[Rhodes22-list] Coastal Living - Insurance

[john Belanger]

prices must keep up with the level of inflation. but like i said, insurance companies are also known as institutional investors. and publicly owned. thats why i said the fed should be the one who sets the caps, not the states. lots of systems in our country would be better if one standard was required. my mom used to say you could lead a horse to water, but you can't make it drink. all i'm saying is that it is in all our interest to have the fed guarantee the supply of water. 
   
   
  Brad Haslett <flybrad at gmail.com> wrote:
  John,

Nearly all the insurance companies have substantially raised their rates for
coverage in coastal areas to reflect their newly calculated risks as a
result of the 04' and 05' hurricane seasons. Some states have limited the
amount they can raise rates, so they just quit selling in those areas if the
perceived risk is greater than their minimum return on investment. Remember,
insurance is not a right guaranteed by law, it is a business, and businesses
have to have a minimum ROI or they take their capital somewhere else. The
insurance companies have not "just walked away". They have behaved badly in
many cases and customers are making their cases in the judicial system,
often quite successfully. In Mississippi, many of the attorneys leading the
consumer fight are heading for jail. Mark my word, there will be some
politicians follow them. Those "big-bad" insurance companies don't have a
monopoly on greed. I love it when someone pulls the string on their Chatty
Cathy doll, "federal regulation!", "federal regulation!", "federal
regulation!". I'm going to pull the string on my "Bitchin' Bradley" doll,
"take some friggin' responsibility for yourself", repeat as necessary!

Brad

On Sun, Feb 24, 2008 at 5:05 PM, john Belanger wrote:

> 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 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
> --------------------------------------------------------
> 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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> >
> >
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> --
> Robert Skinner "Squirrel Haven"
> Gorham, Maine 04038-1331
> s/v "Little Dipper" & "Edith P."
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>
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