Posted on 10/24/2009 11:04:27 PM PDT by UAConservative
MONTGOMERY, Ala. - Coastal insurance bills proposed by lawmakers from Mobile and Baldwin counties don't go far enough, according to a grassroots group of local homeowners.
"Right now, our legislators are listening to big money, and they need to listen to us," said A.C. Leggett, a member of the Homeowners' Hurricane Insurance Initiative, in an e-mail. "Our legislators want to do a little bit at a time. We cannot afford to do that."
Insurers have vigorously, and successfully, opposed some of the same bills that the homeowners group considers too weak.
(Excerpt) Read more at blog.al.com ...
Florida has different codes depending on where and how close to the coast you live.
I hate to say this...but anyone who lives within 1000 feet of the ocean....ought to be denied insurance completely...no matter what state you live in. This is silly that you build that close and take huge risks...then you want insurance companies to give you some type of practical coverage at an affordable rate.
I am in agreement however that further inland...like a mile...the amount of damage is usually owed to wind damage and if you have a strong structure....you might suffer very little.
You are absolutely right. I am totally opposed to our current practice of public subsidies for beachfront (and nearby) insurance.
Why should someone from Kansas be forced to subsidize people who are fortunate enough to live on the coasts. Why should people in northern or central Alabama be forced to subsidize those living on, or near, the beach?
I like a sandy beach, including the white sands along the Florida panhandle. When I get the benefit, I should pay the cost. It should be that way for everyone.
I agree... Thee is certainly a big advantage to living near the ocean or golf. At least there would be for me. Asking me to pay more so that you can live near the water when I can’t afford to is not right....
If you can’t afford it, then move for God’s sake...
That’s what I’m not getting with these homeowners complaining about skyrocketing premiums even after they get ridiculous amounts of public assistance.
The fact of the matter is that the premiums are for a catastrophic event against their house. The last few hurricane seasons decimated the insurance companies reserves, so they have to raise rates in order to stay afloat.
Once again, the people want something for nothing. If this comes up next year in the AL state house, I plan to write my legislators to urge failure of any of these bills.
I agree. In North Carolina things are moving towards the government picking up the tab for risk takers too. Personally I think if you want to be beach side in a place known to be at risk for dangerous storms you, and only you, should be responsible for purchasing insurance.
I live just west of the 2nd mandatory evacuation zone, and I’d estimate I am about 1.5 miles from the ocean. The house my wife and I moved into two years ago was built in late 2006 and is a fortress. All of the houses in this subdivision have concrete block with rebar tie downs to the foundation (extending up to the truss work on the 2nd story roof) and cement was poured into the interstices of the concrete block. The windows are rated to 230 mph, but have never been tested near that (knock on wood). The highest wind levels we have had were some ~80 mph winds as a hurricane petered out nearby and became a tropical storm as it came ashore in 2008. We never even woke up - a by product of this construction technique is an amazing amount of noise deadening. Now of course if the winds really picked up - you would be at the mercy of your neighbors lawn furniture, grills, plantings and roof tiles that become projectiles. Check back with me after a real hurricane, I’ll let you know how it turns out.
As to assumption of risk - yes - we implicitly (and explicitly) assume a different kind of risk to live here and it’s not fair to levelize rates with people far inland or in other states. The entire health care reform movement is nothing more than that - and attempt to level out costs by imposing the costs of one’s choices (obesity, smoking, AIDS, etc.) on others. This property insurance situation shouldn’t be another excuse to use OPM.
Do homeowners in Kaliforina (earthquakes) Oklahoma/Kansas (Tornadoes)Montana (wildfires)Illinois (floods) children (fire-starters) etc.... pay more than folks that live 20 miles from the Gulf of Mexico?? I have a mandatory 10% hurricane deductible tacked on to my already high $5k deductible.
Do these folks mentioned above have tornado/flood/wildfire/earthquake/children additional deductibles?
I live 20 miles north of the gulf and do pay higher premiums than people that live 2 miles north of me. (the other side of a major highway)
Something else that really ticks me off, I tried to get the (i forget the correct verbiage) inside stuff coverage, ($80K!) dropped to lower my premium, but I was advised, no that was part of the package.
I don't have $20K worth of stuff, much less $80k!!!
PS, people that live ON THE BEACH??? I agree, deserve higher premiums. Its not a matter of if, but when they have damage. My house had a direct hit by hurricane Ivan, (eye went over me) did not loose a shingle.
insurance is a racket that rates right up there with lawyers.
Perhaps the issue is “replacement cost” insurance. I own a second home in Florida that is about 1 mile from the ocean. I had a choice of replacement cost or straight insurance.
If a hurricane takes down my second home all I care about is that the mortgage is paid off. The insurance company can have the vacant lot. My premiums are about half what they would otherwise be. Along with that is the contents insurance - all I really want is to cover the depreciated cost of the contents. I don’t have any antiques there.
My primary home is way up on a hill so I don’t need flood insurance, but I am 2 miles away from the nearest fire department so I get rated up a little there. The house is wood and old (100+ years) which adds some, with no fireplace and no wood furnace so I save some there.
The alternative to insurance is to have a huge bank account or pay cash for the home. There is an element of risk no matter where your home is and insurance companies assess those risks when they determine the premium. You get what you pay for has true meaning here - you get the nice sunset/sunrise over the ocean and you pay for it!
75% of claims for hurricane damage in NC come from inland areas.
Coastal homeowners should create and fund their own mutual insurance companies. Then they can charge themselves lowball premiums and pay out unlimited claims. Easy, right?
How many of those claims come from folks who live near rivers, any idea?
No, just a stat I gleaned from a local program on the state storm insurance program.
“That’s what I’m not getting with these homeowners complaining about skyrocketing premiums even after they get ridiculous amounts of public assistance.”
Perhaps they’ve learned that: complain = money. Why should they stop? Look at the chronic complainers, the “Palestinians,” the “Katrina victims,” etc. Their complaints have become a way of life. There is no end in sight as long as they are rewarded for complaining.
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