High-risk insurance policies

Here goes CNN again. Someone emailed Cafferty and said, "I live in Kansas. Why should I pay higher insurance premiums because someone is dumb enough to buy a house in Florida?"

Another: "I live in CA and can't get earthquake insurance, yet people in FL can be reimbursed for hurricane damage."

I'm composing my response ...

Doesn't he live in "Tornado Alley"?

Doesn't he live in "Tornado Alley"?

Don't we ALL pay in the end???

Doesn't he live in "Tornado Alley"?

Exactly.

Don't we ALL pay in the end???

We sure do. Our Homeowners Policy in Atlanta went up about 40% last year. According to our agent it was due to all the storms in Florida.

For some perspective....

We had a strange year about 5 years ago in Michigan in which many, many houses all through south eastern Michigan had ice dams that damaged their roofs and interiors (we did and had to get the interior and roof repaired and eventually got a new roof that was resistant to ice dams). Insurance companies had to pay for the repairs after deductibles. And snow storms cause damage and deaths just about every year -- my husband totalled his car in a snow storm a few years ago -- he wasn't hurt thankfully. Insurance after the deductable paid for the new car (and our insurance went up after that). We also have a few deaths every year from people shoveling snow and having heart attacks.

All that said, someone must have the statistics on which areas are the most costly when it comes to insurance hazards of all kinds over time. Maybe Florida does take the lead, but I'd have to see the numbers to be convinced of that.

We sure do. Our Homeowners Policy in Atlanta went up about 40% last year. According to our agent it was due to all the storms in Florida.

I might be wrong, but I don't think states allow insurers to charge for risks of insureds in other states. Ga's premiums might have gone up b/c of the increased risk of damage in Ga to to storms plowing through there (downed trees, other damage) but it was probably not to compensate for losses incurred in FL. Way it stands now, I don't pay for California's risk and they don't pay for mine. There have been proposals to do it otherwise, and have a national disaster insurance program, akin to the flood inusrance program.

I might be wrong, but I don't think states allow insurers to charge for risks of insureds in other states. Ga's premiums might have gone up b/c of the increased risk of damage in Ga to to storms plowing through there (downed trees, other damage) but it was probably not to compensate for losses incurred in FL. Way it stands now, I don't pay for California's risk and they don't pay for mine. There have been proposals to do it otherwise, and have a national disaster insurance program, akin to the flood inusrance program.

You may be right. I am just stating what our local agent said when I questioned the increase in our premium.

Our neighbors across the street had the same thing happen. We are both with State Farm. Neither of us have ever filed any type of claim. We have been with them for almost 27 years.

I called and asked our Ins. (Foremost) why our rates went up, and was told that when there are storms in our area, the rates will rise to help with costs. I am not sure of the legalities, but ours did not rise until we had a devastating tornado season one spring, followed by a collection of costly ice storms.

I called and asked our Ins. (Foremost) why our rates went up, and was told that when there are storms in our area, the rates will rise to help with costs. I am not sure of the legalities, but ours did not rise until we had a devastating tornado season one spring, followed by a collection of costly ice storms.

I filed a report with our state insurance commision. It has been recieved and is being reviewed.

In Texas the likelihood of hail damage shoots insurance costs up (and to the best of my knowledge that is spread amongst all texans). Pretty much the same with black mold. One company pulled out of Texas for a while because of black mold claims.

In Texas the likelihood of hail damage shoots insurance costs up (and to the best of my knowledge that is spread amongst all texans).

You are right about the hail, Rita. Insurance companies hate hail claims. Do you remember that spring when all of those tornadoes came through East Texas on Easter Day? Our vehicle was parked right next to another car, and a tornado came through bringing hail with it of course, resulting in our vehicle being pounded by the hail only one one side. Our insurance company refused to cover all of the damage, claiming that since it was all on one side rather than the top and all sides, we must have inflicked it ourselves. We kindly explained to him that it was a TORNADO, where the hail goes sideways, etc, but he wouldn't budge. It was a big wake-up call for us. Our first insurance claim, and quite an infuriating one.

Beachdreamer, sorry for your troubles, but this is driving me crazy. Just how on on earth did he think you did the damage yourself!!!!! :idontno: This is exactly the kind of thing that makes me pull my hair out!!! You pay your premiums, fullfilling your part of the contract, and when you NEED to make a claim, they find some stupid reason why they wont pay!!! I had my car stolen at work last year - it was found but in need of some major work, I had paid for rental car coverage, so I rented a car --- 3 days later it was stolen from work. Not only did I have to pay another deductable (they said it was a different claim) but I was investigated for insurance fraud!!!! Then they dropped me! That was my first (and 2nd) claim in 20 years!!!

Opps. Now I'm off topic and ranting alittle. Sorry.

I had my car stolen at work last year - it was found but in need of some major work, I had paid for rental car coverage, so I rented a car --- 3 days later it was stolen from work.

Holy Cow! 😱 Where do you work? Would you and Beach Dreamer happen to have insurance with the same company?

I hate it that when you have a claim off of someone else's insurance (You know, it was their fault & their company paid for the repairs to our car.) YET when comparing insurance companies they counted that as a claim against us! :idontno:
That makes no sense to me!

By the way GREAT turtle pic. You done good!

Beachdreamer, sorry for your troubles, but this is driving me crazy. Just how on on earth did he think you did the damage yourself!!!!! :idontno: This is exactly the kind of thing that makes me pull my hair out!!! You pay your premiums, fullfilling your part of the contract, and when you NEED to make a claim, they find some stupid reason why they wont pay!!! I had my car stolen at work last year - it was found but in need of some major work, I had paid for rental car coverage, so I rented a car --- 3 days later it was stolen from work. Not only did I have to pay another deductable (they said it was a different claim) but I was investigated for insurance fraud!!!! Then they dropped me! That was my first (and 2nd) claim in 20 years!!!

Opps. Now I'm off topic and ranting alittle. Sorry.

I have since found that people sometimes do inflict "hail damage" using a golf ball inside a sock, in order to collect a damage check. Seeing as how it was obvious that we were riddled with tornadoes that day, I thought their suspicion was a cheap cop-out.

Your situation sounds miserable too! Insurance companies really have to be watched closely. They are out for themselves and no one else.

I have another horror story, though it ended well just recently. When our second child was about to be born, we were assured full coverage verbally as well as in our guidebook. Yet, when it was time to make a claim, we were denied coverage, because the baby was born healthy, and the insurance company does not cover WELL BABY VISITS. :shock: Can you believe that??? We weren't the only ones who got screwed, and a few months ago - six years after the denied claim, we all won a class action lawsuit and got a little of our money back. I still can't believe they tried to get away with that. :pissed:

Holy Cow! 😱 Where do you work? Would you and Beach Dreamer happen to have insurance with the same company?

By the way GREAT turtle pic. You done good!

That was State Farm, been with them all my life, and thanks for the compliment!