Good comment by PCI! This proposal is just another example of the thinking that the wind risk in Florida is uninsurable. If it\’s uninsurable the only way to pay for it is with taxes. Covering state operated insurance facilities with deficits is through taxes….pay as you go…call them anything you want, but they are taxes.
PCI is correct that faulty premise #1 is that the state government can run a windpool, and Citizen\’s is a fine example of the mess. Faulty premise #2 is that this property insurance problem is not limited to just homeowners. The market is drying up all over Florida. And the wind losses do not only occur in the Wind pool areas; they happen all over the state. I believe that all carriers are losing money on their property lines, which is why they are all reducing exposure and raising rates.
We don\’t want the state ruinning insurance, yet the private market place is unwilling to insure and reinsurance is unavailable; so the problem remains. Why not have the state reinsure all wind claims and have premium tax on the property premiums. The private insurors are responsible for losses upto X and then the state, make a sliding scale on retention, so small companies can\’t come in underprice coverage to take the bad risks and require all carriers to spread the risk thrughout the state inorder to maximize reimbursement from the fund and not allow wind exclusions. May not work, but what is.
Eliminate all of the politicized, unnatural rate regulations, and allow private market companies to charge an actuarially sound rate to cover the exposure and make a reasonable profit. Let the market handle it.
I know, it\’s an alien concept for the political machine. People would actually have to pull their own weight, and insurance may not be affordable to everyone. We can\’t let that happen!!!
I say if you can\’t afford the insurance, you can\’t afford the house. Choose a smaller property, or an area with less exposure to catastrophic losses.
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Good comment by PCI! This proposal is just another example of the thinking that the wind risk in Florida is uninsurable. If it\’s uninsurable the only way to pay for it is with taxes. Covering state operated insurance facilities with deficits is through taxes….pay as you go…call them anything you want, but they are taxes.
Ah, yes; another opportunity for Florida State Government to run an insurance business.
After all, it has done such an astute job with Citizens Property Insurance Co.
PCI is correct that faulty premise #1 is that the state government can run a windpool, and Citizen\’s is a fine example of the mess. Faulty premise #2 is that this property insurance problem is not limited to just homeowners. The market is drying up all over Florida. And the wind losses do not only occur in the Wind pool areas; they happen all over the state. I believe that all carriers are losing money on their property lines, which is why they are all reducing exposure and raising rates.
We don\’t want the state ruinning insurance, yet the private market place is unwilling to insure and reinsurance is unavailable; so the problem remains. Why not have the state reinsure all wind claims and have premium tax on the property premiums. The private insurors are responsible for losses upto X and then the state, make a sliding scale on retention, so small companies can\’t come in underprice coverage to take the bad risks and require all carriers to spread the risk thrughout the state inorder to maximize reimbursement from the fund and not allow wind exclusions. May not work, but what is.
Here\’s an idea that will work…
Eliminate all of the politicized, unnatural rate regulations, and allow private market companies to charge an actuarially sound rate to cover the exposure and make a reasonable profit. Let the market handle it.
I know, it\’s an alien concept for the political machine. People would actually have to pull their own weight, and insurance may not be affordable to everyone. We can\’t let that happen!!!
I say if you can\’t afford the insurance, you can\’t afford the house. Choose a smaller property, or an area with less exposure to catastrophic losses.
I agree with TXGURU. NOW will Texas stop taking Federal Money for Catastrophes?