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Another insurer to drop policies (Nationwide won't renew 40,000 policies for Florida homeowners)
St. Petersburg Times ^
| September 1, 2005
| JEFF HARRINGTON
Posted on 09/01/2005 1:49:31 AM PDT by Cincinatus' Wife
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***....More than a half-dozen companies have left the state or stopped writing policies since hurricanes Charley, Frances, Ivan and Jeanne caused a combined $22-billion in insured damages. Among them: Safeco Insurance, which told the state last month it would not write new policies and, beginning in 2006, would stop renewing customers. Allstate also has decided not to renew 95,000 policies.
.....The biggest insurers, State Farm and Allstate, have not written homeowners' policies in high-risk, coastal areas of the state for years....***
To: Cincinatus' Wife
In July, Nationwide won approval to raise rates an average of 21 percent on homeowners' policies and 25 percent for mobile homes. Well we have a MAJOR CLUE as to the source of the problem right there.
In a free market, there will be a price at which all sorts of insurance will be available.
In a government regulated market, you will quite likely end up with none at all.
2
posted on
09/01/2005 2:01:14 AM PDT
by
konaice
To: konaice
Interesting point.
It's the bottom line.
Those in areas prone to hurricanes and flooding are going to pay dearly for insurance.
To: Cincinatus' Wife
good, quit bailing out poor decisions
4
posted on
09/01/2005 2:06:40 AM PDT
by
sure_fine
(*not one to over kill the thought process*)
To: Cincinatus' Wife
Is Citizens breaking even?
5
posted on
09/01/2005 2:06:42 AM PDT
by
HiTech RedNeck
(No wonder the Southern Baptist Church threw Greer out: Only one god per church! [Ann Coulter])
To: HiTech RedNeck
To: Cincinatus' Wife
Apparently Katrina made landfall on the same calendar day that Andrew did. Which means 11 named hurricanes in 2005 up to this point...compared to one single named hurricane up to the same point in '92. The insurers have noticed these stats too.
To: HiTech RedNeck
Is Citizens breaking even? Which one? There's about 8 of em by that name.
8
posted on
09/01/2005 2:19:33 AM PDT
by
konaice
To: XpandTheEkonomy
I have sympathy for their profit margin but this is insurance and while they accept our money, they never seem to like to pay out.
To: Cincinatus' Wife
Yep, the ideal situation for insurance companies would be to take in all premiums and never pay out on a claim, which begs the question:Why have insurance at all if you can't use it without being cancelled?
I asked an insurance agent that once and he said "peace of mind." I didn't ask him how you could have peace of mind if using your insurance was going to cause you to lose it!
10
posted on
09/01/2005 2:47:24 AM PDT
by
calex59
To: calex59
LOL. Wow. I am amazed at his honesty.
11
posted on
09/01/2005 2:57:25 AM PDT
by
spetznaz
(Nuclear-tipped Ballistic Missiles: The Ultimate Phallic Symbol)
To: calex59
I know.
A lot of people think twice about filing because it will raise their premiums. Then, when that "peace of mind" event comes along, you're canceled.
To: Cincinatus' Wife
Historically-until the mid 20th century, these "desirable" ares of real estate had remained undeveloped and unpopulated precisely because of their propensity fro runs of violent weather.
13
posted on
09/01/2005 3:12:40 AM PDT
by
mo
To: mo
To: Cincinatus' Wife
Nationwide AIN'T on their side.
15
posted on
09/01/2005 3:39:17 AM PDT
by
fieldmarshaldj
(*Fightin' the system like a $2 hooker on crack*)
To: Cincinatus' Wife
I sold insurance in Florida for 28 years and had a very large book of business. I was in Clearwater (Pinellas) and Naples (Collier) In that 28 years my company Allstate)never cancelled any policies on a large scale such as this. We never had hurricanes of this magnitude in those years. I am not going to sit here and defend the companys but they don't have money trees and the only way they can stay in business is to get enough premiums to cover the operation. Any business you do business with could not continue in business if they didn't make money or a profit. How long would you stay in business if you continued to go into your savings to keep operating?
Insurance is the idea of spreading the losses over a large segment of the insureds,some have many losses while others do not have any losses, thats right, we all pay for the ones that use the policies over and over. My premium on my homeowner policy here in Pennsylvania has gone up quite a bit and I'm sure some of it is to help defray some of the costs of the couple of bad years in the hurricane belt.
16
posted on
09/01/2005 3:43:06 AM PDT
by
depenzz
(My tastes are simple, I 'm always satisfied by the best)
To: calex59
That's about it too. I had Allstate for 18 years. Got hit in Denver in my truck by a (most likely illegal alien) van that ran a red light (after the hit, they drove three blocks and fled). It was my first recordable accident to Allstate. Because I failed to chase down the the culprits. I paid their ridiculous jack up till I could switch companies - then dropped them for being a sorry P.O.S..
Wonder if State-farm will jack me around if I ever have to get in the battle ring with my insurer?
To: Cincinatus' Wife
What needs to happen is stop building homes and businesses in areas prone to flooding and damage by these storms.
I for the life of me cannot understand why we have to subsidise rebuilding of places like New Orleans when we know this could happen again.
18
posted on
09/01/2005 3:50:10 AM PDT
by
Radioactive
(I'm on the radio..so I'm radioactive)
To: Radioactive
The 2004 ground zero for 2 hurricanes in as many weeks just happens to be the fastest growing city in Fl., on the top ten nationwide list, and is adding a turnpike interchange and an I-95 interchange to keep up with the massive population influx.
Go figure. :-)
To: Cincinatus' Wife
Unfortunately this is true with any insurance.
Car insurance, health insurance, etc. You can pay in for years, but file a claim or come down with a serious illness and you risk being cancelled, or having your rates raised so high that you can't afford to keep the insurance.
Free market, I guess, but I've had friends have to "fight" with an insurance company about a claim but the insurance company had been more than happy to take money for years. As long as no claim was filed, there were no problems.
That being said, I have State Farm, live in a coastal region, and State Farm has continued to renew our policy and allowed us to up our coverage. And another insurance company we've had good service from is Geico. Have had a couple claims over the years because of accidents and they have been very efficient.
20
posted on
09/01/2005 4:01:30 AM PDT
by
dawn53
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