Posted On: November 8, 2007, 11:58 am CST

Posted By: SP

SouthernBelle is right. Something has to be done one way or another. She is also right in saying that eventually the premiums will be so high that people will start making the choice of insurance or none.

I don't agree that any of the States be forced to participate, however if a State does not participate they also cannot ask for the help when they have cat losses and insurance companies stop writing there also.

The risk needs to be spread out, the best way to do that is still very unclear. It does need to happen sooner, rather than later. As the cost of building materials, labor, property values, etc increase the cat's will be bigger and bigger. Insurance companies are in it to make money, just like the rest of us. If they can't raise rates to mitigate the losses they will leave States. And the choices will become smaller and smaller.