Insurance rates will rise on storms' surge

[barb162]

Insurance rates will rise on storms' surge

MARK SKERTIC
Published September 17, 2004

The successive storms that have battered the Southeast are likely to boost insurance premiums in hurricane-prone areas, according to a new analysis by Fitch Ratings.

In an average year, there are about $11 billion in catastrophic losses in the U.S., but Hurricanes Charley, Frances and Ivan could leave destruction totaling $25 billion just by themselves, Fitch analysts estimated.

In Florida, the state-run Citizens Property Insurance Co. provides coverage for homeowners in high-risk areas. It is also likely to be a source of rising costs for insurance companies and their ratepayers in that state, since it can require an assessment on every insurance policy in the state when it doesn't have enough money to meet expenses.


There is also the possibility that some insurers could decide they don't want to do business in Florida anymore. Fitch analysts note that the nation's largest insurance companies all have special subsidiaries operating in Florida.

Chicago Tribune

[Digit]

1. Everyone subsidizes the rich who build right on the beach

My rates are sky high and I don't own property anywhere near the beach. They are the ones who received the huge tax cut, let them pay their own way. Oh, and my decuctable is way up there, too.

[redpepper]

5. They ought to

condemn all this property or at least deny insurance coverage to them.

[Deja Q]

2. And I thought insurance companies were supposed to take the hit too

It's amazing. Most industries have to take occasional losses. Not insurance companies though. One storm or incident and BLAMMO, the rates skyrocket.

Pathetic little thieves, they are.

[barb162]

7. they will take the hit and pass it right on to policyholders

we will see how the national insurers really separate their Florida subsidiaries. Because I really don't want to be part of a rate hike for people who insist on living on the beach in high hazard areas.

[Pallas180]

9. Dont be silly. Every house 5 miles & more from the beach has had

roof damage.

You call 5 miles away living on the beach?

how about 15 miles away?

a hurricane, is a hurricane.

The mountains of the appalaichins are being flooded by this hurricane

puh leez.....

not everyone lives in a 30 000 square foot palace on the beach - like Rush does.

[barb162]

11. forgot to mention

it sure seems a lot of people are building on barrier islands and if not on barrier islands, right on the beaches inland of the barrier islands

[barb162]

10. I am talking about a mile or so inland from the water

the houses that take the brunt, the ones not only with roofs off, but off the foundations, the "totals" and I think we all know what these obvious examples are. In other areas of the country, the people who insist on living next to rivers, in flood plains, etc.

[OneTwentyoNine]

3. Met Life raised ours over 45% this year.....

And we're no where near the Hurricanes. But what the hell,gouge a few home owners,gouge them all.

Oh,so many things to blame rate increases on:

9/11
War in Iraq
Expensive building materials because of War in Iraq
Shortage of materials because of War in Iraq
Hurricanes over 1,000 miles away
Shortage of materials because of Hurricanes

[Digit]

4. You forgot to mention it is Clinton's fault :-)

[barb162]

6. did you ask your agent why the rates went up?

did you have any losses the last few years? Homeowner rates have gone up a lot the last few years because of mold claims, especially in TX (even though they put exclusions in the policies).

[OneTwentyoNine]

8. Not yet,just got the increase in the mail today...

Hell,they raised it $100.00 per year after 9/11 like alot of other insurances companies did.

We've had no claims,no fantastic jump in the value of the property. We now have Hardi-plank concrete siding.

Its just more of the same old shit that goes on with Repukes in office. Its that "go for it" rate increases that went on for years under Reagan.

Screw um,their history,I'll find another company for what the rate should be given the value of this house.

David