Wind insurance

**2cat** · 04-18-2005, 08:19 AM

My wind insurance premium doubled this year on my house built in 2001. Agent says anything prior to 2002 is reclassified. Sounds like hot air to me. Anyone else blown away by insurance increase?

**kurt** · 04-18-2005, 08:57 AM

WOW. I haven't heard anything like that across the board type. That sounds like something with your agency. Who do you use?

**beachmouse** · 04-18-2005, 09:19 AM

After the past couple years, I'm coming to see anything less than a 20-30% increase in premiums as a small one. (and we have shopped around, but want to stick with companies likely to not go bankrupt on you)

The numbers haven't been set, but chances are everyone in the state is going to get hit with a 6-10% one time surcharge this year on their premiums to bail out Citizens Insurance since the state-created insurer of last resort is running a huge hurricane-related deficit from 2004 storms.

**Sheila** · 04-18-2005, 10:20 AM

Originally Posted by 2cat

My wind insurance premium doubled this year on my house built in 2001. Agent says anything prior to 2002 is reclassified. Sounds like hot air to me. Anyone else blown away by insurance increase?

In a strange twist of fate, my insurance there on both our homes built prior to '02 has not gone up.

However, the rate on our home in Atlanta went up significantly. According to our agent it was due to damage from Ivan. Go figure.

I expect it will catch up with me there sooner than later.

\

**beachmouse** · 04-18-2005, 11:12 AM

One thing to do is to go back to your home construction specs, and see just how closely the house was built to the new code. You might be able to get the insurance cost down by pointing out that your roof was built to withstand X wind levels, same as the 2002 code, you've got the right kind of garage door, you own hurricane shutters, etc.

**Rita** · 04-18-2005, 11:19 AM

...... to bail out Citizens Insurance since the state-created insurer of last resort is running a huge hurricane-related deficit from 2004 storms.[/QUOTE]

OK, educate me! - as we obviously didn't do all our homework. Wondered how Citizen's fit into the picture. we had to get them through an Allstate agent in fall of 2003. We really didn't find other choices for coverage w/in
1/2 mile of gulf. State Farm wouldn't cover even being long-time customers.
(this even before Ivan)

Our long-term renters said they couldn't find renters insurance.

**beachmouse** · 04-18-2005, 01:27 PM

After Hurricane Andrew, a lot of insurance companies pulled out of Florida. So the state stepped in, and set up their own insurance company to insure those in high hazard areas that the private companies considered to be uninsurable. The state-run company was renamed Citizen's in 2002. An extremely high percentage of windstorm coverage in coastal areas is through Citizen's because no one else will write policies in those areas.

Not surprisingly, Citizen's got hit hard by the storms of 2004- lots of claims to pay out, and not as many premiums coming in. (and unlike traditional insurance companies, they can't spread risk over large geographic areas since they're Florida-only) So Florida residents are going to cover what I've heard described as a $1 billion shortfall, either through allocations from the state budget surplus this year, or more likely from a one-time surcharge on homeowner's insurance policies.

**Smiling JOe** · 04-18-2005, 05:51 PM

Recently, I met with an Insurance Agent who stated that insurance companies were pulling out of FL. State Farm, Allstate and Nationwide have reported that they were not taking on knew policies in FL. However, I know someone who just received a policy from State Farm in this area, so I have to question that information given by the Agent.

From personal experiece, I watched my State Farm homeowner's policy climb 50% in Nov '04.

I've listened to people saying that insurance agents were very rude when asking for homeowner's policies in this area. I guess that is another method to ween people off of that particular company. The insurance companies are in a world of trouble in the state of FL. State Farm almost went belly up after Opal. Some of the new buyers in the area may be suprised to learn more regarding the recent changes in insurance policies in the state FL. Not being an insurance agent, I will not attempt to brief you on these issues. I will tell you all, if you are interested in purchasing a home/condo/townhome in this area or state, you better get on the dd and talk to some inusrance agents PRIOR to submitting offers on properties.

**Rita** · 04-18-2005, 08:10 PM

Thanks for the posts!

**Smiling JOe** · 04-18-2005, 08:15 PM

Our long-term renters said they couldn't find renters insurance.

FYI - State Farm will not insure homes within 2000' from the Gulf, nor will they insure homes within 500' from the Bay, not even renters insurance, and not even with 7 vehicles on group coverage, no matter if you have been insured with them for 20 years.

**beachmouse** · 04-18-2005, 10:04 PM

We spent a couple years renting down by the beach when we first moved here, and no one would write us a renter's policy either, even just for fire & theft because we were too close to the beach and in a category 4 surge zone according to the maps.

There's a certain amount of chicken-playing that goes on between the state insurance regulators and the insurance companies. The companies say they're stopping writing new policies and need a 40% rate increase, the regulators say no you don't; you'll still make a nice profit with a 15% increase, and eventually they generally settle somewhere in the middle, and the insurer starts writing policies again with their shiny new rate increase in place.

And it's good that the private insurers generally do find it profitable enough to stay in the state because Citizen's doesn't exactly have the best reputation.