• Trust This.
  • Posts
  • 🌊 Trust This: Insurance regulators clash

🌊 Trust This: Insurance regulators clash

But it doesn't solve the bigger issues facing Florida's insurance market

Author

Joseph Seagle
April 18, 2025

Trust This. 

By Joseph E. Seagle, Esq.

đź‘‹ Happy Friday! Today is Good Friday. Wishing everyone a happy Pesach and Easter weekend.

❗️Situation Awareness: Missed filing or paying taxes on April 15? No worries … if you live in Florida or any of the other hurricane-ravaged states. The IRS granted an automatic extension until May 1 to file/pay anything that would have been due on April 15. And … again … don’t forget to file your annual report for your Florida LLC or corporation by May 1 as well.

1 big thing: Florida’s Insurance Oversight Clash

Man standing in street in front of house in good shape on left and destroyed on right; man holding two papers: one says DFS Insurance and other says OIR insurance

Florida’s insurance regulatory framework is under scrutiny as the Office of Insurance Regulation (OIR) and the Department of Financial Services (DFS) engage in a dispute over oversight responsibilities. The OIR has proposed consolidating insurance oversight under its purview, citing inefficiencies and low complaint referral rates from the DFS. 

⚖️ The Conflict

  • The OIR argues that the current bifurcated system hampers effective consumer protection and market oversight. It highlights that only 5.2% of consumer complaints received by DFS were forwarded to OIR over a five-year period, suggesting underreporting and inadequate training among DFS staff. 

  • In response, the DFS contends that the majority of complaints are resolved without the need for escalation and that the existing structure provides necessary checks and balances. 

🏠 Impact on Real Estate Professionals

For real estate entrepreneurs, including realtors, mortgage brokers, and title insurance agents, this regulatory tug-of-war has tangible implications:

  • Homeowner Confidence: Uncertainty in insurance oversight can erode homeowner confidence, potentially affecting property values and market stability. Additionally, homeowners feel confused about where to turn when they encounter problems with their insurer or an agent.

  • Transaction Delays: Disputes over insurance claims and coverage can lead to delays in property transactions, which in turn impact closing timelines and client satisfaction.

  • Policy Costs: Inefficiencies in regulation may contribute to higher insurance premiums, which in turn influence buyers’ purchasing decisions and affordability assessments.

🔍 Looking Ahead

While legislative leaders have yet to endorse the consolidation proposal, the ongoing debate underscores the need for a more streamlined and effective insurance regulatory system. Real estate professionals should monitor developments closely, as changes in oversight could lead to reforms affecting insurance practices, consumer protections, and the broader housing market.

2. Florida’s Insurance Crisis: A Wake-Up Call

Florida’s property insurance market is in turmoil, presenting significant challenges for real estate entrepreneurs, including realtors, mortgage brokers, and title insurance agents. Skyrocketing premiums, insurer withdrawals, and legal complexities are reshaping the state’s housing landscape.

The Big Picture

  • Florida homeowners now pay the highest insurance premiums in the U.S., averaging over $11,700 annually—nearly triple the national average. 

  • The crisis stems from a combination of factors: increased natural disasters, rampant litigation, and a shrinking pool of insurers. 

  • These dynamics are leading to decreased affordability and heightened uncertainty in the real estate market.

Why It Matters

  • Real estate agents: High insurance costs are deterring potential buyers, leading to increased inventory and slowing sales. Condos are especially hard hit since insurance drives up monthly assessments.

  • Mortgage Brokers: Lenders are tightening requirements, and some deals are falling through due to insurance-related issues.

  • Title Insurance Agents: Transactions are becoming more complex, with increased scrutiny on insurance coverage and property risk assessments.

Legislative reforms in 2022 and 2023 aimed to stabilize the market by curbing lawsuit abuses. 

Yes but, while these measures have slowed premium increases, the market remains volatile, and full recovery is uncertain.

The Bottom Line: Real estate professionals must adapt to this evolving landscape by staying informed, advising clients on insurance considerations, and collaborating with trusted insurance providers. Proactive engagement is essential for navigating the challenges and sustaining business in Florida’s high-risk environment.

We kick off Season 3 of the “Trust This” podcast as we discuss Mindset and Business Success with Robert Vazquez. Robert shares how he built his construction company from scratch using LinkedIn and Craigslist, survived the 2008 crash, and kept leveling up through grit, hustle, and nonstop learning. 

Listen in or watch on your favorite streaming platform.

3. Catch up fast

  1. Canadians are cashing out their U.S. vacation homes. Wall Street Journal (Apple News Edition)

  2. Wealthy buyers are backing out of million-dollar-plus home deals. Wall Street Journal (Apple News Edition)

  3. Congress overturns Biden’s CFPB’s rule that would limit bank overdraft fees to $5.00 per violation. AP News

  4. Courts scrap CFPB rule that limited credit card late fees to $8.00 after CFPB switched sides in the case and argued for the credit card companies. New York Times

  5. Trump administration fires 90% of CFPB’s employees, effectively closing the consumer protection agency. CBS

  6. Mortgage rates shoot up 20 basis points last week in response to market volatility. Yahoo News

  7. Redfin joins Zillow in banning “pocket listings.” Yahoo Finance

  8. Millennials Selling Homes They Bought in Pandemic After Realizing 'Mistake' Newsweek

  9. 24% of Americans ditch plans for major purchases like cars and houses based on tariff fears. Redfin News

  10. Florida entrepreneur sues Trump in federal court over his tariffs. Bloomberg (gift link)

4. Closing Thought: Prosperity is not a DIY project

Picture of a sunset behind a mountain range

Asheville’s pollen makes for some great sunset views from the front porch in Spring.

Too many business owners fall into the trap of trying to do everything themselves. But wealth creation—real, sustainable prosperity—is rarely a solo sport. Robert Kiyosaki, author of Rich Dad Poor Dad, emphasizes that the wealthy build teams. They don’t just work hard—they work smart, with the right experts by their side.

The big picture: Kiyosaki teaches that the wealthy surround themselves with what he calls their “financial dream team”: attorneys, brokers, CPAs, and advisors who know how to protect and grow wealth. It’s not about knowing everything—it’s about knowing who to call.

“One of the worst things you can do is be cheap with your advisors,” Kiyosaki warns. A good lawyer or accountant doesn’t cost you money—they save you from making expensive mistakes.

What to do:

âś… Build your team early. Don’t wait until there’s a problem. A proactive team helps you avoid issues before they start.

âś… Find professionals who invest too. Work with CPAs, attorneys, and brokers who understand your world. If they don’t own investment property, they may not see the big picture.

âś… Leverage expertise for protection. Lawyers help shield assets through trusts and LLCs. CPAs help minimize taxes legally. Brokers help you time your plays.

âś… Don’t chase the cheapest help. Focus on value, not cost. The right advice upfront beats damage control later.

Bottom line: You can’t scale a real estate empire—or any business—by doing everything yourself. Kiyosaki’s rich dad knew: wealth is a team sport. Surround yourself with professionals who think like investors, and you’ll think—and earn—like one too.

We hope you found this helpful â€” any feedback is appreciated and can be shared by hitting reply or using the feedback feature below.

  • Was this email forwarded to you? Subscribe here.

  • Have an idea or issue to share? Email us. 

  • Connect with us using your preferred social media and website links for MyLandTrustee and Aspire Legal Solutions.

  • Our mailing address: PO Box 547945, Orlando, FL 32854-7945

  • Our physical address: 1901 West Colonial Drive, First Floor, Orlando, FL 32804

Be on the lookout for our next issue! đź‘‹

  • Trust This.
  • Posts
  • 🌊 Trust This: Insurance regulators clash

🌊 Trust This: Insurance regulators clash

But it doesn't solve the bigger issues facing Florida's insurance market

Author

Joseph Seagle
April 18, 2025

Trust This. 

By Joseph E. Seagle, Esq.

đź‘‹ Happy Friday! Today is Good Friday. Wishing everyone a happy Pesach and Easter weekend.

❗️Situation Awareness: Missed filing or paying taxes on April 15? No worries … if you live in Florida or any of the other hurricane-ravaged states. The IRS granted an automatic extension until May 1 to file/pay anything that would have been due on April 15. And … again … don’t forget to file your annual report for your Florida LLC or corporation by May 1 as well.

1 big thing: Florida’s Insurance Oversight Clash

Man standing in street in front of house in good shape on left and destroyed on right; man holding two papers: one says DFS Insurance and other says OIR insurance

Florida’s insurance regulatory framework is under scrutiny as the Office of Insurance Regulation (OIR) and the Department of Financial Services (DFS) engage in a dispute over oversight responsibilities. The OIR has proposed consolidating insurance oversight under its purview, citing inefficiencies and low complaint referral rates from the DFS. 

⚖️ The Conflict

  • The OIR argues that the current bifurcated system hampers effective consumer protection and market oversight. It highlights that only 5.2% of consumer complaints received by DFS were forwarded to OIR over a five-year period, suggesting underreporting and inadequate training among DFS staff. 

  • In response, the DFS contends that the majority of complaints are resolved without the need for escalation and that the existing structure provides necessary checks and balances. 

🏠 Impact on Real Estate Professionals

For real estate entrepreneurs, including realtors, mortgage brokers, and title insurance agents, this regulatory tug-of-war has tangible implications:

  • Homeowner Confidence: Uncertainty in insurance oversight can erode homeowner confidence, potentially affecting property values and market stability. Additionally, homeowners feel confused about where to turn when they encounter problems with their insurer or an agent.

  • Transaction Delays: Disputes over insurance claims and coverage can lead to delays in property transactions, which in turn impact closing timelines and client satisfaction.

  • Policy Costs: Inefficiencies in regulation may contribute to higher insurance premiums, which in turn influence buyers’ purchasing decisions and affordability assessments.

🔍 Looking Ahead

While legislative leaders have yet to endorse the consolidation proposal, the ongoing debate underscores the need for a more streamlined and effective insurance regulatory system. Real estate professionals should monitor developments closely, as changes in oversight could lead to reforms affecting insurance practices, consumer protections, and the broader housing market.

2. Florida’s Insurance Crisis: A Wake-Up Call

Florida’s property insurance market is in turmoil, presenting significant challenges for real estate entrepreneurs, including realtors, mortgage brokers, and title insurance agents. Skyrocketing premiums, insurer withdrawals, and legal complexities are reshaping the state’s housing landscape.

The Big Picture

  • Florida homeowners now pay the highest insurance premiums in the U.S., averaging over $11,700 annually—nearly triple the national average. 

  • The crisis stems from a combination of factors: increased natural disasters, rampant litigation, and a shrinking pool of insurers. 

  • These dynamics are leading to decreased affordability and heightened uncertainty in the real estate market.

Why It Matters

  • Real estate agents: High insurance costs are deterring potential buyers, leading to increased inventory and slowing sales. Condos are especially hard hit since insurance drives up monthly assessments.

  • Mortgage Brokers: Lenders are tightening requirements, and some deals are falling through due to insurance-related issues.

  • Title Insurance Agents: Transactions are becoming more complex, with increased scrutiny on insurance coverage and property risk assessments.

Legislative reforms in 2022 and 2023 aimed to stabilize the market by curbing lawsuit abuses. 

Yes but, while these measures have slowed premium increases, the market remains volatile, and full recovery is uncertain.

The Bottom Line: Real estate professionals must adapt to this evolving landscape by staying informed, advising clients on insurance considerations, and collaborating with trusted insurance providers. Proactive engagement is essential for navigating the challenges and sustaining business in Florida’s high-risk environment.

We kick off Season 3 of the “Trust This” podcast as we discuss Mindset and Business Success with Robert Vazquez. Robert shares how he built his construction company from scratch using LinkedIn and Craigslist, survived the 2008 crash, and kept leveling up through grit, hustle, and nonstop learning. 

Listen in or watch on your favorite streaming platform.

3. Catch up fast

  1. Canadians are cashing out their U.S. vacation homes. Wall Street Journal (Apple News Edition)

  2. Wealthy buyers are backing out of million-dollar-plus home deals. Wall Street Journal (Apple News Edition)

  3. Congress overturns Biden’s CFPB’s rule that would limit bank overdraft fees to $5.00 per violation. AP News

  4. Courts scrap CFPB rule that limited credit card late fees to $8.00 after CFPB switched sides in the case and argued for the credit card companies. New York Times

  5. Trump administration fires 90% of CFPB’s employees, effectively closing the consumer protection agency. CBS

  6. Mortgage rates shoot up 20 basis points last week in response to market volatility. Yahoo News

  7. Redfin joins Zillow in banning “pocket listings.” Yahoo Finance

  8. Millennials Selling Homes They Bought in Pandemic After Realizing 'Mistake' Newsweek

  9. 24% of Americans ditch plans for major purchases like cars and houses based on tariff fears. Redfin News

  10. Florida entrepreneur sues Trump in federal court over his tariffs. Bloomberg (gift link)

4. Closing Thought: Prosperity is not a DIY project

Picture of a sunset behind a mountain range

Asheville’s pollen makes for some great sunset views from the front porch in Spring.

Too many business owners fall into the trap of trying to do everything themselves. But wealth creation—real, sustainable prosperity—is rarely a solo sport. Robert Kiyosaki, author of Rich Dad Poor Dad, emphasizes that the wealthy build teams. They don’t just work hard—they work smart, with the right experts by their side.

The big picture: Kiyosaki teaches that the wealthy surround themselves with what he calls their “financial dream team”: attorneys, brokers, CPAs, and advisors who know how to protect and grow wealth. It’s not about knowing everything—it’s about knowing who to call.

“One of the worst things you can do is be cheap with your advisors,” Kiyosaki warns. A good lawyer or accountant doesn’t cost you money—they save you from making expensive mistakes.

What to do:

âś… Build your team early. Don’t wait until there’s a problem. A proactive team helps you avoid issues before they start.

âś… Find professionals who invest too. Work with CPAs, attorneys, and brokers who understand your world. If they don’t own investment property, they may not see the big picture.

âś… Leverage expertise for protection. Lawyers help shield assets through trusts and LLCs. CPAs help minimize taxes legally. Brokers help you time your plays.

âś… Don’t chase the cheapest help. Focus on value, not cost. The right advice upfront beats damage control later.

Bottom line: You can’t scale a real estate empire—or any business—by doing everything yourself. Kiyosaki’s rich dad knew: wealth is a team sport. Surround yourself with professionals who think like investors, and you’ll think—and earn—like one too.

We hope you found this helpful â€” any feedback is appreciated and can be shared by hitting reply or using the feedback feature below.

  • Was this email forwarded to you? Subscribe here.

  • Have an idea or issue to share? Email us. 

  • Connect with us using your preferred social media and website links for MyLandTrustee and Aspire Legal Solutions.

  • Our mailing address: PO Box 547945, Orlando, FL 32854-7945

  • Our physical address: 1901 West Colonial Drive, First Floor, Orlando, FL 32804

Be on the lookout for our next issue! đź‘‹

Why Florida Real Estate Investors Should Consider Using a Land Trust with an LLC for Asset Protection and Tax Benefits​

Why Florida Real Estate Investors Should Use a Land Trust with an LLC

As a real estate investor in Florida, you are likely aware of the potential risks and rewards associated with property ownership. One of the most effective strategies to mitigate risks while maximizing tax benefits is to utilize a Florida land trust in conjunction with a Limited Liability Company (LLC) to hold title to your real estate. This approach not only provides significant asset protection but also offers advantageous tax implications.

Understanding the Structure: Land Trusts and LLCs

A land trust is a legal arrangement that allows you to hold title to real estate without disclosing your identity as the owner on public records. When you pair a land trust with an LLC, you create a powerful shield against potential lawsuits and claims. Here’s how it works:

Anonymity and Asset Protection:

By holding your properties in a land trust, your name does not appear on public records. This anonymity can deter potential lawsuits, as it makes you appear less wealthy and less of a target for litigation. If a tenant or visitor were to sue, they would only have access to the assets held within the trust, not your personal assets or other properties.

Layered Protection:

The LLC acts as the beneficiary of the land trust. This adds an additional layer of protection, separating your personal assets from your real estate investments. If a lawsuit arises, claimants would have to go through the trust and the LLC, which can limit their ability to access your personal wealth.

Tax Benefits of Using an LLC

Pass-Through Taxation:

An LLC can be taxed as a partnership, allowing profits and losses to pass through to your personal tax return. This means you can benefit from deductions such as depreciation, which can significantly reduce your taxable income.

Avoiding Dealer Classification:

One of the critical aspects of real estate investing is understanding how the IRS classifies you. If you are classified as a "dealer" because you frequently buy and sell properties, you may lose the ability to take advantage of certain tax benefits associated with long-term rental holdings. Dealers are subject to ordinary income tax rates, which can be significantly higher than capital gains rates applicable to long-term investors. Further, “dealers” cannot deduct depreciation and expenses related to the properties each tax year. Instead, they must wait until they sell the property to take those tax advantages. By using a land trust and LLC structure, you can better position yourself as an investor rather than a dealer, preserving your tax benefits.

Navigating 1031 Exchanges

A 1031 exchange allows real estate investors to defer paying capital gains taxes and depreciation recapture taxes on an investment property when it is sold, as long as another real estate property is purchased with the profit gained by the sale. This strategy can be particularly beneficial for those looking to grow their real estate portfolio.

Using Land Trusts in 1031 Exchanges:

When properties are held in a land trust, the LLC-beneficiary can participate in a 1031 exchange. This means you can sell multiple properties held in different land trusts and reinvest the proceeds into a new property without incurring immediate tax liabilities. The LLC, as the beneficiary of the land trusts, can facilitate this process, allowing for seamless transitions and continued growth of your investment portfolio.

Frequently Asked Questions (FAQ)

Can I use multiple land trusts for different properties?

Yes, many investors use separate land trusts for each property to maximize anonymity and asset protection.

Is a land trust required for real estate investing in Florida?

No, but it is a recommended strategy for investors seeking privacy, asset protection, and tax benefits.

How does an LLC interact with a land trust?

The LLC serves as the beneficiary of the land trust, adding an additional layer of protection and flexibility in managing assets.

Conclusion

For Florida real estate investors, utilizing a land trust in conjunction with an LLC is a strategic approach to asset protection and tax efficiency. This structure not only provides anonymity and layers of protection against lawsuits but also offers favorable tax treatment and flexibility in managing your investments.

Ready to protect your investments and optimize your tax strategy?

Contact Us Today
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