You may not have looked at an appraisal lately but they do provide the replacement cost as well as the market values. As to the cost of $300 it is the cost of doing business shall we say. Any time there is a new purchase and a mortgageholder there will be an appraisal done. Secondly, here in the state of Fl where I am located, we only have Citizens to write wind insurance and they now require updated appraisals dated within 18 months in order to provide insurance, so if you want a wind policy you will need an appraisal.
If you are using the RC amount in the apparisal, you are using the same guide carriers use. Carriers use a modified verison of Marshal Swift or Craftsman, or other respected RC guide. You should really learn more about the insurance business if you plan to stay in it.
don Hester: I hate to point out the bad apples in my profession, however, will do so. Back at the time of origin of the NFIP, adjusters were paid an hourly rate and time and expense. The adjusters were greedy and billed in excess of 35-40 hours per day on flood claims. They would work 5-7 flood cliams per day and bill each at 5-8 hours. Hence, the feds prosecuted some for fraud. The schedule came into effect shortly thereafter. The reason second homeowners are charged more for their seocnd home is that it sits vacant for many months a year and is subject to loss greater than an occupied house.
The point is we are American\’s and with all the money we pay in taxes we should not be welfare. If this country can afford to spend the money on the war we should be able to take care of our own country first.
Also if we are paying an adequate premium for flood why should we be limited in the amount we can buy. Some of my customers banks are requiring them to buy excess flood policies. Please dont blast me I am only asking a fair question.
You struck the nail squarely on the head. Homeowners/businessowners are paying only a fraction of the true cost of flood insurance. Think about it. Private insurance had no desire to write it as it is a money loser. Flood insurane has a probability factor of near 100%. Who would or could pay the accurate premium? Private insurance now has the best of all worlds. They sell the policy for a commission and have none of the loss ratio to hit their books. The corporate office of the carrier also gets a fee for the statistical data they keep. Then, if they are a large company, State Farm, Allstate, Hartford, etc, they get paid to adjsut the claims. All of this with not enough premium being collected in the beginning. And now teh Congress wants to extend overga efurther? I don\’t think so.
If the insured can\’t get the basic benefits provided in the policy because of the different interpretations of what the policy does or doesn\’t pay for. The policy as given to the insured lists some items explicitly. But many things are not spelled out, like kitchen cabinets, how much of the wall will be paid for – replace 2-3-4 ft. If they only pay to replace 3 ft up – they also only to paint 3 ft up. That\’s a very uneven looking wall in the end. If that\’s the way a policyowner is going to be re-imbursed – this needs to be spelled out in the policy. At the moment – we don\’t get this knowledge until a claim is filed and we then have to take the adjusters word for it. It\’s an the unwritten side of the policy.
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You may not have looked at an appraisal lately but they do provide the replacement cost as well as the market values. As to the cost of $300 it is the cost of doing business shall we say. Any time there is a new purchase and a mortgageholder there will be an appraisal done. Secondly, here in the state of Fl where I am located, we only have Citizens to write wind insurance and they now require updated appraisals dated within 18 months in order to provide insurance, so if you want a wind policy you will need an appraisal.
Linda:
If you are using the RC amount in the apparisal, you are using the same guide carriers use. Carriers use a modified verison of Marshal Swift or Craftsman, or other respected RC guide. You should really learn more about the insurance business if you plan to stay in it.
As long as NFIP is a welfare program, it should not broaden coverage. Our government cannot afford it.
don Hester: I hate to point out the bad apples in my profession, however, will do so. Back at the time of origin of the NFIP, adjusters were paid an hourly rate and time and expense. The adjusters were greedy and billed in excess of 35-40 hours per day on flood claims. They would work 5-7 flood cliams per day and bill each at 5-8 hours. Hence, the feds prosecuted some for fraud. The schedule came into effect shortly thereafter. The reason second homeowners are charged more for their seocnd home is that it sits vacant for many months a year and is subject to loss greater than an occupied house.
Our government cannot afford the war in Iraq either.
And your point bringing a totally unrelated subject into the discussion?
The point is we are American\’s and with all the money we pay in taxes we should not be welfare. If this country can afford to spend the money on the war we should be able to take care of our own country first.
Also if we are paying an adequate premium for flood why should we be limited in the amount we can buy. Some of my customers banks are requiring them to buy excess flood policies. Please dont blast me I am only asking a fair question.
Kat:
You struck the nail squarely on the head. Homeowners/businessowners are paying only a fraction of the true cost of flood insurance. Think about it. Private insurance had no desire to write it as it is a money loser. Flood insurane has a probability factor of near 100%. Who would or could pay the accurate premium? Private insurance now has the best of all worlds. They sell the policy for a commission and have none of the loss ratio to hit their books. The corporate office of the carrier also gets a fee for the statistical data they keep. Then, if they are a large company, State Farm, Allstate, Hartford, etc, they get paid to adjsut the claims. All of this with not enough premium being collected in the beginning. And now teh Congress wants to extend overga efurther? I don\’t think so.
for your voice of reason and knowledge LL.
If the insured can\’t get the basic benefits provided in the policy because of the different interpretations of what the policy does or doesn\’t pay for. The policy as given to the insured lists some items explicitly. But many things are not spelled out, like kitchen cabinets, how much of the wall will be paid for – replace 2-3-4 ft. If they only pay to replace 3 ft up – they also only to paint 3 ft up. That\’s a very uneven looking wall in the end. If that\’s the way a policyowner is going to be re-imbursed – this needs to be spelled out in the policy. At the moment – we don\’t get this knowledge until a claim is filed and we then have to take the adjusters word for it. It\’s an the unwritten side of the policy.