Home Insurance Prices in Florida: What's Next?

I wrote about trying to find new insurance last year when I was dropped. This year, my new insurance guy (who I'd recommend over my last deadbeat and all the vultures I met last year), sent some rate comparisons out, along with an article I'd read about the soaring costs of Florida homeowners insurance. It's pretty bleak, and if you've been dropped, there may not be many options. 

Section 8 Housing In Jax and St. Johns

I first heard of Section 8 housing when I saw a news story about St. Johns County. That story said St. Johns had some kind of law against Section 8 housing, which resulted in fewer options to house the homeless contingent in St. Augustine. I never looked up Section 8 at the time, though I did wonder how St. Johns could ban Section 8 while Duval can't. I'm still not all that sure about how or why, but I do know most of us don't want Section 8 in our back yards. In fact, I just discussed something similar to Section 8 with my kids, as we drove past the Dunes Apartments next to Ed Austin Park. I said the apartments looked so bad that it might make sense to pull them down and build some smaller single-family homes, which might result in some of the people who no one really wants hanging out in a park being forced to move away. But then one of my kids asked me where they'd go, and that's what makes it complicated. I'd like to say, "St. Johns County," but I can't. And so that means that those of us in Duval who live too close to Section 8 housing will eventually move to where that type of housing can't exist.

My Guides to Jacksonville

I've met several people thinking of relocating to Jacksonville, and I often tell them to check out my website for my guide to the city. Except I did just that myself and realized it's not that easy to find, so here's a guide to my guides. 

Also, if you're thinking of moving here and want to hire an actual guide, that can be arranged. Use the contact form to work out the details. Or ask your realtor to take you everywhere...they love doing that.

Why I Chose a Single-Stage 16 SEER Heat Pump

I needed two new heat pumps for the house, so I went and got my obligatory quotes. I won't get too much into the process right now (or even the company I chose), since what I wanted to do was concentrate on why a single-stage heat pump is just fine, even in Jacksonville, and even as dual-stage and multi-stage (variable speed) units are much sexier. 

Cost

You can expect to pay a few thousand dollars more for a dual stage system, and then a few thousand more than that for a multi-stage. Having two systems (upstairs and downstairs), I could have easily doubled my bill. My lowest quote for a 14 SEER single-stage system was around $7500, while I had two salesmen try to push me into the multi-stage systems for nearly $15,000. These are different companies and different brands, but there is almost no way to recoup the cost. One technician doubling as a salesman (and NOT pushing multi-stage) said you can expect maybe $5 to $10 a month per higher SEER in savings. So an extreme example would be from 14 to 21 SEER. A difference of 7 for each unit or 14 for the set, and a savings of $140 per month (which isn't even possible based on what I pay right now, but whatever). Maybe $1500 a year if you are a total energy hog. So, that $15,000 unit is finally going to start saving you money after its fifth year in service. Theoretically. 

There is a way to take a lower-SEER heat pump and boost it a bit with a variable speed air handler, but the cost of turning a 14 SEER into a 14.5 SEER for my house would have cost only $400 less than just buying the 16 SEER unit, partially because the 16 SEER qualified for the $150 JEA rebates ($300 on two units). However, you might find that a special air handler can help your budget system operate more efficiently. 

I should also mention the option of fixing the current system. Since it's the old refrigerant, it would have cost a lot, and I know that both units were leaking. So you figure $1,000 for maybe a year or two of operation (if we were lucky). If the refrigerant wasn't outdated (or if the realtor guy from next door was offering to come fill mine up like he did that one at midnight), then I might have rolled the dice, but my wife would have been very upset had I blown $1,000 now and then still had to replace one or both units in six months. 

It's also worth mentioning that most AC places will offer revolving credit loans at 0% interest. The one I am getting is for one year at 0%, but some go as high as five years, though that will sometimes disqualify you for other offers. One HVAC owner/salesman said that he would give me a better cash price and that the 0% offers all had fees built in, but he also sold me hard on the variable speed option. And his cash price was still higher than another installer with the same product offering 60 months of 0%, so go figure. Some warnings: 0% credit card loans (through Wells Fargo) are going to lower your credit score until paid off, since they are considered revolving credit rather than a loan. And you'll owe all kinds of interest if you miss a payment, so be careful with them. 

Efficiency

I was reading an article from SFGate that said that two-stage units don't tend to get close to listed SEER ratings. It's probably like the old MPG ratings, or some of the electric car MPG ratings. Perfect world ratings. Back in 2006, two-stage units were only getting 60 to 85% of advertised efficiency. I am not sure if a newer study has looked at real-world performance in multi-staging, but the article said that single stage unit SEERs were pretty accurate. Salesmen seem to make you think the multi-stage units are so efficient that JEA will be owing YOU money every month, but the reality is that I spend less than $200 a month on electric, and even if my AC accounts for $150 of that total, there is no way two 21 SEER units are going to save me $10 a month per SEER over my 10 SEER system, since that would be like $220 in savings each month, and I only spend $150. If we instead just say a 15 SEER is 1.5 times as efficient and a 20 SEER is twice as efficient as my 10 SEER setup, then my 20 SEER bill for electric would be $75 per month, and maybe $70 for a 21 SEER. And a 15 seer might be $100 a month instead of $150. A 14 SEER might be closer to $110 a month, or $40 more than the 21, meaning the real efficiency savings of investing in unit double the price would take around 15 years to realize the savings in initial cost through efficiency, right about at the time you'll need to replace the unit. 

The first salesman also tried to convince me that my 10 SEER units were so old (16 years) that they were no longer operating at 10 SEER. He even had some kind of pseudo-mathematical equation of how much efficiency is lost every year, and he claimed that the 20+ SEER unit he was selling me was going to stop that yearly loss of efficiency. However, he failed to take into account the new unit's own yearly loss of efficiency. It's not like you're installing a NEW 21 SEER unit every year, so it will presumably also be affected by the same loss. And I don't really buy it, anyhow. I have a 1986 Bertone X 1/9 that has consistently averaged 30 mpg highway for me since I bought it in 1996, and that's above the 26 mpg EPA estimate. It doesn't like to start consistently, but the efficiency of the engine has remained pretty constant over time. So I just don't think I buy that there's a loss of SEER efficiency just by a unit running, as long as it's operating properly. Maybe I am all wrong here, but the fact remains that I'm not paying $500 a month for AC right now, and I don't expect that a new unit will slash the prices to nothing.

Maintenance

Theoretically, a two-stage or multi-stage heat pump could cost more in maintenance. More parts. More technology running those parts. Fewer techs who can handle the system. Shorter track record. I guess I'd assume it's basically a wash, since most techs probably know what to do, and the warranty periods are the same. No, your great-uncle who can fix anything probably won't be able to fix your multi-stage heat pump, just like you shouldn't let him touch your Tesla for repairs. 

I read one article that implied that the jury is out on whether or not multi-stage units will hold up over the long haul, since machines are generally created to be on or off rather than operate at all different percentages. I remember people making similar arguments against cruise control for cars, but in reverse, saying that car engines weren't meant to run at the exact same rpm all the time. Mainly, we just don't know if the repair rate will somehow be higher in multi-stage units because they spin slowly for a good portion of the day. It will probably prove to be about the same as single-stage for repairs, but I wasn't sure I wanted to be in the test group for a new way of running AC units. The next decade will tell if variable speed compressors are as reliable (or more reliable) than single speed ones, but I wasn't terribly interested in being part of the experiment. 

Resale

I live in a middle-of-the-road neighborhood in Jacksonville. Houses go for $200,000 up to around $400,000. We have to be careful that we don't over-update our house. The house I own in Milwaukee has quartz counters and is probably the highest-valued house on the block, but we'll never recover the investment on the counters because of the area. People shopping for a house in my neighborhood will mostly see single speed heat pumps in the other homes. And looking around, I see plenty of Goodman units, so it's not like the neighbors are all purchasing multi-stage Carriers. If we sell in the next five years, a newish 16 SEER unit will still be about average. If our house was in Ponte Vedra or Avondale, buyers would expect variable speeds and UV filters, but not really in East Arlington. Besides, most people moving to my part of Jacksonville are moving from outside of Florida, often from cooler climates. I didn't even know what a heat pump was until I got here, and I had no clue that central air units could operate at different speeds. Since realtors aren't HVAC salesmen, it would be hard for them to explain why one house is worth $5,000 more than another one just because of some fancy AC. 

If you really need to be super-comfortable or have breathing or other health issues, then a multi-stage, variable-speed, perfect-all-the-time system might make sense, even in a middle-class house. You might find a buyer with a kid who has asthma or a couple with their first child on the way. I understand that we might have to adjust the temperature once in a while to force the new heat pump to kick in or turn off, but I'd rather save the thousands on the heat pump to invest in windows that will help resale value and to control the temperature fluctuations in the house. 

Conclusion

Highly-efficient heat pumps still do not make cooling or heating your house free, so you need to weigh the benefits of two-stage or variable speed compressors against the initial cost. You are not going to make up the difference in energy savings or resale value very quickly (if at all), so it really has to be about the desire to have an extra-comfortable environment inside your home. If you work from home or plan on extended time at home with various pandemics over the next decade, then it's probably worth the money. About half of the sales people coming to your house will push the higher-end models, and the real sleazy ones will try to make sure your wife is part of the conversation so that he can use one of you against the other. You need to make the right choice for you, however. Right now and in a middle class neighborhood, that  best overall choice is probably still single-stage

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Rosa Parks Homeless Park?

Rosa Parks Homeless Park

I've driven past the Rosa Parks Transit Station several times since it closed, and I noticed that quite a few homeless individuals line the streets nearby. Since a bus terminal is an eyesore already, and this one is just fenced off, I was wondering if maybe we'd be better off just combining two eyesores into one, making the Rosa Parks Homeless Park out of the bus station. 

Mountain Style Home in Jacksonville?

I was surprised to see a vacant lot for sale about a mile away from my house because it's in a neighborhood with homes built in the 1990s. What was even more surprising, however, was the description that began with:

Great opportunity to build a mountain style home on this attractive lot.

Is Regulation The Problem With Jacksonville?

I got into an interesting conversation with a gentleman about why Jacksonville has not yet attained the stature that it should have as a metropolis of one million residents. We kind of went back and forth for a time, both of us mentioning what might be wrong, when he came up with government regulation. He claimed government regulation was the number one worst thing with living here, even though I often look around and wonder whether there's any regulation at all in the city. 

Does HOA collect police reports for crimes in my neighborhood?

Someone on Nextdoor was asking this question, and I was tempted to respond that the only thing HOAs collect is money. The real responses to the question ranged from, "It depends on your HOA" to "That's not part of what an HOA does." While I can understand that crime is separate from house paint and green lawns, since crime is the #1 factor in property values, HOAs probably need to DO something when it comes to crime.

Deep Forest Airport, Please

I've complained a little about the local JAXEX Craig airport, and while I am hoping it stays at a manageable size, I wanted to take this opportunity to redirect some of you to an airport I never knew existed. I am hoping some of the rich and famous who fly over my house will choose to hit up another rich and famous local resident to use his private runway instead. Please, all you robber barons, carpetbaggers, venture capitalists, elite socialites, property developers, and ponzi schemers, give your buddy George a call and use the Deep Forest Airport instead of JAXEX.

I-Selling in Jax: OpenDoor and Zillow

Zillow is going to join open door in Jacksonville as companies that will buy your house fast. I assume we've also had the We Buy Ugly Homes folks in Jax for a while, too. Flippers, and those types. But Zillow and Opendoor are supposed to be more mainstream, and I assume the business model is just to buy low and sell high.

The Worst Real Estate Client Ever

The title of this article was from a query I got from Help a Writer Out. The author wanted stories from realtors. I figured that since I couldn't send in my story because I'm not a licensed agent, I'd write about that worst client ever here. Me.

Jacksonville's 630 City Online Guide - Now MyJAX

I wrote an article about using JAx 630City before, and it worked for me. A year later, my neighbor still has a broken recycling bin, and I am tempted to just fill out the form for him, but I'd rather teach local Jacksonville neighbors to fish than hand them a fish. In the spirit of trying to get you to do your own part in requesting services for which you pay (and help keep the city looking nice), here's a quick guide to what services you can ask for from the city of Jacksonville.

Opendoor Self-Tour Insanity

I just drove past a new construction or fully-flipped home with a sign that said you can just walk right on in and tour the house. In Jacksonville! That's why I had to call it Self-Tour Insanity rather than instantly.


Fine, maybe in Charlotte or Indianapolis, you can just tell folks to download the app, use the (digital?) key, and tour the beautiful home in a civilized manner. But in Florida in general and Jacksonville in particular, self-touring of homes might require a little more security.

Jacksonville 1901 Fire Highlights Poor Mattress Material Choice, Rich History of Property Theft

I saw an article about the great fire of 1901 in Jacksonville, and I was surprised by two primary takeaways: the highly flammable material that caught fire was being used for mattresses and Jacksonville residents used the opportunity to steal from one another.

If You Have to Ask How Much Fortress Garage Suites Cost...

That's right, you can't afford one. If you have to ask, I mean. But they do (or will) exist in Jacksonville. 13 of 30 are sold at the location I saw near Beach and I-295.

If you don't have to ask, they start at about $170,000. People who are in the market for a garage suite more than likely own a home valued at 10x the garage price, as well as cars valued at more than my home's value. But they are real people, too, and they are totally normal once you get to know them.

Orange Park Wants to Limit Cars in Driveways?

When I was driving around Jacksonville to find a place to live, I always crossed off the neighborhoods with several cars parked in the front lawn. In my mind, front lawns are not made for parking cars in a civilized society. But Orange Park, at least according to the news, wants to pass a law that kicks cars out of front lawns AND driveways. That would be going a bit too far, especially around here. That said, there should be some accepted rules about parking cars that should help property values, though I don't see much hope in enforcing most of the rules, even in hoods with an HOA.

The Hidden Cost of a Hidden Hills Upgrade

I took my daughter to a party in Hidden Hills. Nice neighborhood and homes, along with a security guard. So what does the convenience of being in a fancy hood near the Beaches and downtown cost? And what are the hidden costs of Hidden Hills? Just in case we decide to move on up, I decided to do some research.

Only Way to Avoid The Reverse Mortgage Disaster

I've seen several news articles about the pitfalls of reverse mortgages. I also saw that we've set up a fund to help people when they get stuck with a reverse mortgage here in Florida. But the simple answer that most older people don't want to hear is that there's only one way to avoid disaster with a reverse mortgage: don't get one.

I Did Not Know My AC is Obsolete

As I walk around my Jacksonville neighborhood filled with homes built in 2003 and 2004, I see that most of the AC (heat pump) units are original. They look like mine, complete with rust on the top. But it's more than the rust that makes these obsolete, and you probably better save up for the upcoming expense yourself if you have an AC unit that is over ten years old.

I Hate to Disappoint Home Invaders, But...

A home invasion down in Eagle Landing (Oak Leaf Plantation) netted $140,000 that the owner had hidden in the attic. Three home invaders and a gun. Scary stuff.  I'm here to tell anyone planning a home invasion not to bother with my home. Apparently, the man whose home was invaded flaunted money on social media. Maybe he was one of those make money fast gurus. I'm not, so no money here, home invaders.