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My parents get the flyers all of the time to sell their homes. Wouldn't doubt at all that it is some kind of campaign backed by a gigantic investor like Blackrock who is hoarding gigantic numbers of homes.
But cancelling insurance? That's a new low. Haven't heard or seen evidence of that one in our area yet.
1. How much is gigantic?
2. The conspiracy that somehow insurers are part of a cabal to force old people from their homes is hogwash.
I have noticed in online community groups where I live that a growing and unexpected number of people (largely working and lower-middle class homeowners) are complaining of receiving homeowners insurance cancellation notices over roofs —or rather, threats to cancel if proof of new shingles aren't provided. Most of these folks have said their roof is ~15-years-old, though the number of folks reporting receiving the same letters despite having roofs <=10-years-old are also increasing, albeit more slowly. Quite a few have posted pictures asking what the heck is going on, and their roofs appear to range from clearly not in disrepair to outright pristine. I did ask an insurance franchisee client of mine about this last week. He advised that insurance companies have been sending reps out to take pictures of roofs and surrounding property and suggested that:
People should keep their lawns mowed, the exterior of their house washed —as well as free of unnecessary clutter and debris— because reps are often instructed not to bother with well-kept homes and that, adjusters and judges are far less predisposed to rule in favor of homeowners on roof claims where such eyesores are present when claims are contested.
Hire a company to come out to wash and, if possible, weather-coat (these usually come with 5-year guarantees) existing roofs to guard against excessive shingle deterioration or perception thereof. This can be done for $200-$400 in most cases for homes ranging in size between 1,100 - 2,100sqft, and is well worth the money considering the alternative is being forced to spend $5,500 - $10,000 for a shingle redo just to maintain HOI for folks on a tight budget.
The other side of the coin is of course that there are no shortage of roofing/contractor services that have been going around convincing homeowners to assist them in committing acts of insurance fraud in order to gin up business. I've even seen streets peppered with lawn signs that read something along the line of, "New roof for only $500-$1,000?! Ask Us How Today!" where virtually all of the homes suspiciously had brand-new roofs put on. This is criminal behavior —knowingly or not to the homeowner— that causes insurance rates to increase for everybody and causes insurance companies to overreact in the preemptive fashion described above.
1. Everyone should read this post, all the way to the end.
2. Like I thought, Florida. Most people do not realize that the state there has made all kinds of populist, political mandates regarding home insurance there over the years and that is behind much of the market disruption.
The state won't let an insurer stop selling just homeowners insurance (let that sink in, the state sets the prices and has to FORCE people to sell the product there.) so they stick it out so they can sell life, auto etc. but they'll look for loopholes to write less homeowners insurance because the state is forcing them to sell at levels that are long-term below cost.
Then the state will rely upon the population being math-illiterate (innumerate) and produce a study from a paid consulting hack showing how the insurers make plenty of money by picking just the years without major hurricanes.
I have noticed in online community groups where I live that a growing and unexpected number of people (largely working and lower-middle class homeowners) are complaining of receiving homeowners insurance cancellation notices over roofs —or rather, threats to cancel if proof of new shingles aren't provided. Most of these folks have said their roof is ~15-years-old, though the number of folks reporting receiving the same letters despite having roofs <=10-years-old are also increasing, albeit more slowly. Quite a few have posted pictures asking what the heck is going on, and their roofs appear to range from clearly not in disrepair to outright pristine. I did ask an insurance franchisee client of mine about this last week. He advised that insurance companies have been sending reps out to take pictures of roofs and surrounding property and suggested that:
People should keep their lawns mowed, the exterior of their house washed —as well as free of unnecessary clutter and debris— because reps are often instructed not to bother with well-kept homes and that, adjusters and judges are far less predisposed to rule in favor of homeowners on roof claims where such eyesores are present when claims are contested.
Hire a company to come out to wash and, if possible, weather-coat (these usually come with 5-year guarantees) existing roofs to guard against excessive shingle deterioration or perception thereof. This can be done for $200-$400 in most cases for homes ranging in size between 1,100 - 2,100sqft, and is well worth the money considering the alternative is being forced to spend $5,500 - $10,000 for a shingle redo just to maintain HOI for folks on a tight budget.
The other side of the coin is of course that there are no shortage of roofing/contractor services that have been going around convincing homeowners to assist them in committing acts of insurance fraud in order to gin up business. I've even seen streets peppered with lawn signs that read something along the line of, "New roof for only $500-$1,000?! Ask Us How Today!" where virtually all of the homes suspiciously had brand-new roofs put on. This is criminal behavior —knowingly or not to the homeowner— that causes insurance rates to increase for everybody and causes insurance companies to overreact in the preemptive fashion described above.
What is the scam, do they damage the roof and tell the person to file a claim?
Insurance companies are cheap with roofs, they try to only cover the damaged part, not replace the whole thing. I know a public adjuster who makes a living trying to get insurance companies to pay and mostly they don't make you whole. It depends on the state, some let them do patching or only pay for half the roof even if it doesn't match the other half.
a. But $25K? Other than current building supply $$, that's a lot of work to a small ramshackle house.
b. What would you do as to the homeowners "obligation" to pay that back? Seems reasonable to me to put a lien at $25K on their home, so whenever ownership changes, there's a method for the taxpayers to recoup, and even reinvest that $$ in other old folks places. Maybe there's some depreciated forgiveness, though that's unfair to the homeowner's benefit.
It may make some sense for a local government to provide some seed money with the ability to recover funds down the road, when the property transfers and then use those proceeds to play it again.
2. The conspiracy that somehow insurers are part of a cabal to force old people from their homes is hogwash.
There's no actual "conspiracy" against old people. The insurance companies tightening requirements affect the old and poor the most because they can't keep up with everything, so along with rising prices for maintenance, people trying to scam them (who target certain neighborhoods), and idiot neighbors who don't like old or poor people, it makes things difficult for these people who are already dealing with issues of aging and a fixed income. No one said it's a cabal, it is another sign of the sick times we live in.
What is the scam, do they damage the roof and tell the person to file a claim?
Insurance companies are cheap with roofs, they try to only cover the damaged part, not replace the whole thing. I know a public adjuster who makes a living trying to get insurance companies to pay and mostly they don't make you whole. It depends on the state, some let them do patching or only pay for half the roof even if it doesn't match the other half.
the #1 "scam" locally is - a storm blows through and hail is reported. Roofing contractors roll through and offer a free assessment, telling ignorant/unsuspecting folks "Oh yes, I can say you have hail damage and need a new roof. We'll handle everything with the insurance company. You just pay your deductible ($500-$1,000)."
Now, it oftentimes also requires an adjuster compliant with the cause. Why they'd comply, I don't know.
But let's say the insurance is underwritten expecting 10 roofs/year in your zip code suffering enough hail damage to require replacement. In 2020, the storm rolls through and 100 roofs get "hail damage replacement". Who pays for the extra 90 roofs? The insurance fairy? No, the policyholders in that zip through higher premiums.
If folks don't understand that insurance is something you hope to never have to call on, that's a base but common issue.
My parents get the flyers all of the time to sell their homes. Wouldn't doubt at all that it is some kind of campaign backed by a gigantic investor like Blackrock who is hoarding gigantic numbers of homes.
But cancelling insurance? That's a new low. Haven't heard or seen evidence of that one in our area yet.
From an actuary standpoint, a roof older than 15 years is more likely to incur wind/ hail damage, the most common claim.
Insurance is regulated by the state. No two states have the same regulations.
A combination of greedy investors, insurance companies, local government and even neighbors are ganging up on low income homeowners to try to coerce them to leave. I've observed this working with low income seniors living at home. It is disgusting. The insurance companies are starting to price out or just cancel insurance on older homes where the elderly and lower income are likely to live.
Flippers harass them, neighbors ignore them, bother them, or report homes that haven't been renovated as eye sores (while their own yards are full of trampolines, RVs, plastic crap). Someone reported a woman's beautiful wildflower garden as "weeds" that need to be mowed.
The local governments want to see old homes either razed or gutted, they are outlawing certain things that will force people to spend thousands of dollars to comply or be fined, or they will be forced to sell. This is often happening in democrat run areas. I'm not sure how you virtue signal this.
Predatory behavior is the core and lauded value of the capitalist system. Why to complain? Remember, "the greed is good"?
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