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Tax and Insurance question
Old 07-11-2014, 08:54 PM   #1
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Tax and Insurance question

My friend has a bathroom that the county does not know about in his house. If he reports that he has this extra bathroom to the insurance company will the county find out about it?
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Old 07-11-2014, 08:58 PM   #2
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Probably not, and at least in my area even if the county did find out about it an additional bathroom would have minimal impact on assessed value and property taxes.
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Old 07-11-2014, 09:02 PM   #3
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Just curious. Why does the insurance company care how many bathrooms you have?
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Old 07-11-2014, 09:04 PM   #4
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I would guess because they will be the one rebuilding my friend's house if something happens to it. More money to rebuild.
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Old 07-12-2014, 08:26 AM   #5
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Probably not, and at least in my area even if the county did find out about it an additional bathroom would have minimal impact on assessed value and property taxes.
Cannot agree with your statement, at least in our area of Florida. If the county knew about this bathroom, it would probably add to the assessed value of the residence and thereby trigger an increase of the property tax. What they don't know doesn't hurt you.
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Old 07-12-2014, 11:32 AM   #6
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It's unlikely the county will find out, but there could be a problem if he puts the house up for sale. Someone will likely check records and see it's assessed with only one bathroom. They'll then likely check to see if permits were gotten. Worse case is he'll be forced to rip most of it out to make sure it's up to code plus any fines.


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Old 07-13-2014, 04:22 PM   #7
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It's unlikely the county will find out, but there could be a problem if he puts the house up for sale. Someone will likely check records and see it's assessed with only one bathroom. They'll then likely check to see if permits were gotten. Worse case is he'll be forced to rip most of it out to make sure it's up to code plus any fines.


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We live on a waterfront with serious restrictions. You can't do anything that expands the original footprint of the buildings on the lot -- no matter how old. Every once in a while someone gets an idea to add a garage or pool house or something. Then the property sells and the owner has to tear it all down and restore the land. Crazy.
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Old 07-13-2014, 06:50 PM   #8
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Is this bathroom in the basement and does someone routinely sleep down there? If so is there appropriate egress-ingress access? That could (if true) exacerbate the problem(s). Maybe he should come clean with the County after moving the bed out and the Pool Table in. BTW who put the bathroom in, your friend, or a previous owner? Depending if this is a half or otherwise not too elaborate a bathroom it should not be too hard to "cap" it, remove things and reinstall after getting a permit (if required). Maybe just don't tell anyone (insurance or the county) and if the house has to be replaced (after fire or whatever) get it restored without the "extra bathroom".
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Old 07-13-2014, 10:07 PM   #9
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Cannot agree with your statement, at least in our area of Florida. If the county knew about this bathroom, it would probably add to the assessed value of the residence and thereby trigger an increase of the property tax. What they don't know doesn't hurt you.
Johnnie, read my post again. I said minimal. SCC's tax rates are pretty low as I recall so if the appraised value went up $2k due to the bathroom your annual property tax would go up $25 or so. You gonna sweat about $25?
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Old 07-15-2014, 10:56 AM   #10
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Agree very little chance the county would find out. If they did my response to county would be: "Can you believe the insurance co made a mistake and added an extra bathroom? I will have to talk to them and get this straightened out."
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Old 07-15-2014, 11:56 AM   #11
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My friend has a bathroom that the county does not know about in his house. If he reports that he has this extra bathroom to the insurance company will the county find out about it?
Seems your concerns are misdirected. I would not be concerned about the
additional property tax.

My concern, is the bathroom addition built to code. Electrical and plumbing.
If County finds out, and an inspector comes out, , owner will have to
bring violations up to code.

Don't think, if Insurance covers bathroom, County will be notified. Also, in our area, when you sell a house, as long as you disclose a non-permitted addition you are covered.
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Old 07-15-2014, 01:18 PM   #12
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Seems your concerns are misdirected. I would not be concerned about the
additional property tax.

My concern, is the bathroom addition built to code. Electrical and plumbing.
If County finds out, and an inspector comes out, , owner will have to
bring violations up to code.

Don't think, if Insurance covers bathroom, County will be notified. Also, in our area, when you sell a house, as long as you disclose a non-permitted addition you are covered.

Good info..Unfortunately too late for me...About 8 years I had a "jack of all trades" friend finish off 14X25 area in basement with half bath. Thought never occurred to me to tell the city inspector, but I do have it insured. Well, I sure am not saying anything now!


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