High-risk insurance policies

[Beach Runner]

Here goes CNN again. Someone emailed Cafferty and said, "I live in Kansas. Why should I pay higher insurance premiums because someone is dumb enough to buy a house in Florida?"

Another: "I live in CA and can't get earthquake insurance, yet people in FL can be reimbursed for hurricane damage."

I'm composing my response ...

 

[Sheila]

Here goes CNN again. Someone emailed Cafferty and said, "I live in Kansas. Why should I pay higher insurance premiums because someone is dumb enough to buy a house in Florida?"

Another: "I live in CA and can't get earthquake insurance, yet people in FL can be reimbursed for hurricane damage."

I'm composing my response ...

Doesn't he live in "Tornado Alley"?

 

[Miss Kitty]

Doesn't he live in "Tornado Alley"?

Don't we ALL pay in the end???

 

[Beach Runner]

Doesn't he live in "Tornado Alley"?

Exactly.

 

[Sheila]

Don't we ALL pay in the end???

We sure do. Our Homeowners Policy in Atlanta went up about 40% last year. According to our agent it was due to all the storms in Florida.

 

[Paula]

For some perspective....

We had a strange year about 5 years ago in Michigan in which many, many houses all through south eastern Michigan had ice dams that damaged their roofs and interiors (we did and had to get the interior and roof repaired and eventually got a new roof that was resistant to ice dams). Insurance companies had to pay for the repairs after deductibles. And snow storms cause damage and deaths just about every year -- my husband totalled his car in a snow storm a few years ago -- he wasn't hurt thankfully. Insurance after the deductable paid for the new car (and our insurance went up after that). We also have a few deaths every year from people shoveling snow and having heart attacks.

All that said, someone must have the statistics on which areas are the most costly when it comes to insurance hazards of all kinds over time. Maybe Florida does take the lead, but I'd have to see the numbers to be convinced of that.

 

[Travel2Much]

We sure do. Our Homeowners Policy in Atlanta went up about 40% last year. According to our agent it was due to all the storms in Florida.

I might be wrong, but I don't think states allow insurers to charge for risks of insureds in other states. Ga's premiums might have gone up b/c of the increased risk of damage in Ga to to storms plowing through there (downed trees, other damage) but it was probably not to compensate for losses incurred in FL. Way it stands now, I don't pay for California's risk and they don't pay for mine. There have been proposals to do it otherwise, and have a national disaster insurance program, akin to the flood inusrance program.

 

[Sheila]

I might be wrong, but I don't think states allow insurers to charge for risks of insureds in other states. Ga's premiums might have gone up b/c of the increased risk of damage in Ga to to storms plowing through there (downed trees, other damage) but it was probably not to compensate for losses incurred in FL. Way it stands now, I don't pay for California's risk and they don't pay for mine. There have been proposals to do it otherwise, and have a national disaster insurance program, akin to the flood inusrance program.

You may be right. I am just stating what our local agent said when I questioned the increase in our premium.

Our neighbors across the street had the same thing happen. We are both with State Farm. Neither of us have ever filed any type of claim. We have been with them for almost 27 years.

 

[BeachDreamer]

I called and asked our Ins. (Foremost) why our rates went up, and was told that when there are storms in our area, the rates will rise to help with costs. I am not sure of the legalities, but ours did not rise until we had a devastating tornado season one spring, followed by a collection of costly ice storms.

 

[Sheila]

I called and asked our Ins. (Foremost) why our rates went up, and was told that when there are storms in our area, the rates will rise to help with costs. I am not sure of the legalities, but ours did not rise until we had a devastating tornado season one spring, followed by a collection of costly ice storms.

I filed a report with our state insurance commision. It has been recieved and is being reviewed.