Do I think carriers are over-charging in Florida? Probably. But I also _know_ their loss ratios are _well_ above 100%!
That's TRUE.
And playing devil's advocate if 386 homes valued at $250,000 each got flatten by a hurricane the total loss to the insurance company would be $96,500,000 vs premiums of $772,000 based on $2,000 annual premium per house.
Which brings me to my point.
Citizen's Insurance in Florida can't collect enough premium to ever pay for such a loss which makes me feel like I'm just throwing away the money spent.
They mathematically cannot pay those claims so all I'm really insured for is the 1 in 386 chance of a home fire.
In my humble opinion. _________________ Gary Spicuzza, *SAFE
Copyright 1956.
No rights reserved.
*Self Appointed Financial Expert
Citizen's Insurance in Florida can't collect enough premium to ever pay for such a loss which makes me feel like I'm just throwing away the money spent.
They mathematically cannot pay those claims so all I'm really insured for is the 1 in 386 chance of a home fire.
But would there not be reinsurance in place? And don't the company's operating in Florida have operations elsewhere? So money would come from elsewhere to cover these claims. And not every policy is going to cover a hurricane - correct?
Don't worry Gary - P&C is very frustrating to me as well - and I sell it! _________________ I am an insurance broker from Ontario licensed for all types of insurance.
Ontario Broker we'd both get an F- if a real actuary saw our simple calculations but we're not trying to be actuarily sound we're just trying to make a point for discussion.
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But would there not be reinsurance in place? And don't the company's operating in Florida have operations elsewhere? So money would come from elsewhere to cover these claims. And not every policy is going to cover a hurricane - correct?
I couldn't tell you whether or not the state of Florida has reinsurance or not. Citizen's Insurance is a state run entity. It's not an insurance company.
Yes, companies operating in Florida have operations elsewhere but that's not how they base their rates.
State Farm Florida.LINK. Separate and distict companies from their big brother. Those companies are more like wicked step-children and neither is writing new business.
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State Farm Florida Insurance Company commenced business Feb. 1, 1999 and is the primary writer of homeowners and property liability insurance in the state of Florida.
My State Farm agent for all intents and purposes sells auto insurance only. _________________ Gary Spicuzza, *SAFE
Copyright 1956.
No rights reserved.
*Self Appointed Financial Expert
"" And then you have some little hurricane come along...umm...like...say....Andrew.
Hurricane Andrew destroyed 25,524 homes and damaged another 101,241.
I know Andrew was a rare situation but I'm thinking those 126,000 homeowners who had insurance were pretty glad they did.
_________________
Enjoy every sandwich. - Warren Zevon ""
And then I think of the thousands of Homeowners still waiting for their turn in Court so they can *Maybe* be paid and begin rebuilding their Lives "After Katrina".
Makes one want to go right out and buy Insurance....... NOT!
