[Donna-50]

Originally Posted by Mathguy

Sure, first off....each individual state sets it's own rules and the rules can vary for each type of insurance. In most states and for most major lines of business (like home, auto) the state has to approve your rates.

For example, I worked for a company that sold malpractice insurance to lawyers. In Texas...we had NO filing requirements....none...we could have filed rates charging 10billion dollars per attorney if we wanted but we wouldn't have written any business. In Florida...we had to get prior approval before any rate changes.

So what you do is put together exhibits of your business losses, premiums, expenses and come up with a rate indication. You send the packet to the state and the state contacts you. They either approve (or approve a smaller change), disapprove, or request more information.
I cannot stress enough that...the state for all intents and purposes is "god". I've had state DOI workers tell me verbally that a rate indication for say a 20% increase is valid but politically they're only going to approve stuff under 10% so I'd just ask for 9.9%.

If you want to, you can actually get a copy of say...State Farms homeowners filing...I don't know if there is a fee but it's all public record. What you would likely see if you pulled up their filings from the last 10 years would be indications for large increases and the state approving tiny increases or nothing at all. The only real wheapon a company has is to exit the state but the department of insurance if you pay attention to the laws will require you leave ALL lines of business and never come back and they also generally only let you leave gradually.

If there is ANYTHING you can buy in the US more heavily regulated thanhome\auto insurance I sure can't think of it.

There is one exception...Citizens....you realize that they are required by law to have actuarially sound rates by 2008? Which means that their rates now are ahem.....not actuarially sound. I again pray that FL avoids hurricanes for a couple years.

I alternately laughed\cried when the jackass spokesman for citizens cited that the 2005 hurricane season only cost them like 7Billion in claims so the 8 Billion that they have on hand for 2007 means they are in "really great shape".
Um, Citizens is insuring something like 10 times as much stuff as they did in 2005 so um.....claims will only be 7Billion again? <shudder>

Long term what Florida needs to do:
1) Stop subsidizing massive coastal development on the backs of the rest of the state. Make everyone pay thier fair share. This is all Citizens is doing...cheaper coastal insurance funded statewide by assessments and tax increases after hurricanes hit.
2) Better building codes.
3) Some sort of excess hurricane pool as this is the segment of the market that is unregulated and can provide REAL relief and not smoke and mirrors. This is where citizens can provide value.

Crist is gambling. If no hurricanes hit the next 5 years....FL wins and he will be looking for a whitehouse run. If big ones hit and FL goes into debt oh 100BILLION then well...that's YOUR problem not his.

Thanks for the insight, but then how can the insurance companies get by without writing policies, or the famous non-renewal. Why would they OK a 71% increase last year for Allstate. What about all those years they didn't pay anything out. Even if you put in a small claim years ago you would be cancelled the following year so it doesn't make sense. For my hurricane damage, no I didn't get all that I should have because after awhile you get tired of fighting with them. You give them estimates from 3 businesses and they say you only need 1/3 of that the estimates say. I ended up doing most of the stuff myself because I couldn't afford to hire out. I did get my roof replaced, but the roofing company was just picking people off the street to put on roofs.

I am praying for no hurricanes this year. It gets a little stressful this time of year. I don't even put potted plants in the pool area anymore because I get tired of trying to drag them to the garage.

[Suncoaster]

Problem is, they're cancelling policies in a lot of places, not just here. An Allstate person I was talking with said they'd be cancelling some in Pennsylvania due a winter storm (??) and all over the southeast, west, gulf states etc. Some states don't have a backup plan such as Citizens.

There is one way out of this and that is national catastrophic coverage, directly from the Federal Govt. I am not one to usually go that route, but some things are best handled that way. Many things are best handled by the private sector and this is NOT one of them.

What is our premium dollar going for? Some for reinsurance, but a lot goes to such helpful things as CEO salaries, perks, golden parachutes, don't forget the Lear Jet, and the bulk is going to lobbying. You know, all that money that goes into political campaigns from ins. lobbyists and where is it coming from? Our premiums! Used to buy legislation that makes life harder for us.

Oughta be a crime! Yet they continue to lobby against national coverage.

No I think instead, have FEMA not just cover flood ins., but also catastrophes. Hurricanes, floods (such as N. Dakota, Missouri, Texas, Iowa etc), earthquakes, terror attacks. And let HOI be for isolated incidents - lightning strike, broken window, burglary, the non-catastrophic losses.

People complain and ask why should they pay for damage on the coast. Well, our taxes support FEMA - why should we pay for floods up north, out west, whereever. Why did we taxpayers here subsidize airlines after 9/11?Why should we pay subsidies to farmers in droughts, why pay for public schools for someone else's children ---- because we're a nation, that's why. Getting kind of tired of this short-sighted attitude of "I've got mine, the heck with you." No, much better if we all share in the costs - which will also keep the costs down - and realize that it might not be FL that gets whacked, it could be California (quake), Midwest (tornado outbreaks) or anywhere else. We're all in this together and should keep that in mind.

Just my op.

[james203]

insurance is high no matter where you live.a few yrs ago i got a quote for my car from farmers.i went down to get the insurance and they told me they gave me the old rates and it would be 25.00 more for a 6 month policy.i changed it to a monthly payment plan & just let my auto insurance expire.they tried to get 20.00 out of me for some b/s.i dont trust farmers.they always raise the rates.in ca its the law to have auto insurance.the dmv suspends your registration if you drop your insurance.i never did like the ca dmv & the girly girls in sacramento.

[Mathguy]

Originally Posted by Suncoaster

Problem is, they're cancelling policies in a lot of places, not just here. An Allstate person I was talking with said they'd be cancelling some in Pennsylvania due a winter storm (??) and all over the southeast, west, gulf states etc. Some states don't have a backup plan such as Citizens.

There is one way out of this and that is national catastrophic coverage, directly from the Federal Govt. I am not one to usually go that route, but some things are best handled that way. Many things are best handled by the private sector and this is NOT one of them.

What is our premium dollar going for? Some for reinsurance, but a lot goes to such helpful things as CEO salaries, perks, golden parachutes, don't forget the Lear Jet, and the bulk is going to lobbying. You know, all that money that goes into political campaigns from ins. lobbyists and where is it coming from? Our premiums! Used to buy legislation that makes life harder for us.

Oughta be a crime! Yet they continue to lobby against national coverage.

No I think instead, have FEMA not just cover flood ins., but also catastrophes. Hurricanes, floods (such as N. Dakota, Missouri, Texas, Iowa etc), earthquakes, terror attacks. And let HOI be for isolated incidents - lightning strike, broken window, burglary, the non-catastrophic losses.

People complain and ask why should they pay for damage on the coast. Well, our taxes support FEMA - why should we pay for floods up north, out west, whereever. Why did we taxpayers here subsidize airlines after 9/11?Why should we pay subsidies to farmers in droughts, why pay for public schools for someone else's children ---- because we're a nation, that's why. Getting kind of tired of this short-sighted attitude of "I've got mine, the heck with you." No, much better if we all share in the costs - which will also keep the costs down - and realize that it might not be FL that gets whacked, it could be California (quake), Midwest (tornado outbreaks) or anywhere else. We're all in this together and should keep that in mind.

Just my op.

A national CAT pool will never pass the senate....but you don't need a national one...Citizens can accomplish this GRADUALLY OVER TIME.

Ultimately, the government and insurance rates should incent people to make wise choices. Better building codes, not building on sand bars etc.

[Mathguy]

Originally Posted by Donna-50

Thanks for the insight, but then how can the insurance companies get by without writing policies, or the famous non-renewal. Why would they OK a 71% increase last year for Allstate. What about all those years they didn't pay anything out. Even if you put in a small claim years ago you would be cancelled the following year so it doesn't make sense. For my hurricane damage, no I didn't get all that I should have because after awhile you get tired of fighting with them. You give them estimates from 3 businesses and they say you only need 1/3 of that the estimates say. I ended up doing most of the stuff myself because I couldn't afford to hire out. I did get my roof replaced, but the roofing company was just picking people off the street to put on roofs.

I am praying for no hurricanes this year. It gets a little stressful this time of year. I don't even put potted plants in the pool area anymore because I get tired of trying to drag them to the garage.

It's hard to follow some of your points. Years where they didn't pay anything out? Sorry but that just sounds like some of the crap that has been spewing out of Crist and his cronies....you know....the guys that approved allstates 71% increase wherever you got that from. (was that statewide? wow that's huge) I'm not sure on the details as to why allstate etc. can non-renew.

Here is some actual factual documentation.

http://www.thefreelibrary.com/2005+P%2FC+Gulf+loss+ratios+point+to+insurers'+pai n,+need+for+reforms-a0154691969

No hurricanes....loss ratio is like 38cents on the dollar....
Hurricanes...loss ratio is like 300cents on the dollar....
Throw in 30 cents on the dollar for commissions and operating expenses and the insurers "profits" were like 32cents on the dollar in good years and -230cents on the dollar in bad years.

I'm hoping this helps you grasp that one or two no hurricane years doesn't begin to balance out what an Andrew can do.

[Cheezy]

Just received my love letter from Allstate. I'm glad our cars are not covered with allstate or state farm. I called all my family members and started an email asking people to drop them. If everyone did this just IMAGINE.
We are also looking at moving to TN. I also read many people are moving as well as businesses.

[Mathguy]

Originally Posted by Cheezy

I called all my family members and started an email asking people to drop them. If everyone did this just IMAGINE.

AllState does business in every state, same with State Farm etc. How is moving to another state going to help if you think they are the problem?

Why be mad at allstate? Citizens will fix everything and also fluff your pillows in the morning according to El Presidente Hugo Crist.

Would you care to explain what a boycott would accomplish? Why not just go without insurance?

[Rhett_Butler]

FWIW I heard on the news this morning that Allstate is going to be dropping HOI policies in California now as well.....

Guess the company decided to pull out anywhere that there's risk (which then begs the question if there's no risk, why do we need your insurance??? )

[Bones]

Originally Posted by VAFury

FWIW I heard on the news this morning that Allstate is going to be dropping HOI policies in California now as well.....

Guess the company decided to pull out anywhere that there's risk (which then begs the question if there's no risk, why do we need your insurance??? )

Allstate = All one sided...

[MotleyCrew]

If you live in a "high risk" state you will pay for it. We lived in CA for 30 years and never carried earthquake insurance. You can't expect a company to lose money out of the goodness(?) of their hearts, so insurance in FL will always be high, if you can get insurance at all. Homeowners insurance in AZ is $500 a year, property taxes are 1.2% of the assessed value. I would rather live in Florida, but income and soon retirement says I need to be happy here and visit when I can. Those of you who do live in Fl and are comfortable, have the very best spot on the planet.