There isn’t a financial organization in the world that would lend money to someone for Florida property without wind coverage. Wind is the second largest Homeowner coverage peril behind Fire even in states far from coast. That is just not realistic.
Robin,
Another flaw in your logic. The profits you refer to in your response are countrywide profits. I will cede that the major insurance companies still made a profit in all states combined. However, Florida Homeowners has been a massive profitability loser over any time period you would care to measure. That is why the major carriers are leaving.
I agree with David, except for the wind endorsement. Why should all Floridians suffer paying surcharges for those companies that go involvent. Insurance companies need to make sure they are charging premium commensurate with the risk to prevent this problem.
Not all homes in Florida are a high risk, especially those located in Central Florida going Northern. It is mainly the coastal areas and the southern portion of the state. Insurers should rate those higher for the risk. But wait, some of those homes are owned by the corporate officers of Poe (that just went insolvent).
I believe some are misunderstanding my point I am trying to make. My issue is with the rest of us residents carrying the load for an insolvent insurance company while the corporate officers of that company continue to lead the same lavish lifestyle. It isn’t right. Those same people will become officers of the next company they open or with a competitor. Many of the people in Florida are seniors on a fixed income and some (roughly 10,000 people) a day that move to Florida are paying for something unfairly. It isn’t fair they pay a price when they were living in Maine!!
Ultimately, the system needs a major overhaul. Insurers should be able to rate up the lavish coastal homes that are continuing to get damaged over and over..and those insurers should force the homeowner to share in the cost. In this way, we would have more people working harder to safeguard their homes for a storm.
With that said, I have been in Florida for 36 years and I have never experienced a hurricane until 2004. I know that Andrew hit down south in 1992- but for 36 years…well you do the math.
I’m out, I have to go and explain the surcharges to some elderly people on a fixed income.
AHH Robin, try to get an increase through the FL DOI. Doesn’t happen. The state has been artificially surpressing rates for years. My company and many others will not write new property business because of the idiotic situation with the high politicized insurance situation. Wait till the big one hits and every coverage you have, not property, are surcharged for the losses of Citizens up to 78%. This state government is out of control.
I agree with Nobody Important, the state of Florida needs to stay out of the insurance companies business. Let insurance companies charge a rate that will give them a profit and provide the coverage at a price they wish to set. If they charge too much or too little companies will go out of business. Insurance companies have not made a profit in Florida in years. It is time for a change. If you want to live in sunshiny Florida next to the beautiful ocean you have got to pay more for insurance, because we know the hurricanes are coming.
The state of Florida is screwing its own insurance company Citizens Property Insurance Corp by not allowing them to charge enough rate for the risk and if we have another 2004 or 2005 hurricane season Citizens will not survive.
It is crazy that Floridians pay assessments on auto and other lines of insurance to make up for the lack of premiums collected on home policies in the past. In closing, Government needs to stay out of the insurance business and let companies have a free market and charge whatever they want, competition and claims will weed out the bad companies.
The insurance industry is the only industry I know that will pay the claims of an insolvent competitor – and that’s what the guaranty fund does. The companies who pick up the tab are allowed to recoup that expense over time. The alternative is for all those “poor old people” who bought insurance from a now-insolvent company to have NO COVERAGE AT ALL.
The problem with the insolvent carrier’s mismanagement is a separate one.
(And y’all don’t need to point out that “boring” and “actuary” are redundant… I know)
Good God, man, do you think anyone still possesses any sense of civic duty to pay ANY taxes? The whole idea of funding goverment depends on taxes….why should government do anything without funding? We have the same problem in Pennsylvania, where we need money for infrastructure maintainence and repair but it is politically impossible to raise money through taxes or bonds; instead they are having a sheriff’s sale (lease)of the Pennsylvania Turnpike, the single biggest successful government project ever; so when the new operator reneges on the union contract, hires replacment workers at lower wages, raises fares and allows the pavement to deteriorate, the folks in government will say, “it’s not my fault, it’s the operator…”; talk about a lack of accountability! If EVERYONE wants something for nothing, then that’s what they’ll get: NOTHING! the folks in Florida will be complaining forever for someone else to pay for their lack of foresight. Serves ’em right…
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How do the idiots in the state of florida allow this crappy company to continue making money when they put us in a hole for 5 years.
http://www.poeagency.com/AboutUs/AbouttheAgency/tabid/81/Default.aspx
There isn’t a financial organization in the world that would lend money to someone for Florida property without wind coverage. Wind is the second largest Homeowner coverage peril behind Fire even in states far from coast. That is just not realistic.
Well said Jack Mehoff…my point exactly!!!!
Robin,
Another flaw in your logic. The profits you refer to in your response are countrywide profits. I will cede that the major insurance companies still made a profit in all states combined. However, Florida Homeowners has been a massive profitability loser over any time period you would care to measure. That is why the major carriers are leaving.
I agree with David, except for the wind endorsement. Why should all Floridians suffer paying surcharges for those companies that go involvent. Insurance companies need to make sure they are charging premium commensurate with the risk to prevent this problem.
Not all homes in Florida are a high risk, especially those located in Central Florida going Northern. It is mainly the coastal areas and the southern portion of the state. Insurers should rate those higher for the risk. But wait, some of those homes are owned by the corporate officers of Poe (that just went insolvent).
I believe some are misunderstanding my point I am trying to make. My issue is with the rest of us residents carrying the load for an insolvent insurance company while the corporate officers of that company continue to lead the same lavish lifestyle. It isn’t right. Those same people will become officers of the next company they open or with a competitor. Many of the people in Florida are seniors on a fixed income and some (roughly 10,000 people) a day that move to Florida are paying for something unfairly. It isn’t fair they pay a price when they were living in Maine!!
Ultimately, the system needs a major overhaul. Insurers should be able to rate up the lavish coastal homes that are continuing to get damaged over and over..and those insurers should force the homeowner to share in the cost. In this way, we would have more people working harder to safeguard their homes for a storm.
With that said, I have been in Florida for 36 years and I have never experienced a hurricane until 2004. I know that Andrew hit down south in 1992- but for 36 years…well you do the math.
I’m out, I have to go and explain the surcharges to some elderly people on a fixed income.
AHH Robin, try to get an increase through the FL DOI. Doesn’t happen. The state has been artificially surpressing rates for years. My company and many others will not write new property business because of the idiotic situation with the high politicized insurance situation. Wait till the big one hits and every coverage you have, not property, are surcharged for the losses of Citizens up to 78%. This state government is out of control.
I agree with Nobody Important, the state of Florida needs to stay out of the insurance companies business. Let insurance companies charge a rate that will give them a profit and provide the coverage at a price they wish to set. If they charge too much or too little companies will go out of business. Insurance companies have not made a profit in Florida in years. It is time for a change. If you want to live in sunshiny Florida next to the beautiful ocean you have got to pay more for insurance, because we know the hurricanes are coming.
The state of Florida is screwing its own insurance company Citizens Property Insurance Corp by not allowing them to charge enough rate for the risk and if we have another 2004 or 2005 hurricane season Citizens will not survive.
It is crazy that Floridians pay assessments on auto and other lines of insurance to make up for the lack of premiums collected on home policies in the past. In closing, Government needs to stay out of the insurance business and let companies have a free market and charge whatever they want, competition and claims will weed out the bad companies.
The insurance industry is the only industry I know that will pay the claims of an insolvent competitor – and that’s what the guaranty fund does. The companies who pick up the tab are allowed to recoup that expense over time. The alternative is for all those “poor old people” who bought insurance from a now-insolvent company to have NO COVERAGE AT ALL.
The problem with the insolvent carrier’s mismanagement is a separate one.
(And y’all don’t need to point out that “boring” and “actuary” are redundant… I know)
Good God, man, do you think anyone still possesses any sense of civic duty to pay ANY taxes? The whole idea of funding goverment depends on taxes….why should government do anything without funding? We have the same problem in Pennsylvania, where we need money for infrastructure maintainence and repair but it is politically impossible to raise money through taxes or bonds; instead they are having a sheriff’s sale (lease)of the Pennsylvania Turnpike, the single biggest successful government project ever; so when the new operator reneges on the union contract, hires replacment workers at lower wages, raises fares and allows the pavement to deteriorate, the folks in government will say, “it’s not my fault, it’s the operator…”; talk about a lack of accountability! If EVERYONE wants something for nothing, then that’s what they’ll get: NOTHING! the folks in Florida will be complaining forever for someone else to pay for their lack of foresight. Serves ’em right…