Wonder about Insurance Companies

[ehenry]

I wonder how the aftermath of Katrina is going to affect insurance companies? <br /><br />We all rock and roll along, pay our premiums and most of the time never use our insurance for fear of getting canceled or the premium going up. NOW.....The insurance comanies are fixing to take a MAJOR hit. I wonder whats going to happen after its all over.

 

[Elmer Fudge]

Re: Wonder about Insurance Companies

Most will go under, the remaining few will demand and recieve federal help (you pay)<br /><br />premiums rocket to a level unparallel to anything of which we've ever seen.<br /><br />They have to get the money from somewhere.

 

[JB]

Re: Wonder about Insurance Companies

There are damaged houses in S. FL from 2004 hurricanes still waiting for insurance settlements. Others still waiting for contractors to do repairs.<br /><br />I heard on the media (?) that only about 20% of the dwellings affected by Katrina have flood insurance. Most have storm insurance. Can you say "litigation"?<br /><br />The magnitude of this disaster staggers my imagination, and I have a BIG imagination.

 

[ehenry]

Re: Wonder about Insurance Companies

The gas lines are getting longer and longer as time wear on. I held a hope that it would loosen up next week but it seems the whole country is in a panic over fuel. I've read that even out in Atlanta, the Carolina's and virginia that people are seeing lines at the gas stations.

 

[ZmOz]

Re: Wonder about Insurance Companies

Once we get all the refineries and pumping going again, gas will drop like a rock. Demand will be way down since everybody filled every tank, can, and milk jug they have at $3.09.<br /><br />As for insurance, I just saw something on the news that said many insurance companies have insurance for disasters like this. They also said premiums are set by insurance payouts in your region...meaning it will not raise rates except in the south. Those people all choose to live in a disaster prone area, they should have to pay more for insurance. Alot more. Just like I choose to pay more for gas and road taxes because I drive big trucks for no apparent reason...

 

[NYMINUTE]

Re: Wonder about Insurance Companies

Plan on increases, including medical. You don't think for a moment they will absorb any loses do you? Compassion only in voice, not actions.

 

[ae708]

Re: Wonder about Insurance Companies

If people didn't opt for flood damage on their insurance policies then most insurance companies will only pay off on other damages... wind,flying debris, etc., not damage caused by water.

 

[LubeDude]

Re: Wonder about Insurance Companies

Originally posted by ZmOz:<br /> As for insurance, I just saw something on the news that said many insurance companies have insurance for disasters like this.

This is true, the Insurance companies are going to still be around, they are not going to belly up.

 

[Twidget]

Re: Wonder about Insurance Companies

I spoke with my boss in SC this morning, people have made runs on gas stations and many are out of gas or have long lines.

 

[pjc]

Re: Wonder about Insurance Companies

what will happen regarding the ins cos will be another round of them weeding out policy holders who have "risk" factors for them. And your rates will rise due to the ins cos claim that you the policy holder pose additional risk to them that they did not realize when your original policy was written.<br /><br />I support this by the rate increases that began upon the investment market bubble burst of 2000. When the ins cos began realizing a lower return on their monies invested, rates went up.<br /><br />Very sad....

 

[SS MAYFLOAT]

Re: Wonder about Insurance Companies

Flood insurance for a city below sea level? Really makes me wonder why didn't everyone have flood insurance! Should have been mandated just like car insurance.

 

[K5WAS]

Re: Wonder about Insurance Companies

You must be insured for hurricane damage, if not, a normal homeowners policy will not pay a thing for a hurricane. If you don't have flood insurance they will not pay for rising water, normally. In Florida there have been lawsuits when the insured did not have flood ins and the company would not pay as stated in the policy. The courts have ruled in those cases that the rising waters were caused by the hurricanes and the ins co must pay.<br /><br />Now, two companies in Florida are paying claims for flood damage without flood ins. One of the companies is Allstate Floridian and I don't recall the other one. The companies noted that it cost less to pay than litigate it.

 

[txswinner]

Re: Wonder about Insurance Companies

Before I go I shall share some knowledge:<br /><br />1. Homeowners (may include or exclude windstorm)<br />2. Homeowners specifically excludes flood and rising water.<br />3. Almost 1/2 of all flood policies are underwriten by the federal government.<br />4. Private flood is very specific and limiting both in monetary limits and coverage (usually based on Actual Cash Value not Replacement Cost.<br />5. Insurance have Re-insurance of various types, mainly applicable here are the Re-insurance treaties and if properly in place they get refunded by the Re-Insurance companies for losses over a set amount.<br />6. Some excess or surplus companies will no doubt go under. <br />7. Will all else fails FEMA will come in and pay claims or make low interest loans to rebuild.<br />8. Bottom line do not worry about the big companies, they will get federal support if needed all will be fine.<br />If you have any questions, I will be teaching licensing classes for adjusters for the next month. Good luck to all.

 

[snapperbait]

Re: Wonder about Insurance Companies

You must be insured for hurricane damage, if not, a normal homeowners policy will not pay a thing for a hurricane.

That's in Florida (one must also have windstorm insurance $$$$)... In other states homeowners insurance may cover hurricane damage...<br /><br />We'll see many insurance companies no longer selling homeowners policys that cover hurricane damage in certain areas in states that are prone to hurricanes...

 

[JB]

Re: Wonder about Insurance Companies

Good info, TXS. Thanks.