Posted On: October 2, 2007, 12:14 pm CDT

Posted By: Stat Guy

Our reinsurance program is renewing at about 15% higher this year due to the expected increase in wind in the mid-atlantic and New England so I know what you are talking about. The problem is that your geographic area has been ignored in the models and forecasts for several years and now reinsurers want to catch up on that all at once. I know that the price is up and I am familiar with your neighborhood (my college roommate was from Lake Ronkonkoma and Smithtown. I also know that the proxmity to high value real estate in NYC makes the suburban areas high value real estate as well. But someone already said that it there is a price for living close to the beach, same as living on mountain tops in California, but that those intangibles are actually now a part of the price for the LOCATION. Location is what makes a two bedroom cape cod on Long Island an risk worth a half million bucks easy. We insure vehicles at Original Cost New and homes at Replacement cost, not how much you mortgaged. I do understand your plight, but I think that people are only now discovering that insurance was underpriced in the past and now after a couple of CATS, price needs to match exposure more closely. I am sorry that some people think it is government's job to make an unfair proposition fair....as they say life's a b**ch...