Posted on 05/31/2006 5:08:40 PM PDT by dasboot
I was notified by my insurance agent that our policy carrier was unwilling to re-up our contract. Reason: 'cost of re-insurance too high'.
No other explanation. Last week I got a notice from my agent that the only insurance I could get was through the MA 'Fair Plan'...state program for problem properties...at DOUBLE the cost.
So I called another agent. She said, "Give me the address."
"Ohhhhh". [And not a good "Ohhhhh"].
She tells me that insurance carriers are, en masse, cancelling insurance contracts [when up for renewal] on any property that is within one mile of a major body of water!
What's going on??? Is this MA only? Nation-wide? A greenie plot to vacate the waterfronts? The fallout of Katrina?
Anyone else getting the screw? Can't find a thing on line about it. Pardon the vanity...don't know where else to find info.
I'm 85' above sea level. About a mile inland from the Atlantic. I'm hoping for a life preserver, here. Getting ready to retire on a tight budget....I can't take much more of this price-gouging. What to do?
bump
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A MA retiree of my acquaintance recently unloaded his property and moved the [insert a choice expression here] out of MA. The appreciated property helped to make his retirement budget less tight.
I'd move.
My advise, if your getting ready to retire, move to a Southern state. Your money will go alot farther.
The term "re-insurance" usually means they tried to sell your policy to another underwriter and had no takers. Property and casualty companies lost their posteriors in the last few years.
My guess would be that a software program was written to identify all houses within a one mile of a body of water. It most likely ignored elevation of the property.
If you're 85' above sea level why would you need a life preserver? (sorry). Are they canceling your entire policy or just flood/storm insurance?
Something came across FR last week about some home owners insurance being canceled in Florida.
yeah ,if your a drug dealer,carjacker,brainless democrat (for a year to figure it out)
Doogle
My acquaintance sold and moved about a year ago. I am not familiar with what his insurance picture was, but the dasboot stated that the insurance is still available, but at increased rate.
The critical thing, of course, is that you don't get into a foreclosure situation because your mort holder decides you are not carrying enough or the right type of insurance. Then they've got you over a serious barrel.
It may be that your current policy includes flood or wave damage (I doubt it) but could include storm damage. It's the old rising water vs falling water thing. And so the folks you are talking to on the phone are giving you a "quote" on "the same policy"....when you may have to go without that type of storm damage coverage or accept a massively larger deductible. Ask if you get coverage if you agree to delete some particular peril.
Also, you might as well start looking at the NFIP National Flood Insurance Program, which, last I checked, 1995, was administered by FEMA...which means little or nothing now.
Hopefully, there are some FReepers who actually work in the ins biz (I don't) who can offer some further suggestions.
I've heard about cancellations on the Florida coast whenever policies are up for renewal this year.
..and others that didn't cancel, tripled
Doogle
Well, the acquaintance of mine moved to near Asheville NC. I'm sure he sorely regrets missing on Camden, NJ, or, say, Gary, Ind.
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