Comments on: Citizens To Shed Wind Policies

By: Mike

Mike — Thu, 14 Feb 2013 12:51:25 +0000

Let’s get the State and Federal Government out of the tax supported business of supporting residents living on the beach and along our rivers and bays. Some of these people get to rebuild and redecorate every time we have a good thunderstorm. If they were not taking advantage of tax supported insurance, even the rich could not afford to clutter our beach with million dollar houses, and our beach would turn back into a park as it should have been left 50 years ago

By: wm

wm — Wed, 13 Feb 2013 22:29:44 +0000

walnuthillroy –

Yes, the premiums collected are bundled together and invested to produce the investment income. However, those premium dollars are held in reserve and used to pay claims. Most of the collected premium dollars collected are used to pay the claims. It’s the law of large numbers. Just because you pay $1000 per year and never pay a claim — doesn’t mean they are pocketing that $1000 as profit…it goes to pay the claim for the policy holder who has a large loss.

The use of premium dollars — for a time — as an investment generates income to fund the company. Some goes to overhead and expenses and yes, the rest is profit. Do you expect companies to provide coverage with no thought of making a profit?

Thus the problem with people who want “affordable health incurance” but can’t understand why premiums are so high. Because you and your families files claims!! If you pay a few thousand dollars in premium — but receive tens of thousands of dollars of health care claims, someone is paying in the same and getting less or no benefits. You simply can’t pay in a little — and expect alot. It simply does not compute.

By: Walnut Hill Roy

Walnut Hill Roy — Wed, 13 Feb 2013 13:26:21 +0000

To WM,
One question: Where do the insurance companies get the substantial amount of money that they invest? It wouldn’t be from the policies would it???

By: wm

wm — Wed, 13 Feb 2013 04:51:35 +0000

HenryCoe — you don’t know jack about insurance. Most of premium dollars collected go to pay claims. Insurance companies make the majority of money on investment income — not underwriting profit. Salaries and benefits of insurance company employees are a very small portion of the company’s combined ratio.

By: Henry Coe

Henry Coe — Tue, 12 Feb 2013 18:26:25 +0000

brad, Insurance companies only lose money on homeowners and property insurance because of what CEO’s and shareholders get paid. They are addicted to our money and they own our politicians. It’s that simple.
If Home Owners Insurance Companies were capped to only allowing 25% (or less) of premiums to be used for payroll and operating expenses, including the bonuses, the shareholders would be happy and premiums would be much less. That is if they were based on the actual risk to home owners based on their location.

i.e. living within a mile of the water is not the same thing if own home’s elevation is at 10 feet verses another home’s that is at 80 feet. The insurance laws are set up to not care about the actual risk and Floridians are getting ripped off.

By: brad

brad — Tue, 12 Feb 2013 17:29:15 +0000

Fred, Insurance companies lose money on homeowners and property insurance.

By: Vicky G

Vicky G — Tue, 12 Feb 2013 16:01:29 +0000

After Hurricane Ivan wind storm damage insurance was dropped for ALL policies within Pensacola city limits by the company providing our homeowners insurance, as well as other companies. Citizens is our only option.

By: Shawn Swigart

Shawn Swigart — Tue, 12 Feb 2013 15:10:45 +0000

This sort of this of thing has hurt our property values and with this news I would expect them to take another hit.

By: fred

fred — Tue, 12 Feb 2013 14:56:14 +0000

The insurance industry has become such a hustle, it’s beyond belief. I truly believe the insurance companies have decided that they are in the investment business and not in the indemnification business. Here’s a question for the forum – why is it that you can’t buy wind and flood insurance from the same company on the same policy? Ever talk to someone who had hurricane damage that caused their house to also flood? They end up playing the runaround game because the wind carrier says it’s flood damage and the flood carrier says it’s wind damage, so neither one wants to pay a claim. Why doesn’t FL require the carriers to carry the full package? Why do those of us who built far away from the water, and on high ground, have to pay surcharges to help pay for claims from those who foolishly build on the sand? Why are such huge palaces permitted on the beach; they are huge claims waiting to be made. We all just saw huge premium increases this year, didn’t we? Where are the financial disclosures of profits made by the insurance carriers?

By: Walnut Hill Roy

Walnut Hill Roy — Tue, 12 Feb 2013 14:29:43 +0000

As a partial answer to CW, it;s just another way to redistribute the wealth! Everyone pays much higher rates for the protection of a few and the exposure that the insurance company has because of them. I agree that if you can’t afford the property and the insurance (if it’s available) you should be turned down for a loan. Everyone who is not in a hurricane prone damage area would see their insurance premiums go down quite a bit, unfortunately that’s not going to happen.