Posted On: February 22, 2007, 2:26 pm CST

Posted By: Ralph Balamabama

Kim,
To answer your questions yes I am an insurance agent but not along the coast and not for State Farm. They are my biggest competition so I have a hard time leading the cheering section for them. To me they are to the insurance industry what Wal-Mart is to retail. However, I would have to disagree with you about being part of the problem and state that I am part of the solution. Do you have any idea how many billions of dollars insurance companies pay every year to put their customers back where they were pre-loss? A very noble industry if you ask me and one in which none of us including me can live without. One solution for gulf coast states is the national flood program. It was created and can be sold by any agent for the purpose of covering flood damage. Why did they create it? Because flood does more property damage every year than any other peril and is not covered by basic policies. Therefore, if every company automatically covered it the rates would be a lot higher for everyone buying a home, which would keep some people from affording a home. Why should a person in a non-coastal area and not in a flood zone be forced to buy flood insurance under their normal policy when they do not need it? If you have enough money to self-insure then go for it. Nobody is forcing you to buy from a private company. If you think nationalizing insurance will help you are sorely mistaken. The buraucracy that would be created would only make the cost even higher. Insurance companies are no different than a company that for instance bakes bread. It cost so much for the material, baking, transporting to the store etc. If it costs more to make it than they can sell it for than they will not be in business for long. There is a real definable cost of insurance it just is a little harder to put your finger on because losses vary from one year to the next depending on weather etc. However, through competition a company trying to over charge will soon lose market share to a company selling it for less. If you want a company that covers practically everything you can get it. Try Firemans Fund or Chubb out. However, when you get their superior policy you must also realize it will probably cost 2 to 3 times what the State Farm policy costs? Why? Its simple...they will pay more and for things State Farm does not. Kind of like the Wal-Mart thing. Wal-Mart is the cheapest like State Farm but not the best. Why, because coverage and cost go hand in hand. Insurance companies are in business to make money IE profit. What business is not? I bet you do not work at your job for free. Get a life!!!