A real estate agent's client is buying a home in the Florida Keys. The property is elevated on stilts and located in a high-risk flood zone. The lender requires flood insurance, but the buyer is concerned about the cost. What advice should the agent provide?
Correct Answer
B) The elevation may qualify the property for preferred risk flood insurance rates
Properly elevated homes may qualify for preferred risk or lower flood insurance rates because the elevation reduces flood risk. The agent should advise the buyer to work with an insurance agent to determine if the elevation qualifies for better rates. Option A (optional for elevated homes) is incorrect as flood insurance is still required by lenders regardless of elevation. Option C (only ground level needs coverage) is incorrect as the entire structure needs coverage. Option D (windstorm substitutes for flood) is incorrect as these cover different perils and both may be needed.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Taxes Assessments Insurance Question
Background Knowledge for Taxes Assessments Insurance
Real World Application in Taxes Assessments Insurance
Common Mistakes to Avoid on Taxes Assessments Insurance Questions
Related Topics & Key Terms
Key Terms:
More Taxes Assessments Insurance Questions
Audit memo Granite Seminar highlights this Florida rule. A Florida assessment-limited property had a prior assessed value of $190,000. Assuming the next year's limitation factor is 2.00%, what is the capped assessed value before exemptions?
Florida has no state income tax. Revenue is primarily generated through:
A St. Petersburg property owner fails to pay their property taxes by April 1st. What happens to their property?
All of the following statements about Florida's tangible personal property tax are true EXCEPT:
An Orlando investment property has a market value of $650,000. The assessment ratio is 100% of market value. If the property tax bill is $13,975, what is the millage rate?
- → All of the following are subject to ad valorem taxation in Florida EXCEPT:
- → A Tampa property has an assessed value of $450,000. The homestead exemption reduces the taxable value by $50,000. If the total millage rate is 18.5 mills, what is the annual ad valorem tax?
- → A buyer is purchasing a condominium in Miami for $350,000 with a new mortgage of $280,000. The seller is providing a second mortgage of $35,000. What is the total documentary stamp tax due on all taxable documents in this transaction?
- → In Florida, who is primarily responsible for ensuring that documentary stamp taxes are properly calculated and paid on real estate transactions?
- → A deed in Broward County transfers property for $50,000 cash, and the grantee takes the property subject to an existing mortgage balance of $75,000 that counts as consideration. What documentary stamp tax is due on the deed?
- → What is the documentary stamp tax due on a promissory note in the amount of $185,500 that is secured by a mortgage on Florida real estate?
- → A deed transfers Florida real property in Orange County for consideration of $125,000. What documentary stamp tax is due on the deed?
- → The Johnsons qualify for Florida homestead exemption on their primary residence valued at $350,000. What is the taxable value of their property for county taxes?
- → A Florida property has a taxable value of $145,000 and a combined millage rate of 16.5 mills. What is the annual ad valorem tax?
- → A Florida parcel has just value of $330,000, assessed value of $300,000, and applicable exemptions totaling $50,000. What is the taxable value?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Previous Question
Under Florida law, insurance companies must provide all of the following claim handling practices EXCEPT:
Next Question
A Florida homeowner has a policy with $300,000 dwelling coverage, $225,000 personal property coverage (75% of dwelling), and a 5% hurricane deductible. If a hurricane causes $18,000 damage to the dwelling and $8,000 damage to personal property, what is the total insurance payment?