I don’t hear any one telling the truth about the insurance industry in regards to Katrina. The property insurance companies PAID over $40,000,000,000 on 1,700,000 claims. Does this sound like companies not living up to their promise?
The argument always gets back to thosa who did not carry flood or did not have adequate limits. Like Trent Lott.
retired admiral and he been in charge of the fleet but did not have appropriate coverage for flood damage? um. he thinks that he’s going to get the coverage of his limits? he’s going to find out, that there is a % limit of damage by activity. it’s like a rear end collision with more than one vehicle, each contributes to the damage. good news, he’s got a place to live and still on the same piece of property.
I BELIEVE that the Admiral WAS fully insured for flood coverage, however, I WOULD ASSUME that the wind that drives the water MIGHT have come in before the water itself. When you’re buffeted with 130 mile per hour winds for HOURS and then flooded, IS IT A POSSIBILITY, that the structural integrity of the home is SHOT, well before the water comes in and floods the dwelling???? When the roof lifts and moves, what does that do to every board the roof is nailed to, inside the walls of the house? WHEN is the insurance company responsible, Mr. Wudchuck? I was in the attic of a home that USAA insured, trust me — before the water arrived, the wind came — IN FORCE and for a long, long time — and we prayed that the roof would not come off each time it lifted, and the house moved…….the water was just the final act, and we lived 2+ miles inland in a NO FLOOD ZONE — try living it before you talk about it WUDCHUCK — first hand experience here! I like back seat drivers — they always know every answer, until their own wreck occurs! I hope the same never happens to you — and trust me, it is a life altering experience. If I had SELF-INSURED, then I would find myself in a much better position than I am now — all I paid for was a high-end fire policy because that’s about all the insurance company would actually cover, and I’m sure they’d flinch a bit on that! As an “insurance journal”, I am certain my opposing voice will be painful to hear, but understand — there are thousands of people like me out there, and since we’ve been destroyed, we’ve taken a new interest, in BIG BUSINESS! Enjoy your windfall profits! Like the auto industry — changes are coming!!!
i understand living in the storm, i lived thru andrew! my concern, is going to be like the other insurance companies. they are going to go by the letter of the print and not the spirit of the letter. i think that the insurance commisioners need to really think about insurance wording and make it clear not just to the agent but to the policy holder. have them initial that they are understanding the difference and they declined the coverage.
i emphathise because i have been there. it is a scary situation.
BDJS5 “and we lived 2+ miles inland in a NO FLOOD ZONE.” Unless your community does not participate in the NFIP, you were in a Flood Zone (likely a Preferred Risk Flood zone) where you could have purchased $250K of Building and $100K of Contents coverage for less then $400.
I will clarify — we were in FLOOD ZONE C — and the 500 year flood plane was where my home was located. I can provide plat maps — when we asked about insurance coverage at closing, regarding flood insurance, we were told no, it was not required because of the zone our home was in. PERIOD – nothing was discussed about optional flood insurance. We asked that question specifically because we were not from a coastal state, and were concerned about hurricanes and coverage. Two points to note (1) we are not STUPID people and would have insured IF we had been told we were in a flood zone and (2) we would have NEVER purchased in a flood zone (which would have effectively negated 1). OPTIONAL flood insurance was available, but when you’re sitting on a golf course, and the actual beach is more than 5 miles away and the closest water 2+, you really don’t think about flood insurance. Having lived in the same home for 13 years, we NEVER saw flooding, and trust me, there were a number of hurricanes which effected our area of the coast. Again, changes will come in the insurance community. Gross, inflated profits during the past years, is an indicator that something needs to change. Sorry if you are an agent, and you’re caught in the middle, but I did have to admire Wudchuck’s acknowledgment, that the spirit versus the letter of policies must be clarified to agents and those insured. I think we were all “HAD”. A good friend of mine is an agent in the effected area of coastal Mississippi, and trust me, his “good neighbors” were not very happy with him —-
Gross, inflated profits? On the coast? Don’t believe everything your insurance commissioner is telling you. Profits for any business are necessary to stay in business. The last thing you want is your insurance company losing money every year.
You are so right, Bdjs5. If the mortgage company does not require it(they have an interest to protect) and you are not in a flood zone, I can see where you would choose not to get coverage. I know that sometimes agent don’t recommend it.
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Very nicely said Claims Friend. Its good to see a thoughtful post from time to time.
I don’t hear any one telling the truth about the insurance industry in regards to Katrina. The property insurance companies PAID over $40,000,000,000 on 1,700,000 claims. Does this sound like companies not living up to their promise?
The argument always gets back to thosa who did not carry flood or did not have adequate limits. Like Trent Lott.
here we go —
retired admiral and he been in charge of the fleet but did not have appropriate coverage for flood damage? um. he thinks that he’s going to get the coverage of his limits? he’s going to find out, that there is a % limit of damage by activity. it’s like a rear end collision with more than one vehicle, each contributes to the damage. good news, he’s got a place to live and still on the same piece of property.
I BELIEVE that the Admiral WAS fully insured for flood coverage, however, I WOULD ASSUME that the wind that drives the water MIGHT have come in before the water itself. When you’re buffeted with 130 mile per hour winds for HOURS and then flooded, IS IT A POSSIBILITY, that the structural integrity of the home is SHOT, well before the water comes in and floods the dwelling???? When the roof lifts and moves, what does that do to every board the roof is nailed to, inside the walls of the house? WHEN is the insurance company responsible, Mr. Wudchuck? I was in the attic of a home that USAA insured, trust me — before the water arrived, the wind came — IN FORCE and for a long, long time — and we prayed that the roof would not come off each time it lifted, and the house moved…….the water was just the final act, and we lived 2+ miles inland in a NO FLOOD ZONE — try living it before you talk about it WUDCHUCK — first hand experience here! I like back seat drivers — they always know every answer, until their own wreck occurs! I hope the same never happens to you — and trust me, it is a life altering experience. If I had SELF-INSURED, then I would find myself in a much better position than I am now — all I paid for was a high-end fire policy because that’s about all the insurance company would actually cover, and I’m sure they’d flinch a bit on that! As an “insurance journal”, I am certain my opposing voice will be painful to hear, but understand — there are thousands of people like me out there, and since we’ve been destroyed, we’ve taken a new interest, in BIG BUSINESS! Enjoy your windfall profits! Like the auto industry — changes are coming!!!
i understand living in the storm, i lived thru andrew! my concern, is going to be like the other insurance companies. they are going to go by the letter of the print and not the spirit of the letter. i think that the insurance commisioners need to really think about insurance wording and make it clear not just to the agent but to the policy holder. have them initial that they are understanding the difference and they declined the coverage.
i emphathise because i have been there. it is a scary situation.
BDJS5 “and we lived 2+ miles inland in a NO FLOOD ZONE.” Unless your community does not participate in the NFIP, you were in a Flood Zone (likely a Preferred Risk Flood zone) where you could have purchased $250K of Building and $100K of Contents coverage for less then $400.
I will clarify — we were in FLOOD ZONE C — and the 500 year flood plane was where my home was located. I can provide plat maps — when we asked about insurance coverage at closing, regarding flood insurance, we were told no, it was not required because of the zone our home was in. PERIOD – nothing was discussed about optional flood insurance. We asked that question specifically because we were not from a coastal state, and were concerned about hurricanes and coverage. Two points to note (1) we are not STUPID people and would have insured IF we had been told we were in a flood zone and (2) we would have NEVER purchased in a flood zone (which would have effectively negated 1). OPTIONAL flood insurance was available, but when you’re sitting on a golf course, and the actual beach is more than 5 miles away and the closest water 2+, you really don’t think about flood insurance. Having lived in the same home for 13 years, we NEVER saw flooding, and trust me, there were a number of hurricanes which effected our area of the coast. Again, changes will come in the insurance community. Gross, inflated profits during the past years, is an indicator that something needs to change. Sorry if you are an agent, and you’re caught in the middle, but I did have to admire Wudchuck’s acknowledgment, that the spirit versus the letter of policies must be clarified to agents and those insured. I think we were all “HAD”. A good friend of mine is an agent in the effected area of coastal Mississippi, and trust me, his “good neighbors” were not very happy with him —-
Gross, inflated profits? On the coast? Don’t believe everything your insurance commissioner is telling you. Profits for any business are necessary to stay in business. The last thing you want is your insurance company losing money every year.
You are so right, Bdjs5. If the mortgage company does not require it(they have an interest to protect) and you are not in a flood zone, I can see where you would choose not to get coverage. I know that sometimes agent don’t recommend it.
You guys must have minimum auto limits with no UM because, after all,it’s not “required”, huh?
Sheeeeeesh…………….
Better rethink the “stupid” statement