.....The biggest insurers, State Farm and Allstate, have not written homeowners' policies in high-risk, coastal areas of the state for years....***
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.
good, quit bailing out poor decisions
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.
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.
Nationwide AIN'T on their side.
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.
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.
INSURANCE, n. An ingenious modern game of chance in which the player is permitted to enjoy the comfortable conviction that he is beating the man who keeps the table.
INSURANCE AGENT: My dear sir, that is a fine house â pray let me insure it.
HOUSE OWNER: With pleasure. Please make the annual premium so low that by the time when, according to the tables of your actuary, it will probably be destroyed by fire I will have paid you considerably less than the face of the policy.
INSURANCE AGENT: O dear, no â we could not afford to do that. We must fix the premium so that you will have paid more.
HOUSE OWNER: How, then, can I afford that?
INSURANCE AGENT: Why, your house may burn down at any time. There was Smith's house, for example, which â
HOUSE OWNER: Spare me â there were Brown's house, on the contrary, and Jones's house, and Robinson's house, which â
INSURANCE AGENT: Spare me!
HOUSE OWNER: Let us understand each other. You want me to pay you money on the supposition that something will occur previously to the time set by yourself for its occurrence. In other words, you expect me to bet that my house will not last so long as you say that it will probably last.
INSURANCE AGENT: But if your house burns without insurance it will be a total loss.
HOUSE OWNER: Beg your pardon â by your own actuary's tables I shall probably have saved, when it burns, all the premiums I would otherwise have paid to you â amounting to more than the face of the policy they would have bought. But suppose it to burn, uninsured, before the time upon which your figures are based. If I could not afford that, how could you if it were insured?
INSURANCE AGENT: O, we should make ourselves whole from our luckier ventures with other clients. Virtually, they pay your loss.
HOUSE OWNER: And virtually, then, don't I help to pay their losses? Are not their houses as likely as mine to burn before they have paid you as much as you must pay them? The case stands this way: you expect to take more money from your clients than you pay to them, do you not?
INSURANCE AGENT: Certainly; if we did not â
HOUSE OWNER: I would not trust you with my money. Very well then. If it is certain, with reference to the whole body of your clients, that they lose money on you it is probable, with reference to any one of them, that he will. It is these individual probabilities that make the aggregate certainty.
INSURANCE AGENT: I will not deny it â but look at the figures in this pamph â
HOUSE OWNER: Heaven forbid!
INSURANCE AGENT: You spoke of saving the premiums which you would otherwise pay to me. Will you not be more likely to squander them? We offer you an incentive to thrift.
HOUSE OWNER: The willingness of A to take care of B's money is not peculiar to insurance, but as a charitable institution you command esteem. Deign to accept its expression from a Deserving Object.
New jingle: Nationwide is on the run!
I live in Pasco county. A raise of 28.9% would have been great.
I haven't had time to figure out the exact percentage, but my raise this year was over 100%. Not because I had a claim - I never have claimed here in FL.
I was dropped by my insurance company for owning a German Shepherd.
Lord help me. I owned a German Shepherd where it rains a lot. I'm wicked, wicked.