how can those companies justify raising rates just because they have not suffered any losses to incur losses? sounds like the insurance commissioner was not doing his job. cool thing — that the gov’r and the legislative body decided to fix that loophole. it only makes sense.
This legislation will do three things for sure: 1. it will make insurance more expensive for everyone because it increases the amount insurance companies will have to pay out. 2. People that live inland will subsidize the insurance premiums of those that live on the coast.
3. It will reduce the (supply) number of insurers willing to write in DE which will also cause prices to go up.
It’s complex and a mechanism for coastal companies to afford property insurance. Different deductibles for different perils. No carrier will write coastal with hurricane exposures at the same deductible as fire — so to make the product affordable, the wind deductible. Mr. Common Sense is spot on — legislative interference will create those issues, and potentially dry up all property insurance for coastal RI. If you own coastal, you should pay more for property insurance if wind is included. Or, you can always purchase ex-wind and self insure; totally contrary to the illustrious public good.
Bill, actually, moving away from the coast, or at least slowing the development of the coast is part of the answer. http://www.smartersafer.org
has good information on this. We also must have strong building codes and enforcement to save lives and protect property. Carriers should be allowed to price based on risk so people that live in harms way pay for that risk.
My rates in South Carolina have gone up 300% since 2001 and the last major hurricane in the Charleston area was Hugo and 1989. For the past 19 years the South Carolina Wind and Hail Underwiriters Association of insurance companies has collected $ 500 million in premiums and only had direct clains of about $ 120 million.The international reinsurers have esclated rates and we folks on the coast are suffering.
Anybody have an idea as to how to attack this problem other than moving away form the coast.
Common Sense makes sense, however, the pool does not save the excess premiums for the next storm. They fall to profit for the reinsurer or profit for the companies in the pool. I would not mide paying all these premiums if some of the unused amount was reserved (saved) for the time when a storm does hit us again, but the funds are not saved.
Dave make a good point about living on the coast and I may have to move inland. However, you may not realize over 50 million Americans live within a few miles of the coast from California to Maine so just think of the mess it would cause if we all moved further inland in order to save on our insurance.
Bill, Just think, if you don’t have another Hugo until 2029 the pool will have just about enough money to cover your losses – Heaven forbid you have 2 Hugo’s every 40 years. There’s no free lunch. If you want to live on the coast, you have to pay the full price and stop making us midwesterners pay for your losses.
how can those companies justify raising rates just because they have not suffered any losses to incur losses? sounds like the insurance commissioner was not doing his job. cool thing — that the gov’r and the legislative body decided to fix that loophole. it only makes sense.
This legislation will do three things for sure: 1. it will make insurance more expensive for everyone because it increases the amount insurance companies will have to pay out. 2. People that live inland will subsidize the insurance premiums of those that live on the coast.
3. It will reduce the (supply) number of insurers willing to write in DE which will also cause prices to go up.
It’s complex and a mechanism for coastal companies to afford property insurance. Different deductibles for different perils. No carrier will write coastal with hurricane exposures at the same deductible as fire — so to make the product affordable, the wind deductible. Mr. Common Sense is spot on — legislative interference will create those issues, and potentially dry up all property insurance for coastal RI. If you own coastal, you should pay more for property insurance if wind is included. Or, you can always purchase ex-wind and self insure; totally contrary to the illustrious public good.
Bill, actually, moving away from the coast, or at least slowing the development of the coast is part of the answer. http://www.smartersafer.org
has good information on this. We also must have strong building codes and enforcement to save lives and protect property. Carriers should be allowed to price based on risk so people that live in harms way pay for that risk.
My rates in South Carolina have gone up 300% since 2001 and the last major hurricane in the Charleston area was Hugo and 1989. For the past 19 years the South Carolina Wind and Hail Underwiriters Association of insurance companies has collected $ 500 million in premiums and only had direct clains of about $ 120 million.The international reinsurers have esclated rates and we folks on the coast are suffering.
Anybody have an idea as to how to attack this problem other than moving away form the coast.
Common Sense makes sense, however, the pool does not save the excess premiums for the next storm. They fall to profit for the reinsurer or profit for the companies in the pool. I would not mide paying all these premiums if some of the unused amount was reserved (saved) for the time when a storm does hit us again, but the funds are not saved.
Dave make a good point about living on the coast and I may have to move inland. However, you may not realize over 50 million Americans live within a few miles of the coast from California to Maine so just think of the mess it would cause if we all moved further inland in order to save on our insurance.
Bill, Just think, if you don’t have another Hugo until 2029 the pool will have just about enough money to cover your losses – Heaven forbid you have 2 Hugo’s every 40 years. There’s no free lunch. If you want to live on the coast, you have to pay the full price and stop making us midwesterners pay for your losses.