May not be. But could it happen without them fessing up to such?No sure it would even be legal for customers in other states to be forced to cover Florida.
Most states heavily regulate the insurance industry....as in they want to see exactly what has been paid out in claims.....and what the premiums are. Not any room to fudge those numbers.May not be. But could it happen without them fessing up to such?
Insurers will walk away from Florida. Basically you won’t be able to get coverage. Just like what is happening in CA.How much longer can Florida residents sustain the skyrocketing cost of home owners insurance? Will other customers in the southeast states eventually be forced to cough up more money to help cover the sunshine state?
I know. I seen that about California too.Insurers will walk away from Florida. Basically you won’t be able to get coverage. Just like what is happening in CA.
Roof repairs?Florida has not had the same regulatory oversight as other states, most major insurers don’t do business in Florida. These smaller companies have not been properly reinsured due to the lack of regulation (I believe a law goes into effect in July) but it’s nowhere near what other states require. You can Google what created this situation.
I’m not sure what you mean by roof repairs.Roof repairs?
The most basic problem is, cities approve the building of homes and other structures in place that they never should have. They know historically that those areas WILL be impacted.Recently read a story about several homes washing out to sea on the Outer Banks of North Carolina. One of them was bought only 10 months ago. How do those people even get homeowners insurance? I mean no company is going write them a policy on those houses.
Big fraud. People were scammed into getting a new roof put on by con artist and insurance companies had to foot the bill. The people didn't realize this was all a big fraud though. Cost the insurance companies big time.I’m not sure what you mean by roof repairs.
All of your insurance is a pool of money, you as a CA resident are paying for insureds in FL at some point or another just as I in KS am paying for wildfires in CA or for the tons of uninsured/underinsured drivers in Detroit.No sure it would even be legal for customers in other states to be forced to cover Florida.
California is a funny insurance market. HEAVILY regulated. Law requires a lot more consideration of claims paid in the state in considering rates and profit margins.All of your insurance is a pool of money, you as a CA resident are paying for insureds in FL at some point or another just as I in KS am paying for wildfires in CA or for the tons of uninsured/underinsured drivers in Detroit.
When companies cannot maintain profits over time in a state they pull out as a strategic way OR they don't go into a specific state for a strategic way.
There's always specifics to each state for regulations but the insurance company has to spread their risks and has to collect enough premiums across all their subsidiaries they own across all their states, when they don't rates tend to go up and when it's prolonged or in such a severe way that one or more state is eating up too much ratio of premiums to profit they pull out.
Some will also put their non-standard company in a particular state. For example the insurance company I worked for did not put their Standard (meaning preferred) insurance company in FL, but they did have two subsidies there both non-standard. One was a company that ordinarily was for customers ineligible for the standard company (i.e. too many points).
Several national insurance companies pulled out if Mississippi and Louisiana after Karina.
After a number of years and fewer hurricanes, they have come back amd write policies again.
It's all business and political ploys.
They'll come back to Florida and California when they want the business again.
Insurance rates are ridiculous, though, in areas that have had disasters.