It’s not anything other than PRICE. That’s it. PRICE. People have to see a value in what they’re buying and a piece of paper going into the thousands of dollars isn’t very compelling unless they’ve had a loss in the past. It’s why X-wind policies are so popular with the no mortgage crowd even in hurricane prone areas.
Agree with the point on price – 20+ years of the gecko and Flo have done a lot of damage to consumers, but most don’t know it *yet*. A cheap policy today is a very expensive lesson tomorrow.
Maybe risk tolerance? Everyone has a different risk tolerance, and if you are willing to go with hope and a prayer, good luck.
Purchasing anything of value, such as a home, should include the associated cost to insure. If you fail to purchase the appropriate insurance, then you have no one else to blame and you should not have expectations of sympathy from others.
It is because Home/Auto/Life lines have been marketed and sold no differently than the tactics of infamous used car dealerships of the 70’s & 80’s. We reap what we sow, and we’ve been over-commoditizing the value of insurance for decades now, and until recently, carriers have started employing new strategies, but the damage is done.
Personal lines insurance is one of the “four corners” of financial planning. 1) Money management, 2) Short term savings, 3) Long term investment and 4) Personal insurance including life, health and disability.
The family is an organization that resembles a business. There are income & expenses, assets & liabilities, management skills and a division of labor along with short and long term planning involved. An organization must take the risk management approach: identify, analyze and mange loss exposures which will involve risk control and risk financing strategies. Predominantly, if a loss exposure is not financed with insurance it is retained out of pocket. If this retention is unknowing it is considered “passive retention”. Certain exposures can be comfortably retained but many (namely low frequency – high severity) cannot.
The average family does not follow this model, but if you are an agent and can attract or coach similar families you will be very successful.
The reason to drop insurance is because of ripoff prices and the fact that companies don’t pay claims until they are sued. Insurance has become a corrupt scam. Every year now I have to switch to a new company when the last one doubles my premium. Now that I’m retired I can’t afford to pay my entire monthly income for home insurance. I had State Farm for several years with the agent constantly talking me into increasing the coverage each year. The agent inspected the property in person and I was honest about what I do, which includes growing and selling small amounts of produce to a restaurant. I have 4.5 acres and chickens. Turns out if you have chickens State Farm says you are a farm and State FARM doe NOT insure farms, period. I would have had to sue. This agent is their star awarded agent for the amount of money he takes in–through FRAUD. When I went to a new agent in disgust of the pressure tactics of the original, State Farm cancelled my insurance immediately upon learning I had chickens. Liberty Mutual DOUBLED my premium at the first renewal date because “the price of lumber has gone up”. This is a solid stone house. Insurance companies are ALL crooks. The very few people I’ve known in my life who had claims all had to get lawyers to make the insurance company pay. All I want is a liability policy, period. I’m done being ripped off by scammers.
Articles such as this are BIASED, coming from people affiliated with the insurance industry. The truth is that insurance is a calculated risk. Insurance companies, and articles such as this, focus on the worst case scenario, even when statistically there are slim chances of it happening.
Besides, every year my home insurance goes up for no reason other than greedy corporations. So every year I have to shop around for cheaper insurance, but the first year my policy renews, the insurance company doubles the premiums. I am fed up, and I’d rather take my chances than pay $$$ to insurance.
It’s not anything other than PRICE. That’s it. PRICE. People have to see a value in what they’re buying and a piece of paper going into the thousands of dollars isn’t very compelling unless they’ve had a loss in the past. It’s why X-wind policies are so popular with the no mortgage crowd even in hurricane prone areas.
Agree with the point on price – 20+ years of the gecko and Flo have done a lot of damage to consumers, but most don’t know it *yet*. A cheap policy today is a very expensive lesson tomorrow.
Maybe risk tolerance? Everyone has a different risk tolerance, and if you are willing to go with hope and a prayer, good luck.
Purchasing anything of value, such as a home, should include the associated cost to insure. If you fail to purchase the appropriate insurance, then you have no one else to blame and you should not have expectations of sympathy from others.
Eventually, you will lose!
Fifty years I’ve had homeowners insurance and never made a single claim. What a waste of $$
I’m willing to bet you don’t have any real friends.
It is because Home/Auto/Life lines have been marketed and sold no differently than the tactics of infamous used car dealerships of the 70’s & 80’s. We reap what we sow, and we’ve been over-commoditizing the value of insurance for decades now, and until recently, carriers have started employing new strategies, but the damage is done.
Personal lines insurance is one of the “four corners” of financial planning. 1) Money management, 2) Short term savings, 3) Long term investment and 4) Personal insurance including life, health and disability.
The family is an organization that resembles a business. There are income & expenses, assets & liabilities, management skills and a division of labor along with short and long term planning involved. An organization must take the risk management approach: identify, analyze and mange loss exposures which will involve risk control and risk financing strategies. Predominantly, if a loss exposure is not financed with insurance it is retained out of pocket. If this retention is unknowing it is considered “passive retention”. Certain exposures can be comfortably retained but many (namely low frequency – high severity) cannot.
The average family does not follow this model, but if you are an agent and can attract or coach similar families you will be very successful.
The reason to drop insurance is because of ripoff prices and the fact that companies don’t pay claims until they are sued. Insurance has become a corrupt scam. Every year now I have to switch to a new company when the last one doubles my premium. Now that I’m retired I can’t afford to pay my entire monthly income for home insurance. I had State Farm for several years with the agent constantly talking me into increasing the coverage each year. The agent inspected the property in person and I was honest about what I do, which includes growing and selling small amounts of produce to a restaurant. I have 4.5 acres and chickens. Turns out if you have chickens State Farm says you are a farm and State FARM doe NOT insure farms, period. I would have had to sue. This agent is their star awarded agent for the amount of money he takes in–through FRAUD. When I went to a new agent in disgust of the pressure tactics of the original, State Farm cancelled my insurance immediately upon learning I had chickens. Liberty Mutual DOUBLED my premium at the first renewal date because “the price of lumber has gone up”. This is a solid stone house. Insurance companies are ALL crooks. The very few people I’ve known in my life who had claims all had to get lawyers to make the insurance company pay. All I want is a liability policy, period. I’m done being ripped off by scammers.
Articles such as this are BIASED, coming from people affiliated with the insurance industry. The truth is that insurance is a calculated risk. Insurance companies, and articles such as this, focus on the worst case scenario, even when statistically there are slim chances of it happening.
Besides, every year my home insurance goes up for no reason other than greedy corporations. So every year I have to shop around for cheaper insurance, but the first year my policy renews, the insurance company doubles the premiums. I am fed up, and I’d rather take my chances than pay $$$ to insurance.