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Is Your Home Uninsurable? Check the Claims History
The Wall Street Journal ^ | Thursday, May 23, 2002 | JEFF D. OPDYKE and CHRISTOPHER OSTER

Posted on 05/23/2002 6:05:11 AM PDT by TroutStalker

Edited on 04/22/2004 11:46:32 PM PDT by Jim Robinson. [history]

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1 posted on 05/23/2002 6:05:11 AM PDT by TroutStalker
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To: TroutStalker
And the problem is?

How long before a government program is set up to help these people pay for their "high risk" insurance policies?

2 posted on 05/23/2002 6:26:43 AM PDT by Phantom Lord
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To: Phantom Lord
I'd agree with most of it except that last one where the city nicked a water line near the womans home. Including that on the record is BS.
3 posted on 05/23/2002 6:29:21 AM PDT by Bikers4Bush
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To: Phantom Lord
I don't see a problem with this. My reason for posting is to let FReepers know about the CLUE database as one more factor to check when purchasing a home.
4 posted on 05/23/2002 6:33:11 AM PDT by TroutStalker
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To: TroutStalker
The insurers in Texas are getting bashed pretty bad by "mold" claims. Hey, it's covered. But, the premiums, like all premiums have been calculated from past claims experience. There have been very few mold claims in the past. Also, the trials lawyers are all over this and some of the litigation and awards they have won have caught the insurance industry by surprise or flat footed. The bottom line? When losses spike so do premiums.

As far as CLUE, it is provided by a company called Choicpoint (CPS-NYSE) has been around for many years and another organization called the Insurance Office of New York (ISO) has a similiar database called A+Plus.

Expect premiums to jump an average of 14% across the board countrywide for most lines of insurance this coming year. If another 9/11 type event happens the US insurance industry will be in a very fragile condition.

You can learn a lot by just calling your agent:)

5 posted on 05/23/2002 6:37:29 AM PDT by isthisnickcool
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To: TroutStalker
My question was more of a general question to those reading the thread, not directed at you. But it clearly can be taken as directed at you by the way it was posted.
6 posted on 05/23/2002 6:40:23 AM PDT by Phantom Lord
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To: Phantom Lord
How long before a government program is set up to help these people pay for their "high risk" insurance policies?

I had my agent read this thread. He says that that already happens with crop insurance and for individuals for Flood Insurance which is exclusively handled by the Fed. gov't ( you may get paperwork with your insurance companies name on it but it's ALL federally insured) . Federal backing of insurance for terorism will likely be another item that we see in the near future..

7 posted on 05/23/2002 6:43:25 AM PDT by isthisnickcool
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To: isthisnickcool
Insurance companies when confronted with financial disclosure react the same as Vampires to sunlight!!
8 posted on 05/23/2002 6:44:32 AM PDT by Winston Smith
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To: isthisnickcool
"help these people pay for their "high risk" insurance policies?

Flood is a Federal program. Not to help people pay for their premiums. Nobody (No insurance company canWILL write flood)The federal Govt writes flood because they can. The reason that no insurance companywill write flood is because flood is too destructive. Insurance is leveraged. I know premiums are high but they are taking a small amount of money and banking on the fact that they have lees payout than they do money coming in. There is no guarantee that they won't have to pay out more than they take in.
MOLD is excluded in a HO-3 policy. Some companies paid out and that started a trend.
PA's and Attorneys are the cause of this latest trend. (PA'S=Public Adjusters)

9 posted on 05/23/2002 6:58:09 AM PDT by DeaconRed
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To: TroutStalker
I don't see a problem with this.

The problem I see with this is that even the claims process has changed recently. Storm damage is already not covered the same as it used to be. My recent experience was with a section of flat roof with the insulated foam tiles that was damaged by 80 MPH winds. My Insurance carrier bid it as a "roll roof" no matter how much I griped. The lowest bid for replacing the tiles was $2000, the claim paid $700. I was informed by a person in the industry that Midwest insurers were not going to be doing replacement value on storm damaged roofs any more.
10 posted on 05/23/2002 6:59:06 AM PDT by AdA$tra
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To: AdA$tra
Midwest insurers were not going to be doing replacement value on storm damaged roofs any more.

This is the first I have heard about it. Is this on new policies now? I haven't received any notice of change in coverage on my policy.

11 posted on 05/23/2002 7:05:33 AM PDT by TroutStalker
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To: TroutStalker, all
"I was aghast and frustrated," says Mr. DeLuke. "I knew I had a perfect claims history."

Who uses the word 'aghast'?

Mr. Deluke does not have to buy this house. The fact that he didn't walk away from the deal tells me he is a lousy negotiator. Now he's complaining?

This story is really just a rip on insurance companies, and is practically a blueprint for socialism.

I would think that the insurance problem with his house would weigh into the negotiations about a house and might be a clue, as would an inspection, that something is amiss.

Notifying the seller in writing and demanding redress might also knock the price down or give the buyer leverage. It sounds like Mr. DeLuke was unwilling to walk away from the transaction, a fatal flaw in any negotiation.

Notifying the seller in writing would also require them to include notice of uninsurability under real-estate disclosure laws to any subsequent buyer

In any case, it seems to me that Mr. DeLuke could apply for lower rates if he has 3 claim-free years.

12 posted on 05/23/2002 7:07:10 AM PDT by IncPen
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To: TroutStalker
No problem here. Sounds like good business sense!

But of course when the Offended Ones (OO), formally known as the PC crowd, get around to this they will discover an inordinate amount of minorities have been denied insurance. This will bring new laws and regulations into effect and we will all pay more for our insurance.

13 posted on 05/23/2002 7:18:12 AM PDT by kapn kuek
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To: IncPen
Who uses the word 'aghast'?

My wife had a boss who used the word "egads".

This story is really just a rip on insurance companies, and is practically a blueprint for socialism.

I don't see where you get this from the article. It does mention increasingly hostile insurance companies, but you can't blame actuaries for claims paid under contract. And I don't see any mention about calls for government intervention.

Notifying the seller in writing and demanding redress might also knock the price down or give the buyer leverage. It sounds like Mr. DeLuke was unwilling to walk away from the transaction, a fatal flaw in any negotiation.

Notifying the seller in writing would also require them to include notice of uninsurability under real-estate disclosure laws to any subsequent buyer

If neither party is aware of problems like this occuring, then it will not be a matter of negotiation, nor disclosure, unless a government agency has a specific requirement to do so.

Again, I posted this so as to help educate FReepers that this can be a problem when engaging in real estate transactions.

14 posted on 05/23/2002 7:28:34 AM PDT by TroutStalker
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To: isthisnickcool
"The insurers in Texas are getting bashed pretty bad by "mold" claims"

Yep! We sustained hail damage to our roof a while back, and filed a claim against our insurance company. Of course, with all the bogus "hail damage" claims being made by homeowners and unethical roofing companies, our claim was rejected.

We called them out again to see the water damage INSIDE the house. Claim was accepted, and processed pronto. I told hubby they were afraid we were going to sue for mold damage. hehe

15 posted on 05/23/2002 7:32:22 AM PDT by joathome
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To: Phantom Lord
My parents filed their first insurance claim in over 40 years for their house when they had some smoke damage from a pot that got left on the stove. The claim was for only $2000.

Their insurance company upped their premium by over $1000 dollars. They couldn't find another insurance carrier until finally they went with AAA to cover their car and house.

This is not fair. My parents have probaly paid a lot of money into that insurance firm over the past 40 years. That insurance company has made lots of money from my parents and others.

16 posted on 05/23/2002 7:38:10 AM PDT by luckystarmom
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To: scholar
"For consumers, it is the latest development from an increasingly hostile [read: increasingly greedy] insurance industry."

"Insurers were hit with $8.9 billion in home-related underwriting losses last year, and they are taking aggressive steps to make sure they don't get hit again."

Funny how these kinds of stats are flashed at us, eh?
While industry profits (at an ALL TIME HIGH) are never cited in the same piece?

...funny alright; down right hilarious.

17 posted on 05/23/2002 7:41:11 AM PDT by Landru
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To: luckystarmom
Your parents situation is not what the article is about. Its not about people who file lots of claims, but about properties that have had lots of claims filed against them. Big difference.
18 posted on 05/23/2002 7:44:22 AM PDT by Phantom Lord
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To: Landru
Do you have a source for your claim that insurance industry profits are at an all time high?
19 posted on 05/23/2002 7:44:30 AM PDT by TroutStalker
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To: Phantom Lord
There already is for people who live in hurricane, tornado, and flood zones. Taxpayers subsidize beachfront homes and farming operations in areas that should never see permanent construction.
20 posted on 05/23/2002 8:01:34 AM PDT by RWG
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