George, I wish to God it was rhetoric. But as a physician, administrator, and legislator I am intimately aware of the facts. And the details, in my opinion, boil down to the simple and sad fact that Allstate paid for corporate assistance from a consultant group that seduced them into getting tough as a means to reduce or eliminate a category of particularly troublesome claims. I never hesitate to target attorney practices and I was instrumental in getting workmans compensation laws changed in my state for tort reform. But the attorneys are not to blame in this case. The specific management that endorsed this direction at Allstate should be held directly accountable for the blunder – which will cost the shareholders far more money than it ever saved. And George, when someone in this darn industry – even one of you bloggers – will for once realize that sometimes it’s just better to apologize and offer that apology I will be happy to shut up.
For those of your that claim to be in the industry but haven’t a clue to what a wind mit is, this is the reason the state should mandate it for all windstorm policies.
Florida legislation required carriers writing windstorm policies to offer credits, rate reductions or other discounts for certain constructin features that lend in minimizing risk/damage due to windstorm activity. In order for underwriting to assign these rate reductions to the premium, the structure must be inspected. This inspection is called a Wind Mitigation Verification or Wind Mit.
Now, I am shocked to see individuals writing on the blog claiming to be big-time insuance folks but yer have no idea as what I was talking about earlier.
That is exactly the reason why the state should mandate this inspection for all windstorm policies written in our state.
It is estimated that over 50% of homeowners are potentially paying more in premiums than their structure qualifies for.
All structures, however the real emphasis needs to be on the single family, site built homes. Windstorm coverage was getting out of control until the state stepped in. 150% increases of the last 4 years. Way out of hand.
Most agents are not advising clients as to the discounts because of the potential premium reductions (19-38%).
There is talk that changes to the current legislation will require the inspection/verification for all windstorm policies written in Florida on structures built prior to 2002. This will be a great advantage for the consumer in that the CORRECT rate, based on the construction methods and features, will then be charged and not an inflated one.
if i had a company sure, i would like to make as much profit as i can. but then i would make sure that the client was covered as i said i would. that profit can be used two-fold, re-invest back into the company or invest to make more money so that when a catastrophic even happens, i am prepared. you can’t keep blaming everything on the company that is servicing your product. you as a consumer needs to look at what you have and is there someone else that can offer the same at a lower cost. remember the law of supply and demand. if they move elsewhere, then you need to change you plan of action. key here is the consumer. unless he reacts, the company will not react. bringing him to court does not resolve any issues either, because it’s going to cost the consumer more money.
We have updated our privacy policy to be more clear and meet the new requirements of the GDPR. By continuing to use our site, you accept our revised Privacy Policy.
George, I wish to God it was rhetoric. But as a physician, administrator, and legislator I am intimately aware of the facts. And the details, in my opinion, boil down to the simple and sad fact that Allstate paid for corporate assistance from a consultant group that seduced them into getting tough as a means to reduce or eliminate a category of particularly troublesome claims. I never hesitate to target attorney practices and I was instrumental in getting workmans compensation laws changed in my state for tort reform. But the attorneys are not to blame in this case. The specific management that endorsed this direction at Allstate should be held directly accountable for the blunder – which will cost the shareholders far more money than it ever saved. And George, when someone in this darn industry – even one of you bloggers – will for once realize that sometimes it’s just better to apologize and offer that apology I will be happy to shut up.
For those of your that claim to be in the industry but haven’t a clue to what a wind mit is, this is the reason the state should mandate it for all windstorm policies.
Florida legislation required carriers writing windstorm policies to offer credits, rate reductions or other discounts for certain constructin features that lend in minimizing risk/damage due to windstorm activity. In order for underwriting to assign these rate reductions to the premium, the structure must be inspected. This inspection is called a Wind Mitigation Verification or Wind Mit.
Now, I am shocked to see individuals writing on the blog claiming to be big-time insuance folks but yer have no idea as what I was talking about earlier.
That is exactly the reason why the state should mandate this inspection for all windstorm policies written in our state.
It is estimated that over 50% of homeowners are potentially paying more in premiums than their structure qualifies for.
Thanks for explaining Wind Mits. I thought they might be special gloves used in spring training.
We don’t allow the wind to blow in Illiinois so we don’t have Wind Mit credits. Actually, all of our buildings need to handle most strong winds.
Thanks for the info. Does this credit apply to homeowners, seasonal homes, rentals, etc?
All structures, however the real emphasis needs to be on the single family, site built homes. Windstorm coverage was getting out of control until the state stepped in. 150% increases of the last 4 years. Way out of hand.
Most agents are not advising clients as to the discounts because of the potential premium reductions (19-38%).
There is talk that changes to the current legislation will require the inspection/verification for all windstorm policies written in Florida on structures built prior to 2002. This will be a great advantage for the consumer in that the CORRECT rate, based on the construction methods and features, will then be charged and not an inflated one.
Some things in life need to be mandated.
if i had a company sure, i would like to make as much profit as i can. but then i would make sure that the client was covered as i said i would. that profit can be used two-fold, re-invest back into the company or invest to make more money so that when a catastrophic even happens, i am prepared. you can’t keep blaming everything on the company that is servicing your product. you as a consumer needs to look at what you have and is there someone else that can offer the same at a lower cost. remember the law of supply and demand. if they move elsewhere, then you need to change you plan of action. key here is the consumer. unless he reacts, the company will not react. bringing him to court does not resolve any issues either, because it’s going to cost the consumer more money.