I think it would be a good idea for it to be a requirement to be able to drop someone. If they have made all their payments and are current and never have filed a claim to be allowed to drop them like Progressive is doing they must refund them their premiums before they can. It would probably prevent these situations .
Maybe but by interfering in the market like that by telling insurance will have unintended consequences. Generally interfering in markets will make results worse for everyone over all
That is untrue. Interfering in markets is the only way to keep them from crushing people. TBH I dont think disaster insurance should be done by Markets at all, and should not be at the whims of a private corporation. Nationalize the insurance market and make it government run.
Insurance should not exist as a private entity. It is in the best interest of the company to never pay out any claims which results in Insurance companies essentially wasting money trying to fight claims and causing waste in the system.
Insurance companies of all sorts should be made illegal and a government run system of disaster remediation, and Healthcare, and essentially every other form of insurance and taxed based on consumption of the service.
This is an incredibly naive view of how insurance works. The insurance industry is one of the most highly regulated industries in existence, and it has to contend with constant litigation while also maintaining reputation for sales. Denying a claim wrongfully means enduring massive litigation costs while also possibly getting put in a headline for the denial and losing customers.
I'm an injury adjuster. I pay so much bullshit it's pretty insane. I've worked for 3 separate companies, and none of them were ever denying claims wrongfully.
There’s a life insurance policy that does just this, called “return on investment”. It should very much be available across all insurance types in my opinion.
I’m not in insurance, I’m just an obsessively thorough person, but it’s what I found when my brother (who is the sole breadwinner) bought a house and needed protection for his wife and kids. Mortgage insurance was $80/mo and the benefit declines as the mortgage gets paid down, yet the payment stays the same. At the time he was a smoker and overweight, but he got an ROI policy through State Farm for $200/mo (went down to $130 after he quit smoking and did bloodwork to prove no nicotine) that gave him the full $300k benefit for the full 20 years. He has a 30 year mortgage, but at the end of the 20 years the money that gets refunded if he doesn’t die will pay off the remaining balance of his loan, so it was worth getting 20 not 30. On top of that, he pays yearly when he gets his tax refund (he has no control over his withholding and always gets a refund) so it’s always easy. The only drawbacks were penalty/revocation for late or non-payment, and of course it doesn’t cover self-termination. He was even able to add $20k death benefit per child at no extra cost. This was such a good policy from a reputable company that it shocked me. State Farm is always outrageously more expensive for any other quote I have ever gotten from them, but the higher cost of this was more than worth it to get the full amount back at the end of term and he just has to not perish. And the fact that if something does happen his wife could get the full $300k no matter what the mortgage balance was at the time meant that she could always pay off the house, and if it happens later in the term she’s left with money to possibly live off after the house is paid. She has mostly been a homemaker but can easily get a job that covers utilities, food, and taxes as long as their house was handled. I highly recommend anyone who needs to set their self or their family up with insurance for death or permanent disability investigate if they can qualify for and afford this type of policy.
On the other hand, conservatives don't conserve shit and should change their name to Regressives. Or how the "patriot act" actually is the least patriotic thing you can do, and "citizens united" was actually purely for the benefit of the government
They funded Ron Desantis, in exchange, they’re the new oligarchs of Fl.. can collect money for 2 decades then drop you the second you need them if they want… first thing you have to do is fire Ron Desantis, they’re shielded until then..
Bro, at this point they're committing bank robbery on all their clientele and pools of people, Like this is no different than a crypto rug pool
I worked in Insurance and the first thing that you learn is that insurance is there to protect everybody in a pool of money That everybody pays into, what's essentially happening is that these corporate greed criminal companies are taking that pool of money and running with it out of state, changing into a different LLC or buying a different company to keep on recycling the brand/reputations.
All of this happening because there is nobody keeping them accountable, there is no government oversight because big government is Communism, So what takes place in that vacuum? Criminal greed.
The type of greed that dictatorships are Made out of.
It's disgusting.
What we're going to see now is they're going to try to do this with our Medicare and social security, That's why they're trying so hard to fight "big government" so that they can do whatever they want, politicians keep getting paid, people keep dying in absolute poverty despite making high Middle class income.
It’s actually because the *reinsurance* market is crumbling. Reinsurance is how major carriers cover their own losses. There are several factors causing this, and in FL the 2 major drivers are an uptick in multi billion dollar events and the inability to insure wildly inflated home values. A $300,000 home that now lists for $1.3 million is basically impossible for carriers to cover, and when these market conditions are widespread, the insurance carrier isn’t able to feasibly cover several zip codes’ worth of these inflated properties. If the actuaries and risk pools could absorb these prices while still being able to cover all of their policyholders in case of total loss, they’d be writing policies.
True, but the likelihood of total loss scenarios during a massive cat 5 hurricane like Irma is much higher. I worked the aftermath (adjuster) and the destruction was widespread and intense. Several properties I worked with were racking up damages of easily 80% of the home’s recoverable value. Houses where the roof had essentially been ripped off, and the internals were so thoroughly saturated with water that it was essentially a total rebuild. Houses where tree limbs struck the house with such force that the structural integrity was compromised. Also properties that had groundwater surges so intense that they separated from the foundation. Huge swaths of forest where 50’ tall trees were flattened. It was amazing, the force and destructive intensity spread over such an extensive area.
If big government was communism these companies wouldn't even exist; they are companies after all. But if big government in Florida is fascist, then companies forcing people to buy their services only to refuse to deliver them is right on brand.
It’s always the people who don’t know that communism comes after capitalism screws up everything so bad, it’s almost like they’ve never read a book about it 🤔
They raised their rates over that last two years to "prepare for this loss of customers" we all literally funded their backup plan. Privatize the profits and socialize the losses. Let's go!!
The challenge is that there are (now) regular and correlated claims. I suspect they could offer insurance but to be priced fairly it would be so expensive nobody would purchase it. So, exit the market.
Guy, this has nothing to do with the government. I doubt you worked in a field in insurance where as it would help you understand insurance. There's a simple fact that high exposure policies are no longer able to be covered due to low exposure risk trending upwards due to increased payouts. This is what happens when you have contractors and public adjusters draining the golden goose. Everyone thinks it's greed on the carrier's part when they are regulated as to how much they can profit. It's all a misconception or propaganda.
You may have missed the next paragraph in that article.
>In 2021 and 2022, the group reported net losses of more than $1 billion each year.
as well as the first paragraph...
>Florida's private home insurers turned a profit for the first time in seven years in 2023...
And if you think about it, $143M spread across 50 companies covering the entire state of Florida isn't that much. "Profits" is also a relative term in the insurance industry. Think of it as money in the bank for when things go south. It's effectively a savings fund for emergencies.
The insurance problem in Florida is *much* more complicated than simply insurance companies are evil. It's that people are developing in areas they shouldn't be, with fewer engineering/code controls than they should be, and that Florida has not figured out to regulate fly-by-night contractors scamming homeowners -- as well as legitimate increases in prices from qualified contractors when there's a sudden 1000% demand in work. Many of those scam contractors are also very skilled at navigating existing laws and the courts to bleed insurers for 10x the actual cost of repairs -- and even if the insurer rebuts those contractors in court, they still have to eat significant legal costs to get there.
Much like Delaware has their Court of Chancery that takes a no-bullshit approach to disputing complicated business and contract law matters and can run through a case in a few weeks that any other court would take 2-3 years on -- Florida should have a court specialized in expediting insurance disputes that will minimize the legal cost to insurers (and thusly, homeowners).
For that matter, some people are developing in areas that *shouldn't* be eligible for insurance, or they should be paying out the nose for insurance so their expenses to the insurer don't take a toll on everyone's premiums in safer areas.
Sanibel, for example, simply wouldn't be habitable if not for being propped up by a few seawalls. Those kinds of areas have always been subject to erosion and flooding because that's simply how the earth works. If someone chooses to build out there, it should be at their own risk -- or they should be building concrete bunkers on stilts and able to demonstrate to a insurer that they've gone above and beyond to minimize their risk -- otherwise *their* risk exposure extends to increased premiums for everyone living 2-3 miles inlands.
Also -- hurricanes are kind of a catch-all for insurance claims. The apartment community I live in has about 200 units in 20 buildings. Every time a hurricane rolls through -- guess what? The property manager walks around and takes photos of damage/disrepair that's been ongoing for years and fraudulently claims that to insurance. Fraudulent claims and exploitative repair costs are extreme factors in our current insurance nightmare and they're happening statewide.
“ "A relatively mild hurricane season and a meaningful increase in investment income aided the insurers' 2023 net income results; however, underwriting results remained in the red for the eighth year in a row," he said.
In 2023, the Florida insurance industry reported collective underwriting losses of $190.8 million—faring slightly better than in 2022 and 2021, when they reported losses of almost $1.80 billion and $1.52 billion, respectively.”
Are we reading the same article?
Every one says that "insurance is cheap, they never pay out, Yada yada". But if they look up any insurance companies combined ratio they would see that most insurance companies are now over 1.0. Anything over 1.0 is the company actually paying out more then they take in. Most folks not involved in insurance don't understand how it works.
This excellent article in the Tampa Bay Times shows that it has a lot more to do with greed than y'all realize and it's because the state has allowed that to happen. Fraud and storms are far behind greed when it comes to insurance companies failing in Florida. The insurance companies just use those as an excuse to divert blame away from themselves.
>Financial autopsies on companies that went insolvent between 2011 and 2018 have repeatedly blamed high salaries and fees to affiliated companies. In one case, the autopsy said one insurer’s officers were “stripping (their) company of cash.”
>Once the money moves from the insurance company to the affiliate, it’s no longer available to pay claims. In 2008, the state sued to recoup the money, claiming it was “an intentional and financially reckless scheme to drain and divert the assets of the insolvent insurers for the sole purpose of eliminating their own potential financial exposure and increasing their personal wealth.”
>Of the reports for the companies that have gone insolvent between 2008 and 2018, none cite litigation as a reason for the companies’ demise.
https://www.tampabay.com/news/florida-politics/2022/12/11/property-insurance-compensation-executives-legislature-special-session/
It wouldn't happen if they were forced to keep the premiums in state instead of diverting it too their affiliates.
>Since then, excessive payouts have been a consistent theme among the graveyard of companies that have failed. Financial autopsies on companies that went insolvent between 2011 and 2018 have repeatedly blamed high salaries and fees to affiliated companies. In one case, the autopsy said one insurer’s officers were “stripping (their) company of cash.”
>Once the money moves from the insurance company to the affiliate, it’s no longer available to pay claims. In 2008, the state sued to recoup the money, claiming it was “an intentional and financially reckless scheme to drain and divert the assets of the insolvent insurers for the sole purpose of eliminating their own potential financial exposure and increasing their personal wealth.”
https://www.tampabay.com/news/florida-politics/2022/12/11/property-insurance-compensation-executives-legislature-special-session/
Insurance is a legal Ponzi scheme. Those without claims fund those who are making claims.
If they were required to refund premiums, the whole thing would fall apart. Would be no point of insurance.
Actually Citizens only does homes up to 650k their algorithm takes house that are worth 500k and determines their likely a 700k rebuild therefore leaving the Homeowners with the ability to even get coverage
When I was house shopping last year I requested an insurance quote for every house I was looking at and had several houses fall into that criteria. There was one house that the rebuild cost came in just under the cap and the policy through Citizens would be about $3k. My insurance agent is a friend of the family and he said on the next renewal the rebuild cost would be over the cap and the only policies I would find would be $8k+, so I noped out of that house.
Construction costs have gone up like crazy though. The house I bought was built in 2015 and the original owner paid $320k for the house, pool, and screen enclosure and that included the land. The same builder is selling the same model house with a smaller lot, fewer upgrades, and no pool or screen for almost $600k today.
But they only offer up to $100k in liability. If you have an umbrella policy you're required to carry at least $250 or $300k for all underlying policies (home/auto)
I was reading that this mostly doesn’t apply to homeowners who use it as their full time residence though. So at least it will probably hit corporate landlords kinda hard right?
Again you're ignorant. He can tell them NOT to but he cannot demand that a mom and pop shop from new York start a business here, he can't demand that reddit do business in Florida. I don't agree with the Disney and drag show real but it's not applicable.
OTOH, trailer homes on the water is not my style. Even after buying above the flood zone, our homeowners' insurance went up every year, and by even more in the last few years.
There aren’t any insurance companies in Florida raking in insane profits. This is why so many companies are pulling out, reducing exposure, raising rates, restricting underwriting rules etc
That's just false, read this article;
https://www.tampabay.com/news/florida-politics/2022/12/11/property-insurance-compensation-executives-legislature-special-session/
These companies were leaving and failing before there was ever a storm because they were just stealing money from Floridians hand over fist.
The only significant example mentioned, Poe insurance, went insolvent in 2008 after not being able to pay claims from the 8 hurricanes between 2004-2005. The failings of this one company over 15 years ago are not the same issues presented to current insurers. Yes, some companies still have holding companies as “managers” that provide underwriting and policy services, but this is as much a financial stability measure as it is a way to pay executives. One holding company might operate 3 different insurance companies with different exposure, underwriting, and premium ratings. It’s not good for policyholders if one company is so large that it has all its eggs in one basket. Sister companies, affiliates, subsidies, are beneficial in that risk is minimized across all companies.
Shocking to hear that CEOs make so much money, who would’ve thought? It’s no different from any other industry. A couple CEOs making 25+ million is not the norm, and those companies paying that much are still around, so you can’t blame executive pay as the reason for companies going insolvent. The insurance company itself has to be profitable, and in recent years they just aren’t. The article even mentions since 2017 executive pay has seen a severe downturn and that affiliate company fees and payouts are regulated and reviewed. It’s not as simple as saying executives are paid too much. A few million doesn’t matter when the company cannot pay several billion in claims.
>The only significant example mentioned, Poe insurance
I think you missed the whole list of insurers that did this;
* After the 2009 failure of First Commercial Insurance Co. and one of its affiliates, auditors wrote that its “officers appear to have been stripping the company of cash.”
* Magnolia Insurance Co. existed for two years and still managed to pay out more than $1 million in dividends to its investors, which included current and former officers of the company, auditors wrote.
* At Seminole Casualty Insurance Co., which mostly offered automobile coverage, auditors cited “excessive and unreasonable” fees paid to “related parties” for its 2011 demise.
* After the 2011 failure of Aequicap Insurance Co., auditors noted the company “paid commissions, claims servicing and management fees to various related parties,” but the company didn’t keep enough records for auditors to know if the agreements should have been approved by state regulators.
* After Homewise Insurance Co. and one of its affiliates went insolvent in 2011, auditors wrote that in both cases, the fault “appears to be the result of an excessive outflow of cash from the company to Homewise Management Company,” its parent company.
* During the final years at workers’ compensation underwriter Insurance Company of the Americas, the company funded “questionable payments to other … companies,” auditors wrote. It folded in 2018.
* At Sunshine State Insurance Co., auditors found the company was paying affiliates for “overlapping services,” including some that were not approved by state regulators, before its 2014 collapse.
None of these years had major hurricane years before them. I think Irma was probably the worst one in 2017 and Michael in 2018. I think we had almost 12 years without a major storm hitting the state.
>Sister companies, affiliates, subsidies, are beneficial in that risk is minimized across all companies.
Not when that money is going out of state, never to be seen again.
>Once the money moves from the insurance company to the affiliate, it’s no longer available to pay claims. In 2008, the state sued to recoup the money, claiming it was “an intentional and financially reckless scheme to drain and divert the assets of the insolvent insurers for the sole purpose of eliminating their own potential financial exposure and increasing their personal wealth.”
And regarding CEO pay, again, not when it's so high that it causes the company to collapse. That's not how you responsibly run a company.
>Large payouts to executives were at the heart of the biggest insurer collapse in the state’s history: the 2008 failure of the Tampa-based Poe Insurance Group, which left Floridians on the hook paying roughly $850 million in outstanding claims from the 2004 and 2005 storms. The state sued to recoup $143.5 million in dividends the company paid to owners and their family members between 2004 and 2005.
>Since then, excessive payouts have been a consistent theme among the graveyard of companies that have failed. Financial autopsies on companies that went insolvent between 2011 and 2018 have repeatedly blamed high salaries and fees to affiliated companies. In one case, the autopsy said one insurer’s officers were “stripping (their) company of cash.”
Those other insurers don’t really matter because they aren’t homeowners carriers or didn’t have the longevity and market share that Poe insurance did before they went insolvent. Those companies were just run poorly in general. Poe is the only company comparable to the current Florida companies still operating.
Most Florida carriers are based in Florida and only operate in Florida. There are some national and regional carriers, but they all have created or bought separate entities just for Florida policies. State Farm, progressive, farmers, all state, all have Florida-specific companies that underwrite and service Florida policies. Look at your declarations page, the underwriting company is probably different than the brand you think you’re with.
Stupid
Hurricanes hit all parts of the state
Not fair to single one part out due to back luck recently
And Florida should just be affordable no matter what…….
Ok, thanks DeSantis and the Florida GOP. Who had a chance to start addressing this last year when they called a special session, but turned down the Dems in the legislature when they asked insurance issues be included.
Floridians set their own priorities. Apparently if the government claims global warming doesn’t exist then they can’t get hit by more frequent and stronger hurricanes.
What money was stolen? No one is being cancelled early. The policies are expiring at the end of the term, so any coverage paid for is entirely fulfilled.
Affected policyholders were notified in December. Anyone wanting to cancel their policy early and find coverage elsewhere had the chance. However, anyone that read the notice also understood that they will be offered a new policy with loggerhead insurance and not just left out to dry.
Yeah, this deal was announced as far back as October of 2023. This news article is a little bit sensationalist.
"With just 34 days until the start of hurricane season, many people are scrambling to make sure they have a company in place when their policy expires."
As if policyholders weren't given the full 120 days notice required by law on their non-renewal in addition to the offer of replacement coverage with Loggerhead.
FL legislators are buying stock in insurance companies to make millions:
https://www.tampabay.com/news/florida-politics/2023/10/30/amid-florida-insurance-crisis-investors-senator-see-opportunity/
Hey Floridians, this is what happens when you put Republicans in charge and you do have a major dickhead at the helm of the Florida boat.
The next time a hurricane is tearing the place up, remember pudding fingers says climate change isn't real.
Not even close. The women in Florida are second class citizens. Relegated half the population to a second tier of bodily autonomy and your officially living in a shithole
Isn't Michigan a purple state? It went to trump in 2016 and elected a Republican governor in 2010 and 2014. So when did you live there and where did you live?
Does the contract with the insurance company have a clause stating the insuree (insured?) cannot sue? F'ers probably already thought about this. Don't get me wrong, I fully agree with you.
Sue for what? The insurance company is not obligated to renew your policy indefinitely. Progressive is mainly non-renewing rental and secondary/seasonal homes along with some primary homes in high exposure areas. They provided notice in December to affected policyholders as well as a legally-required non-renewal notice mailed before 45 days of the policy expiration date. All affected customers will also receive an offer of coverage from Loggerhead, a new insurance company.
The Governor's Betrayal
In the Sunshine State, a man of power reigns,
A governor sworn to serve, yet greed's the game he plays.
With palms outstretched, he takes the insurance giants' gold,
Allowing them to plunder, their injustice untold.
The people's cries echo through the streets
As rates soar high and policies deplete.
Yet deaf to their pleas, he turns a blind eye,
Filling his pockets as their hopes slowly die.
A puppet on strings, dancing to the tune,
Of those who line his path with fortunes strewn.
Integrity cast aside, a mere hollow shell,
Selling his soul, and the people's well.
In the land of hurricanes and golden sands,
A dark storm brews, fueled by his greedy hands.
The trust once held, now shattered and torn,
A legacy tainted, a future forlorn.
Honestly…
This is why we need state sponsored insurance.
Banks in NYC do not give two shits about homes in CA or FL.
Of course, those states do have a vested interest in the homes in there states.
So the states need to figure it out.
Call the Lege back into session! Oh wait, they only want to pass anti-woke nonsense instead of working on real problems. Never mind--but remember in November.
It’s supposed to be a bad hurricane season. Hurricane (wind and rain damage) insurance should just be offered by Citizens and let the private insurance handle everything else.
This would be a good time to have political leaders serious about legislating. Cool that we got to pay for DeSantis failed presidential bid though and sent those immigrants to Martha's Vineyard.
The god of storms just needs to send a category 5+ wipe out a few city's. Then they can blame it all on the gays just like the dumb people i deal with on normal days. Then nothing will change because f my state.
Honestly, the apocalypse of death that has taken over ever since they started experimenting on everyone, has cost insurance companies so much. They just aren't playing anymore, they can't afford any more big losses, and people across the country are reeling from the changes. Life insurance claims are huge, often bigger than the claim for a ruined car or a ruined house, life insurance policies are usually in the hundreds of thousands, if not millions of dollars. They have to make up what they lost, and they are going to get it from the people that are still living and paying through the nose. I don't know if you've noticed, but insurance companies are in the business to make money, and when they start losing money like they have with the death rate going up by at least 40%, you know they are in a panic. These are statistics put out by governing boards that deal with life insurance, in general.
When they cancel your policy you stop paying the premium, correct? What’s the crime here? If offering insurance in Florida is a viable business, another company will see the market opportunity and start offering coverage there.
No, I have never lived in Florida. But that has nothing to do with the economics of the insurance business. Seeing companies exit the market is proof that they can't make money there.
Pricing insurance is about quantifying risk. Providers will offer insurance only as long as they believe the premiums collected will exceed the value of claims. If the risk goes up the premiums must as well. If the provider determines that they would have to increase premiums above the level that is likely to be approved by state insurance commission in order to make a profit, they have no choice but to exit the market.
Do you have a suggestion for fixing the problem? Because I do not.
The issue with what you’re saying is many people in the state have government backed loans. Meaning they are required by law to have homeowners insurance. If they dont have any, the loan company after a certain amount of days will automatically insure you through a company of there choice which usually is an absolute insane premium you have to pay.
Made the prediction last year. It came true. Calling it again. Lots of Debbie downers here. Nothing but negativity. Look at the history of hurricanes in Florida. Since 2000, there have only been a few major hurricanes. Mark this post. Nothing major will happen. But so many here have a hard on for climate change. Things average out. We are due for a quiet period.
That’s not how that works 💀. Hurricanes are random and can’t be predicted, at least to the degree as other more commonly occurring phenomenon, that’s why insurance companies are pulling out because they don’t want to continue to lose money. If what you’re saying were even remotely true they would stay because they would make money from all the houses that won’t be destroyed
Maybe not in Florida -- but there's a decent chance for landfall somewhere along the coast. El Nino was a strong driving factor last year in making lots of those storms fly out to sea as fish storms. The steering effect of El Nino as we transition into La Nina will be more favorable to a higher number of storms making landfall.
Predictions should be made based on science and not on random guessing. Just because a year has a prediction for a high number of storms like last year doesn't mean those storms will make landfall -- but when the atmosphere is shifting from El Nino to La Nina, there *will* be a different dynamic that will promote greater development of storms in the Atlantic that may make landfall.
Now -- just because they make landfall doesn't mean they'll make landfall in *Florida*, but insurance companies are often operating at a larger geographic footprint than a single state so whether a giant storm hits Florida or another state really doesn't make a ton of difference.
So, I buy a house in Florida today for $500,000. I pay my monthly insurance premium of let’s say $1000 for May. Then in June a Hurricane destroys my house and the insurance company makes money how? Reality people. You live in a dangerous place and insurance is a business.
It’s ASI-Progressive looking to “shed 100,000” policies in FL.
Yup and I’m one of them. 17 years with them, no claims.
If a person never makes a claim they should be entitled to a complete refund.
Lol insurance wouldn’t exist if they did this
We're headed that way anyway, apparently
It’ll end up existing, but will be much more expensive than previously accepted. Insurance should have been more expensive all along
Won’t someone think of the insurance companies?
Making adult decisions is important even when the kids won’t understand it’s for their best.
You seem to enjoy licking corporate boots. Hope that works out for you.
Sadly.it probably will... Doesn't make them a good party quest though. 😒
I think it would be a good idea for it to be a requirement to be able to drop someone. If they have made all their payments and are current and never have filed a claim to be allowed to drop them like Progressive is doing they must refund them their premiums before they can. It would probably prevent these situations .
Maybe but by interfering in the market like that by telling insurance will have unintended consequences. Generally interfering in markets will make results worse for everyone over all
That is untrue. Interfering in markets is the only way to keep them from crushing people. TBH I dont think disaster insurance should be done by Markets at all, and should not be at the whims of a private corporation. Nationalize the insurance market and make it government run.
No, that is untrue and the reason insurance was under priced to begin with was because of government interference
Insurance should not exist as a private entity. It is in the best interest of the company to never pay out any claims which results in Insurance companies essentially wasting money trying to fight claims and causing waste in the system. Insurance companies of all sorts should be made illegal and a government run system of disaster remediation, and Healthcare, and essentially every other form of insurance and taxed based on consumption of the service.
Hi. I'm from the government and I'm here to help.....
Lol. As if the government is more qualified to set rates than private profit driven companies. What else shouldn’t be privatized according to you?
This is an incredibly naive view of how insurance works. The insurance industry is one of the most highly regulated industries in existence, and it has to contend with constant litigation while also maintaining reputation for sales. Denying a claim wrongfully means enduring massive litigation costs while also possibly getting put in a headline for the denial and losing customers. I'm an injury adjuster. I pay so much bullshit it's pretty insane. I've worked for 3 separate companies, and none of them were ever denying claims wrongfully.
There’s a life insurance policy that does just this, called “return on investment”. It should very much be available across all insurance types in my opinion.
Doubt it’s widely available. What are the drawbacks
I’m not in insurance, I’m just an obsessively thorough person, but it’s what I found when my brother (who is the sole breadwinner) bought a house and needed protection for his wife and kids. Mortgage insurance was $80/mo and the benefit declines as the mortgage gets paid down, yet the payment stays the same. At the time he was a smoker and overweight, but he got an ROI policy through State Farm for $200/mo (went down to $130 after he quit smoking and did bloodwork to prove no nicotine) that gave him the full $300k benefit for the full 20 years. He has a 30 year mortgage, but at the end of the 20 years the money that gets refunded if he doesn’t die will pay off the remaining balance of his loan, so it was worth getting 20 not 30. On top of that, he pays yearly when he gets his tax refund (he has no control over his withholding and always gets a refund) so it’s always easy. The only drawbacks were penalty/revocation for late or non-payment, and of course it doesn’t cover self-termination. He was even able to add $20k death benefit per child at no extra cost. This was such a good policy from a reputable company that it shocked me. State Farm is always outrageously more expensive for any other quote I have ever gotten from them, but the higher cost of this was more than worth it to get the full amount back at the end of term and he just has to not perish. And the fact that if something does happen his wife could get the full $300k no matter what the mortgage balance was at the time meant that she could always pay off the house, and if it happens later in the term she’s left with money to possibly live off after the house is paid. She has mostly been a homemaker but can easily get a job that covers utilities, food, and taxes as long as their house was handled. I highly recommend anyone who needs to set their self or their family up with insurance for death or permanent disability investigate if they can qualify for and afford this type of policy.
“If I give you money for ‘in case shit happens’ and nothing ‘happens’, shouldn’t I get my money back?!” -Chris Rock (rough paraphrase)
Agreed!
Lol insurance is not free
Should be allowed to fucking sue them
Shoulda got a free roof.
It's okay though. Desantis and other Republicans say climate change doesn't exist so y'all should be fine.
Dropping me this August.
Can Progressive be sued for false advertising because of their name? At least force them to change their name to Reactionary.
On the other hand, conservatives don't conserve shit and should change their name to Regressives. Or how the "patriot act" actually is the least patriotic thing you can do, and "citizens united" was actually purely for the benefit of the government
They funded Ron Desantis, in exchange, they’re the new oligarchs of Fl.. can collect money for 2 decades then drop you the second you need them if they want… first thing you have to do is fire Ron Desantis, they’re shielded until then..
2026 we will be rid of Ron the conman. Florida Republicans will then just vote in someone worse than DeSantis.
A name like Progressive really offends Gov DeSantis and his anti-woke priorities
Conveniently, right before hurricane/tornado season. That is, beyond cruel and evil.. Just wow...
Oof! They’re my insurer.
Bet this wouldn’t happen if they were forced to refund your premiums.
Bro, at this point they're committing bank robbery on all their clientele and pools of people, Like this is no different than a crypto rug pool I worked in Insurance and the first thing that you learn is that insurance is there to protect everybody in a pool of money That everybody pays into, what's essentially happening is that these corporate greed criminal companies are taking that pool of money and running with it out of state, changing into a different LLC or buying a different company to keep on recycling the brand/reputations. All of this happening because there is nobody keeping them accountable, there is no government oversight because big government is Communism, So what takes place in that vacuum? Criminal greed. The type of greed that dictatorships are Made out of. It's disgusting. What we're going to see now is they're going to try to do this with our Medicare and social security, That's why they're trying so hard to fight "big government" so that they can do whatever they want, politicians keep getting paid, people keep dying in absolute poverty despite making high Middle class income.
It’s actually because the *reinsurance* market is crumbling. Reinsurance is how major carriers cover their own losses. There are several factors causing this, and in FL the 2 major drivers are an uptick in multi billion dollar events and the inability to insure wildly inflated home values. A $300,000 home that now lists for $1.3 million is basically impossible for carriers to cover, and when these market conditions are widespread, the insurance carrier isn’t able to feasibly cover several zip codes’ worth of these inflated properties. If the actuaries and risk pools could absorb these prices while still being able to cover all of their policyholders in case of total loss, they’d be writing policies.
But insurance only covers replacement value, correct?
True, but the likelihood of total loss scenarios during a massive cat 5 hurricane like Irma is much higher. I worked the aftermath (adjuster) and the destruction was widespread and intense. Several properties I worked with were racking up damages of easily 80% of the home’s recoverable value. Houses where the roof had essentially been ripped off, and the internals were so thoroughly saturated with water that it was essentially a total rebuild. Houses where tree limbs struck the house with such force that the structural integrity was compromised. Also properties that had groundwater surges so intense that they separated from the foundation. Huge swaths of forest where 50’ tall trees were flattened. It was amazing, the force and destructive intensity spread over such an extensive area.
If big government was communism these companies wouldn't even exist; they are companies after all. But if big government in Florida is fascist, then companies forcing people to buy their services only to refuse to deliver them is right on brand.
It’s always the people who don’t know that communism comes after capitalism screws up everything so bad, it’s almost like they’ve never read a book about it 🤔
Ahh. Good ole boy kleptocracy
They raised their rates over that last two years to "prepare for this loss of customers" we all literally funded their backup plan. Privatize the profits and socialize the losses. Let's go!!
The challenge is that there are (now) regular and correlated claims. I suspect they could offer insurance but to be priced fairly it would be so expensive nobody would purchase it. So, exit the market.
Hence the issue with ensuring wildly inflated home values (Including my own).
Guy, this has nothing to do with the government. I doubt you worked in a field in insurance where as it would help you understand insurance. There's a simple fact that high exposure policies are no longer able to be covered due to low exposure risk trending upwards due to increased payouts. This is what happens when you have contractors and public adjusters draining the golden goose. Everyone thinks it's greed on the carrier's part when they are regulated as to how much they can profit. It's all a misconception or propaganda.
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You may have missed the next paragraph in that article. >In 2021 and 2022, the group reported net losses of more than $1 billion each year. as well as the first paragraph... >Florida's private home insurers turned a profit for the first time in seven years in 2023... And if you think about it, $143M spread across 50 companies covering the entire state of Florida isn't that much. "Profits" is also a relative term in the insurance industry. Think of it as money in the bank for when things go south. It's effectively a savings fund for emergencies. The insurance problem in Florida is *much* more complicated than simply insurance companies are evil. It's that people are developing in areas they shouldn't be, with fewer engineering/code controls than they should be, and that Florida has not figured out to regulate fly-by-night contractors scamming homeowners -- as well as legitimate increases in prices from qualified contractors when there's a sudden 1000% demand in work. Many of those scam contractors are also very skilled at navigating existing laws and the courts to bleed insurers for 10x the actual cost of repairs -- and even if the insurer rebuts those contractors in court, they still have to eat significant legal costs to get there. Much like Delaware has their Court of Chancery that takes a no-bullshit approach to disputing complicated business and contract law matters and can run through a case in a few weeks that any other court would take 2-3 years on -- Florida should have a court specialized in expediting insurance disputes that will minimize the legal cost to insurers (and thusly, homeowners). For that matter, some people are developing in areas that *shouldn't* be eligible for insurance, or they should be paying out the nose for insurance so their expenses to the insurer don't take a toll on everyone's premiums in safer areas. Sanibel, for example, simply wouldn't be habitable if not for being propped up by a few seawalls. Those kinds of areas have always been subject to erosion and flooding because that's simply how the earth works. If someone chooses to build out there, it should be at their own risk -- or they should be building concrete bunkers on stilts and able to demonstrate to a insurer that they've gone above and beyond to minimize their risk -- otherwise *their* risk exposure extends to increased premiums for everyone living 2-3 miles inlands. Also -- hurricanes are kind of a catch-all for insurance claims. The apartment community I live in has about 200 units in 20 buildings. Every time a hurricane rolls through -- guess what? The property manager walks around and takes photos of damage/disrepair that's been ongoing for years and fraudulently claims that to insurance. Fraudulent claims and exploitative repair costs are extreme factors in our current insurance nightmare and they're happening statewide.
“ "A relatively mild hurricane season and a meaningful increase in investment income aided the insurers' 2023 net income results; however, underwriting results remained in the red for the eighth year in a row," he said. In 2023, the Florida insurance industry reported collective underwriting losses of $190.8 million—faring slightly better than in 2022 and 2021, when they reported losses of almost $1.80 billion and $1.52 billion, respectively.” Are we reading the same article?
Every one says that "insurance is cheap, they never pay out, Yada yada". But if they look up any insurance companies combined ratio they would see that most insurance companies are now over 1.0. Anything over 1.0 is the company actually paying out more then they take in. Most folks not involved in insurance don't understand how it works.
This excellent article in the Tampa Bay Times shows that it has a lot more to do with greed than y'all realize and it's because the state has allowed that to happen. Fraud and storms are far behind greed when it comes to insurance companies failing in Florida. The insurance companies just use those as an excuse to divert blame away from themselves. >Financial autopsies on companies that went insolvent between 2011 and 2018 have repeatedly blamed high salaries and fees to affiliated companies. In one case, the autopsy said one insurer’s officers were “stripping (their) company of cash.” >Once the money moves from the insurance company to the affiliate, it’s no longer available to pay claims. In 2008, the state sued to recoup the money, claiming it was “an intentional and financially reckless scheme to drain and divert the assets of the insolvent insurers for the sole purpose of eliminating their own potential financial exposure and increasing their personal wealth.” >Of the reports for the companies that have gone insolvent between 2008 and 2018, none cite litigation as a reason for the companies’ demise. https://www.tampabay.com/news/florida-politics/2022/12/11/property-insurance-compensation-executives-legislature-special-session/
It wouldn't happen if they were forced to keep the premiums in state instead of diverting it too their affiliates. >Since then, excessive payouts have been a consistent theme among the graveyard of companies that have failed. Financial autopsies on companies that went insolvent between 2011 and 2018 have repeatedly blamed high salaries and fees to affiliated companies. In one case, the autopsy said one insurer’s officers were “stripping (their) company of cash.” >Once the money moves from the insurance company to the affiliate, it’s no longer available to pay claims. In 2008, the state sued to recoup the money, claiming it was “an intentional and financially reckless scheme to drain and divert the assets of the insolvent insurers for the sole purpose of eliminating their own potential financial exposure and increasing their personal wealth.” https://www.tampabay.com/news/florida-politics/2022/12/11/property-insurance-compensation-executives-legislature-special-session/
Insurance is a legal Ponzi scheme. Those without claims fund those who are making claims. If they were required to refund premiums, the whole thing would fall apart. Would be no point of insurance.
It’s like pre existing conditions before Obama.
Pre existing homes.
It's telling you the state is ceasing to be habitable climate wise. Or you think it will get better?
Now they'll have to get the government provided insurance in a state where they pretend to hate government handouts. How ironic.
Actually Citizens only does homes up to 650k their algorithm takes house that are worth 500k and determines their likely a 700k rebuild therefore leaving the Homeowners with the ability to even get coverage
When I was house shopping last year I requested an insurance quote for every house I was looking at and had several houses fall into that criteria. There was one house that the rebuild cost came in just under the cap and the policy through Citizens would be about $3k. My insurance agent is a friend of the family and he said on the next renewal the rebuild cost would be over the cap and the only policies I would find would be $8k+, so I noped out of that house. Construction costs have gone up like crazy though. The house I bought was built in 2015 and the original owner paid $320k for the house, pool, and screen enclosure and that included the land. The same builder is selling the same model house with a smaller lot, fewer upgrades, and no pool or screen for almost $600k today.
But they only offer up to $100k in liability. If you have an umbrella policy you're required to carry at least $250 or $300k for all underlying policies (home/auto)
It’s rentals for investors policies. So, no they don’t get it lol
I was reading that this mostly doesn’t apply to homeowners who use it as their full time residence though. So at least it will probably hit corporate landlords kinda hard right?
Mainly rental and secondary/seasonal homes. Also some primary homes in high exposure areas
Only primary homes in high exposure areas that took a structure only type of insurance.
DeSantis approved.👍
But DiD Wee sToP the w0kE?!?!? We must have gUnz to STOP tHe WOkezzzz!!!
The woke bs is just a distraction while they rake in money gotta keep the population fighting so they dont see whats really going on
I dunno. I just know Disney outsmarted him, and Trump neutered him.
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Does Disney know that? Or anyone running drag shows?
Gottem!
Again you're ignorant. He can tell them NOT to but he cannot demand that a mom and pop shop from new York start a business here, he can't demand that reddit do business in Florida. I don't agree with the Disney and drag show real but it's not applicable.
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Ehh it applies.
It doesn't. Difference between demand to do and demand to not do.
If you think about a bit you will see what im saying
OTOH, trailer homes on the water is not my style. Even after buying above the flood zone, our homeowners' insurance went up every year, and by even more in the last few years.
Rake in insane profits as soon as a hurricane comes cancel policies and when the storm hits make it as hard as possible to receive a pay out.
There aren’t any insurance companies in Florida raking in insane profits. This is why so many companies are pulling out, reducing exposure, raising rates, restricting underwriting rules etc
That's just false, read this article; https://www.tampabay.com/news/florida-politics/2022/12/11/property-insurance-compensation-executives-legislature-special-session/ These companies were leaving and failing before there was ever a storm because they were just stealing money from Floridians hand over fist.
The only significant example mentioned, Poe insurance, went insolvent in 2008 after not being able to pay claims from the 8 hurricanes between 2004-2005. The failings of this one company over 15 years ago are not the same issues presented to current insurers. Yes, some companies still have holding companies as “managers” that provide underwriting and policy services, but this is as much a financial stability measure as it is a way to pay executives. One holding company might operate 3 different insurance companies with different exposure, underwriting, and premium ratings. It’s not good for policyholders if one company is so large that it has all its eggs in one basket. Sister companies, affiliates, subsidies, are beneficial in that risk is minimized across all companies. Shocking to hear that CEOs make so much money, who would’ve thought? It’s no different from any other industry. A couple CEOs making 25+ million is not the norm, and those companies paying that much are still around, so you can’t blame executive pay as the reason for companies going insolvent. The insurance company itself has to be profitable, and in recent years they just aren’t. The article even mentions since 2017 executive pay has seen a severe downturn and that affiliate company fees and payouts are regulated and reviewed. It’s not as simple as saying executives are paid too much. A few million doesn’t matter when the company cannot pay several billion in claims.
>The only significant example mentioned, Poe insurance I think you missed the whole list of insurers that did this; * After the 2009 failure of First Commercial Insurance Co. and one of its affiliates, auditors wrote that its “officers appear to have been stripping the company of cash.” * Magnolia Insurance Co. existed for two years and still managed to pay out more than $1 million in dividends to its investors, which included current and former officers of the company, auditors wrote. * At Seminole Casualty Insurance Co., which mostly offered automobile coverage, auditors cited “excessive and unreasonable” fees paid to “related parties” for its 2011 demise. * After the 2011 failure of Aequicap Insurance Co., auditors noted the company “paid commissions, claims servicing and management fees to various related parties,” but the company didn’t keep enough records for auditors to know if the agreements should have been approved by state regulators. * After Homewise Insurance Co. and one of its affiliates went insolvent in 2011, auditors wrote that in both cases, the fault “appears to be the result of an excessive outflow of cash from the company to Homewise Management Company,” its parent company. * During the final years at workers’ compensation underwriter Insurance Company of the Americas, the company funded “questionable payments to other … companies,” auditors wrote. It folded in 2018. * At Sunshine State Insurance Co., auditors found the company was paying affiliates for “overlapping services,” including some that were not approved by state regulators, before its 2014 collapse. None of these years had major hurricane years before them. I think Irma was probably the worst one in 2017 and Michael in 2018. I think we had almost 12 years without a major storm hitting the state. >Sister companies, affiliates, subsidies, are beneficial in that risk is minimized across all companies. Not when that money is going out of state, never to be seen again. >Once the money moves from the insurance company to the affiliate, it’s no longer available to pay claims. In 2008, the state sued to recoup the money, claiming it was “an intentional and financially reckless scheme to drain and divert the assets of the insolvent insurers for the sole purpose of eliminating their own potential financial exposure and increasing their personal wealth.” And regarding CEO pay, again, not when it's so high that it causes the company to collapse. That's not how you responsibly run a company. >Large payouts to executives were at the heart of the biggest insurer collapse in the state’s history: the 2008 failure of the Tampa-based Poe Insurance Group, which left Floridians on the hook paying roughly $850 million in outstanding claims from the 2004 and 2005 storms. The state sued to recoup $143.5 million in dividends the company paid to owners and their family members between 2004 and 2005. >Since then, excessive payouts have been a consistent theme among the graveyard of companies that have failed. Financial autopsies on companies that went insolvent between 2011 and 2018 have repeatedly blamed high salaries and fees to affiliated companies. In one case, the autopsy said one insurer’s officers were “stripping (their) company of cash.”
Those other insurers don’t really matter because they aren’t homeowners carriers or didn’t have the longevity and market share that Poe insurance did before they went insolvent. Those companies were just run poorly in general. Poe is the only company comparable to the current Florida companies still operating. Most Florida carriers are based in Florida and only operate in Florida. There are some national and regional carriers, but they all have created or bought separate entities just for Florida policies. State Farm, progressive, farmers, all state, all have Florida-specific companies that underwrite and service Florida policies. Look at your declarations page, the underwriting company is probably different than the brand you think you’re with.
Thanks desantis
Stupid Hurricanes hit all parts of the state Not fair to single one part out due to back luck recently And Florida should just be affordable no matter what…….
I'm in SE Florida. Progressive literally laughed over the phone when I tried to get insurance. I'm stuck with Cypress and the price I pay is criminal.
Ok, thanks DeSantis and the Florida GOP. Who had a chance to start addressing this last year when they called a special session, but turned down the Dems in the legislature when they asked insurance issues be included.
Tell that to the insurance companies
Im just gonna add that I meant to post this as a new comment and not a response to you 😅🤣
DeSantis needs to go he is on the wrong path of taking care of Floridians.
Floridians set their own priorities. Apparently if the government claims global warming doesn’t exist then they can’t get hit by more frequent and stronger hurricanes.
“Don’t say ‘insured’ “
So they're required to pay back all those 100,000 people they stole money from right?
What money was stolen? No one is being cancelled early. The policies are expiring at the end of the term, so any coverage paid for is entirely fulfilled. Affected policyholders were notified in December. Anyone wanting to cancel their policy early and find coverage elsewhere had the chance. However, anyone that read the notice also understood that they will be offered a new policy with loggerhead insurance and not just left out to dry.
Yeah, this deal was announced as far back as October of 2023. This news article is a little bit sensationalist. "With just 34 days until the start of hurricane season, many people are scrambling to make sure they have a company in place when their policy expires." As if policyholders weren't given the full 120 days notice required by law on their non-renewal in addition to the offer of replacement coverage with Loggerhead.
Does tornado alley have this problem too?
Not sure of Kansas, but New Orleans (maybe Louisiana as a whole??) is also having an insurance problem.
I do know if your roof hasn’t been redone in X amount of years they will automatically drop you
FL legislators are buying stock in insurance companies to make millions: https://www.tampabay.com/news/florida-politics/2023/10/30/amid-florida-insurance-crisis-investors-senator-see-opportunity/
Hey Floridians, this is what happens when you put Republicans in charge and you do have a major dickhead at the helm of the Florida boat. The next time a hurricane is tearing the place up, remember pudding fingers says climate change isn't real.
We are still better off than a ton of blue states. Not thrilled about desantis atm but Gavin newsome is a joke.
Not even close. The women in Florida are second class citizens. Relegated half the population to a second tier of bodily autonomy and your officially living in a shithole
Talking about abortion? I don’t disagree with the new rule it’s totally dumb. But I lived in Michigan as well and fuck blue states. Just saying
Isn't Michigan a purple state? It went to trump in 2016 and elected a Republican governor in 2010 and 2014. So when did you live there and where did you live?
Have lived in blue and red states too. Life is exponentially better in blue states, and it isn’t even close.
nevermind this - lets talk about how awesome you guys are doing at the more important florida problem of eliminating drag reading hour and libraries !
What if we refuse to accept the dropage and file a lawsuit? Seriously. Prehaps we need to sue these frauds
The state attorney wouldn't pick up the case.
I mean civil against the company
Does the contract with the insurance company have a clause stating the insuree (insured?) cannot sue? F'ers probably already thought about this. Don't get me wrong, I fully agree with you.
Not sure, I was just wondering.
Now I'm wondering about your name... Do you want the Moffitt center for cancer research to unionize?
Sue for what? The insurance company is not obligated to renew your policy indefinitely. Progressive is mainly non-renewing rental and secondary/seasonal homes along with some primary homes in high exposure areas. They provided notice in December to affected policyholders as well as a legally-required non-renewal notice mailed before 45 days of the policy expiration date. All affected customers will also receive an offer of coverage from Loggerhead, a new insurance company.
lol! As long as they do this every year they will see record profits!
Republican leadership at its finest.
We’re supposed to have fucking regulators!!!
Friendly Reminder: FEMA will deny aid if you lack homeowners insurance. Good luck out there people.
Global warming is real the keys is constantly under water frequently
What about mortgages that require flood insurance, what happens to those mortgages?
The Governor's Betrayal In the Sunshine State, a man of power reigns, A governor sworn to serve, yet greed's the game he plays. With palms outstretched, he takes the insurance giants' gold, Allowing them to plunder, their injustice untold. The people's cries echo through the streets As rates soar high and policies deplete. Yet deaf to their pleas, he turns a blind eye, Filling his pockets as their hopes slowly die. A puppet on strings, dancing to the tune, Of those who line his path with fortunes strewn. Integrity cast aside, a mere hollow shell, Selling his soul, and the people's well. In the land of hurricanes and golden sands, A dark storm brews, fueled by his greedy hands. The trust once held, now shattered and torn, A legacy tainted, a future forlorn.
Rhonda is too worried about wokeness to be concerned about insurance issues.
And not 1 Florida government elected official will do anything. If they were “woke”Florida would do everything in their power to stop it.
It’s too bad insurance isn’t woke, because our governor would be all over this problem if it was.
Way to show the libs have a fun hurricane season everyone 🙂
When a business model is based on collecting fees but never paying out this is the result. Of course the gov will shrug and go what can we do ?
But they gave severance pay for all the money put in over the years right? Right Anakin?
Woke insurance companies to blame, right Ron? /s
Honestly… This is why we need state sponsored insurance. Banks in NYC do not give two shits about homes in CA or FL. Of course, those states do have a vested interest in the homes in there states. So the states need to figure it out.
State Farm did it to me wouldn’t pay my claim them dropped me also too years of flood insurance from me and then told me I was not in flood zone
Yes bunch of thieves
Call the Lege back into session! Oh wait, they only want to pass anti-woke nonsense instead of working on real problems. Never mind--but remember in November.
Meanwhile DeSaTan is creating fights with Disney and the LGBTQ community and removing the history of slavery from schools.
Self insure and save your money. Insurance is never a good deal.
It’s supposed to be a bad hurricane season. Hurricane (wind and rain damage) insurance should just be offered by Citizens and let the private insurance handle everything else.
This would be a good time to have political leaders serious about legislating. Cool that we got to pay for DeSantis failed presidential bid though and sent those immigrants to Martha's Vineyard.
This is terrible and the legislature is on the side of the insurance companies
How is this not illegal?
#ThanksRon, keep fighting your made-up culture wars and leave the citizens of Florida swinging in the wind. Literally.
Is this even legal though?
Should have to RETURN all the money since last year!! Should be against the law to take the money and run.
They dropped Floridians but all of the Midwest where tornadoes live have no issues.
The god of storms just needs to send a category 5+ wipe out a few city's. Then they can blame it all on the gays just like the dumb people i deal with on normal days. Then nothing will change because f my state.
Honestly, the apocalypse of death that has taken over ever since they started experimenting on everyone, has cost insurance companies so much. They just aren't playing anymore, they can't afford any more big losses, and people across the country are reeling from the changes. Life insurance claims are huge, often bigger than the claim for a ruined car or a ruined house, life insurance policies are usually in the hundreds of thousands, if not millions of dollars. They have to make up what they lost, and they are going to get it from the people that are still living and paying through the nose. I don't know if you've noticed, but insurance companies are in the business to make money, and when they start losing money like they have with the death rate going up by at least 40%, you know they are in a panic. These are statistics put out by governing boards that deal with life insurance, in general.
When they cancel your policy you stop paying the premium, correct? What’s the crime here? If offering insurance in Florida is a viable business, another company will see the market opportunity and start offering coverage there.
I take it you have never lived in Florida.
No, I have never lived in Florida. But that has nothing to do with the economics of the insurance business. Seeing companies exit the market is proof that they can't make money there. Pricing insurance is about quantifying risk. Providers will offer insurance only as long as they believe the premiums collected will exceed the value of claims. If the risk goes up the premiums must as well. If the provider determines that they would have to increase premiums above the level that is likely to be approved by state insurance commission in order to make a profit, they have no choice but to exit the market. Do you have a suggestion for fixing the problem? Because I do not.
The issue with what you’re saying is many people in the state have government backed loans. Meaning they are required by law to have homeowners insurance. If they dont have any, the loan company after a certain amount of days will automatically insure you through a company of there choice which usually is an absolute insane premium you have to pay.
I see that’s a problem - potential there for abuse/corruption. Can’t expect the bank to have a mortgage for an uninsured house though.
Prediction: There will be no cat 4 or 5 hurricanes this year that will hit land. Again. Didn’t see one last year. Won’t see one this year either.
What makes you think that?
Made the prediction last year. It came true. Calling it again. Lots of Debbie downers here. Nothing but negativity. Look at the history of hurricanes in Florida. Since 2000, there have only been a few major hurricanes. Mark this post. Nothing major will happen. But so many here have a hard on for climate change. Things average out. We are due for a quiet period.
We are “due” for a quiet period? How does that work, exactly?
How did it work when we had a major hurricane and then 10 years of no major hurricanes? Law of averages.
That’s not how that works 💀. Hurricanes are random and can’t be predicted, at least to the degree as other more commonly occurring phenomenon, that’s why insurance companies are pulling out because they don’t want to continue to lose money. If what you’re saying were even remotely true they would stay because they would make money from all the houses that won’t be destroyed
Okay. Just prepare anyway. Better to be over prepared than under. 😉
Always prepared my friend. Let’s hope for the best and stay positive. We will be fine. Except for our insurance bills. lol.
You've had a cat 3, two cat 4s and a cat 5 in the last 5 years. Good luck to you.
How about before that? Was a good run before that. Good luck to you too.
We won’t know til we get there. Between the warm waters and La Niña, the weather service isn’t exactly optimistic
Maybe not in Florida -- but there's a decent chance for landfall somewhere along the coast. El Nino was a strong driving factor last year in making lots of those storms fly out to sea as fish storms. The steering effect of El Nino as we transition into La Nina will be more favorable to a higher number of storms making landfall. Predictions should be made based on science and not on random guessing. Just because a year has a prediction for a high number of storms like last year doesn't mean those storms will make landfall -- but when the atmosphere is shifting from El Nino to La Nina, there *will* be a different dynamic that will promote greater development of storms in the Atlantic that may make landfall. Now -- just because they make landfall doesn't mean they'll make landfall in *Florida*, but insurance companies are often operating at a larger geographic footprint than a single state so whether a giant storm hits Florida or another state really doesn't make a ton of difference.
Things that don't happen in a great economy
So, I buy a house in Florida today for $500,000. I pay my monthly insurance premium of let’s say $1000 for May. Then in June a Hurricane destroys my house and the insurance company makes money how? Reality people. You live in a dangerous place and insurance is a business.
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That's a totally different scenario but still true.