Insurance (Port Charlotte: homeowners insurance, work, house)

[crystalblue]

Fla. insurance rates likely to rise, experts say - 11/30/2007 - MiamiHerald.com

For homeowners, that means that insurance rates in Florida are well above the national average and they're likely to go higher.


bummer

[chisoxfan]

Leave it to the insurance industry to spread some holiday cheer. The timing of these greedy weasels is exquisite, as usual. These price-gougers can't even let us enjoy the end of hurricane season.

[crystalblue]

it is my personal opinion that at some point in the not too far future, without federal involvement, the insurance will rise to a level that makes it no longer affordable to the avg floridian.

im pretty sure im leaving b4 then, and i will be happy to sell you some land when yall iwsh to follow

[Mathguy]

Originally Posted by chisoxfan

Leave it to the insurance industry to spread some holiday cheer. The timing of these greedy weasels is exquisite, as usual. These price-gougers can't even let us enjoy the end of hurricane season.

The state approves all rate increases.
Why isn't there a problem in Florida with auto insurance then?
Seems like several logical disconnects in your "points".

[Mathguy]

Originally Posted by crystalblue

Fla. insurance rates likely to rise, experts say - 11/30/2007 - MiamiHerald.com

For homeowners, that means that insurance rates in Florida are well above the national average and they're likely to go higher.

bummer

The state run insurer that makes no profit admitted earlier in the year that it was not charging an "actuarial sound rate"....which basically alludes to needed rate increases in the future. So, this should not be a big surprise but I doubt they go up as dramatically as they did when the state took the artificial price caps off a year ago.

[chisoxfan]

I am sorry that a previous poster took offense to my "rant," as that poster termed it, to the point that he/she gave me a demerit. Perhaps I do get a bit emotional about this subject because I see what is happening to friends, neighbors and co-workers who are being priced out of this area by rising homeowners insurance rates, among other factors. Perhaps logic and the cold, hard facts are on this poster's side. My "mistake" is looking at the human side -- hard-working families with roots in the community whose budgets have been turned upside-down, or the elderly who are being forced out of homes they've owned for years. They are living beyond their means through no fault of their own.

Yes, it's true that the state must approve all rate increases. I applaud the current insurance commissioner's vigilance in rejecting some of the more outlandish rate proposals and hope he keeps up the good work. It's also true that rate increases have been rejected in the past -- and the insurance industry has responded by going to an industry-friendly arbitration board that more often than not has reinstated the increases.

The free-market response to all this is, "If you can't afford the rates, then move." Unfortunately, it's not that simple for a lot of us.

[Pru22]

Can you tell me or give me some idea of what the rates are like? We are thinking of relocating to Florida and are wondering just what kind of money would be required? for an average? home in the 250 thousand dollar range? And does the construction matter? We are thinking of building with ICF or SIPs for structural strength.
Thanks

[Mathguy]

Originally Posted by Pru22

Can you tell me or give me some idea of what the rates are like? We are thinking of relocating to Florida and are wondering just what kind of money would be required? for an average? home in the 250 thousand dollar range? And does the construction matter? We are thinking of building with ICF or SIPs for structural strength.
Thanks

It will GREATLY depend on where you move in Florida and how close you live to water etc.

The flood insurance component is set by the federal government and can be a big piece if you live in a flood zone too.

I would be more specific about the location you are looking at and post again under the Florida forum.

Good luck.

[Mathguy]

Originally Posted by chisoxfan

I am sorry that a previous poster took offense to my "rant," as that poster termed it, to the point that he/she gave me a demerit. Perhaps I do get a bit emotional about this subject because I see what is happening to friends, neighbors and co-workers who are being priced out of this area by rising homeowners insurance rates, among other factors. Perhaps logic and the cold, hard facts are on this poster's side. My "mistake" is looking at the human side -- hard-working families with roots in the community whose budgets have been turned upside-down, or the elderly who are being forced out of homes they've owned for years. They are living beyond their means through no fault of their own.

Yes, it's true that the state must approve all rate increases. I applaud the current insurance commissioner's vigilance in rejecting some of the more outlandish rate proposals and hope he keeps up the good work. It's also true that rate increases have been rejected in the past -- and the insurance industry has responded by going to an industry-friendly arbitration board that more often than not has reinstated the increases.

The free-market response to all this is, "If you can't afford the rates, then move." Unfortunately, it's not that simple for a lot of us.

I can certainly sympathize with the situation. This is a classic example of government intervention in free markets creating a mess. This EXACT same thing happened during the medical malpractice insurance crisis.

I can assure you that the state has the final say on all the rates and I've never heard of this "review board".

What happened was that the state pushed down rates for a long time on homeowners insurance to the point where insurers were making no money selling the stuff in Florida. The state passed laws saying if you stopped writing homeowners insurance you couldn't write auto etc. so the FORCED the industry to insure homeowners at a subsidy.

Then the rash of hurricanes in 2004 and the dam proverbially broke. Re-insurers raised the rates for the insurers, insurers took huge losses from the hurricanes and finally hit the point where they were willing to actually leave the state.

The state APPROVED all of these huge rate increases (rather than having let them creep up over time) and when the customers got the bill....the ELECTED OFFICIALS blamed the whole mess on "gouging". Thier solution was to expand citizens insurance which is a wild gamble...an unfunded, underpriced....dear god please no hurricanes political\economic hail mary...that just might work. (I hope)

You've been lied to by politicians seeking votes...who DO 100% set the rates...who created this problem by hiding the increases that were occuring until they burst upon you.

To this I leave you with a few thoughts:
1) Who sets and approves all rates for decades?
2) Why is only Florida having this crisis and why is it only for home insurance? If this were gouging....why not more states, why not auto insurance too?
3) The state of Florida has passed additional legislation keeping insurers from exiting the state....why would they need to do this if the insurers are making so much money?

[chisoxfan]

I don't for one second absolve our politicians in this. I think everyone who is affected by homeowners insurance in Florida agrees on that.