| Get my pies|
outta the oven!
So how much do you think the State Farms and Progressives etc are going to raise homeowner's and auto insurance on ALL OF US by next year to make up for Harvey and Irma?
You know that's coming. Never had a single claim for homeowner's in 10 years of owning houses and very few for auto over the past 10 years. But I expect my rates to go up quite a bit.
|Now in Florida|
I wouldn't expect your rates to go up significantly. We've had disasters like this since the beginning of time. Never noticed my rates go up as a result. My auto coverage through USAA has gone up very slightly over the years and my homeowners coverage which includes hurricane coverage has declined every year since I initiated the policy in 2013.
|I Am The Walrus|
The rates are high enough already!
Moving from El Paso to Orlando, the renters and car insurance went up significantly. We had USAA at the time then switched to State Farm.
|His Royal Hiney|
Unfortunately, that's how insurance works. People pool their money together to cover the loss that a certain percentage will experience. When the total loss gets bigger than expected, everybody has to ante up more.
Companies won't mind increasing because other companies are going to have to raise their rates so the chances they will lose their customers to others are fairly slim.
The value add that insurance companies bring is how efficient can they be and how discriminating they can be in acquiring good customers.
"It did not really matter what we expected from life, but rather what life expected from us. We needed to stop asking about the meaning of life, and instead to think of ourselves as those who were being questioned by life – daily and hourly. Our answer must consist not in talk and meditation, but in right action and in right conduct. Life ultimately means taking the responsibility to find the right answer to its problems and to fulfill the tasks which it constantly sets for each individual." Viktor Frankl, Man's Search for Meaning, 1946.
Well...insurance companies also have insurance known as "re-insurance" which kicks in over a certain dollar amount.
So, Harvey/Irma will be plenty big for those re-insurance policies to kick in so rates may not go up much. The worse case is a bunch of smaller catastrophies, none of which quite hit the reinsurance threshold.
Yes, but as the reinsurance spiral unwinds for these claims, the reinsurers will raise their future rates to the insurers downstream. And, of course, they'll all use global warming as an excuse to raise rates all the way down the line.
|Raised Hands Surround Us|
Three Nails To Protect Us
A slight drift that I have been wondering in situations like this.
Some businesses are certainly shuttered and will be for a period of time. Do employers prepare for this and still pay their employees, do they have insurance coverage to cover employees wages? Or are the employees just screwed?
Or a mix of all three?
Life can only be understood backwards; but it must be lived forwards.
One of the best posts I've seen regarding insurance on the internet.
Flood insurance is underwritten by the federal government. The non-flood damage from the storm is significant but well within what the industry can handle.
So to answer your question, "Not much."
An operator is someone who picks up the phone when I dial 0.
|In the yahd, not too|
fah from the cah
The big hits are going to be in the auto insurance market rather than homeowners. As Caneau said, flood damage is through flood policies written through the feds, not through private insurance.
Irma will likely have a bigger effect due to all of the wind damage, but they're already paying a bigger premium for that.
|Blinded by |
Home owners doesn't cover windstorm nor flood.
In Florida in the early 2000s all private insurers pulled out of the pool covering windstorm policies. So all policies are written by Citizens insurance a non for profit that has been charging high premiums since the last storm to hit Florida in 2005.
So to the OP, State Farm, Progressive etc will not be shelling out one penny
Smart is not something you are but something you get.
Chi Chi, get the yayo
A bunch of companies have been covering windstorm here in south Florida in the last 4 years. Not just citizens.
|Drill Here, Drill Now|
My insurer here in the Houston burbs covers wind damage, but the feds cover flood damage.
Ego is the anesthesia that deadens the pain of stupidity
DISCLAIMER: These are the author's own personal views and do not represent the views of the author's employer.
All HO insurance policies cover wind. None of them cover flooding...it could put them out of business hence the NFIP. The NFIP also has low limits.
A bunch of insurers did stop writing policies in FL though due to the loss ratio.
Insurance rates in North Carolina have to be approved by the Commisoner of Insurance. The companies have to justify those rate increases. I believe all states do the same.
Your rate is determined based on actuarial amounts determined use/loss. After these storms those figures will be recalculated and used to defend the rate increase request.
Know an actuary? Have that person explain their methodology
Just my 2¢
Clowns to the left of me, Jokers to the right ♫♫♫
|Little ray |
Some might have business interruption insurance. Some don't. That isn't to cover wages, but lost profits. Some businesses may pay employees for a time, but many won't and can't. No income, no wages. They certainly can't and shouldn't be required to pay employees that aren't working.
The fish is mute, expressionless. The fish doesn't think because the fish knows everything.
Yes, state INS commissions oversee rates (and policies/policy language). They could actually require companies to increase them if they think an INS companies rates are too low and it could put them at risk of going out of business.
"Taking rate" (rate increases) is a tricky. Do it too much or too soon, you lose policies to your competition. Do it too late and you suffer major losses w/o enough incoming premiums. All the while the insurance commission is also breathing down your neck to ensure your company makes neither mistake. Otherwise, you could slash rates, corner the market...then go maybe go out of business the next 5 years as big storms hit.
|Go ahead punk, make my day|
That's kind of how insurance works...
But if you are so confident that you'll never have a home insurance claim, just cancel your insurance and go without...
Only if...it is paid off with no mortgage!
| Get my pies|
outta the oven!
I never said that.
What kind of bullshit retort is that anyway? You seem to like to fuck with me a lot in answers to my posts and I'd just as rather you stay the fuck out of them. Capice?
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