Those people in Flood zones can get subsidized coverage below actuarially sound rates, what makes them so special?
I worked hard to get my beach house, why can’t everyone stop being selfish and share the risk?
I don’t care if piles more debt on my grandchildren; they don’t vote, I do!
I’ll think about allowing subsidies for the people exposed to earthquakes too, but only after I get mine – so there.
While we’re at it, may auto insurance got way more expensive after I rolled my Explorer, I think the government should make it so I can package my auto coverage with the NFIP.
so, here’s the dilema… how can we afford to forgive a $20 billion debt? that is our taxpayer money there as well, does that mean down the road we will see the fed’s forgive the $180 billion debt? come on now, when and where can we stop allowing these so-called loans to be forgiven. if you look in the past, when we have given foreign aid to other countries, how many of them we have forgiven but we don’t tell the public. how much more money can we as a country keep falling in debt? we have to let things fail sometimes in order to get the corrected. to err is human and last i heard we all are — nobody is perfect!
It is true wind pools exist but what if those pools are underfunded as Florida’s is. Also Janet Napolitano stated there are companies willing to write wind coverage for companies withdrawing. Sounds like she talked to slick Chalie Crist who is clueless. That’s what he says ;but look at the companies, they are poorly capitalized and buy reinsurance from a State Cat fund which is not capable of paying their obligations from a large hurricane
I THINK IT IS QUITE POSSIBLE THAT CRIST REALLY IS CLUELESS, OR JUST WANTS VOTES FROM THOSE WHO REFUSE TO PAY ACTUARIALLY SOUND RATES FOR THEIR HOME INSURANCE. IF HE LET HIS INSURANCE CZAR ALLOW COMPANIES TO CHARGE HIGHER RATES, THERE WOULD BE MORE COMPANIES WRITING BUSINESS IN FLORIDA!
This guy Gene Taylor said, “How can the administration spend so much time with the CEOs that have run their companies into the ground, but not spend so much as five minutes to talk about how the multiple-peril insurance legislation will protect American taxpayers from insurance companies that defraud the federal government to the tune of billions?”
Umm, excuse me sir, but how would adding wind coverage to the NFIP prevent the defrauding of the federal government? Has he actually seen what has happened to the NFIP under the direction of the federal government? The other thing that doesn’t make sense in this article is how FEMA could have paid off the $20 Billion in debt if they hadn’t been forced to pay the interest on the debt and borrow $1.68 Billion from the treasury? If they didn’t have the $1.68 Billion, where would they have gotten the nearly $20 Billion? Where do these people come from???
Christ is totally CLUELESS! As is our Senate President, Jeff Atwater. Both of these politicians – and that’s what they are, in the most negative sense of the word – were willing to bet the farm (and the Florida economy) on the wind not blowing for their own personal/political gain. Atwater is the guy that has consistantly pushed for moritoriums on rate increases for the FWUA and for Citizens since it merged with the FRPCJUA.
What’s really disconcerting is now that Alex Sink announced she’s running for Governor, Atwater in all likelihood will run for CFO. If you think the market in Florida is screwed up now, just wait until Atwater gets his grubby little hands on the OIR.
The problem with adding wind coverage to the NFIP is that the politicians will ultimately use their influence on supressing the rates.
What do you think is going on with the “pre-FIRM” properties that are being subsidized right now? If these people had to pay actuarially sound rates for flood coverage, they’d be screaming all the way to Washington.
That’s why the 18 billion in flood losses will be forgiven – but you won’t see the politicians in Congress whose constituants live in the SFHAs vote to increase the Pre-FIRM rates anytime soon.
Maybe we should really just stop subsidizing the NFIP.
OK…Let me get this straight…people get flooded,
private insurers won’t offer them coverage,
people cry to government,
people get disaster relief from government,
government can’t afford disaster relief,
gov’t sets up subsidized flood insurance program to collect premiums to offset cost of disaster relief (NFIP),
people keep buying homes in flood areas,
people buy flood insurance,
people get flooded,
NFIP doesn’t charge actuarial rates,
NFIP can’t afford to continue to pay unless caps in rate increases are removed and they can actually charge actuarial rates and recover some of the $ they have paid out,
people still buy homes and live in flood areas…and now they want wind coverage too.
Why can’t we just say, sorry, if you want to live in a flood area, you are on your own and let the private insurance sector do what it knows how to do?
And while we’re at it, why not let these Lawyer-Politicians get their own health insurance once they leave office instead of us taxpayers subsidizing them for the rest of their lives.
Amazing how the rest of us citizens can’t get the same health coverage these people in Congress give themselves.
Thomas Jefferson was right, we need a revolution every couple of decades or so.
There just may be a glimmer of hope for this bunch by opposing wind with flood, however, I can’t help but feel the political reason outweighed the sensible reasons.
..well, friends..it boils down to this :
Everytime the secular insurance market says, “no. we can’t do that” the Federal government is gonna step in and do it.
Riot Reinsurance Act
Nat’l Flood Program
E/Q Procurement procedures
etc,
In a very real sense, this started with…-you guessed it: The Social Security Act
Have a great day.
I agree; bailing out AIG has nothing to do with offering wind coverage via the NFIP and would not help taxpayers anyway. The only thing it would do is make it simpler to obtain wind by having a single entity provide cover instead of having to particpate in NFIP and buy cover from the voluntary market. Making wind available under the NFIP doesn’t mean those who didn’t purchase before will automatically purchase it now. What this bill really intends is to subsidize it, not just offer an alternative to the voluntary market.
Actuarily sound, give me a break windstorm insurance is not actuarily sound because politicians play politics with premiums to get elected. Look at Charlie Crist of Florida.
Katrina proved that dual causation is a very good reason for the combination of coverages at least in coastal areas.
We can do it & we can save money with a policy that will financially protect our homes.
Hurricane Insurance:
wind,water,hail,sleet,snow….
the city/state can also rebuild towns with our own mass construction.
Built to the strongest codes in history.
Rebuilding our lives on a solid foundation…our own.
To Hell With All The Insurance Companies!
Up Yours!
The states are the same as the Feds.
They make the rules & change them when they want. Each state has their own Insurance Commissioner that provides regulations to protect the industry.
There is not one regulation that protects an Agent, nor is there one regulation that protects the Insured.
The few regulations they have only protect the Insurance Companies. It’s BS
Eventually the gov’t will have to pay up the $20B. That is why flood insurance should be a limited to a bare bones policy for only those owner occupants for structure loss and renters for pp loss. No more. Stop subsidizing wealthy beach front vacationers!
Well the American People are paying trillions for a policy without coverage.
Someone needs to Sell HURRICANE INSURANCE
It is fraud for Insurance Companies to add a Hurricane Deductible to your policy when there is NO SUCH THING AS HURICANE INSURANCE. Enough of the BS.
Evey Homeowner is paying for a Policy that is not worth the paper it is defraudly written on. Got it?
I was pleased that Obama doesn’t want the feds to regulate wind coverage. Kim you are partially correct in that neither federal or state regulators protect agents – that needs to change. Since agents are considered representatives of the carriers that is a difficult task. We almost got agent protective legislation passed in 2007 in Texas. The Texas legislature meets only in odd years and ends its sessions on June 1st. The sole exception is if the governor calls a special session for special needs. There is currently revisions of the windstorm pool in the Texas legislature. The Senate version passed conmmittee last week and the House committee version I believe goes up for vote tomorrow (5/19/09). They will meet to iron out their differences before being voted on by the full legislature. Agents have been telling their customers to call their representatives so it is going to happen. Kim you are correct – if this was at the federal level I had better have a bunch of money and a good lobbyist.
In Texas, there is regulatory rules that protect consumers. I prefer state regulation in that my congressional representatives know me, they know that I influence their constituents so, they listen and react to what I tell them.
We do need one policy which includes both wind and flood. However, Obama is correct! What is incorrect is the definition of ‘storm surge’. Wind policies won’t cover storm surge damage because they state the damage was caused by a flood. Example: Numerous homes on Boliver Penninsula (north of Galveston Island) were washed away by a 24 foot storm surge from Hurrican Ike. Wind & flood adjusters spent months debating which policy should pay what – withholding money to the insureds until they finished their debates. The answer: Wind policies need to include storm surge. Storm surges are in fact wind driven water. By including storm surge in wind policies it would solve this problem about which policy pays what. A structural engineer told me that the storm surge that hit Boliver probably would have not been so devastating had thoses buildings not been weakened by high winds for 6 to 8 hours before the storm surge hit.
Funding! It is a problem that has to be dealt with anyway. The ‘storm surge’ risk should be added to the wind policy and rates increased for proper funding. Construction codes will have to be better. This may do away with the small houses on stilts that are so common. Those families may need to sell their small homes and use the money to buy condos in heavily constructed buildings.
The Insurance Industry will NEVER pay for surge, wind driven, waves, spray or any form of water damage because they have been defrauding the American people since they were allowed to add these CALCULATING exclusions to every Homeowners Policy in this country.
Why do you think they added these calculating exclusions?
How did they get away with this?
The Insurance Commissioners in USA.
People who live in coastal areas already pay higher rates with annual rate increases and also with an extra Hurricane Deductible…Yet the policy will never pay.
Defination of a Hurricane:
Wind & Rising Water
There will always be rising water in a coastal area during a hurricane. These exclusions are “The Money Card” for the Industry. They sit back & wait for the water & then they are off the hook.
The Industry blamed water for Katrina before anyone could even get back to their homes.
Katrina blew the roof off the superdome & blew windows in high rise hotels fm LA, MS to AL. I am sick of the corruption.
We, The People, need to stand up & demand fair policy, A Hurricane Ins Policy or else take this business away fm the Industry completely. What good are they if they do not pay? You have to jump thru hoops to get them to pay then they deduct depreciation for antiques. lol
We are being Had!!!
ALL HOMEOWNERS POLICYHOLDERS SHOULD READ THEIR POLICIES AND BE AWARE OF EXCLUSIONS AND THEIR EXPLICIT DEFINITIONS. I WOULD NEVER PURCHASE COASTAL IMPROVED PROPERTY AND EXPECT TO BE RESCUED. YOU PAYS YOUR MONEY AND YOU TAKES YOUR RISK!
IF PEOPLE DID READ &/OR UNDERSTAND
THEIR POLICY, THEY WOULD NOT BUY IT.
THE INDUSTRY DELIBERATELY MAKES THE POLICY CONFUSING TO ALL.
THE POLICY IS SO CONFUSING IT HAD JUDGES TEARING ROBES OFF EACH OTHER AFTER KATRINA.
THE LAYOUT IS PLANNED TO CONFUSE.
THE TERMS ARE WRITTTEN TO CAUSE CONFUSION.
DECEPTIVE TACTICS & FALSE POLICY.
GO SELL THAT CRAP IN IRAQ & YOU WILL HAVE YOUR HEADS ON A PICKET FENCE.
It is common knowledge with those of us in the insurance profession that the insurance carriers will fight their hardest to keep storm surge out of the windstorm policies. However, in the past the federal government has been able to offer assistance to the victims. FEMA is now seeking ways to reduce their responsibilities in this area. The time may have come that the feds have enough pressure on them to force storm surge coverage be removed from the flood policy and placed on windstorm policies. True the state wind pools may be the only ones to pick up the risk. Obama and the NFIP wants to reduce their risk and this is a good way for them to do so. The NFIP could easily hold the position that without the wind that there would not be a storm surge.
My concern is that if the above occurs that the feds will pick up wind in the flood policy (possibly by endorsement) thereby giving them another reason for regulating insurance at the federal level.
IT IS TRUE THAT POLICIES SHOULD BE WRITTEN IN PLAIN ENGLISH, SO YOUR POINT IS VERY WELL TAKEN, KIM. HOWEVER, MOST HOMEOWNERS POLICIES HAVE A FLOOD EXCLUSION WHICH IS ONLY AMBIGUOUS IN A STORM SURGE OR HURRICANE SITUATION, AND I AGREE THAT PROBLEM SHOULD BE ADDRESSED. I AM IN ARIZONA, SO WE WOULD SELDOM HAVE THAT PROBLEM.
Excuse me but, The Feds Regulate the Insurance Industry at every turn & that is why the Regulations only Protect the Industry & not the Insured or Agents.
Seems like The Lobby is a RICCO act,
unlawful assemblies, deal making & campaign contributions to prevent regulations that protect the insured.
Kim, sure the feds do regulate some of the insurance industry. However, most regulation is at the state level. The federal government wants more to take much of the regulatory authority away from the states.
Each state has its own challenges and I believe that the bulk of the regulatory authority needs to stay at the state level.
I AM GLAD YOU MENTIONED LOBBIES, KIM. ONE OF MY GRIPES IS THE MONEY IN POLITICS. IF WE OUTLAW ALL THE HUGE CAMPAIGN CONTRIBUTIONS, AND ONLY ALLOW VERY SMALL INDIVIDUAL CONTRIBUTIONS, I HAVE NO DOUBT BOTH YOU AND I WOULD BE HAPPIER WITH THE RESULTS!
We are getting off the subject but, to answer Larry. The hurricane deductible is also called a ‘named storm’ deductible. We have them on some Texas policies – Farmers has one on their Texas Family Home Policy. The named storm deductible allows an insured to pick a higher deductible for damage caused by a storm if it were a ‘named storm’ within 24 hours of when it damaged their property. It can be a good deal for a customer if they live far enough away from the coast that a named storm will weaken before it gets to their area. In that case the damage is paid out under clause 1 – wind & hail. I guide customers away from the named storm deductible unless they live a very safe distance from the path of hurricanes. It is a difficult decision for the customer to make if they don’t live close to the coast but, yet not far either. I just explain how the deductible works and let them make the decision.
If your roof blows off during a hurricane/
storm, You pay the policy deductible,
You pay the Hurricane/Storm deductible,
MINUS Depreciation
and the policy will not pay for rain/spray damage to walls, contents, structure.
The claim is denied for water damage in any way, shape or form. B.S.
You will get a new roof, minus the deductibles & depreciaiton but you have overpaid for a policy without financial protection.
Insurance companies need to stop giving kickbacks to politicians while gouging their policyholders. I live 2500 feet off the coast of CT in a harbor that hasn’t flooded or had wind damage in 100 years. Travelers is bending us over hard with this ridiculous hurricane coverage junk (which Obama supports). Do they care for the people or do they care for the money? Follow the money!
There is no such thing as Hurricane Insurance BUT they add Hurricane Deductibles. They will not pay for any water damage, wind driven, spray, rising, waves, etc.
Explain a $2350.00 insurance premium per year on a small Summer cottage. We have never, as far as I know, filed a claim in 80 (eighty) years that the home has been in our family. Our premium has more than doubled in the last few years. We have had two carriers decline from quoting us a new policy. Kim, are you going to defend this?
I can’t defend this. If you read your policy you will find that you are spending
$2,350 for nothing. They have it figured out. Even if you reduce the amount of coverage to half, you will only save a few hundred. Get a quote on the minimum amt. of coverage to comare. This will make you real angry. They will continue to raise rates annually. Try making a claim & jump thru hoops to get reimbursed.
They depreciate antiques & want receipts, photos & list of what was damaged, minus your deductible + hurricane/storm deductible + depreciation = They got you again!!! I will never know why the USA protects these crooks. We can self insure by city/state & cut them out completely, save money & have a fair policy. The US is protecting these crumbs when the American People can have the whole loaf of bread.
I thought I had signed off on this IJ conversation but, I got a notice of new comments.
RBTAM, we are obviouly not comparing apples to apples. What perils does your policy cover? Ex: Kim’s description of the wind policies in Louisiana and Mississippi pays ACV, etc.. In Texas, the windstorm policy (sometimes incorrectly called a ‘hurricane policy’) offer RCV coverage but, only pays for wind & hail. A person must also have a flood and hazard policy to cover the remaining perils. Also, the ‘named storm’ deductible in Farmer’s policies is part of a broad form policy that simply offers the choice of a higher deductible for ‘named storms’. However, Farmers mandates the higher ‘named storm’ deductible for areas near the gulf coast.
The price carriers pay for reinsurance on coastal risks has increased considerably the past few years. The reinsurance carriers are concerned that named storms will be both more frequent and severe. This is being driven by global warning concerns.
We have sections of the Texas coast that havn’t had a close hit by a named storm in years – actuaries will tell you that means they are due one!!! If it helps, your premium seems low compared to Florida and Texas premiums – depending upon your coverage.
I canceled all of my homeowners insurance and I bought the maximum flood.
Self-Insured, I can buy a new roof every year with the insurance premiums & still have money left over.
You can only self insure if your home is paid for. The banks demand homeowners insurance or they will gladly buy one for you at your expense. The banks are in on this too. They will keep your Insurance Checks because your insurance company will make your checks payable to you & your mortgage co. You have to sign the check & mail it to a special dept. that will sit on your check as long as they can. Using tactics like the check waqs lost in the mail gets them another 3 months. Banks are ready for disasters. They don’t want you to pay off your loa with insuance benefits so they are a step ahead. Another Scam in its own.
The banks make you jump thru hoops just to get your own money to fix your home.
Another thing: No Double Dipping
If you have $250k flood + #250 homeowners,
and your $250k home is destroyed…lol
even though you pay for 2 seperate policies with 2 seperate premiums,
they won’t let you collect on both. ahahahaha I have to laugh rather than cry.
It is just disgusting to understand the American Way. Then we wonder why other people hate us & don’t trust us.
Sorry, the apple pie is gone & I now wonder if we ever had it, or were we that nieve back then?
I’m not buying it. My brother’s home in Florida was covered once. He was paid 15K dollars for severe damage one time. Then never allowed to buy insurance coverage again!!!
I’m tired of paying for the insurance company’s new buildings, extravagant trips, bonuses, and now BAIL OUTS!
I wish everyone would Self Insure.
like we are. Knowledge is Power.
You’re in Good Hands with Allstate…Ha
I call it, “In my own Hands”
and how about those Bad Neighbors.
The price per thousand for most polices goes down as your coverage increases because the probability of a small loss is many times greater than a large loss.
The claims process you describe is even the same with government run carriers – I’ve got a bunch of flood and wind claims still being processed from Hurricane Ike. The worse policies and worse service is from government managed carriers such as the National Flood Insurance Program, the Texas Fair Plan, windstorm carriers, etc..
Insurance carriers and investors are not crooks – they are companies and individuals willing to risk a lot for a little. TEST: I’ll give you $1,000 and you in turn will pay up to $150,000 for all wind and hail losses this next year to my friend’s house on Galveston Island. Gee, I don’t see you jumping at this chance. Put yourself in the shoes of the insurance company that represents thousands of stockholders (most are pension plans). Insurance carriers seem like crooks until you put yourself in their place – they are taking risks that most individuals wouldn’t dare take. Insurance carriers also have a lot of years where they lose money.
Where would the USA be without insurance carriers – still a developing country.
The Industry can be replaced by FEMA.
Hurricane Insurance-Wind or Water damage resulting from storm/surge/hurricane.
Got it?
I also suggest that states provide their own construction crews in disaster areas. Thousands of homeowners get ripped off again by impostor contractors & they are still in shock fm the disaster.
lol Louisiana fines them, pockets the fines, then let go get reported again so the LA Contractors Review Board can pocket another fine. They do not report any of these felony crimes to the authorities which is a felony crime in itself.
Trust me, I lived the nightmare & I am still in it since Katrina.
HOW ABOUT THIS IDEA,KIM: LET’S JUST MAKE OBAMA KING OF THE COUNTRY AND LET HIM HANDLE IT ALL CUZ HE IS VERY FAIR. AND SINCE ALL PRIVATE BUSINESS PEOPLE ARE CROOKS, LET’S LET OBAMA MAKE BUSINESS ILLEGAL, AND OBAMA WILL PAY FOR EVERYTHING! UH-0H, I JUST THOUGHT OF SOMETHING—-WHERE WILL HE GET THE MONEY TO PAY YOU? NOT FROM ME CUZ I WON’T BE IN BUSINESS!
You said all private business people are crooks, NOT ME. Don’t try to put words in my mouth.
What would we lose when you don’t pay anyway. Um…seems I hit a nerve.
KIM—SORRY IF I OVER-REACTED. YOU JUST SEEM WAY OVER THE TOP. I AM AN AGENT FOR MANY COMPANIES, AND MY CLIENTS KNOW THEY CAN COMPLAIN TO ME IF A CLAIM TREATMENT IS UNFAIR—-THEY DON’T!!! I GUESS I HAVE BETTER COMPANIES THAN YOU HAVE EXPERIENCED, ANDI AGREE THEY SHOULD BE FAIR!
No problem. I do get emotional when I see false policies, then I get mad when the government allows homeowners to be cheated. To think that we pay for an
Insurance Commissioner to pave the way for corruption…makes me sick.
I work for numerous companies too.
Independent.
Thank you for this one. I didn’t think Obama had it in him to not okay this foolish idea!
Those people in Flood zones can get subsidized coverage below actuarially sound rates, what makes them so special?
I worked hard to get my beach house, why can’t everyone stop being selfish and share the risk?
I don’t care if piles more debt on my grandchildren; they don’t vote, I do!
I’ll think about allowing subsidies for the people exposed to earthquakes too, but only after I get mine – so there.
While we’re at it, may auto insurance got way more expensive after I rolled my Explorer, I think the government should make it so I can package my auto coverage with the NFIP.
“I don’t care if piles more debt on my grandchildren; they don’t vote, I do!”
–Unofficial Medicare slogan
so, here’s the dilema… how can we afford to forgive a $20 billion debt? that is our taxpayer money there as well, does that mean down the road we will see the fed’s forgive the $180 billion debt? come on now, when and where can we stop allowing these so-called loans to be forgiven. if you look in the past, when we have given foreign aid to other countries, how many of them we have forgiven but we don’t tell the public. how much more money can we as a country keep falling in debt? we have to let things fail sometimes in order to get the corrected. to err is human and last i heard we all are — nobody is perfect!
Time to control the wind and hot air in Washington DC
WHEN A COUNTRY STARTS A WAR WITH US, AND WE DESTROY PART OF THEIR COUNTRY AS PART OF ENDING THE WAR, WHY DO WE PAY TO REBUILD THEIR COUNTRY?
It is true wind pools exist but what if those pools are underfunded as Florida’s is. Also Janet Napolitano stated there are companies willing to write wind coverage for companies withdrawing. Sounds like she talked to slick Chalie Crist who is clueless. That’s what he says ;but look at the companies, they are poorly capitalized and buy reinsurance from a State Cat fund which is not capable of paying their obligations from a large hurricane
I THINK IT IS QUITE POSSIBLE THAT CRIST REALLY IS CLUELESS, OR JUST WANTS VOTES FROM THOSE WHO REFUSE TO PAY ACTUARIALLY SOUND RATES FOR THEIR HOME INSURANCE. IF HE LET HIS INSURANCE CZAR ALLOW COMPANIES TO CHARGE HIGHER RATES, THERE WOULD BE MORE COMPANIES WRITING BUSINESS IN FLORIDA!
This guy Gene Taylor said, “How can the administration spend so much time with the CEOs that have run their companies into the ground, but not spend so much as five minutes to talk about how the multiple-peril insurance legislation will protect American taxpayers from insurance companies that defraud the federal government to the tune of billions?”
Umm, excuse me sir, but how would adding wind coverage to the NFIP prevent the defrauding of the federal government? Has he actually seen what has happened to the NFIP under the direction of the federal government? The other thing that doesn’t make sense in this article is how FEMA could have paid off the $20 Billion in debt if they hadn’t been forced to pay the interest on the debt and borrow $1.68 Billion from the treasury? If they didn’t have the $1.68 Billion, where would they have gotten the nearly $20 Billion? Where do these people come from???
Christ is totally CLUELESS! As is our Senate President, Jeff Atwater. Both of these politicians – and that’s what they are, in the most negative sense of the word – were willing to bet the farm (and the Florida economy) on the wind not blowing for their own personal/political gain. Atwater is the guy that has consistantly pushed for moritoriums on rate increases for the FWUA and for Citizens since it merged with the FRPCJUA.
What’s really disconcerting is now that Alex Sink announced she’s running for Governor, Atwater in all likelihood will run for CFO. If you think the market in Florida is screwed up now, just wait until Atwater gets his grubby little hands on the OIR.
The problem with adding wind coverage to the NFIP is that the politicians will ultimately use their influence on supressing the rates.
What do you think is going on with the “pre-FIRM” properties that are being subsidized right now? If these people had to pay actuarially sound rates for flood coverage, they’d be screaming all the way to Washington.
That’s why the 18 billion in flood losses will be forgiven – but you won’t see the politicians in Congress whose constituants live in the SFHAs vote to increase the Pre-FIRM rates anytime soon.
Maybe we should really just stop subsidizing the NFIP.
OK…Let me get this straight…people get flooded,
private insurers won’t offer them coverage,
people cry to government,
people get disaster relief from government,
government can’t afford disaster relief,
gov’t sets up subsidized flood insurance program to collect premiums to offset cost of disaster relief (NFIP),
people keep buying homes in flood areas,
people buy flood insurance,
people get flooded,
NFIP doesn’t charge actuarial rates,
NFIP can’t afford to continue to pay unless caps in rate increases are removed and they can actually charge actuarial rates and recover some of the $ they have paid out,
people still buy homes and live in flood areas…and now they want wind coverage too.
Why can’t we just say, sorry, if you want to live in a flood area, you are on your own and let the private insurance sector do what it knows how to do?
When will the madness end?
Right on! Leave it to private insurers or let them self insure. We have got to stop the blood letting!
IF WE HAD TERM LIMITS AND CAMPAIGN SPENDING LIMITS, WE MIGHT ACTUALLY GET CITIZEN-POLITICIANS RATHER THAN LAWYER-POLITICIANS!
Amen to that!
And while we’re at it, why not let these Lawyer-Politicians get their own health insurance once they leave office instead of us taxpayers subsidizing them for the rest of their lives.
Amazing how the rest of us citizens can’t get the same health coverage these people in Congress give themselves.
Thomas Jefferson was right, we need a revolution every couple of decades or so.
There just may be a glimmer of hope for this bunch by opposing wind with flood, however, I can’t help but feel the political reason outweighed the sensible reasons.
..well, friends..it boils down to this :
Everytime the secular insurance market says, “no. we can’t do that” the Federal government is gonna step in and do it.
Riot Reinsurance Act
Nat’l Flood Program
E/Q Procurement procedures
etc,
In a very real sense, this started with…-you guessed it: The Social Security Act
Have a great day.
HOW ABOUT WE REPEAL THE INCOME TAX (ORIGINALLY SUPPOSED TO BE TEMPORARY) AND MAKE THE THIEVES GET A REAL JOB?
I agree; bailing out AIG has nothing to do with offering wind coverage via the NFIP and would not help taxpayers anyway. The only thing it would do is make it simpler to obtain wind by having a single entity provide cover instead of having to particpate in NFIP and buy cover from the voluntary market. Making wind available under the NFIP doesn’t mean those who didn’t purchase before will automatically purchase it now. What this bill really intends is to subsidize it, not just offer an alternative to the voluntary market.
Actuarily sound, give me a break windstorm insurance is not actuarily sound because politicians play politics with premiums to get elected. Look at Charlie Crist of Florida.
Katrina proved that dual causation is a very good reason for the combination of coverages at least in coastal areas.
We can do it & we can save money with a policy that will financially protect our homes.
Hurricane Insurance:
wind,water,hail,sleet,snow….
the city/state can also rebuild towns with our own mass construction.
Built to the strongest codes in history.
Rebuilding our lives on a solid foundation…our own.
To Hell With All The Insurance Companies!
Up Yours!
THAT’S A START. I AGREE!
The states are the same as the Feds.
They make the rules & change them when they want. Each state has their own Insurance Commissioner that provides regulations to protect the industry.
There is not one regulation that protects an Agent, nor is there one regulation that protects the Insured.
The few regulations they have only protect the Insurance Companies. It’s BS
Eventually the gov’t will have to pay up the $20B. That is why flood insurance should be a limited to a bare bones policy for only those owner occupants for structure loss and renters for pp loss. No more. Stop subsidizing wealthy beach front vacationers!
Well the American People are paying trillions for a policy without coverage.
Someone needs to Sell HURRICANE INSURANCE
It is fraud for Insurance Companies to add a Hurricane Deductible to your policy when there is NO SUCH THING AS HURICANE INSURANCE. Enough of the BS.
Evey Homeowner is paying for a Policy that is not worth the paper it is defraudly written on. Got it?
I was pleased that Obama doesn’t want the feds to regulate wind coverage. Kim you are partially correct in that neither federal or state regulators protect agents – that needs to change. Since agents are considered representatives of the carriers that is a difficult task. We almost got agent protective legislation passed in 2007 in Texas. The Texas legislature meets only in odd years and ends its sessions on June 1st. The sole exception is if the governor calls a special session for special needs. There is currently revisions of the windstorm pool in the Texas legislature. The Senate version passed conmmittee last week and the House committee version I believe goes up for vote tomorrow (5/19/09). They will meet to iron out their differences before being voted on by the full legislature. Agents have been telling their customers to call their representatives so it is going to happen. Kim you are correct – if this was at the federal level I had better have a bunch of money and a good lobbyist.
In Texas, there is regulatory rules that protect consumers. I prefer state regulation in that my congressional representatives know me, they know that I influence their constituents so, they listen and react to what I tell them.
We do need one policy which includes both wind and flood. However, Obama is correct! What is incorrect is the definition of ‘storm surge’. Wind policies won’t cover storm surge damage because they state the damage was caused by a flood. Example: Numerous homes on Boliver Penninsula (north of Galveston Island) were washed away by a 24 foot storm surge from Hurrican Ike. Wind & flood adjusters spent months debating which policy should pay what – withholding money to the insureds until they finished their debates. The answer: Wind policies need to include storm surge. Storm surges are in fact wind driven water. By including storm surge in wind policies it would solve this problem about which policy pays what. A structural engineer told me that the storm surge that hit Boliver probably would have not been so devastating had thoses buildings not been weakened by high winds for 6 to 8 hours before the storm surge hit.
Funding! It is a problem that has to be dealt with anyway. The ‘storm surge’ risk should be added to the wind policy and rates increased for proper funding. Construction codes will have to be better. This may do away with the small houses on stilts that are so common. Those families may need to sell their small homes and use the money to buy condos in heavily constructed buildings.
The Insurance Industry will NEVER pay for surge, wind driven, waves, spray or any form of water damage because they have been defrauding the American people since they were allowed to add these CALCULATING exclusions to every Homeowners Policy in this country.
Why do you think they added these calculating exclusions?
How did they get away with this?
The Insurance Commissioners in USA.
People who live in coastal areas already pay higher rates with annual rate increases and also with an extra Hurricane Deductible…Yet the policy will never pay.
Defination of a Hurricane:
Wind & Rising Water
There will always be rising water in a coastal area during a hurricane. These exclusions are “The Money Card” for the Industry. They sit back & wait for the water & then they are off the hook.
The Industry blamed water for Katrina before anyone could even get back to their homes.
Katrina blew the roof off the superdome & blew windows in high rise hotels fm LA, MS to AL. I am sick of the corruption.
We, The People, need to stand up & demand fair policy, A Hurricane Ins Policy or else take this business away fm the Industry completely. What good are they if they do not pay? You have to jump thru hoops to get them to pay then they deduct depreciation for antiques. lol
We are being Had!!!
ALL HOMEOWNERS POLICYHOLDERS SHOULD READ THEIR POLICIES AND BE AWARE OF EXCLUSIONS AND THEIR EXPLICIT DEFINITIONS. I WOULD NEVER PURCHASE COASTAL IMPROVED PROPERTY AND EXPECT TO BE RESCUED. YOU PAYS YOUR MONEY AND YOU TAKES YOUR RISK!
IF PEOPLE DID READ &/OR UNDERSTAND
THEIR POLICY, THEY WOULD NOT BUY IT.
THE INDUSTRY DELIBERATELY MAKES THE POLICY CONFUSING TO ALL.
THE POLICY IS SO CONFUSING IT HAD JUDGES TEARING ROBES OFF EACH OTHER AFTER KATRINA.
THE LAYOUT IS PLANNED TO CONFUSE.
THE TERMS ARE WRITTTEN TO CAUSE CONFUSION.
DECEPTIVE TACTICS & FALSE POLICY.
GO SELL THAT CRAP IN IRAQ & YOU WILL HAVE YOUR HEADS ON A PICKET FENCE.
It is common knowledge with those of us in the insurance profession that the insurance carriers will fight their hardest to keep storm surge out of the windstorm policies. However, in the past the federal government has been able to offer assistance to the victims. FEMA is now seeking ways to reduce their responsibilities in this area. The time may have come that the feds have enough pressure on them to force storm surge coverage be removed from the flood policy and placed on windstorm policies. True the state wind pools may be the only ones to pick up the risk. Obama and the NFIP wants to reduce their risk and this is a good way for them to do so. The NFIP could easily hold the position that without the wind that there would not be a storm surge.
My concern is that if the above occurs that the feds will pick up wind in the flood policy (possibly by endorsement) thereby giving them another reason for regulating insurance at the federal level.
IT IS TRUE THAT POLICIES SHOULD BE WRITTEN IN PLAIN ENGLISH, SO YOUR POINT IS VERY WELL TAKEN, KIM. HOWEVER, MOST HOMEOWNERS POLICIES HAVE A FLOOD EXCLUSION WHICH IS ONLY AMBIGUOUS IN A STORM SURGE OR HURRICANE SITUATION, AND I AGREE THAT PROBLEM SHOULD BE ADDRESSED. I AM IN ARIZONA, SO WE WOULD SELDOM HAVE THAT PROBLEM.
Excuse me but, The Feds Regulate the Insurance Industry at every turn & that is why the Regulations only Protect the Industry & not the Insured or Agents.
Seems like The Lobby is a RICCO act,
unlawful assemblies, deal making & campaign contributions to prevent regulations that protect the insured.
Kim, sure the feds do regulate some of the insurance industry. However, most regulation is at the state level. The federal government wants more to take much of the regulatory authority away from the states.
Each state has its own challenges and I believe that the bulk of the regulatory authority needs to stay at the state level.
I AM GLAD YOU MENTIONED LOBBIES, KIM. ONE OF MY GRIPES IS THE MONEY IN POLITICS. IF WE OUTLAW ALL THE HUGE CAMPAIGN CONTRIBUTIONS, AND ONLY ALLOW VERY SMALL INDIVIDUAL CONTRIBUTIONS, I HAVE NO DOUBT BOTH YOU AND I WOULD BE HAPPIER WITH THE RESULTS!
The Industry should not be allowed
to add Hurricane Deductibles
to a policy when there is
no such thing as Hurricane Insurance.
Furthermore, they should not be allowed to charge additional premiums to waive a Hurricane Deductible.
They should reimburse every policyholder that paid to waive a hurricane deductible.
This is a clear case of: Thefy by Fraud
Same as selling a Mercedes without the engine.
KIM—-WHICH COMPANIES HAVE HURRICANE DEDUCTIBLES, AND IN WHICH STATES?
We are getting off the subject but, to answer Larry. The hurricane deductible is also called a ‘named storm’ deductible. We have them on some Texas policies – Farmers has one on their Texas Family Home Policy. The named storm deductible allows an insured to pick a higher deductible for damage caused by a storm if it were a ‘named storm’ within 24 hours of when it damaged their property. It can be a good deal for a customer if they live far enough away from the coast that a named storm will weaken before it gets to their area. In that case the damage is paid out under clause 1 – wind & hail. I guide customers away from the named storm deductible unless they live a very safe distance from the path of hurricanes. It is a difficult decision for the customer to make if they don’t live close to the coast but, yet not far either. I just explain how the deductible works and let them make the decision.
Signing Off!
Every Company in Louisiana & Mississippi
If your roof blows off during a hurricane/
storm, You pay the policy deductible,
You pay the Hurricane/Storm deductible,
MINUS Depreciation
and the policy will not pay for rain/spray damage to walls, contents, structure.
The claim is denied for water damage in any way, shape or form. B.S.
You will get a new roof, minus the deductibles & depreciaiton but you have overpaid for a policy without financial protection.
Insurance companies need to stop giving kickbacks to politicians while gouging their policyholders. I live 2500 feet off the coast of CT in a harbor that hasn’t flooded or had wind damage in 100 years. Travelers is bending us over hard with this ridiculous hurricane coverage junk (which Obama supports). Do they care for the people or do they care for the money? Follow the money!
There is no such thing as Hurricane Insurance BUT they add Hurricane Deductibles. They will not pay for any water damage, wind driven, spray, rising, waves, etc.
Explain a $2350.00 insurance premium per year on a small Summer cottage. We have never, as far as I know, filed a claim in 80 (eighty) years that the home has been in our family. Our premium has more than doubled in the last few years. We have had two carriers decline from quoting us a new policy. Kim, are you going to defend this?
I can’t defend this. If you read your policy you will find that you are spending
$2,350 for nothing. They have it figured out. Even if you reduce the amount of coverage to half, you will only save a few hundred. Get a quote on the minimum amt. of coverage to comare. This will make you real angry. They will continue to raise rates annually. Try making a claim & jump thru hoops to get reimbursed.
They depreciate antiques & want receipts, photos & list of what was damaged, minus your deductible + hurricane/storm deductible + depreciation = They got you again!!! I will never know why the USA protects these crooks. We can self insure by city/state & cut them out completely, save money & have a fair policy. The US is protecting these crumbs when the American People can have the whole loaf of bread.
I thought I had signed off on this IJ conversation but, I got a notice of new comments.
RBTAM, we are obviouly not comparing apples to apples. What perils does your policy cover? Ex: Kim’s description of the wind policies in Louisiana and Mississippi pays ACV, etc.. In Texas, the windstorm policy (sometimes incorrectly called a ‘hurricane policy’) offer RCV coverage but, only pays for wind & hail. A person must also have a flood and hazard policy to cover the remaining perils. Also, the ‘named storm’ deductible in Farmer’s policies is part of a broad form policy that simply offers the choice of a higher deductible for ‘named storms’. However, Farmers mandates the higher ‘named storm’ deductible for areas near the gulf coast.
The price carriers pay for reinsurance on coastal risks has increased considerably the past few years. The reinsurance carriers are concerned that named storms will be both more frequent and severe. This is being driven by global warning concerns.
We have sections of the Texas coast that havn’t had a close hit by a named storm in years – actuaries will tell you that means they are due one!!! If it helps, your premium seems low compared to Florida and Texas premiums – depending upon your coverage.
I canceled all of my homeowners insurance and I bought the maximum flood.
Self-Insured, I can buy a new roof every year with the insurance premiums & still have money left over.
You can only self insure if your home is paid for. The banks demand homeowners insurance or they will gladly buy one for you at your expense. The banks are in on this too. They will keep your Insurance Checks because your insurance company will make your checks payable to you & your mortgage co. You have to sign the check & mail it to a special dept. that will sit on your check as long as they can. Using tactics like the check waqs lost in the mail gets them another 3 months. Banks are ready for disasters. They don’t want you to pay off your loa with insuance benefits so they are a step ahead. Another Scam in its own.
The banks make you jump thru hoops just to get your own money to fix your home.
Another thing: No Double Dipping
If you have $250k flood + #250 homeowners,
and your $250k home is destroyed…lol
even though you pay for 2 seperate policies with 2 seperate premiums,
they won’t let you collect on both. ahahahaha I have to laugh rather than cry.
It is just disgusting to understand the American Way. Then we wonder why other people hate us & don’t trust us.
Sorry, the apple pie is gone & I now wonder if we ever had it, or were we that nieve back then?
I’m not buying it. My brother’s home in Florida was covered once. He was paid 15K dollars for severe damage one time. Then never allowed to buy insurance coverage again!!!
I’m tired of paying for the insurance company’s new buildings, extravagant trips, bonuses, and now BAIL OUTS!
Get your hand out of our pockets!
I wish everyone would Self Insure.
like we are. Knowledge is Power.
You’re in Good Hands with Allstate…Ha
I call it, “In my own Hands”
and how about those Bad Neighbors.
To Kim David, Turn on your brain and think!
The price per thousand for most polices goes down as your coverage increases because the probability of a small loss is many times greater than a large loss.
The claims process you describe is even the same with government run carriers – I’ve got a bunch of flood and wind claims still being processed from Hurricane Ike. The worse policies and worse service is from government managed carriers such as the National Flood Insurance Program, the Texas Fair Plan, windstorm carriers, etc..
Insurance carriers and investors are not crooks – they are companies and individuals willing to risk a lot for a little. TEST: I’ll give you $1,000 and you in turn will pay up to $150,000 for all wind and hail losses this next year to my friend’s house on Galveston Island. Gee, I don’t see you jumping at this chance. Put yourself in the shoes of the insurance company that represents thousands of stockholders (most are pension plans). Insurance carriers seem like crooks until you put yourself in their place – they are taking risks that most individuals wouldn’t dare take. Insurance carriers also have a lot of years where they lose money.
Where would the USA be without insurance carriers – still a developing country.
SIGNING OFF!!!
The Industry can be replaced by FEMA.
Hurricane Insurance-Wind or Water damage resulting from storm/surge/hurricane.
Got it?
I also suggest that states provide their own construction crews in disaster areas. Thousands of homeowners get ripped off again by impostor contractors & they are still in shock fm the disaster.
lol Louisiana fines them, pockets the fines, then let go get reported again so the LA Contractors Review Board can pocket another fine. They do not report any of these felony crimes to the authorities which is a felony crime in itself.
Trust me, I lived the nightmare & I am still in it since Katrina.
HOW ABOUT THIS IDEA,KIM: LET’S JUST MAKE OBAMA KING OF THE COUNTRY AND LET HIM HANDLE IT ALL CUZ HE IS VERY FAIR. AND SINCE ALL PRIVATE BUSINESS PEOPLE ARE CROOKS, LET’S LET OBAMA MAKE BUSINESS ILLEGAL, AND OBAMA WILL PAY FOR EVERYTHING! UH-0H, I JUST THOUGHT OF SOMETHING—-WHERE WILL HE GET THE MONEY TO PAY YOU? NOT FROM ME CUZ I WON’T BE IN BUSINESS!
You said all private business people are crooks, NOT ME. Don’t try to put words in my mouth.
What would we lose when you don’t pay anyway. Um…seems I hit a nerve.
KIM—SORRY IF I OVER-REACTED. YOU JUST SEEM WAY OVER THE TOP. I AM AN AGENT FOR MANY COMPANIES, AND MY CLIENTS KNOW THEY CAN COMPLAIN TO ME IF A CLAIM TREATMENT IS UNFAIR—-THEY DON’T!!! I GUESS I HAVE BETTER COMPANIES THAN YOU HAVE EXPERIENCED, ANDI AGREE THEY SHOULD BE FAIR!
No problem. I do get emotional when I see false policies, then I get mad when the government allows homeowners to be cheated. To think that we pay for an
Insurance Commissioner to pave the way for corruption…makes me sick.
I work for numerous companies too.
Independent.