I\’m getting blue in the face suggesting what seems to be the obvious fix that is staring us all in the face. Let Citizens write the Wind risk statewide. Not Homeowners, Not Condos, Not Businesses…Just the Wind risk. That way, the \”problem\” of Hurricane losses will sit squarely where it should. With the State. It\’s proven to be too big a risk for the insurance industry to handle. Once Citizens is just in the Wind insurance business, the insurance companies can get back to what they know and do best. Cover the manageable risks like Fire and Burglary. The way to fix the problem is right there in front of us. Will the politicians see it? Hope so.
To address the Cost per Square Foot issue. Times have changed and the building codes (especially here in South Florida) require closer to $125-150 per square foot. With that said, the Replacement Cost Estimators that are available in Citizens rating system allow for upgraded kitchens and bathrooms as well as other upgrades. You can build a house for $100 per square foot, but not with all the bells and whistles.
The cost per sq. foot is what makes \”national cat\” insurance impractical. I know that the vast majority of Floridians do not lie on the beach, etc., but they have chosen to live in one of the states with the highest constrution cost, ie: Comp roofing installed where I live is aabout $105 per square, in south Florida it is in excess of $300 per sq. Why would I want to help pay for these construction cost ?
Whatever. The State asking for the business is meaningless. They are losing money in buckets and taxing everyone else inthe private market to make up for thier losses. And you like this? Are you serious? You want to extend it to other lines of insurance? Not only will your taxes double, but Florida will continue to go it alone rather than participate in the global reinusrance market.
If Insurance companies are making so much money, and are indeed greedy, why would they leave when there is all of this money to be made?
Out of curiosity, where did you get those numbers from?
\”I know that the vast majority of Floridians do not lie on the beach, etc., but they have chosen to live in one of the states with the highest constrution cost. Why would I want to help pay for these construction cost?\”
Where else should I live? I don\’t think you would want to pay for someone else\’s repairs. I don\’t either. South Florida is only a small portion of Florida though. (You were pointing them out in particular).
Maybe we should just take some chainsaws to the border and cut ourselves off from the rest of the US and then float away. Then, out of state people couldn\’t come visit Disney World and drive like crazy tourists. :)
The cost for Comp Roofing should be static no matter where it\’s installed. The cost in Florida is artificially high because of supply and demand. If 500,000 homes in Iowa suddenly needed a new roof, the costs there would rise as well. Look for the cost of roofing in Florida to subside as fewer need roofing. This boom will end eventually (unless we keep getting more storms). Until then, we\’re stuck with the costs the market will bear.
The cost per sq. ft. with out the bells and whisles is not correct. Most homes do not have oak, maple or even real wood cabinets. I have reviewed estimates and adjusted for over 25 years. Every time there is a claim, guess who wants to upgrade their home. The state needs to grab ahold of the policy and start to enforce the contract. Do you know how many times I have had to reopen a hurricane claim because insureds spend the money on better than they had, and want the insurance to pay for it. They hire these so called Public Adjusters who are out for the dollar than to realy help an insured. How do I know, I am involved in it, The insured pays any place from 15 to 30% of the settlement to these blood suckers, and when the company wants to enforce the policy, they get blocked by blood sucking Attys. The public pays. Also the insurance does not cover your foundation, you need to subtract that from the cost to rebuild, Slabs never burn, block walls can be repaired, you need 80% coverage to get full replacement cost.
Bob, you are so right. The insureds always upgrade. They have particle board cabinets and want it replaced with real wood and it doesn\’t stop at that!
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Give what time? Citizens did not have enough monet to pay it\’s previous cat losses.
I\’m getting blue in the face suggesting what seems to be the obvious fix that is staring us all in the face. Let Citizens write the Wind risk statewide. Not Homeowners, Not Condos, Not Businesses…Just the Wind risk. That way, the \”problem\” of Hurricane losses will sit squarely where it should. With the State. It\’s proven to be too big a risk for the insurance industry to handle. Once Citizens is just in the Wind insurance business, the insurance companies can get back to what they know and do best. Cover the manageable risks like Fire and Burglary. The way to fix the problem is right there in front of us. Will the politicians see it? Hope so.
To address the Cost per Square Foot issue. Times have changed and the building codes (especially here in South Florida) require closer to $125-150 per square foot. With that said, the Replacement Cost Estimators that are available in Citizens rating system allow for upgraded kitchens and bathrooms as well as other upgrades. You can build a house for $100 per square foot, but not with all the bells and whistles.
The cost per sq. foot is what makes \”national cat\” insurance impractical. I know that the vast majority of Floridians do not lie on the beach, etc., but they have chosen to live in one of the states with the highest constrution cost, ie: Comp roofing installed where I live is aabout $105 per square, in south Florida it is in excess of $300 per sq. Why would I want to help pay for these construction cost ?
Whatever. The State asking for the business is meaningless. They are losing money in buckets and taxing everyone else inthe private market to make up for thier losses. And you like this? Are you serious? You want to extend it to other lines of insurance? Not only will your taxes double, but Florida will continue to go it alone rather than participate in the global reinusrance market.
If Insurance companies are making so much money, and are indeed greedy, why would they leave when there is all of this money to be made?
Answer: Fix prices, and supply disappears.
Still another bob-
Out of curiosity, where did you get those numbers from?
\”I know that the vast majority of Floridians do not lie on the beach, etc., but they have chosen to live in one of the states with the highest constrution cost. Why would I want to help pay for these construction cost?\”
Where else should I live? I don\’t think you would want to pay for someone else\’s repairs. I don\’t either. South Florida is only a small portion of Florida though. (You were pointing them out in particular).
Maybe we should just take some chainsaws to the border and cut ourselves off from the rest of the US and then float away. Then, out of state people couldn\’t come visit Disney World and drive like crazy tourists. :)
The cost for Comp Roofing should be static no matter where it\’s installed. The cost in Florida is artificially high because of supply and demand. If 500,000 homes in Iowa suddenly needed a new roof, the costs there would rise as well. Look for the cost of roofing in Florida to subside as fewer need roofing. This boom will end eventually (unless we keep getting more storms). Until then, we\’re stuck with the costs the market will bear.
The cost per sq. ft. with out the bells and whisles is not correct. Most homes do not have oak, maple or even real wood cabinets. I have reviewed estimates and adjusted for over 25 years. Every time there is a claim, guess who wants to upgrade their home. The state needs to grab ahold of the policy and start to enforce the contract. Do you know how many times I have had to reopen a hurricane claim because insureds spend the money on better than they had, and want the insurance to pay for it. They hire these so called Public Adjusters who are out for the dollar than to realy help an insured. How do I know, I am involved in it, The insured pays any place from 15 to 30% of the settlement to these blood suckers, and when the company wants to enforce the policy, they get blocked by blood sucking Attys. The public pays. Also the insurance does not cover your foundation, you need to subtract that from the cost to rebuild, Slabs never burn, block walls can be repaired, you need 80% coverage to get full replacement cost.
Bob, you are so right. The insureds always upgrade. They have particle board cabinets and want it replaced with real wood and it doesn\’t stop at that!
JUST ASKING????