Florida homeowners insurance fiasco

[farmerEd]

It'll be interesting to watch how this all shakes out.

Joan Hernandez of Homestead was distressed when the bill from her home insurer, United Property & Casualty, hit her mailbox. The new premium was $11,529; last year's was $3,795.

I guess the coast will only be available to the super-rich - those that can afford the prices of the property, and then also afford the insurance on it.

http://www.miami.com/mld/miamiherald/15310454.htm

[Rich_by_the_Bay]

Quote:

Originally Posted by OldMcDonald I guess the coast will only be available to the super-rich - those that can afford the prices of the property, and then also afford the insurance on it. http://www.miami.com/mld/miamiherald/15310454.htm

It's highly variable. Ours (nice neighborhood, Gulf Coast) went up 6%.

[Nords]

Quote:

Originally Posted by OldMcDonald Joan Hernandez of Homestead was distressed when the bill from her home insurer, United Property & Casualty, hit her mailbox. The new premium was $11,529; last year's was $3,795.

On behalf of all us insurance-premium-paying homeowners everywhere, Berkshire Hathaway says "Thanks!"

[mickeyd]

Quote:

The new premium was $11,529; last year's was $3,795.

I suspect that the Ho policies on the Gulf coast of MS and LA will see a simular increase in the years to come.

[youbet]

There will be a lot of controversey about "pooling risk" in the future.* Should folks in the midwest pay higher home owners insurance rates to help subsidize the folks in hurricane alley?* Will the gummint step in to control how risk groups are aggregated and segregated?* *:P*

[brewer12345]

Quote:

Originally Posted by Rich_in_Tampa It's highly variable. Ours (nice neighborhood, Gulf Coast) went up 6%.

Count yourself lucky for now. I suspect that in the next couple of years you will be feeling the pain.

FWIW, I don't think the FL insurance mess will be getting any better in the next few years. The primary companies are trying to charge enough to cover the risk, but its tough to get a regulator slap voters with a 200% rate increase. The reinsurers (at least those that didn't blow up last year) are writing some FL business, but they are limited by capital requirements and self-preservation. Meanwhile, three or four primary insurers went bust in the last year. One of teh ones that blew up did so because they couldn't get reinsurance.

[LOL!]

It was reported yesterday that in TX near the coast, that Allstate will no longer insure non-brick houses.

http://www.chron.com/disp/story.mpl/...s/4125295.html

[astromeria]

Quote:

Originally Posted by youbet Should folks in the midwest pay higher home owners insurance rates to help subsidize the folks in hurricane alley?

Yes, as long as we're willing to help subsidize insurance for floods, hail, blizzards, severe cold snaps, and tornadoes in the midwest

[AltaRed]

Premiums need to reflect the risk. Be damned if I'd pay more for insurance in the Midwest just to keep costs down for those who wish to live in Hurricane Alley. *And quite frankly, I don't know that insurance firms should insure anything on the waterfront, including barrier islands.

[youbet]

Quote:

Originally Posted by astromeria Yes, as long as we're willing to help subsidize insurance for floods, hail, blizzards, severe cold snaps, and tornadoes in the midwest

Hee, hee......* Yeah, I can see why you'd feel that way........* *But I don't think so!*

My name brand,*full coverage, low deductible, high liability coverage home owners policy costs me about 0.5% of the replacement value of my home structure annually.

There are lots of boring attributes about living in the midwest.* Affordable home owners insurance, for most of us, is one of them.* And that's an area where I'd just as soon be bored.

I do hope the hurricane alley folks do find a way to be appropriately insured, but without a subsidy from me!* *

[Nords]

Quote:

Originally Posted by astromeria Yes, as long as we're willing to help subsidize insurance for floods, hail, blizzards, severe cold snaps, and tornadoes in the midwest

Let's not forget the California earthquakes & mudslides, either!

[Rich_by_the_Bay]

Quote:

Originally Posted by Nords Let's not forget the California earthquakes & mudslides, either!

Don't forget brush fires. Or windstorms. Or tsunamis.

I actually do understand and, to some extent agree, with a landlocked midwesterner not wanting to subsidize hurricane damage due to its scale. But it really is the whole eastern seabord at risk (like most of the northwest is at risk for quakes), and catastrophie in one region at such a scale truly does hurt all to some extent.

Not sure what the answer is, but if the state of Fla or any other state, is forced to essentially self-insure, my bet is that the private carriers would get very creative very fast with solutions. There are over 15 million people here, some with very big houses.