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WTF - Home owners insurance went up a lot???(13 posts)

WTF - Home owners insurance went up a lot???african
Jul 29, 2003 6:49 AM
Ooooo my gosh, what a rip, up $400 from last year, is it just Florida?? I don't know what to say..... I guess I should suck it up as it could be worse. Any comments on home owners insurance.........
what are you gonna do?ColnagoFE
Jul 29, 2003 6:55 AM
you gotta have it. still with a $1500 deductible the only way i'll ever get a cent from it is if the house burns down.
insurance 101DougSloan
Jul 29, 2003 7:08 AM
You would think insurance companies make their money by collecting premiums, then paying out a little less than they take in. However, that's not quite right. Actually, they are huge investment companies, and mere use your premiums to invest and make money on the investments. The longer they hold your money, they more they can make on the investments. The benefits they pay out are mere a cost of doing business.

So, when they can't make as much money investing, like nearly everyone else these days, they have to charge more to cover their costs and still have some money to invest.

This is a bit simplified, but essentially it. Any time investment opportunities are down, expect premiums to go up.

Doug
moldmohair_chair
Jul 29, 2003 7:42 AM
It's all about mold. Lots of doctors and scientists say it isn't a problem, but lots of ordinary people say it is, and lots of lawsuits have resulted. In the end, insurance companies get burned. I'm not going to shed any tears for them, but despite their name, they aren't in the business of paying out claims. You can bet that not only will your premiums will go up, your coverage will go down. Read your new policy--many companies now specifically exclude mold.
Also, 9-11 pretty much gave insurance cos....94Nole
Jul 29, 2003 9:16 AM
the excuse to raise premiums. In our business, we've seen increases anywhere from 20-25% to as much as 40-50% in premiums on some lines of insurance.

It is out of control, but we have no choice. Customers require it, thus we can't win contracts without it.

I can't think of a line of business that I dislike much more than insurance. I am trying to replace my auto insurance because the company I currently use is pulling out of Florida.

My wife and I are in our early to mid-40's and have a clean driving record with no insurance claims and no teenage drivers and our premium quotes are between 2500-3000 per year for a '00 Rodeo, '99 Expedition and a '92 Miata. It is totally out of control.

I guess ins. cos. can be lumped with the claim that some make about the Bush admin., that they thrive based on fear. I may be more sensitive to the news stories but just in the past couple of weeks there have been stories here in FL of those who have lost their homes in fires, sinkholes, etc. and are uninsured.

So, the possibility of the catastrophic downside keeps us paying premiums.
so go without insuranceDougSloan
Jul 29, 2003 9:23 AM
No one is required to have insurance. You may be required to show evidence of "fiscal responsibility" to drive, but you can satisfy that by putting up a bond, etc. Same with homeowner's, if you pay off your mortgage, or rent.

If insurance is such a great scam, why isn't everyone starting up their own companies? BTW, that is happening around here. Builders who cannot obtain any liability insurance are starting their own captive insurance companies. It's expensive, but makes economic sense.

There are literally hundreds of insurance companies licensed in many states. Seems like it should be possible to shop around for a cheaper one that really wants your business.

Doug
Believe me, Doug, if I could afford to self-insure, I would.(nm)94Nole
Jul 29, 2003 9:34 AM
most mortgages require it (nm)ColnagoFE
Jul 29, 2003 10:10 AM
so pay cash nmDougSloan
Jul 29, 2003 10:12 AM
Spoken like a true attorney (nm)94Nole
Jul 29, 2003 10:37 AM
uh oh, you said two bad words to some uptights hereNo_sprint
Jul 29, 2003 9:39 AM
Rodeo AND Expedition... oh the horror!

LOL
Yeah, I want to keep the gasoline tax revenues flowing...94Nole
Jul 29, 2003 9:45 AM
to keep the roads in good condition for cycling.
I hear ya.No_sprint
Jul 29, 2003 9:48 AM
I'm looking forward to the day I put the Parlee, the Ciocc, the Klein and the Holland into the Navigator which is parked next to the Viper.