Awesome! See, maybe Karl Marx was right! OK, we all know this is nonsense. If the regular reinsurers models show a higher rate is needed, the Cat Fund can\’t get away with charging below the rate of risk. Well, they can, it\’s just that all us Floridians will have to pitch in to fix it. So, insurance carries will not make a profit, the Cat Fund will be beyond technical insolvency, Florida residents will pay dramatically higher assessments (like 10-50% probably) and nothing will have been solved except the temporary pandering of the skreechers and whiners. Nice job Charlie….you\’re fired.
Can\’t wait for the economists working in the state\’s fine university system to take a look at all this. Will they think that saving $750 now is worth paying $18,000 in post-loss assessments over 20-30 years in the first storm, another $8,000 in the next storm, and so on. Without the benefit of any economic analysis, legislators and the Governor may have set up the state\’s economy for the biggest crash since, since…..New Orleans.
Trust me, I do not agree with the new law. I do however have one question that I am interested in seeing if anyone knows the answer to.
If (ok when) it becomes necessary to assess a surcharge, what happens to the people who can not afford to pay the assessment? Also is the uncollectable assessment charges passed on to the remaining residents?
I would assume that the people who cannot afford to pay the surcharge would end up the same way the people who cannot pay the higher premiums end up. FORECLOSURE. In which case the bank or the new owner would have to pay.
I\’d much rather take the chance I MIGHT have to borrow money one time after a hurricane then DEFINITELY lose my house this year or next because I can\’t afford the 300% increase. (and, yes, it really was 299.6% increase in premium)
I applaude the Governor for making people feel better about the insurance crisis in Florida; while at the same time making himself look good during his first 30-60 days in office. Very impressive. Basically, Charlie, you are throwing the dice; and this isn\’t Vegas. You\’re betting that Florida won\’t be hit by any major hurricanes. And guess what, if we don\’t get hit by any storms, your plan will start to make sense. But what happens if we have another hurricane year like 2004 or 2005? The won\’t be enough money in Charlie\’s slot machine to pay out. And everyone who realized a rate decrease will then have their policies surcharged. And not just their Homeowners policies, all of their policies will be surcharged; auto, umbrella, etc. So if the tropics stay quiet or if the Hurricanes skip Florida and hit some other state, then Charlie may be a hero. WOW, legislating law which hinges on the weather. Perhaps the odds makers will win some money on this one, since its a big gamble for Florida.
In the past what has happened is the state will assess all insurers doing business in Florida, and then they will pass that cost on to their customers in the form of a surcharge or some sort.
You know, you might just have hit it right on the head with you \”rolling the dice\” comment.
A few hurricanes might just be the ticket to legalizing gambling in Florida. Where else could you come up with the $$$ as fast as a tax on casino profits???
Think of what people would be willing to trade in order to not pay the bill from their own pocket.
We just wrote a package policy in LA. They are assessing EVERY policy that includes Property a total of 19.5%. Our company tells us these assessments are to be paid up front. You cannot finance them or include them with the insurance company payment plan. You must pay them in order to get you policy! If you cannot affored it, you polcy is not renewed.
This risk was in the northern part of the state and not affected by the hurricanes but all policies written in the state are surcharged as we understand it. Someone working in LA correct me if necessary.
Those that do not have the exposure bail out those who choose to live or have a business located in the coastal areas.
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Awesome! See, maybe Karl Marx was right! OK, we all know this is nonsense. If the regular reinsurers models show a higher rate is needed, the Cat Fund can\’t get away with charging below the rate of risk. Well, they can, it\’s just that all us Floridians will have to pitch in to fix it. So, insurance carries will not make a profit, the Cat Fund will be beyond technical insolvency, Florida residents will pay dramatically higher assessments (like 10-50% probably) and nothing will have been solved except the temporary pandering of the skreechers and whiners. Nice job Charlie….you\’re fired.
Can\’t wait for the economists working in the state\’s fine university system to take a look at all this. Will they think that saving $750 now is worth paying $18,000 in post-loss assessments over 20-30 years in the first storm, another $8,000 in the next storm, and so on. Without the benefit of any economic analysis, legislators and the Governor may have set up the state\’s economy for the biggest crash since, since…..New Orleans.
Trust me, I do not agree with the new law. I do however have one question that I am interested in seeing if anyone knows the answer to.
If (ok when) it becomes necessary to assess a surcharge, what happens to the people who can not afford to pay the assessment? Also is the uncollectable assessment charges passed on to the remaining residents?
Thanks
I would assume that the people who cannot afford to pay the surcharge would end up the same way the people who cannot pay the higher premiums end up. FORECLOSURE. In which case the bank or the new owner would have to pay.
I\’d much rather take the chance I MIGHT have to borrow money one time after a hurricane then DEFINITELY lose my house this year or next because I can\’t afford the 300% increase. (and, yes, it really was 299.6% increase in premium)
I applaude the Governor for making people feel better about the insurance crisis in Florida; while at the same time making himself look good during his first 30-60 days in office. Very impressive. Basically, Charlie, you are throwing the dice; and this isn\’t Vegas. You\’re betting that Florida won\’t be hit by any major hurricanes. And guess what, if we don\’t get hit by any storms, your plan will start to make sense. But what happens if we have another hurricane year like 2004 or 2005? The won\’t be enough money in Charlie\’s slot machine to pay out. And everyone who realized a rate decrease will then have their policies surcharged. And not just their Homeowners policies, all of their policies will be surcharged; auto, umbrella, etc. So if the tropics stay quiet or if the Hurricanes skip Florida and hit some other state, then Charlie may be a hero. WOW, legislating law which hinges on the weather. Perhaps the odds makers will win some money on this one, since its a big gamble for Florida.
In the past what has happened is the state will assess all insurers doing business in Florida, and then they will pass that cost on to their customers in the form of a surcharge or some sort.
You know, you might just have hit it right on the head with you \”rolling the dice\” comment.
A few hurricanes might just be the ticket to legalizing gambling in Florida. Where else could you come up with the $$$ as fast as a tax on casino profits???
Think of what people would be willing to trade in order to not pay the bill from their own pocket.
We just wrote a package policy in LA. They are assessing EVERY policy that includes Property a total of 19.5%. Our company tells us these assessments are to be paid up front. You cannot finance them or include them with the insurance company payment plan. You must pay them in order to get you policy! If you cannot affored it, you polcy is not renewed.
This risk was in the northern part of the state and not affected by the hurricanes but all policies written in the state are surcharged as we understand it. Someone working in LA correct me if necessary.
Those that do not have the exposure bail out those who choose to live or have a business located in the coastal areas.
This has been tried before with chain letters, AMWAY and other ponzi schemes.
ATTENTION taxpayers – leave while you can.
This is great news for Florida and other states should follow suit. It\’s about time.