Posted on 09/05/2007 12:31:12 PM PDT by Between the Lines
Add the director of the South Carolina Department of Insurance to the thousands of coastal homeowners who have lost property insurance since Hurricane Katrina.
Scott Richardson, who lives on Hilton Head Island, was notified three weeks ago that his policy would be dropped.
Following Katrina two years ago, premiums rose as much as 400 percent in hurricane-prone areas, and many insurers stopped writing coverage.
Richardson now finds himself shopping for insurance.
"I guess it just proves nobody's immune. If I'm not immune, then nobody is," said Richardson, who was appointed to head the Insurance Department in February.
Richardson may have to join the South Carolina Wind and Hail Underwriting Association, known as the wind pool. In July, the department announced rate increases averaging 35 percent.
"I might be in the wind pool before you know it," Richardson said. "I get to try a little of my own medicine."
The wind pool provides last-resort coverage in areas where other insurers have stopped writing policies. Florida's program created three years ago attracted 1.3 million customers and became the state's largest property insurance provider.
Poorer taxpayers subsidizing richer taxpayers so they can have a better view...
Don’t tell me this guy doesn’t have some pull.
State Farm is by far the worst offender here on the Gulf Coast. They have more than quadrupled in the last 5 or 6 years.
I fuss about USAA but they are actually one of the better ones.
And that storm, Invest 99, (possible Trop Depression/Trop Storm by then) is supposed to hit SC/NC this weekend.
“I personally believe that, US Americans are unable to get property insurance, because some … people out there in our world don’t have insurance, and I believe that coastal areas, like such as in South Africa and the Iraq, everywhere like such as, and I believe that they should ... come over here to the US to get property insurance for South Africa and should help the Iraq and the Asian Countries so we will be able to build up our property insurance …”
Was it ALL real estate investments? I have as much problem understanding this as a liberal has with oil profits.
I have to play devil’s advocate here. Why should insurance companies be compelled to offer coverage in high risk areas?
But you can bet our rates won’t go down, just because they have had no major payouts for a couple years. I haven’t made a claim in 20 years, don’t live in an evac zone, entire house was upgraded to Miami/Dade code 3 years ago, we haven’t had a major hurricane hit our area in years, yet State Farm still raised my rates 75 percent this year (and even if a hurricane hit, my hurricane deductible is so large it would almost cover the cost of putting on a new roof.)
You can say that again. My house was built in 2006 and outside of a flood zone and yet I am paying the same rate as the clowns closer to the Gulf.
It's called 'cash reserves against loss'.
L
Not only do we have a view we have FEMA
I understand all that....
Article dated March 2007...State Farm CEO gets 82% raise due to record profits
http://www.insurancejournal.com/news/national/2007/03/07/77498.htm
LOL...poor kids. You know, she could have had a case of stage fright, but now she’ll be the Room Temp IQ Blonde 4Ever.
Don't take your coverage for granted.
Good for him and good for the State Farm stockholders.
L
Do you think their 1 year premiums cover all catastrophes incurred in any given year ? A bunch of it goes to fund reserves for those years they have massive payouts, called “loss reserves”, and they are required by law.
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