Free market capitalism will do the trick. Let people pay higher rates as a result then the politicians will do something about sinkhole claims and public adjusters. The larger national carriers might do something if the politicians did something to help with a national catastrophe insurance policy , Flood, wind and earthquake coverage of which the insurance industry has a hard time handling these exposures. Let the price of coverage go up, then the problems will become solved due to preasure on politicians to do something about it! You cannot artificially set rates without regards to the actuarial factors.
There’s no way any legit politician is going to allow higher premiums and only focus on sinkhole and PA issues. If actuarily sounds premiums were being charged the rates would be well higher than anyone wants to pay, or perhaps could even afford to pay. If the rates went to where they really needed to be it would set off calls to the elected ones to fix it. It’s happened before and look where we landed!
We are dealing with multiple issues in property insurance, which won’t be solved with a single solution. There is plenty of blame to go around, and no one gets off (at least in my book). The companies, the state, the agents, the PAs, the legislators and especially the consumer.
When total loss claims are paid and no repairs are made – When insureds admit openly there is nothing wrong with the home after pocketing the claim proceeds – When PA’s go door to door offering cash to solicit sinkhole claims where no damages exist – yes, that is FRAUD! Has anyone considered that the solution might be to eliminate ALL SINKHOLE coverage and make catastrophic collapse the only mandated coverage? Seems that would resolve the issue and send the PA’s and attorneys packing.
You are 110% on target. Citizens reportedly has some 300 sink hole claims in Dade County. $5.00 and a cold beer says there’s a PA on every one of those claims. At $10,000 average cost to investigate the claim, that’s $3 million worth of potential assessments before dollar one is paid out in legitimate claims.
For decades, shifting soils have been excluded under the Homeowners contracts as the risk has simply been deemed uninsurable.
Perhaps that idea is wrong. The loss experience including adjustment expense for sinkhole coverage probably can provide enough empirical date for actuaries to determine a rate.
Accordingly, put the proper price on the risk and sell the coverage.
i don’t think so… the current one for the homeowners, is already asking for a increase and approved for it… yet it would not allow STATE FARM an increase. you would think that competition for policies would make things better… this would have meant that the state run insurance would not have had to grow larger and then have the state ask for a hurricane catastrophe fund… which is still paying on old claims… lucky so far the past 2 years no major claims… but the year is still not over with yet…
since the gov’t can’t work on profit, will it recieve a profit and pass that saving back to those that gotten insurance? or will the state find a way to use the money elsewhere for state shortages?
Heya Wuchuk; State Farm HAS been given increases of 18% and sometimes greater….but you pose a great question in regards to profit(s) of the state run programs.
The problem is the house was built on unstable ground. Technology today id’s oil 5 or more miles under the surface of the earth. Technology is similar to id the density of the earth on any lot. Developers should be required to use all the technology available and PROVE due diligence was accomplished to reasonable assure the P&Z folks the ground under the house footprint is stable ground. If not, the developer or homebuilder doesn’t get the permit to build. Too late for the homes/buildings already built.
Here’s a great idea.,,,no, not really.
There always has to be mention of PA’s whenever the insurance companies CRY that they are loosing money!
How about all of the millions of dollars the CEO’s syphon off into offshore accounts from the MGA’s fees???
No one ever talks about that FRAUD!!!
Free market capitalism will do the trick. Let people pay higher rates as a result then the politicians will do something about sinkhole claims and public adjusters. The larger national carriers might do something if the politicians did something to help with a national catastrophe insurance policy , Flood, wind and earthquake coverage of which the insurance industry has a hard time handling these exposures. Let the price of coverage go up, then the problems will become solved due to preasure on politicians to do something about it! You cannot artificially set rates without regards to the actuarial factors.
PA FOR YOU: It’s not fraud. It’s perfectly legal. We may not agree with the practice but the fact is it’s legal.
There’s no way any legit politician is going to allow higher premiums and only focus on sinkhole and PA issues. If actuarily sounds premiums were being charged the rates would be well higher than anyone wants to pay, or perhaps could even afford to pay. If the rates went to where they really needed to be it would set off calls to the elected ones to fix it. It’s happened before and look where we landed!
We are dealing with multiple issues in property insurance, which won’t be solved with a single solution. There is plenty of blame to go around, and no one gets off (at least in my book). The companies, the state, the agents, the PAs, the legislators and especially the consumer.
When total loss claims are paid and no repairs are made – When insureds admit openly there is nothing wrong with the home after pocketing the claim proceeds – When PA’s go door to door offering cash to solicit sinkhole claims where no damages exist – yes, that is FRAUD! Has anyone considered that the solution might be to eliminate ALL SINKHOLE coverage and make catastrophic collapse the only mandated coverage? Seems that would resolve the issue and send the PA’s and attorneys packing.
You are 110% on target. Citizens reportedly has some 300 sink hole claims in Dade County. $5.00 and a cold beer says there’s a PA on every one of those claims. At $10,000 average cost to investigate the claim, that’s $3 million worth of potential assessments before dollar one is paid out in legitimate claims.
For decades, shifting soils have been excluded under the Homeowners contracts as the risk has simply been deemed uninsurable.
Perhaps that idea is wrong. The loss experience including adjustment expense for sinkhole coverage probably can provide enough empirical date for actuaries to determine a rate.
Accordingly, put the proper price on the risk and sell the coverage.
Just ban PAs and problem fixed!
i don’t think so… the current one for the homeowners, is already asking for a increase and approved for it… yet it would not allow STATE FARM an increase. you would think that competition for policies would make things better… this would have meant that the state run insurance would not have had to grow larger and then have the state ask for a hurricane catastrophe fund… which is still paying on old claims… lucky so far the past 2 years no major claims… but the year is still not over with yet…
since the gov’t can’t work on profit, will it recieve a profit and pass that saving back to those that gotten insurance? or will the state find a way to use the money elsewhere for state shortages?
Heya Wuchuk; State Farm HAS been given increases of 18% and sometimes greater….but you pose a great question in regards to profit(s) of the state run programs.
The problem is the house was built on unstable ground. Technology today id’s oil 5 or more miles under the surface of the earth. Technology is similar to id the density of the earth on any lot. Developers should be required to use all the technology available and PROVE due diligence was accomplished to reasonable assure the P&Z folks the ground under the house footprint is stable ground. If not, the developer or homebuilder doesn’t get the permit to build. Too late for the homes/buildings already built.