.................

[Lisa loves Pooh]

I was wondering if I would see my USAA dividend this year. I do remember however getting smaller dividends during other major losses so I guess we will see.

We got ours last year with 4 hurricanes in Florida. It wasn't as large as years prior, but we still got one. (we actually didn't make a claim for 2 direct hits.)

 

[ducklite]

---------------

From what I heard, the increases would be "across the board" in Florida - not just the coastal and/or high risk areas..

I have no problem with a small increase, although homeowners should be charged according to risk. Those who live in coastal areas or those prone to flooding should bear the brunt of the increase, as they are the ones who have routinely had the losses. I hope underwriters and actuaries have the common sense to rate according to risk rather than having a knee jerk reaction. Insurance is a cost of housing. If people can't afford insurance then they need to find housing that is affordable to them, or cut something else in their budget.

Anne

 

[Miss Jasmine]

My homeowners has increased every year, part of that is because my home's value has increased, part of that are rate increases. In addition, all homeowners in Florida are most likely going to get hit with a surcharge from Citizen's the state-run insurance of last resort.

 

[ducklite]

In addition, all homeowners in Florida are most likely going to get hit with a surcharge from Citizen's the state-run insurance of last resort.

Now THAT is BS. Citizen's should have been charging their customers enough to have adequate reserves to begin with. Their customers were paying below market rates for coverage, and now the rest of us will be forced to subsidize them. I say that rather than passing a surcharge to ALL FL insureds, it should be levied only on Citizen's insureds. If my insurance company had huge losses, they wouldn't be able to pass some of that on to Citizen's insured's, so why then is Citizen's allowed to pass it on to the rest of us? Surcharge Citizen's insureds. If they can't pay it, they can sell their home and move to someplace they can afford to live. It's frankly NOT MY PROBLEM.

I'm not talking about poverty level people. I'm talking about homeowners who have no right to be asking for what basically amounts to welfare.

Anne

 

[MrsNick]

You pay a premium to transfer the risk of loss from you to the insurance company. In exchange for the premium, the company agrees to pay covered claims up to the limit of your policy for the duration of that policy (usually 1 year for a standard homeowners policy). If you have no claims, why should they return the money to you? You received exactly what you contracted for: a transfer of risk and guarantee to claim(s) payment in the event of a covered loss. The fact that you had no losses does not void the contract or obligate the insurance company to return anything to you.

Well, yes, and as risk goes up, premiums go up, as we expect to happen here. But, my question (and maybe MizBlu, although I don't want to put words in her mouth) is, if risk goes down (i.e. no claims for many years) is there any kind of corresponding reduction in premiums?

 

[ducklite]

Well, yes, and as risk goes up, premiums go up, as we expect to happen here. But, my question (and maybe MizBlu, although I don't want to put words in her mouth) is, if risk goes down (i.e. no claims for many years) is there any kind of corresponding reduction in premiums?

Yes and no. Several things can (and usually do) happen. Rates will remain flat, and possibly rebates will be issued. Although a reduction in premium is possible, flat premiums are more likely, and logical.

Anne

 

[Miss Jasmine]

Yeah I am pretty pissed about the Citizen's thing. I don't think it's right.

 

[CathrynRose]

Caught something on the news about the insurance companies raising homeowners premiums across the board in Florida and/or pulling out of Florida completely..

Anyone else hear that? I'm worried about my sister and my brother getting nailed by this.. My brother can easily afford any increase, but my sister would probably have it hard if it increased dramatically..

WOuldnt suprise me - Their car insurance rates are highway robbery (no pun intended)

 

[C.Ann]

WOuldnt suprise me - Their car insurance rates are highway robbery (no pun intended)

---------------

If you don't mind sharing (in general terms) what kind of rates are we talking here?

 

[Miss Jasmine]

WOuldnt suprise me - Their car insurance rates are highway robbery (no pun intended)

Who's car insurance rates? Mine aren't anything out of the extraordinary.

 

[Tigger_Magic]

Well, yes, and as risk goes up, premiums go up, as we expect to happen here. But, my question (and maybe MizBlu, although I don't want to put words in her mouth) is, if risk goes down (i.e. no claims for many years) is there any kind of corresponding reduction in premiums?

This is a misconception -- risk does not decrease with either time or lack of claims. A risk is the potential cause of a loss that is covered under your homeowners insurance policy. In normal circumstances, risk increases over time as property (both real and personal) increases in value and amount.

A lack of filed claims makes one less of a target for non-renewal, but for homeowners insurance, it doesn't correspond to a premium decrease. Why should the insurance company accept LESS money to provide coverage for property that has INCREASED in value? They typically face a larger payout on a claim because property values tend to increase, not decrease. Therefore, they require higher premiums to accept the transfer of the risk of loss from you to them.

 

[kadaten]

---------------

From what I heard, the increases would be "across the board" in Florida - not just the coastal and/or high risk areas..

My homeowners has increased every year, part of that is because my home's value has increased, part of that are rate increases. In addition, all homeowners in Florida are most likely going to get hit with a surcharge from Citizen's the state-run insurance of last resort.

Miss Jasmine is correct. From what I remember reading, every homeowner's policy in the state of FL is being hit with a one-time surcharge of approximately 7.1% to cover the losses of Citizen's insurance over the last few years. Lemme find it.....here it is:

From the St. Petersburg Times:

Citizens' surcharge plan wins approval

It was required to refill reserves. Hurricane Katrina isn't part of this surcharge. Another deficit could mean another surcharge.



​

By JEFF HARRINGTON, Times Staff Writer

Published August 27, 2005



Florida Insurance Commissioner Kevin McCarty approved a plan Friday that puts property owners statewide on the hook to pay off a $515-million deficit at the state-run Citizens Property Insurance.

The board of Citizens, which covers properties that can't find property insurance in the open market, voted unanimously Aug. 17 to collect the one-time charge.

McCarty said he sympathized with homeowners socked by double-digit rate increases, but had no choice. Under state law, Citizens had to levy a surcharge after its reserves were exhausted by last year's four-hurricane season; McCarty's sole task was to make sure Citizens' deficit estimate was accurate.

The bottom line for property owners: about a 7 percent surcharge, or about $90 for someone paying $1,300 in premiums.

Technically, Citizens is assessing private insurance companies such as Allstate and State Farm, but the insurers are authorized to pass that charge on to their customers who hold commercial, homeowners and liability policies.

Once insurers receive notice of the surcharge, they have 30 days to send the money to Citizens. They have to file notice with McCarty's office on how they plan to "pass through" the surcharge tab to policyholders. Many are expected to include it with annual renewals.

News of the surcharge has been greeted with anger and frustration throughout Florida, particularly by those who object to subsidizing Citizens' policyholders.

Bill Sacco, a professor in the psychology department at the University of South Florida, said he understands the economics of soaring insurance rates in a state where property values, insurers' costs to rebuild damaged homes and perceived risk are heading up.

His premiums for his Tampa Palms home are jumping by hundreds of dollars every year.

"But I pay for it," Sacco said. "I'm not asking for every citizen in the state to help me pay for it."

Sacco said he's suspicious that many of those receiving the "subsidy" are wealthy coastal homeowners. In recent years, however, the ranks of Citizens have swelled by adding older homes and those in neighborhoods prone to sinkholes, many of them in Pasco County.

In the past 11 days, the state's insurance consumer hotline has logged 45 calls from consumers regarding the Citizens Property surcharge.

In the same period, it received 182 calls regarding the latest rate increases by major property insurers.

Citizens Property chief financial officer Jessica Buss warned this month that the company is in a cash crunch and "any adverse event or small storm could result in another deficit."

Such a deficit, in turn, could trigger another surcharge.

Buss' comments came before what is now Hurricane Katrina was on the radar screen.

As a growing hurricane, Katrina has potential to cause substantial damage if it makes landfall in the Panhandle area.

 

[ducklite]

WOuldnt suprise me - Their car insurance rates are highway robbery (no pun intended)

You want high auto insurance rates? Look at NJ, NY, CT, Boston, Washington DC. FL car insurance rates are DIRT CHEAP. If you think they are expensive in FL you need to look outside your dreamland and see the real world.

Anne

 

[kadaten]

---------------

If you don't mind sharing (in general terms) what kind of rates are we talking here?

I believe this was in reference to car insurance. Yes, FL is very expensive for car insurance. Our company told us it was due to the extremely high level of stolen vehicles in the state.

For comparison's sake, I'll give you my real numbers. We recently moved, so they're fresh in my mind.

DH (32) and I (31) both have clean driving records. We insure the both of us on a 2002 Honda Civic LX and a 2004 Honda Odyssey EX. We maintained the exact same coverages in VA (Chesapeake) as we have now here in FL (Tampa).

VA insurance on both drivers and vehicles: $542 every six months
FL insurance on both drivers and vehicles: $908 ever six months

So, our insurance went up 68%. When I about choked when the agent told me the new premium, she told me to be glad I wasn't in the Miami area, as theirs is even higher! Apparently Miami (#1 risk area) and Tampa (#2) are so expensive due to proximity to the ports....easy to transport stolen cars out of the area and they're never recovered.

 

[MrsNick]

You want high auto insurance rates? Look at NJ, NY, CT, Boston, Washington DC. FL car insurance rates are DIRT CHEAP. If you think they are expensive in FL you need to look outside your dreamland and see the real world.

Anne

Man, you sure aren't kidding!

 

[kadaten]

You want high auto insurance rates? Look at NJ, NY, CT, Boston, Washington DC. FL car insurance rates are DIRT CHEAP. If you think they are expensive in FL you need to look outside your dreamland and see the real world.

Anne

We weren't insured in DC, but were listed as DC metro area and ours was still MUCH less than here in FL. MUCH less. I believe then it was around $600.

 

[ducklite]

kadaten--

Those rates are VERY LOW in comparision to many northeastern areas. We pay less in FL for three cars, a 2001 Saturn LS200, a 2004 Saturn ION Quad Coupe, and a fully loaded 2005 Toyota Prius as we did for the exact same coverage on JUST the two Saturns in NJ. So we added a brand new, and more expensive car, and got a reduction in rates.

Anne

 

[Miss Jasmine]

I believe this was in reference to car insurance. Yes, FL is very expensive for car insurance. Our company told us it was due to the extremely high level of stolen vehicles in the state.

For comparison's sake, I'll give you my real numbers. We recently moved, so they're fresh in my mind.

DH (32) and I (31) both have clean driving records. We insure the both of us on a 2002 Honda Civic LX and a 2004 Honda Odyssey EX. We maintained the exact same coverages in VA (Chesapeake) as we have now here in FL (Tampa).

VA insurance on both drivers and vehicles: $542 every six months
FL insurance on both drivers and vehicles: $908 ever six months

So, our insurance went up 68%. When I about choked when the agent told me the new premium, she told me to be glad I wasn't in the Miami area, as theirs is even higher! Apparently Miami (#1 risk area) and Tampa (#2) are so expensive due to proximity to the ports....easy to transport stolen cars out of the area and they're never recovered.

I can say that my insurance rates for both of us and our vehicles in no where near $908 every six months. It's just a bit more than the $542. Yours is more because, as you pointed out yourself, you are in Tampa. Insurance is always more expensive in or near cities.

 

[Tigger_Magic]

There are a number of factors involved in determining auto insurance premiums, including where you live, the cars you drive, your driving record, how you use the car(s), who drives the car(s), etc. Auto insurance is a rather competitive market and it pays to shop around for the best deal. It also pays to ask about discounts for having multiple cars covered under 1 policy, safe driver discounts, safety equipment discounts (anti-lock brakes, multiple airbags, anti-theft devices, etc.). Rates can vary greatly between companies for the exact same coverage. A final way to reduce your premiums somewhat is to increase your deductible, especially if you are a safe driver.

 

[MizBlu]

You pay a premium to transfer the risk of loss from you to the insurance company. In exchange for the premium, the company agrees to pay covered claims up to the limit of your policy for the duration of that policy (usually 1 year for a standard homeowners policy). If you have no claims, why should they return the money to you? You received exactly what you contracted for: a transfer of risk and guarantee to claim(s) payment in the event of a covered loss. The fact that you had no losses does not void the contract or obligate the insurance company to return anything to you.

You're missing the point and at this point, frankly I'm not even sure there is one. But, I digress. I understand what insurance is.

Nobody is arguing that point.

My point is, the insurance companies collected all this money and didn't have to pay much out in claims. So now that they do have to pay claims, they're crying. What did they do with the money they took and didn't pay claims.

But let's go back to your definiton of an insurance policy: the transfer of risk from one party to another. So the insurance company took the money and didn't incur many claims. Good deal for them. They played the risk game and they won.

So in comes the last 2 years in Florida and suddenly the insurance companies are running around crying poverty and "oh my God, we have to pay claims". My point is, isn't that the business of insurance companies? Don't the good years and the bad years even out at some point?