DEVELOPMENT New owner invests into troubled apartments
REAL ESTATE
Homeowners insurance rates rise across Greater Houston area
Since 1980, adjusted for in ation, there has been an upward trend of billion-dollar disasters in the U.S., which raises insurance rates. So far in 2023, 100 people nationwide have died in 12 billion-dollar events, most of which were severe storms. RECENT EVENTS
BEFORE AND AFTER
The owner of Vista View Apartments said he estimated he’s invested $420,000 in renovations.
BY RACHEL LELAND
around $900,000 and aims to have the property close to 80% rented out, which would allow him to collect $20,000 in rent monthly. Since purchasing the property and making renovations, Ramirez said he’d seen a steady decline in the number of times the police have been called out to the property. The address received 84 callouts in 2019, 55 callouts in 2020, 48 callouts in 2021 and eight callouts in 2022, according to Alvin Police Department reports requested by Community Impact . Since reopening, Ramirez said the frequency of crime in the complex has gone down signi cantly, and he’s received positive feedback from the police department, including a police o cer who told him he’s turned the place around like nobody else has. “It’s been one of our worst places, and now we don’t have any prob- lems here,” Ramirez said.
deals go on there,” Ramirez said. Ramirez said he estimated that no work had been done on the property in 20 years. In most of the units, the ceilings were brown and collapsing. The gas lines and underground plumbing had to be completely redone. Additionally, the sheetrock needed to be replaced, and new showers and cabinets needed to be installed. He also installed cameras on the property and porch lights above each unit. To date, Ramirez estimates that he’s invested $420,000 into renovating the apartments. The renovations began in summer 2022, and the major renovations such as plumbing and gas lines were xed in fall 2022. The apartment complex has 28 units and seven tenants, Ramirez said. Rent started at $695 when he purchased the property, but he said he’s raised it to only $750. Ramirez said he purchased the property for
An Alvin apartment complex has received over $400,000 in renova- tions, changing its negative reputa- tion in the community. Real estate veteran Ozzie Ramirez purchased Beauregard Apartments, 415 N. Beauregard St., Alvin, in April 2020, renaming them Vista View Apartments from a line in the 1992 lm “White Men Can’t Jump.” “My rst day collecting rent, I want to say there were 14 tenants, and of those tenants, at least ve were under the in uence of some kind of substance,” Ramirez said. While Ramirez said he personally felt the purchase was a sound business decision, he’d received community feedback that the apartments were irredeemable. “When we post that we were renting out rooms on Talk of Alvin [Facebook group], we would just get roasted that this was the meth cap- ital of Alvin and nothing but drug
NATIONWIDE DISASTERS THAT COST AT LEAST $1B EACH Droughts Floods
BY JAKE MAGEE
Alabama or wild res in California, a ect rates in Houston, he said. Since 2020, there have been over 22 U.S. disasters that cost at least $1 billion in insurance claims, Moore said. One of those events was Winter Storm Uri, which hit Texas in February 2021. “That was a multiple-billion-dollar event that happened,” Moore said. Insurance companies raise rates nationally to make up these losses, Moore said. Also contributing to the Greater Houston area’s rising homeowners insurance rates is the area’s proximity to the Gulf Coast. Being close to the coast makes the area high-risk with a higher amount of claims, Moore said. A handful of insurers have entered the Greater Houston area market only to leave because its proximity to the coast makes it hard to be pro table, he said. “Companies are losing millions and
Severe storms
Tropical cyclones
Wild res
Winter storms
A recent exodus of insurance companies from the Greater Houston area combined with an upward trend in nationwide disasters has led home- owners insurance rates to increase. Cass Moore, owner of his own Goosehead Insurance agency in The Woodlands, said rates for homeowners insurance have increased by 22% on average this year. Mortgage lenders require homeowners to have home- owners insurance to cover repairs or reconstruction in the event of a disaster, such as a re or storm, that damages a home. “Nationally, rates are increasing at an unprecedented amount,” Moore said. And it’s not over yet. Rates are likely to climb again next year before hope- fully stabilizing in 2025, Moore said. Rising insurance rates locally are a re ection of wider trends. National disasters, such as tornadoes in
APRIL 2020
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25
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12
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PHOTOS COURTESY OZZIE RAMIREZ
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2018
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2023*
JUNE 2023
SOURCE: NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION NATIONAL CENTERS FOR ENVIRONMENTAL INFORMATION COMMUNITY IMPACT
*AS OF JULY 11
millions of dollars,” Moore said. In ation and supply chain issues also play a role. Due to past shortages in lumber and other materials to rebuild houses, it costs more to insure them, Moore said.
Moore encouraged residents facing large increases in their homeowners insurance rates to shop around. Resi- dents are eligible for major discounts if they get a new roof or a home security system, Moore said.
SHADOW CREEK 11023 Shadow Creek Pkwy (281) 977-1027
PEARLAND 10555 Pearland Pkwy (713) 987-9205
ALMEDA 11130 Gulf Fwy (713) 910-3941
FRIENDSWOOD 3126 FM 528 (281) 648-5473
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