Florida's Looming Insurance Crisis

[alpharettab]

The editorial is not about USAA, it's about the Florida insurance market. I'm also a USAA policy holder - they are a phenomenal company - but they are not the topic. Also listed as canceling Florida policies are Allstate, State Farm, and Nationwide. I can add Cypress to that list.

The point of the editorial is that due to the new legislation private insurers will drop policies and reduce coverage, and effectively "concentrate the risk of future hurricane losses within (Florida) state government." That is correct and we're already seeing it happen.

 

[Bob]

The editorial draws USAA into the fray to illustrate an insuror exodus. USAA is reducing it's coastal exposure because they did not make the quick money grab with massive premium rate hikes. They are not your typical insuror as evidenced by their measured actions. They are actually an association that has limited potential membership quite unlike, for example, State Farm's clientel.

 

[SHELLY]

It also points out that USAA recognizes that Florida is making it impossible for insurance companies to "Price Risk;" so USAA made a very wise decision to pull up stakes, roll up the tent and leave town. With all the insurance companies moving out of the state, Floridians are left twisting in the wind <pun intended> and at the mercy of the likes of "Born Yesterday Insurance" and Citizens who are just one big blow away from insolvency.

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[Bob]

It also points out that USAA recognizes that Florida is making it impossible for insurance companies to "Price Risk;" so USAA made a very wise decision to pull up stakes, roll up the tent and leave town. With all the insurance companies moving out of the state, Floridians are left twisting in the wind <pun intended> and at the mercy of the likes of "Born Yesterday Insurance" and Citizens who are just one big blow away from insolvency.

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Again, USAA is not leaving Florida, rather they are reacting to be punished for measured rate hikes. Anyone owning a primary or moving to a primary within the state will be covered, and not left twisting in the wind. Ten percent of current policyholder loss in the state is not pulling up stakes and leaving town.

 

[SHELLY]

Ten percent of current policyholder loss in the state is not pulling up stakes and leaving town.

USAA is not writing any new policies except for active duty GIs assigned to the state. They've already admitted that their continued business in the state of Florida is costing their membership dearly, but they feel they must fall on their sword for the troops and current primary residence policies. However, they're not writing any new polices except to cover GIs on tour in the state of Florida. That removes the option of securing a Florida homeowners policy for the rest of the membership not currently in the state of Florida--and to those members, for all intent and purposes, USAA has left town.

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[Bob]

Shelly, Your carefully crafted sentences about USAA convinces me you enjoy this. You speak of USAA as if they have left the Florida market, and give no explanation as to the reasons for the second home retrenchment. Your first sentence intimates USAA is not writing new policies, when, in fact, they are provided, you sell your primary within the state. The reason, for the third time stated, is that USAA had not raised rates nearly as much as their fellow insurors, and are now capped from raising to needed levels. I applaud their decision not to just knee-jerk cancel all policies, but rather remove the smallest portion of their Florida portfolio with the highest risk....second homes. USAA provides my family with homeowners, auto, and life policies. USAA is an association, that partly acts as an insurance company. Members enjoy a subscriber savings account funded by their premiums. Such is not the case with the likes of Allstate, State Farm et al.

 

[flyforfun]

The insurance industry always has an excuse to rip folks off, and our state and federal goverments continue to allow it. Their increases are not justified, they continue to make record profits and when claims are made, they look for an excuse not pay. There needs to be much greater justification before they make arbitrary increases or cancelation of polices. To much emphasis is based on predictions of future storm damage by hurricane forcasters who in my opinion would have a greater accuracy with predicting winning lottery numbers. When I call to get the weather before any flight, they only guarantee it to be 80% accurate for just two hours! We have a insurance crisis based insurance industry greed, flawed science on storm pedictions, and that is the bottom line.

 

[drbawa]

Just got word that Charlie Crist is going to be coming to Walton County later this year. It might be a good idea to attend this to voice concerns....

Governor Crist to Speak at Walton County Chamber of Commerce Annual Meeting on October 24, 2007 ​

The Walton County Chamber of Commerce & Chamber Foundation is extremely pleased to announce that Governor Crist will be the keynote speaker for the 81st Annual Meeting, to be held on October 24 th, at the Hilton Sandestin Beach Golf Resort and Spa. "To be able to provide another high level speaker demonstrates the Power of Business in our community" states Leigh Grantham, Chair of the Walton County Chamber of Commerce Board of Directors.

Both Ballrooms at the Hilton Sandestin Beach Golf Resort and Spa have been reserved with live video feed in the second ball room. The Governor will make an appearance in both rooms and take the podium in the main ballroom. Corporate tables and tickets will be sold on a first come, first serve basis. "Anyone interested in attending should reserve their tables/tickets now. Last year we sold out of the main ballroom in three days," states Dawn Moliterno, Chamber President & CEO.

"This is an unprecedented accomplishment to have Governor Crist confirmed to speak at the Walton County Chamber of Commerce Annual Meeting in October. This will give Northwest Florida the opportunity to showcase their leadership and community, and I am proud to be part of it," states Speaker Designate Ray Sansom.

Annual Meeting tickets are $100 for Chamber members and $150 for non-members. Corporate tables of ten are available for $1,500 for members and $2,000 for non-members. Sponsorships are also available.

Reservations can be made on our site www.waltoncountychamber.com or email them to melissa@waltoncountychamber.com.

We are excited to bring this unique opportunity to the Greater Walton Area!