Comments on: Hurricane Insurance: Do You Need It? Are You Covered Already?

By: David

David — Tue, 16 Feb 2010 13:33:22 +0000

In Florida we have a state funded insurance company called Citizens Insurance. When insurance companies refuse to cover properties then the recourse is Citizens which is costly. The state and residents of Florida pick up the tab in case there is a major disaster and the insurance company cannot handle the claim. Everyone if Florida underwrites the costs now. We have had major insurance companies threaten to withdraw homeowners policies and leave the state of Florida because of the risk to their bottom line. Premiums keep going up and Up and UP!!!!

By: Chris

Chris — Wed, 03 Jun 2009 18:37:56 +0000

The unfortunate part is that while it is not soft, for large companies, insurance has not gone up dramatically. In fact, catastrophy insurance, earthquake, flood and hurricane has actually come down quite a bit in the last few years, even though it is extremely high still. My last company I was with we never bought earthquake coverage given that we could spend that money on other loss control techniques like bracing servers and upgrading buildings.

Think about the cost of a particular coverage and see if you can use those premium funds to pay for upgrades or improvements to your facilitity. The person who referenced the wine, they could probably get that exclusion removed for a price, or maybe you can pay for a generator. Remember insurance is just a tool in a “risk managers” tool belt!

By: MikeS

MikeS — Tue, 02 Jun 2009 15:33:54 +0000

Technically, hurricane territory is along the entire East Coast and Gulf Coast. Although, the southern most portion of the East Coast, NC and south, will bear the brunt.

Insurers are pricing the coverage more accurately now, as computer models are becoming more sophisticated. This is a big reason why prices are going up. Insurance companies are willing to insure any risk, provided they can accurate calculate and charge the right price.

By: MoneyEnergy

MoneyEnergy — Tue, 02 Jun 2009 06:52:06 +0000

I don’t know how people living in hurricane country do it. Us northerners get flak for the cold weather, but at least it’s not so terrifying! Where exactly does hurricane territory start? As far north as North Carolina, isn’t it?

By: Finance Junkie

Finance Junkie — Tue, 02 Jun 2009 00:02:15 +0000

In all probability, wind and hail (hurricane) insurance will likely drop in cost only if we have a series of hurricane seasons with no major storms.

If this happens, the insurance company profits should raise substantially and allow them to discount their prices and compete with others.

In the mean time, I’m paying an arm & a leg for my insurance on two properties in South Alabama. In the future, I will likely try and avoid coastal counties and at least buy two counties in from the coast.

By: Insurance Guru

Insurance Guru — Mon, 01 Jun 2009 18:02:03 +0000

Like all insurance polices, you must account for an contingenices. It is best to talk with a representative directly at the company as well as your independent agent. Too many times people are not aware of what their policies do not cover.

By: MLR

MLR — Mon, 01 Jun 2009 15:31:57 +0000

DDFD–

That is EXACTLY my problem with pooled risk programs. Companies that view human life as a road block to profit, ugh.

MLR

By: Rachel

Rachel — Mon, 01 Jun 2009 13:41:55 +0000

Another thing to watch for in your insurance policies is whether or not they pay for damages due to “temperature change”. I am from New Orleans and my family owns a large restaurant there in the French Quarter. While we were very blessed with limited damage from Katrina we did lose lots of wine due to sitting in hot buildings for 6 weeks (both at the house and restaurant). We were under the assumption this was covered by the various policies but both the restaurant and home owners policy had an obscure clause in it which excluded paying for damages due to “temperature change”. If you have items that could fall into this category this is something to look into.

By: DDFD at DivorcedDadFrugalDad

DDFD at DivorcedDadFrugalDad — Mon, 01 Jun 2009 11:17:49 +0000

The funny thing with property and casalty insurance is that the people who need the insurance the most, usually can’t get it. As you mentioned, they get dropped.

To understand why– think about the business model: collect premiums from as many people as possible and hope not as many have claims. How to be more profitable? Collect more premiums and pay out less . . . How to payout less? Don’t take premiums from people most likely to someday need a payout!