Posted on 09/30/2022 6:13:23 AM PDT by devane617
Hurricane Ian could cripple Florida's already-fragile homeowners insurance market. Experts say a major storm like Ian could push some of those insurance companies into insolvency, making it harder for people to collect on claims.
Since January 2020, at least a dozen insurance companies in the state have gone out of business, including six this year alone. Nearly 30 others are on the Florida Office of Insurance Regulation's "Watch List" because of financial instability.
"Hurricane Ian will test the financial preparedness of some insurers to cover losses to their portfolios, in particular smaller Florida carriers with high exposure concentrations in the impacted areas," Jeff Waters, an analyst at Moody's Analytics subsidiary RMS and a meteorologist, told ABC News. Waters said Florida is a peak catastrophe zone for reinsurers, and those with exposure will likely incur meaningful losses.
More than 1 million homes on the Florida Gulf Coast are in the storm's path, and while Ian's track and severity can change in the coming days, one early estimate pegs the potential reconstruction cost at $258 billion, according to Corelogic, a property analytics firm.
Industry analysts say years of rampant and frivolous litigation and scams have brought Florida's home-insurance market to its knees, with many large insurers like Allstate and State Farm, reducing their exposure to the state in the past decade.
(Excerpt) Read more at yahoo.com ...
VIDEO: Aerials of Fort Myers, Cape Coral, Bonita Springs, Sanibel after Hurricane Ian.
https://rumble.com/v1m1jbs-aerials-of-fort-myers-cape-coral-bonita-springs-sanibel-after-hurricane-ian.html?mref=kkgl3&mc=3chow
Drone footage from Fort Myer Beach in Florida after Hurricane Ian
https://rumble.com/v1m3glg-drone-footage-from-fort-myer-beach-in-florida-after-hurricane-ian.html
And the real estate market.
When I moved to Florida, I had to get a new insurance carrier for my home down there because Geico refused to cover it. The home insurance lawsuit scams down here are legendary. Prior to some recent reforms put in place, lawyers would be literally going door to door getting homeowners to sue their insurance companies to cover major things like roof replacements and so on when there was originally only minor damage.
I already got my insurance rate estimate for 2023. I guess that will be revised upward some, thanks to Ian.
There’s got to be a better way. This Flood Insurance has become a scam.
“...lawyers would be literally going door to door ...”
I witnessed this first hand and almost ALL my neighbors sued Ins companies...I didn’t. The real estate market in FL and many other issues were just turned upside-down . New Yorkers are certainly having second thoughts now.
BUT, I thought property values would drop after hurricane Michale destroyed our area, but the prices have multiplied several times. We’ll wait and see how this impacts real estate market.
Mine went up 52% last year. Auto Ins way up too.
If insurance companies would quit buying up ‘naming rights’ to anything and everything, they just MIGHT have a better Business Model and could pay the claims people have PAID FOR through the years.
American Family Insurance is headquartered here in Wisconsin. The opulence of their buildings and the mini-town that they’ve built for their employees is astonishing!
Google ‘American Family Insurance’ to see all the buildings they own, or own the naming rights to. Looks like they’re pretty flush with cash to me!
If you’re insured with someone that has a HUGE overhead, I’d switch if possible. It’s like a Charity; the MORE they have in overhead, the LESS money is going to whoever they’re claiming to ‘help.’
Take a look at the State Farm campus in north Dallas/Plano TX to see another example.
There are three of those, that one, one in a north Atlanta suburb, and one in Phoenix.
Stop paying people to rebuild in flood zones.
ANY structure built in a national flood insurance zone should be replaced ONCE. After that the geographic location should be condemned. IF you choose to rebuild in that location, you are on your own. Why should the rest of the country subsidize people who want to live on very expensive water front property?
The people that own these multi million dollar ocean front property are in the top 1% of wealth. There is an incentive by the federal government to rebuild these houses. Without National Flood Insurance they would not be rebuilt in an area that we will likely get hit with another hurricane sometime in the next hundred years.
They shouldn't. These areas should be either self insured or have premiums that accurately reflect the loss potential.
This is what gets me. Insurance companies are the authorities on risk assessments and are actuarial gurus. Wasn’t a storm like this figured into their risk structure? Why the surprise?
“ANY structure built in a national flood insurance zone should be replaced ONCE”
Saw an episode of house hunters a while back, the buyer was looking at houses on the beach in N.C.
The realtor kept reminding the buyer that if a storm totaled the house rebuilding would not be allowed.
I assume the state enforces that.
So it is happening in some places.
Home Insurance Companies should pay up and shut up. They advertise for years about their benefits making a fortune.
There are two insurers: Universal Property and the state-run insurer or last resort. My insurance rates have been going up for years now. I wouldn’t be surprised if they packed up and left altogether. I wish the lenders would let us go without insurance. I’d drop most of it.
We should consider the source of this information......yahoo isn’t exactly reliable IMO.
One would think. But they still hate losses, for obvious reasons, it effects profits.
No insurance company will insure a structure in a flood plain.
They know that it is a bad bet.
You can only buy National Flood Insurance through the federal government.
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