Question: Can you Pull Previous Property Claim History?

Question:

I read somewhere that buyers can pull data regarding previous claims. Is that correct?

Answer:

A CLUE report is a comprehensive Loss Underwriting Exchange(CLUE) report is a database of claims history that can include up to seven years of information about personal property and auto claims. The reports are generated by LexisNexis, a consumer reporting agency, and are subject to the Fair Credit Reporting Act

Under the federal Fair Credit Reporting Act, C.L.U.E. reports can be accessed only by the owner, insurer, or lender of the property.  However, you can ask the current owner of the property to order a C.L.U.E. report.  Contact LexisNexis by calling 888-497-0011 or go online at  https://consumer.risk.lexisnexis.com/request

Information obtained from Heidrick & Co, Insurance and Risk Management, Peter Craig.  

2024 Finalized Collier County Flood Map

Hi everyone,

I wanted to start a blog discussing the ends and outs of Insurance.  I will try to introduce different concerns, questions, and comments about Homeowner Insurance in the state of Florida.  Let's get started by stating some basic facts and descriptions about Insurance in general.  

One of the best-known benefits for permanent property owners is the Florida Homestead Exemption.  This is a huge advantage to permanent homeowners in Florida.  There are only 6 States in the United States that offer their citizens a way to reduce their tax liability.  

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The Homestead Exemption and Save Our Homes save money on their property taxes every year.  Further benefits are available to Property Owners with disabilities, senior citizens, Veterans, Active duty service members, disabled First Responders, and Property with Special Uses.

The Homestead Act in America was enacted during the Civil War in 1962, provided that any adult citizen, or intended citizen who had never borne arms against the U.S. government could claim 160 acres of survey government land.  Claimants were required to live on the land and improve their plots by cultivating the land.  Florida voters overwhelmingly approved the Homestead Exemption Amendment in 1934 (Article X, Section 7, as it was numbered before the 1968 Florida Constitution rewrite) The original Exemption sought to erase the burden on homeowners by exempting property taxes on the first $5,000 of a homeowner residence.  

Single-family homes, Condos, Co-ops, Manufactured homes, and Mobile homes (if the land is owned) can claim Homestead Exemption.  Within an incorporated town or city up to 1/2 acre of the land on which the home sits is protected.  Outside an incorporated municipality land acreage that can be included with a Homestead residence is 160 acres.  Today, raw land by itself cannot be identified as an owner's Homestead.  A habitable structure (improvement) must be on it.   

The Florida Homestead Exemption is NOT automatic.  Property owners must qualify and apply to the Property Appraiser's Office in the County where the property is located.  Before Applying to the County Appraiser Office for Homestead status and the Exemption a Property Owner Must

1.  Had lived in the Property since January 1st of the year in which you applied for the Exemption.  Florida law does allow new Homestead applications to be filed before January 1st of the year, the exemption is to be effective.  However, pre-filed applications will only be accepted after March 1st of each year for the succeeding year.  

2.  Have legal title or beneficial title in equity to real property in this state.  

3.  Be in good faith, establishing the property has been his/her permanent residence, or the permanent residence of another or others legally or naturally dependent upon him/her, is entitled to an exemption.  Florida allows only one Homestead Exemption per "family unit."  This means that anyone applying for the Homestead Exemption in Collier County would not be legally entitled to receive the Exemption if they or their spouse are receiving residency in another state.  This included Veterans and Senior Citizens.  

Required documentation of permanent residency usually includes:

Proof of ownership (recorded Deed, property tax receipt)

Florida drivers license

Social Security numbers for owner and spouse

Vehicle registration and license plate number

Voter's registration card

(All documents must show the same address that is on the Homestead application)

Additional supporting documents may also be requested:

Bank statements and tax returns showing the Florida address

Utility payments

Proof that former Permanent Residency (and Homestead status) in another State has ended

Employer name and address

Important - Filing for the Exemption can be made until March 1 of the application year, though proof of ownership and residency must be dated before the beginning of that year. The property must have been legally owned for some part of the previous calendar year.

This means that Homestead status and tax benefits can never be received for the same calendar year in which a property is purchased. For new owners/applicants, the most recent year's adjusted/updated Assessed Value is applied before applying for the Homestead exemption.

Annual verification is sent to property owners by County Appraiser Offices and includes a statement confirming that the property is still being occupied as the owner's Permanent Residence.

Let's look at some general provisions of Florida's Homestead Exemption -

 Property Taxes :

Tax Bill

$25,000 exemption from Assessed Value for all property taxes

Another $25,000 exemption is applied to the Assessed Value over $50,000 - only applies to non-school district taxes

Additional exemptions are available to owners 65 and older, widow(er)s, disabled military veterans, and non-veteran owners who have specific disabilities

Contact your local County Property Appraiser's Office with any questions about property taxes. Links to Florida Department of Revenue taxpayer information resources are further down in this article, along with the first-time application for Homestead status by new homeowners.

 Forced Sale from Civil Lawsuit and Judgement :

Lawsuit papers

Attorneys tell us that an owner cannot be forced to sell a Homestead property to satisfy a legal judgment in a suit brought by a creditor or civil plaintiff.

The entire value of a legitimate Homestead property is protected by the Florida Statute. As long as a property and its owner legally qualify for and continue the Homestead Exemption, the property is protected from most forced sales, no matter how much it is worth.

Contact a Florida-licensed attorney with all questions about legal protection related to a Homestead property.

Real estate attorneys emphasize that Florida's Homestead Exemption does NOT protect a property owner from lawsuits and judgments related to :

Federal income tax liens

County property tax liens

Mortgage foreclosure

Condo Association and HOA foreclosures for not paying scheduled or Special Assessments

Contractor liens for work performed on the property

Spouse and Minor Child Rights :

For Sale sign

According to family law attorneys, the owner of a Homestead-protected property may not sell or otherwise convey the property without her/his spouse's approval. This applies even if the property is in only one of their names or if it was purchased with only one spouse's money.

In most cases, Homestead property may not be willed to another person upon the owner's death as long as there is a surviving spouse and/or minor children.  Attorneys go on to say that a spouse may waive these rights, though without a waiver a spouse's Homestead rights are held in place over the will.

Speak with a Florida-licensed attorney about spouse/minor child occupancy rights and inheritance considerations regarding Homestead properties.

Calculator

There is one more VERY attractive benefit attached to establishing Homestead status for Florida property. It's called the Save Our Homes (SOH) Assessment Limitation, which caps the annual increase to the property's Assessed Value. This begins with the Assessed Value at the time Homestead status was granted and continues each year thereafter. Any annual increase in a Homestead property's Assessed Value is capped at 3% or the published Consumer Price Index (CPI) whichever is less.

This is NOT a limit on the tax amount increase, it is a cap on the increase of each year's Assessed Value, meaning the property's Assessed Value can only go up by a maximum of 3% each calendar year of ownership.

The SOH Limitation alone saves property owners a considerable amount of money each year after they establish Homestead status!

For background and explanation on Florida property taxes, check out my article from earlier this month:  Florida Property Taxes - a quick introduction for new owners.

There we are, a brief introduction to Florida's VERY generous Homestead benefits for owners who choose to make a Florida property their Permanent Residence. Because the benefits afford such desirable protections and tax savings, the qualifying standards are justifiably strict.

There are serious penalties for owners who commit fraud when applying or who violate the requirements after being granted Homestead status. For example, owners who rent out Homestead property to others for too long or too frequently can be considered to have "abandoned" their Homestead protection.

Florida Department Revenue

On top of losing all the benefits, owners fraudulently claiming Homestead status can be charged back taxes (going back 10 years), penalties (50%), and interest (15% annually). Check with your County Appraiser's Office for details.

Here are some links to Florida Department of Revenue Homestead information resources. Click on the title for a direct link:

Oversight of Property Tax Exemption

Property Tax Information for First-Time Florida Homebuyers

Save Our Homes Assessment Limitation

Property Tax Oversight Infographic

Original Application for Homestead

I know this may be a little overwhelming, but just remember to file your Homestead Exemption Application with the County Appraiser's office after January 1st, having lived in the property before January 1st.  I am not an attorney, so if you need more specific answers you can seek one out.  

Until the next time---

Greg