Other than jones\’n to run down to your fine state for a few days of golf, you missed my point. Which, incidentally, I was making with Scott and his post about the $700.00 monthly insurance/tax expense he owns.
I will not bore you with another attempt, but regarding your point, surely you do not believe the type of home you insure has no bearing on insurance premium. I may be a country hayseed but I believe value, location, building material, along with a myriad of other (underwriting) criteria have a great deal to do with end cost. Perhaps you can prove me wrong but if your friend’s home has the same insurance rate per $100.00 of value as say, a mobile home located on the coast, you win a cookie!
I just re-read all your whacked out comments regarding our FL insurance crisis.You can see the awful stress people in FL are under,and you gloat. How many of you yee-haws got Gov\’t flood insurance?You\’ll sent Ma & Pa to FL to get rid of\’em years ago.In your ignorance do you think TN and elsewhere doesn\’t have low country?What a bunch of haters.Very few of us live on or near the water or on low ground.Makes no difference.Some of us come from families that have filled your fat bellies with beef,citrus,and winter veggies for decades. Vacation here when you were a kid?Go to Disney?Please stay in whatever mean-spirited, paranoid,universe you dwell.Shame on you!
I\’m not saying they pay the same rate, I am saying that all premiums and/or rates are doubling. With all the insurance companies record profits, how can they justify this? Yes, raise the rates for those that are at high risk, but double, triple. I\’m sorry, but something is wrong with this picture. What were they doing with all the money when there weren\’t any hurricanes? 2004 and 2005 were anomalies. What happen to the backbone of insurance in Spread of Risk. Law of Large Numbers? There have always been hurricanes, fires, tornados, mud slides, sinkholes, snow storms ect. What did the insurance companies do then? I know the losses were lower back then, but so were the premiums. What are they trying to do, place catchup in one year? Make all of us pay for their actuarial mistakes? I\’m having a real problem with all of this. What about the coast of the US. I mean the whole coast. There are some places on the coast that have never seen a hurricane and do you think their rates are going up. You better bet they are, and why? They haven\’t had any losses. Should everone move out of FL., off of Long Island and 250 miles inland. Some people better wake up. The insurance companies are doing this to all of us. They paid those hurricane losses and still made record profits and that was with all our money, not just FL money. Why doesn\’t someone squack about that? No one cares that they are making that kind of money and now want more. OK, raise the rates in the coastal areas but you da.. well better lower them elsewhere. Are they???
In answer to your question, from an article in today\’s email:
\”Meanwhile, buyers of insurance in non-coastal states are the big winners as rising profitability has intensified competition throughout the property/casualty insurance industry,\” Dr. Hartwig added. \”The bottom line is that falling insurance prices are lowering the cost of driving a car, owning a home and the cost of doing business for most Americans.\” He noted that property insurance prices in hurricane-vulnerable coastal areas continue to rise.
I.I.I. research shows that drivers, homeowners and businesses in most parts of the United States will be left with more cash in their pockets in 2007 as insurance costs fall in absolute terms, or at least relative to income growth and growth in the Gross Domestic Product. More details can be found in the I.I.I. \’ s 2007 Earlybird Forecast at http://www.iii.org/media/industry/financials/forecast2007/.
For goodness sakes Tired, no one is making you buy insurance. Obviously you still see a value in the protection. Shop around, if \”all\” insurance companies are making record profits then the market will correct itself and you will find lower rates. My guess is that your rates will drop a bit within the next year or two.
No one is touting the insurance industry as being perfect, but with a small amount of governance (to prevent collusion, monopoly, etc.) the all-mighty dollar rules the day. If State farm, Allstate, Travelers, etc. can make money by lowering rates in your area and thus increasing policy count, they will.
Perhaps a bit too simplistic, because in reality the are many other factors in play here, but your gross generalizations about this business warrants my simple remarks.
When are we going to wise up and finally stop rebuilding properties in flood areas that have repeatedly been flooded mutliple times in a 30 year period( or less). We should not be using public monies to subsidize people who want to own properties close to the water just for the benefit of being close to the water or because of the high demand for this type of property. If someone wants a house on the beach,let them pay the prevailing rate in whatever market will write it or else they shouldn\’t own it.
let\’s use this money more wisely.
Yes we have floods up north, but not the wide spread destruction a hurricane will cause. If your willing to come up and shovel the snow, then we will come down and shovel your shi*. Quit your crying. If you wish to live in paradise, then pay the price. This past fall we recieved 8 inches of rain in a twelve hour period. Wide spread flooding, including my own home. It took me one week to clean every thing out, but I did it. No government help, but family and friends. It probably won\’t happen again, but you never know. Florida and the south coast will get another hurricane, not if, but when. Are you one of those that calls your agent and asks, but why does it cost so much to insure my 250,000 Lambourghini? when my Cavalier was alot less.
Peyton, you seem to have allot of hatred built up in you for someone who claims we are the haters. I hate none of you; I hate to see the storms and disasters that strike the coasts. But to pretend your premium is to be based on shared risk with NY, KS, and others seems kind of self serving. Yes, carriers have reserves from the states they do business in, but why wouldn\’t you expect them to base your premium on the RISK they expect with your property. Please examine Florida, a large, low lying peninsula; much of it swamp. Please examine New Orleans, much of it under sea level…These are high risk areas. When destruction hits, it\’s not limited to a thunderstorm, or a tornado, but it gets measured in the billions. To pretend that is a one year, \’surprise\’ event is naive. I recommend Prozac and rest.
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Other than jones\’n to run down to your fine state for a few days of golf, you missed my point. Which, incidentally, I was making with Scott and his post about the $700.00 monthly insurance/tax expense he owns.
I will not bore you with another attempt, but regarding your point, surely you do not believe the type of home you insure has no bearing on insurance premium. I may be a country hayseed but I believe value, location, building material, along with a myriad of other (underwriting) criteria have a great deal to do with end cost. Perhaps you can prove me wrong but if your friend’s home has the same insurance rate per $100.00 of value as say, a mobile home located on the coast, you win a cookie!
I just re-read all your whacked out comments regarding our FL insurance crisis.You can see the awful stress people in FL are under,and you gloat. How many of you yee-haws got Gov\’t flood insurance?You\’ll sent Ma & Pa to FL to get rid of\’em years ago.In your ignorance do you think TN and elsewhere doesn\’t have low country?What a bunch of haters.Very few of us live on or near the water or on low ground.Makes no difference.Some of us come from families that have filled your fat bellies with beef,citrus,and winter veggies for decades. Vacation here when you were a kid?Go to Disney?Please stay in whatever mean-spirited, paranoid,universe you dwell.Shame on you!
I\’m not saying they pay the same rate, I am saying that all premiums and/or rates are doubling. With all the insurance companies record profits, how can they justify this? Yes, raise the rates for those that are at high risk, but double, triple. I\’m sorry, but something is wrong with this picture. What were they doing with all the money when there weren\’t any hurricanes? 2004 and 2005 were anomalies. What happen to the backbone of insurance in Spread of Risk. Law of Large Numbers? There have always been hurricanes, fires, tornados, mud slides, sinkholes, snow storms ect. What did the insurance companies do then? I know the losses were lower back then, but so were the premiums. What are they trying to do, place catchup in one year? Make all of us pay for their actuarial mistakes? I\’m having a real problem with all of this. What about the coast of the US. I mean the whole coast. There are some places on the coast that have never seen a hurricane and do you think their rates are going up. You better bet they are, and why? They haven\’t had any losses. Should everone move out of FL., off of Long Island and 250 miles inland. Some people better wake up. The insurance companies are doing this to all of us. They paid those hurricane losses and still made record profits and that was with all our money, not just FL money. Why doesn\’t someone squack about that? No one cares that they are making that kind of money and now want more. OK, raise the rates in the coastal areas but you da.. well better lower them elsewhere. Are they???
In answer to your question, from an article in today\’s email:
\”Meanwhile, buyers of insurance in non-coastal states are the big winners as rising profitability has intensified competition throughout the property/casualty insurance industry,\” Dr. Hartwig added. \”The bottom line is that falling insurance prices are lowering the cost of driving a car, owning a home and the cost of doing business for most Americans.\” He noted that property insurance prices in hurricane-vulnerable coastal areas continue to rise.
I.I.I. research shows that drivers, homeowners and businesses in most parts of the United States will be left with more cash in their pockets in 2007 as insurance costs fall in absolute terms, or at least relative to income growth and growth in the Gross Domestic Product. More details can be found in the I.I.I. \’ s 2007 Earlybird Forecast at http://www.iii.org/media/industry/financials/forecast2007/.
For goodness sakes Tired, no one is making you buy insurance. Obviously you still see a value in the protection. Shop around, if \”all\” insurance companies are making record profits then the market will correct itself and you will find lower rates. My guess is that your rates will drop a bit within the next year or two.
No one is touting the insurance industry as being perfect, but with a small amount of governance (to prevent collusion, monopoly, etc.) the all-mighty dollar rules the day. If State farm, Allstate, Travelers, etc. can make money by lowering rates in your area and thus increasing policy count, they will.
Perhaps a bit too simplistic, because in reality the are many other factors in play here, but your gross generalizations about this business warrants my simple remarks.
Good luck, I hope you do find a lower rate.
When are we going to wise up and finally stop rebuilding properties in flood areas that have repeatedly been flooded mutliple times in a 30 year period( or less). We should not be using public monies to subsidize people who want to own properties close to the water just for the benefit of being close to the water or because of the high demand for this type of property. If someone wants a house on the beach,let them pay the prevailing rate in whatever market will write it or else they shouldn\’t own it.
let\’s use this money more wisely.
Yes we have floods up north, but not the wide spread destruction a hurricane will cause. If your willing to come up and shovel the snow, then we will come down and shovel your shi*. Quit your crying. If you wish to live in paradise, then pay the price. This past fall we recieved 8 inches of rain in a twelve hour period. Wide spread flooding, including my own home. It took me one week to clean every thing out, but I did it. No government help, but family and friends. It probably won\’t happen again, but you never know. Florida and the south coast will get another hurricane, not if, but when. Are you one of those that calls your agent and asks, but why does it cost so much to insure my 250,000 Lambourghini? when my Cavalier was alot less.
Peyton, you seem to have allot of hatred built up in you for someone who claims we are the haters. I hate none of you; I hate to see the storms and disasters that strike the coasts. But to pretend your premium is to be based on shared risk with NY, KS, and others seems kind of self serving. Yes, carriers have reserves from the states they do business in, but why wouldn\’t you expect them to base your premium on the RISK they expect with your property. Please examine Florida, a large, low lying peninsula; much of it swamp. Please examine New Orleans, much of it under sea level…These are high risk areas. When destruction hits, it\’s not limited to a thunderstorm, or a tornado, but it gets measured in the billions. To pretend that is a one year, \’surprise\’ event is naive. I recommend Prozac and rest.