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Re: Goodby Florida
Old 05-28-2006, 10:54 AM   #21
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Re: Goodby Florida

I live in AZ.* There are now Home insurance companies that are state focused, rather than the All State, Farmers, American Family and myriad other national syndicates that are able to write policies here and cut the rates by 30 plus % since they are insuring a much lower risk pool in these selected low risk states since they are regional and not national.* I have been with Farmers, but I am going to move to one of the AA Best rated "Cherry Pickers" and go from $1100/year on insuring a primary residence valued in excess of seven figures to $730/year.* This with a $1,000 deductable.* Includes full structural replacement* that rides with the market escalation.

Key is there are no earthquakes, hurricanes, tornados, or similar regional catasrophic events that blow the risk up every five years in these safer geographic areas such as Nevada, most of Arizona, Utah, Wyoming and eastern Oregon, Washignton and selected places in the midwest and inland east coast.

Note that the home owners insurance programs are a STATE REGULATED business and must have available reserves for claims that are estimted and approved based on* the states risk reserve ratios, not a national ratio.* This means that the Allstates, farmers, American family, and countless other national insurance companies are harvesting premium profits ( done outside of state regulations as balance sheet 'whole corporation"* transfers that are SEC approved as internal holding company share profits or losses) from low risk states such as Arizona (big premium profits to share holders) to offset Florida or similar huge claims losses (shareholder losses).* If you live in a state such as Arizona or Nevada, take a look at a smaller, state focused home owners insurance writers that are independently owned and see how much you have been subsidizing the bad risk decisions that the Farmers, American Family,* All State and any other national insurance conglomerate has been taking from your wallet.*

Also be fully appraised that the large insurance companies own virtually all political control of the respective state legislative over sight and control much of the in state regulatory decisions through their lobby.* If you want decent rates, you must assert your own market due diligence.*
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Re: Goodby Florida
Old 05-30-2006, 05:15 AM   #22
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Re: Goodby Florida

We are on the east coast of Florida, $380K house with $2600 tax bill. Just got the homestead.
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Re: Goodby Florida
Old 05-31-2006, 10:55 AM   #23
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Re: Goodby Florida

My question with insurance is: I have USAA a national, but selective company (similar to a credit union for insurance) and my premiums for both car and homeowners is lower than anybody else. I also receive a refund every year of excess premiums paid. How can this be? I pay less than any at other company receive a refund and USAA stills seems to make a profit.

Bennevis--Don't believe once your off the coast it's safe. Polk county does not have a coast and was hit repeatedly in the 2004 hurricane season. I think four of the storms went through there. They didn't have the storm surge problem, but they were hit hard by the tornadoes. Not to mention the peninsula is only something like 80-100 miles across, which isn't enough time to significantly slow down a strong storm.

To the OP Charleston, SC is great I'd move back there in heartbeat. The problem with NC is it seems like they were always getting hit by the hurricanes. I'm right behind you, except I'm going to Gulfport, MS. The house has been on the market for a month, I have an accepted offer for about 100,000 more than I paid three years ago, and I'm outta here in about 2 months. I figured I'd stay at a beach hotel for a few weeks before I leave. The houses, still standing, in Gulfport are a lot cheaper than they are here and the pay is similar.
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Re: Goodby Florida
Old 05-31-2006, 11:00 AM   #24
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Re: Goodby Florida

Quote:
Originally Posted by lets-retire
My question with insurance is:* I have USAA a national, but selective company (similar to a credit union for insurance) and my premiums for both car and homeowners is lower than anybody else.* I also receive a refund every year of excess premiums paid.* How can this be?* I pay less than any at other company receive a refund and USAA stills seems to make a profit.
How much do you really want to know? I can give you an explanation of how insurers make money and how that boils down to your specifics, but it might take a while.
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Re: Goodby Florida
Old 05-31-2006, 11:27 AM   #25
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Re: Goodby Florida

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Originally Posted by brewer12345
How much do you really want to know?* I can give you an explanation of how insurers make money and how that boils down to your specifics, but it might take a while.
I bet USAA doesn't have anywhere near the sales expenses or deadbeat receivables that other insurance companies have to contend with.

Armed Forces Insurance has been able to stay cheaper than USAA for decades, but AFI has been greatly raising their rates (or cancelling coverage in the Southeast) and I'm not all that sure whether they're taking in enough money yet to remain in business.

I guess this week I'm finally gonna have to put together a quote sheet, fax it to both of them, and let them make me an offer...
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Re: Goodby Florida
Old 05-31-2006, 03:40 PM   #26
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Re: Goodby Florida

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Originally Posted by brewer12345
How much do you really want to know?* I can give you an explanation of how insurers make money and how that boils down to your specifics, but it might take a while.
It was more of a rhetorical question. The point was with a smaller group of customer's they easily stay in business, yet charge a lot less than many of the other national companies. If you look at the location of military bases many are in areas with high disaster probability. It would seem logical that many of their customer's are also living in the higher disaster areas.
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Re: Goodby Florida
Old 05-31-2006, 03:46 PM   #27
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Re: Goodby Florida

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Originally Posted by lets-retire
It was more of a rhetorical question.* The point was with a smaller group of customer's they easily stay in business, yet charge a lot less than many of the other national companies.* If you look at the location of military bases many are in areas with high disaster probability.* It would seem logical that many of their customer's are also living in the higher disaster areas.*
Heh, actually USAA is a pretty monster big company. Not quite up there with Allstate and State Farm, but pretty damn big. And I suspect that most of their customers are stateside, and maybe even a majority are not active military.
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Re: Goodby Florida
Old 06-01-2006, 11:45 AM   #28
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Re: Goodby Florida

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Originally Posted by brewer12345
Heh, actually USAA is a pretty monster big company.* Not quite up there with Allstate and State Farm, but pretty damn big.* And I suspect that most of their customers are stateside, and maybe even a majority are not active military.
You are correct. The point is was attempting, but obviously failing, to make with the military base comment was, that since there has to be some kind of relationship to the military to be eligible for USAA, it stands a good chance that many customers live near bases. There are the few who obtain USAA insurance then move away from the bases. Since you either must be in the military, be a military retiree, or the family member (with restricitons) to one of those two groups to be eligible your not going to see a lot of USAA customers in podunk Oregon, but you will see more of the other national companies. The big national companies are complaining that they can't make money because of the hurricanes, but USAA seems to have few problems, and they don't have a large presence in the cash cow of pudunk Oregon (I know they have volcanoes and earthquakes, this was just an illustration). Is USAA exempt from certain state insurance regulation because of the way they are organized?
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Re: Goodby Florida
Old 06-01-2006, 12:02 PM   #29
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Re: Goodby Florida

No, they don't get a free pass on regulation because of their structure. And you may find that their rates will be going up in the next few years as catastrophe reinsurance pricing continues to trickle down to homeowners policies. Since USAA likely already has its reinsurance in place, they may be able to wait until next year to pound out the rate increases.

In auto, selection is the game. I bet a lot of the selection is already done for USAA just by virtue of who is allowed to join, plus they have additional data by which to segment their customers and price appropriately. Plus the fact that they are not in this business for the purpose of making a profit (being owned by its members) means that they have room to price aggressively if they choose to do so.
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Re: Goodby Florida
Old 06-01-2006, 01:09 PM   #30
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Re: Goodby Florida

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Originally Posted by brewer12345
Plus the fact that they are not in this business for the purpose of making a profit (being owned by its members) means that they have room to price aggressively if they choose to do so.
Forgot about that part.
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Re: Goodby Florida
Old 06-01-2006, 01:48 PM   #31
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Re: Goodby Florida

Quote:
Originally Posted by lets-retire
... since there has to be some kind of relationship to the military to be eligible for USAA, it stands a good chance that many customers live near bases.* There are the few who obtain USAA insurance then move away from the bases.* Since you either must be in the military, be a military retiree, or the family member (with restricitons) to one of those two groups to be eligible your not going to see a lot of USAA customers in podunk Oregon, but you will see more of the other national companies.
Logical but not the reality.

There are far more veterans than active-duty military. (It's the same type of pyramid problem as Social Security.) Most of USAA's members joined when younger but then left the service (or retired) and descended en masse on Podunk to raise their families & retire. The older USAA members have far more insurance products, too, so their revenue is a bigger part of USAA's income and USAA's service is oriented toward us ol' pharts.

USAA has been trying to change their focus (since their biggest customers are dying off at a fierce rate) but they're not there yet. Our kid will be a USAA member for life even if she never enters the military, but she probably won't be paying them any premiums for another decade.

You have your "company towns" like San Diego, Tidewater area, DC, Hawaii, and San Antonio, but most veterans/retirees are spread across the population (and the world). One of the problems with TRICARE base clinics/pharmacies and other military-retiree programs is that a big percentage of military retirees live too far away from bases (especially since BRAC) to conveniently use the benefits.

USAA has been getting severely hammered by hurricane claims in the southeast. (Pascagoula, Pensacola, New Orleans, & Mayport are big Navy towns, and the "Redneck Riviera" is a huge retiree area.) The difference is USAA's huge reserves, smart reinsurance, and ability to jack up premiums (or not refund excess premiums). They're also cancelling policies and starting to turn into claims pit bulls, although the veterans are pushing back.
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Re: Goodby Florida
Old 06-01-2006, 05:27 PM   #32
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Re: Goodby Florida

Nords,

I also served in Uncle Sams canoe club but only for three years during the VN years.
I have been a USAA member since 1969 and consider them to be an excellent company with low rates and good service. I've only had one questionabe experience with them and that was regarding paying for a rental car after my car was totaled.

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Re: Goodby Florida
Old 06-16-2006, 03:02 PM   #33
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Re: Goodby Florida

Ahhh - USAA - not very happy with them as they had some questionable procedures when I moved to/from Germany and got married.....as for profit - oh yes they do make a profit - I get their financial report every year and see that they do *VERY* well. Also just got their proxy and looked at what they pay their board members - very nice as well. Sure wish I could be a board member and make an extra 6 figures a year for teleconference.....

They are claims pit bulls and will kick members of the family off the insurance plan in a heartbeat.

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