Posted on 12/08/2006 6:17:12 AM PST by Hydroshock
"Try telling your mortgage company you are not buying insurance."
If you don't want to buy homeowners' insurance, don't borrow money to buy your house; i.e., don't give someone else an insurable interest in your property.
Sounds like a red lining practice to me.
By the way I agree with red lining. (The term "redlining" comes from the practice of marking red lines on a map, which banks would do in order to delineate areas they did not want to lend to.) - tom
You're going to take the side of the insurance companies? Good luck with that.
Go after insurance fraud--
Allstate did this to me years ago in NY due to floods along the Mississippi River. I don't quite understand it because although I lived within a 1/2 mile of the Ocean, I was about 100 feet above Sea Level. FWIW, Allstate lost all of my other business because of this, and I haven't gone back since.
These were pillars of the community--and I started to understand how my premiums went to support "soft fraud" like this. If they'd gotten a little visit from the State Atty Gen Insurance Fraud Committee they'd have learned a good lesson. But they all got away with it, and even seemed to feel entitled to get away with it.
Homeowners Insurance companies write policies to exclude floodwater damage--then we hear squawking that, yes, they do exclude coverage for floodwater damage. Entitlement mentality again. Because a great tragedy has come about, the business should be a sacrificial lamb.
There was a newspaper article a few years ago as follows about many of the largest insurers in Florida established separate companies that pay Florida losses only with Florida premiums. If they have a big loss they can dissolve the Florida company without damaging the parent company. There's an article that was in the Wall Street Journal 9-7-2004. If you would like the website url please let me know.
Well, imagine if they had another Hurricane Gloria.
Why would we want to help fight it? I don't want to be in a pool where my rates are higher so people can live in high-risk areas.
Actually events like Katrina are windfalls for insurance companies. They get to raise their rates and dump high risk policy-holders, make back their losses(usually quite small due to re-insurance) in a couple years, and enjoy the increased premiums and lower risk profiles for eternity.
Out here in California they haven't been able to build becuase of regulatory hoops and hurdles.
All that would do is further reduce the number of insurance companies in the state, driving up rates still more.
As (bad)luck would have it, I live in Texas.
Although I have chosen to return to electrical engineering; I, proudly, spent fifteen years as an underwriter for Lloyds of London. There are many very smart people here at FreeRepublic; some of which possess insurance knowledge that I would bow to. I would welcome any of their correction.
By any measure, I am intimately familiar with P&C insurance...its workings, and its requirements. Confess your ignorance, & be forgiven.
Auto liabilty insurance is not mandatory in Texas. It is not mandatory for personal auto libility, or even commercial.
Texas, like every state, requires evidence of financial liability/responsibility(on autos). The Texas Department of Insurance clearly spells out three different ways this requirement can be satisfied....a current insurance policy is but one of them.
Even as a homeowner, I'm required to carry "slip and fall"
"Slip & fall", knowlingly referred to as liability(casualty) coverage, is not a requirement of homeowners by Texas law. Casualty, and property, coverage is something that any responsible person would carry, whether required to or not.
Thankfully, there are a great many subjects of which I remain ignorant. Because of that, tomorrow holds great promise, and interest for me. P&C insurance is not one of those subjects.
Anything of which you are ignorant, you should be modest when discussing. Do not substitute arrogance for opportunity.
Thank you.
It is always a pleasure to encounter someone who actually knows what they are talking about.
Thank you.
Anything of which you are ignorant, you should be modest when discussing...
But I like mouthing off on sujects about which I know little or nothing. After a few beers I even understand string theory.
I'm a rum drinker myself, and cannot shake my passion for argument.
State Farm nearly went belly-up when Andrew hit Miami. There recovery was stifled by the recent storms of the last couple of bad years. One major storm can wipe out an insurance companies reserves (or catastrophe funds). Many state laws require insurance companies to retain massive funds tucked away to meet claim demands.
When the states in turn refuse to allow companies to raise rates -- the alternative is a refusal to insure. If you owned a private businees insuring homes or automobiles, would you want to do business in places where statistics show you will lose money?
Insurance companies do not insure homes for earthquake in California. Earthquake insurance is provided by the California Earthquake Association -- state funded. Major concern in California are fires.
Right, only problem with your answer is we live in a nation of folk who can't add the numbers and want everything to be free.
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