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]
It's not you, it's your house. That's the harsh message being delivered by insurers to a growing number of homeowners.
The insurance industry has been cracking down on individuals who file too many claims. Now companies from State Farm to Nationwide are focusing on the houses themselves. Even if you have a squeaky-clean insurance record, the home you own -- or the home you want to buy -- may be tough to insure because it has had too many claims in the past.
(Excerpt) Read more at online.wsj.com ...
How long before a government program is set up to help these people pay for their "high risk" insurance policies?
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:)
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..
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)
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.
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.
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.
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.
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
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.
"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.
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