is misrepresentation and fraud.

just remember those agents for the village have a job to do, and that is to sell homes :::: even to the point to advise you to commit insurance fraud!

If it's a pre owned property, the current owner can give you an estimate on the tax if the Agent doesn't know. We've purchased many houses in different states and have always obtained the tax amount from our Agent. That's something I thought was always provided. Our sales person in The Villages gave us the tax amount when we purchased in February 2014.

Not only are we honest with rental property and insurance, we spend the extra amount for an umbrella policy. Insurance coverage isn't a good place to skimp to save a few dollars.

I believe that is one sales agent you shouldn't do business with.

What he said.

AND...agents don't have to say things like that to get you to buy here. People are standing in line to buy here.

All responses are solid.

One of the great benefits of ToTV.

I thought when we purchased our house in Lady Lake in 2009 we paid just a hair over 2% of the purchase price - but rates may have changed since then. If you are considering property in Lake County, perhaps you can find out by call ing the property appraiser's office:

Main Office: 320 W. Main Street Tavares, FL 32778-3814
Monday - Friday 8:30 a.m. - 5 p.m.
(352) 253-2150

Lady Lake: 902 Avenida Central The Villages, FL 32159
Wednesday 8:30 a.m. - 12 p.m. 1 p.m. - 4:30 p.m.
(352) 750-4545

I scanned their website and could not find the answer to your question: Welcome to The Property Appraiser's Office for Lake County, Florida

If looking in Sumter County, their local office info is:
8033 East C-466 Oxford, Florida 34484
phone 352-569-6800
9:30 am - 4:00 pm (Mon-Fri) closed 12:00pm - 1:00pm for lunch

And about the insurance - why even take the chance of not being honest and not being covered? That sales agent should be ashamed and admonished!

Sales price has nothing to do with property tax which is based on the assessed value of the property, not the selling price. What is based on the sales price is real estate transfer taxes or documentary stamp taxes. This is paid by the seller @ .07% of the sales price. If there is a mortgage, the buyer pays a .035% document tax on the amount of the mortgage.

homeowners insurance
 

The answer to your question is YES

As far as the property tax goes, it depends on the county you live in.
Each county has it's own millage rate.
My home is located in Sumter county. We just closed on the 27 th. We are not homesteading either.
It is my understanding that when the taxes comes up for renewal, you take the millage rate and multiply that by the units per thousand.
Example. Lets say you paid $200,000 for your home.
The millage rate for sumter county is 12.96.
Multiply 200 ( units per thousand ) by 12.96 ( $2586.00 ) and that would be your property tax.
You will also need to add in the fire tax, plus any cdd fees.

Hope this helps

To the OP: I would not suggest that you publicly expose this real estate gent's name but I would suggest that you contact this agent and explain that said advise was actually inducing you to commit fraud and that it could have lead to serious consequences.. That agent in order to further success in selling a home thought only of monetary gain. This is very unethical behavior unprofessional.

Why don't you just call The Villages Insurance , I am sure they can answer any questions you have. 352 751 5720

So, if I sell my 300K home to my daughter for one dollar, her property tax will be based on the sale price of one dollar?

I believe that is considerd an "arm's length transaction" and the taxing authority will assess it at market value anyway.

As they do all resales. They do not go by sales price.

IF--- a licensed RE professional told me what you offer that he told you .I would be on the phone to the RE regulatory authorities in a minute. He/ she is advising you to commit fraud(a crime in itself) and would give the Ins co stong grounds to partially or totally deny your claim. Unfortunately this kind of misinformation is quite often given to clients by salespersons through their own ignorance of the legal implications or lack of professional ethics.:cus: If it dosen't sound right it probably isn't right

I will agree with you "if it doesn't sound right it probably isn't right." I'm on vacation, and I am leaving The Villages this morning to head to St. Augustine for a few days, then back to Chicago next week and back to work. Even if I did report this to the Florida RE regulatory authorities, it would probably turn into a "he said/she said" situation, and something that frankly I don't have the time to pursue as I still work full time in Chicago, and will be playing catch up at my job when I get back to Chicago.

Maybe this is just more of a "heads up" thread for potential buyers in TV to take what is said by real estate agents with a grain of salt.

I appreciate the answers I have been given. That is why TOTV can be a great source of information for us wannabees/gonnabees.