I can\’t help it… is no one willing to state the obvious about FL or other wind-subject property? Hurricanes cause damage that is expensive, and while insurance is there to smooth over the loss of the one (or few) to the loss of many, it is not there to eliminate hurricanes!
Wind-subject property owners need to pay lots of money for insurance — it is a cost of owning that property, period. No government official should be asked to \”un-do\” a hurricane. Insurance companies should charge the rates that include the risk. If rates are too high, then other insurance companies will come in to gain that rate… and capitalism will work just fine to right the ship and balance rates. If too low, insurance companies will leave or stop offering, which will allow rates to rise to the proper level. Having falsely low rates just guarantees that insurers will go broke — and then what will the citizenry do with those officials… they will have gotten what they deserved!
Government officials should concentrate on the things they can control (which is not the weather). Make codes to make buildings stronger. Create plans to recover faster after the storm. And load those costs into the marketplace for property ownership, and if people don\’t want to pay that price, then they don\’t have to live there. Folks that want to enjoy the benefits of FL, and believe they outweigh the costs, will move in and buy those properties over time, in an honestly priced marketplace.
A penthouse view costs more than living in the basement floor — and we all know that, and accept that truth. Why then, does it seem that Floridians cannot accept that living in an area of hurricanes simply means that property insurance costs more than it does in Montana? But in MT, there are no ocean views, and winters are cold… live where you\’ll enjoy the net benefits, and can deal with the net costs. You don\’t get the penthouse view without paying the price that goes with it.
Hurricanes, I believe, have been going on for quite some time — get over it, and deal with the costs associated, or make your buildings strong enough to not have damage (that costs money, too), or MOVE TO MT!
…hmm… then I suppose they\’ll demand that those government officials buy them a new hat and coat every season!
I have an easy solution. Just sell policies that exclude wind and water damage and let the property owners self insure if they think they are getting a raw deal. Let\’s see how far they can collectively pool there money between them to take care of themselves. Sometimes I wonder If there wasn\’t some broad experiment by aliens that took thousands of people onto their ship and lobotomized the majority of them into thinking that they are entitled to anything they want and someone else should pay the price. I say, If you can\’t pay the premium for the risk involved, then it is time to move.
I think florida legislators should outlaw hurricanes altogether. Florida homeowners and condoowners deserve no less! Governer Bush is said to be considering this option.
This is real easy, how much are people willing to pay for insurance? then sell them as much coverage as that amount of money will pay for. If my homeowners cost $4000 for $300,000 coverage but I only want to pay $2000 then I should be able to buy some where in the ballpark of $115,000 coverage. As long as the coverage meets or exceeds the bank loan and the insured understands (and signs a disclaimer) they they will not be able to rebuild with the amount paid out if a total loss occurs.
I have a feeling that trial lawyers would love to see this happen, then they would have agents to go after for selling what the customers wants and not what they needed.
Folks the options are few but very clear.
1) pay the premium and be thankful you were able to get coverage.
2) Sell the property and move to Montana where it is colder than most people care for, poor sunsets, no beaches, no waterfront condos and cheaper insurance.
3) Don\’t buy coverage, but take the risk yourself. this is an option if you do not have a mortgage. But then if you have a mortgage you probably do not have the financial means to potentially lose your house and still survive and rebuild out of your own poscket and not Uncle Sams or mine
Just realize that insurance companies are not able to keep paying out money by the $billions when they do not have it. These recent losses over the last 2 years are unprecedented and must be paid for. nothing in life is free and very little is cheap.
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I can\’t help it… is no one willing to state the obvious about FL or other wind-subject property? Hurricanes cause damage that is expensive, and while insurance is there to smooth over the loss of the one (or few) to the loss of many, it is not there to eliminate hurricanes!
Wind-subject property owners need to pay lots of money for insurance — it is a cost of owning that property, period. No government official should be asked to \”un-do\” a hurricane. Insurance companies should charge the rates that include the risk. If rates are too high, then other insurance companies will come in to gain that rate… and capitalism will work just fine to right the ship and balance rates. If too low, insurance companies will leave or stop offering, which will allow rates to rise to the proper level. Having falsely low rates just guarantees that insurers will go broke — and then what will the citizenry do with those officials… they will have gotten what they deserved!
Government officials should concentrate on the things they can control (which is not the weather). Make codes to make buildings stronger. Create plans to recover faster after the storm. And load those costs into the marketplace for property ownership, and if people don\’t want to pay that price, then they don\’t have to live there. Folks that want to enjoy the benefits of FL, and believe they outweigh the costs, will move in and buy those properties over time, in an honestly priced marketplace.
A penthouse view costs more than living in the basement floor — and we all know that, and accept that truth. Why then, does it seem that Floridians cannot accept that living in an area of hurricanes simply means that property insurance costs more than it does in Montana? But in MT, there are no ocean views, and winters are cold… live where you\’ll enjoy the net benefits, and can deal with the net costs. You don\’t get the penthouse view without paying the price that goes with it.
Hurricanes, I believe, have been going on for quite some time — get over it, and deal with the costs associated, or make your buildings strong enough to not have damage (that costs money, too), or MOVE TO MT!
…hmm… then I suppose they\’ll demand that those government officials buy them a new hat and coat every season!
I have an easy solution. Just sell policies that exclude wind and water damage and let the property owners self insure if they think they are getting a raw deal. Let\’s see how far they can collectively pool there money between them to take care of themselves. Sometimes I wonder If there wasn\’t some broad experiment by aliens that took thousands of people onto their ship and lobotomized the majority of them into thinking that they are entitled to anything they want and someone else should pay the price. I say, If you can\’t pay the premium for the risk involved, then it is time to move.
Why don\’t they have a program in Florida for these poor old homeowners?
Gee, I hope the government will send me some money because I was a naive dummy.
I think florida legislators should outlaw hurricanes altogether. Florida homeowners and condoowners deserve no less! Governer Bush is said to be considering this option.
THANK YOU Compman, your post was absolutely hilarious. Thanks for the great laugh.
This is real easy, how much are people willing to pay for insurance? then sell them as much coverage as that amount of money will pay for. If my homeowners cost $4000 for $300,000 coverage but I only want to pay $2000 then I should be able to buy some where in the ballpark of $115,000 coverage. As long as the coverage meets or exceeds the bank loan and the insured understands (and signs a disclaimer) they they will not be able to rebuild with the amount paid out if a total loss occurs.
I have a feeling that trial lawyers would love to see this happen, then they would have agents to go after for selling what the customers wants and not what they needed.
Folks the options are few but very clear.
1) pay the premium and be thankful you were able to get coverage.
2) Sell the property and move to Montana where it is colder than most people care for, poor sunsets, no beaches, no waterfront condos and cheaper insurance.
3) Don\’t buy coverage, but take the risk yourself. this is an option if you do not have a mortgage. But then if you have a mortgage you probably do not have the financial means to potentially lose your house and still survive and rebuild out of your own poscket and not Uncle Sams or mine
Just realize that insurance companies are not able to keep paying out money by the $billions when they do not have it. These recent losses over the last 2 years are unprecedented and must be paid for. nothing in life is free and very little is cheap.