Fire Victims-Money Mag Jan 08

[NotCranky]

1. After 2003 incident, didn’t policy limits change to account for current costs? Companies are insuring for only 150-170 SF, which is builders cost for hundred not 1 home.

Many insurers still under-insure to keep rates low and competetive. They are willing to deal with the issue on a case by case basis when there is a big loss. Not that they make it easy all the time.As stated in the article they put the customer in a bind between wanting the house back quickly and fighting for the rest of the money . Most losses are small so the question doesn’t come up. In place of actual coverage, most offer or automatically put a rider increasing the limits of coverage but the terms for recouping this money are different.

[equalizer]

With AAA, my policy coverage has gone from $125/SF to $155/SF in last four years. AAA supposedly only company to cover all losses, even the underinsured. Guess they can afford to because of limited # of policies and stricter underwriting.

[equalizer]

With AAA, my policy coverage has gone from $125/SF to $155/SF in last four years. AAA supposedly only company to cover all losses, even the underinsured. Guess they can afford to because of limited # of policies and stricter underwriting.

[equalizer]

With AAA, my policy coverage has gone from $125/SF to $155/SF in last four years. AAA supposedly only company to cover all losses, even the underinsured. Guess they can afford to because of limited # of policies and stricter underwriting.

[equalizer]

With AAA, my policy coverage has gone from $125/SF to $155/SF in last four years. AAA supposedly only company to cover all losses, even the underinsured. Guess they can afford to because of limited # of policies and stricter underwriting.

[equalizer]

With AAA, my policy coverage has gone from $125/SF to $155/SF in last four years. AAA supposedly only company to cover all losses, even the underinsured. Guess they can afford to because of limited # of policies and stricter underwriting.

[Eugene]

Let’s start putting some numbers together.

Current asking rates for Hard Rock Hotel studios are ~$300/night (high end of the spectrum for Gaslamp). They probably get 50%. 4500/month cash flow assuming full occupancy. This income is taxable (let’s say 25% tax bracket). They have to pay property tax ($500/month) and possibly some sort of association fee. This leaves them with
$2500-2800 per month after tax. They have to pay $1700/month mortgage (not tax deductible), and they forego ~$900/month income (after-tax) they could have had if they took their 300k and put it on a 5% CD.

They will roughly break even if hotel can maintain full occupancy at those prices.

Appreciation/depreciation is a more difficult question. I can’t find any resale listings for Hard Rock condos. Ultimately resale prices will depend on how profitable those places really are.

[Eugene]

Let’s start putting some numbers together.

Current asking rates for Hard Rock Hotel studios are ~$300/night (high end of the spectrum for Gaslamp). They probably get 50%. 4500/month cash flow assuming full occupancy. This income is taxable (let’s say 25% tax bracket). They have to pay property tax ($500/month) and possibly some sort of association fee. This leaves them with
$2500-2800 per month after tax. They have to pay $1700/month mortgage (not tax deductible), and they forego ~$900/month income (after-tax) they could have had if they took their 300k and put it on a 5% CD.

They will roughly break even if hotel can maintain full occupancy at those prices.

Appreciation/depreciation is a more difficult question. I can’t find any resale listings for Hard Rock condos. Ultimately resale prices will depend on how profitable those places really are.

[Eugene]

Let’s start putting some numbers together.

Current asking rates for Hard Rock Hotel studios are ~$300/night (high end of the spectrum for Gaslamp). They probably get 50%. 4500/month cash flow assuming full occupancy. This income is taxable (let’s say 25% tax bracket). They have to pay property tax ($500/month) and possibly some sort of association fee. This leaves them with
$2500-2800 per month after tax. They have to pay $1700/month mortgage (not tax deductible), and they forego ~$900/month income (after-tax) they could have had if they took their 300k and put it on a 5% CD.

They will roughly break even if hotel can maintain full occupancy at those prices.

Appreciation/depreciation is a more difficult question. I can’t find any resale listings for Hard Rock condos. Ultimately resale prices will depend on how profitable those places really are.

[Eugene]

Let’s start putting some numbers together.

Current asking rates for Hard Rock Hotel studios are ~$300/night (high end of the spectrum for Gaslamp). They probably get 50%. 4500/month cash flow assuming full occupancy. This income is taxable (let’s say 25% tax bracket). They have to pay property tax ($500/month) and possibly some sort of association fee. This leaves them with
$2500-2800 per month after tax. They have to pay $1700/month mortgage (not tax deductible), and they forego ~$900/month income (after-tax) they could have had if they took their 300k and put it on a 5% CD.

They will roughly break even if hotel can maintain full occupancy at those prices.

Appreciation/depreciation is a more difficult question. I can’t find any resale listings for Hard Rock condos. Ultimately resale prices will depend on how profitable those places really are.

[Eugene]

Let’s start putting some numbers together.

Current asking rates for Hard Rock Hotel studios are ~$300/night (high end of the spectrum for Gaslamp). They probably get 50%. 4500/month cash flow assuming full occupancy. This income is taxable (let’s say 25% tax bracket). They have to pay property tax ($500/month) and possibly some sort of association fee. This leaves them with
$2500-2800 per month after tax. They have to pay $1700/month mortgage (not tax deductible), and they forego ~$900/month income (after-tax) they could have had if they took their 300k and put it on a 5% CD.

They will roughly break even if hotel can maintain full occupancy at those prices.

Appreciation/depreciation is a more difficult question. I can’t find any resale listings for Hard Rock condos. Ultimately resale prices will depend on how profitable those places really are.

[Author]

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