[Rhodes22-list] Coastal Living - Insurance

[john Belanger]

am i understanding this correctly?.....the insurance companies are not allowed to charge more than a certain amount for catastrophic coverage, so they charge more to low risk clients to cover the possible cost of a large payout? thats not right either. the odds favor its never happening but i don't think the company should get out of paying when it does happen. that was my point. thats where federal regulation should be placed. why should they be allowed to walk away?

Robert Skinner <robert at squirrelhaven.com> wrote:  I have to go with Brad on this one.

Writing insurance on structures in hazardous areas is 
expensive. The costs should accrue to those who elect 
to lie down on the tracks in front of a speeding train 
- or build a shack in a flood/storm-prone area, etc... 

Why should I (having elected to live on high ground in 
a sound structure near a fire hydrant) have to foot the 
bill for some jerk who doesn't know enough to come 
in(land) out of the storm?

State regulation has its place in preventing predatory 
practices, but financing foolishness is not a good use 
of the power they have. Once again, there is no such 
thing as a free lunch. People who elect to enjoy the 
views of the ocean need to pay for the privilege.

And people who elect to rebuild and/or live in New 
Orleans need to pay for the risks associated with 
living at or below sea level. I wouldn't be betting
on their survival or well-being, and that is what 
insurance companies are supposed to do.

/Robert
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john Belanger wrote:
> 
> insurance companies are in the business of making money. they hedge their bets like any good bookie would. the one thing to remember about them is that they are also known by their other important title: institutional investor. i fault the state and federal governments in allowing them to leave a state (especially after a large insurance loss). they are national companies, and should be allowed and required as such to offer coverage nationally. take off any cap on fees for catastrophic event coverage. if people are willing to pay, insurance companies should be allowed to charge whatever the traffic will bear. in return, everyone should be covered for minimal coverage.
> 
> Brad Haslett wrote:
> This was predictable. The Sun-Herald (Biloxi-Gulfport) had an article today
> about State Farm insurance and the fact they aren't writing any more
> homeowners policies in Florida. Nationwide and Allstate came to the same
> conclusion earlier (boat insurance is sure to follow). Now I understand it
> is hard to love an insurance company, but this is a perfect example of what
> happens when 'da gubment' sticks its nose in private business, you don't get
> cheaper prices, you get fewer services. Both Mississippi and Florida (and
> other states) have gone after insurers through their state insurance
> commissions and Attorney Generals, and the net result has been for the
> insurance companies to pick-up their bat, and ball, and glove, and go
> somewhere else to play. Those of us who live inland pay as well - my
> earthquake coverage was canceled due to Katrina, huh? It sounds silly but
> that's the way it works. The 2004/05 hurricane season gave the big boys
> bloody noses so they reduce their risk somewhere else to limit their
> exposure. Now here is the next thing that's predictable as hell, politicians
> will line-up during an election season and spout how they're going to
> protect you from those "greedy" insurance companies. BS. This is reality
> and the only thing you can do to remedy the situation is to take on more
> risk yourself, or move. If you love FEMA, you'll really love universal
> health care.
> 
> Brad
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-- 
Robert Skinner "Squirrel Haven" 
Gorham, Maine 04038-1331
s/v "Little Dipper" & "Edith P."
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