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re: And it's only getting worse, multiple carriers left La on 1-1-2024
Posted on 2/2/24 at 9:42 am to wiltznucs
Posted on 2/2/24 at 9:42 am to wiltznucs
quote:
That’s the challenge, many of these people are on fixed incomes or retired. The house they spent $125,000 on a little more than 10 years ago is now worth $500,000.
The $3-4,000 per year they are socking away won’t do much of anything other than a roof replacement. They dont have a spare half million hanging around. Plus the property taxes have greater than doubled too.
then sell for $500k and move. We shouldn't subsidize this crap.
0
Posted on 2/2/24 at 11:00 am to NOLAGT
quote:
The insurance on my rent houses went from 17k to a proposed 36k at renewal in April. When I picked them up in 2020 it was 9k. To add to my aggravation the last year of insurance we paid in full and then about 1/2 through they said ohh yea btw we think your houses are worth more so you owe us more right now. POS companies...somethings gotta change.
The fear is that insurance companies are marketing with bait and switch tactics and teaser rates.
The reality in this market is that insurance companies without the ability to quickly realign large adjustments in premium (i.e. restrictions from the state department of insurance on renewals) are just going to leave the state.
Some problems are the fault of insurance companies.
The inability to portray loyalty discounts and loyalty features have left 90% of Americans feeling like the family who doesn't shop their insurance every single year is getting screwed.
That pattern of consumer behavior only drives up the acquisition cost for insurance companies (which is ultimately paid by the consumer).
I don't blame the consumer for this as the long tenured policyholders often supplied +premium which help offset low rates for driving in new customers.
At some point, we were going to wise up. Ironically, the end result is more cost built into what the we pay for the policy.
This post was edited on 2/2/24 at 11:49 am
Posted on 2/3/24 at 10:29 am to meansonny
Its my understanding that LIGA Isnt even responding to claims anymore. They are about to receive a class action law suit.
Posted on 2/3/24 at 11:00 am to biscuitsngravy
quote:
central texas, it's even worse.
Starter homes in travis, hays, and comal county are > $500,000 taxed @ 1.7 - 2 %
Nuts.
Posted on 2/3/24 at 8:05 pm to meansonny
I'm definitely at that point with all state. What's the point of being loyal to them when you're going to cause my mortgage to jump up $600 a month on me. How is it a bunch of messageboard posters see the housing crisis brewing and the government just keeps doing what they always do?
Posted on 2/3/24 at 8:21 pm to jmarto1
quote:
How is it a bunch of messageboard posters see the housing crisis brewing and the government just keeps doing what they always do?
Short of direct subsidization of the industry, what’s the solution? Serious question.
I have no love lost for insurers, but I expect them to be allowed to turn a profit too.
It’s always going to be risk + profit margin, meaning unless you change the risk costs, you’re fricked.
Posted on 2/3/24 at 8:35 pm to slackster
I definitely do not claim to have an answer. I just have zero faith it is a priority of our elected elite
Posted on 2/3/24 at 9:32 pm to jmarto1
quote:
I just have zero faith it is a priority of our elected elite
Agreed.
Posted on 2/4/24 at 9:45 pm to PetroBabich
I wouldn’t self insure. Maybe purchase only fire coverage or ACV.
Here’s a good example why. The personal liability coverage portion of the policy is invaluable. Article below describes where an HO policy (State Farm) dished out $1.6M for a bicycle on bicycle accident. How many of you knew that was covered on your HO policy? I didn’t…
2 Bicycles Crashed HO coverage
Here’s a good example why. The personal liability coverage portion of the policy is invaluable. Article below describes where an HO policy (State Farm) dished out $1.6M for a bicycle on bicycle accident. How many of you knew that was covered on your HO policy? I didn’t…
2 Bicycles Crashed HO coverage
Posted on 2/5/24 at 1:36 pm to slackster
quote:I would add + capital markets conditions. Right now, insurance capital markets are bad. I'm sure money will start flowing back in at some point, but until it is, if they can't re-insure, they're not going to offer attractive product.
It’s always going to be risk + profit margin
Posted on 2/5/24 at 2:16 pm to Big Scrub TX
Not sure how State farm and All state can afford huge stadiums and sponsoring college football bowls with all the money they are losing 
Posted on 2/5/24 at 2:30 pm to bluewing
quote:I mean, that's very small dollars (likely $15M/year or less) compared to, you know, the actual insurance business. Also, naming rights deals were struck years ago.
Not sure how State farm and All state can afford huge stadiums and sponsoring college football bowls with all the money they are losing
Here's an article from 2022 detailing State Farm's strategic (and tactical) use of the cat bond market:
LINK
As one might imagine, those markets are much more expensive to tap now - particularly after the active weather season of 2022 AND the meltdown in the global bond markets which caused all kinds of knock on effects (in insurance and elsewhere). Here's an article explaining the basics of a so-called re-insurance "hard market":
LINK
quote:
The previous year’s close saw intense renewal negotiations, with reinsurers demanding significant price hikes. This has led to elevated premiums and a more selective risk-taking strategy. The hard market is a scenario of high costs and limited availability, influenced by various factors, including natural disasters, geopolitical unrest, inflation, and supply chain disruptions.
I understand you want to get your pitchfork out, but I'm not sure what else to tell you. Ultimately, property insurers simply must re-insure themselves...and if they can't, then it vastly impacts what end products to users such as you they can offer - and at what price.
Posted on 2/5/24 at 2:58 pm to Big Scrub TX
Quick google search shows State Farm's advertising budget is >$1B each of the last few years. They also doubled exec pay from 2019 to 2020 and continued increasing it after 2020.
From my experience and talking to others most of these insurance companies seem to low ball their customers for claims and then ultimately pay 2x-3x once lawyers get involved (for legitimate claims). There is a lot of insurance fraud but there are also plenty of legit claims that get denied because of their incompetence or greed.
They should be allowed to run the company how they see fit but I sure wouldn't be defending them. Insurance in general seems to be a ripe market for fraud from either side (the company or the customer) and in all types of insurance.
From my experience and talking to others most of these insurance companies seem to low ball their customers for claims and then ultimately pay 2x-3x once lawyers get involved (for legitimate claims). There is a lot of insurance fraud but there are also plenty of legit claims that get denied because of their incompetence or greed.
They should be allowed to run the company how they see fit but I sure wouldn't be defending them. Insurance in general seems to be a ripe market for fraud from either side (the company or the customer) and in all types of insurance.
Posted on 2/5/24 at 3:20 pm to bod312
quote:You won't see me arguing insurance companies are saints. I'm just pointing out the fact that the entire insurance world is basically reeling since 2022.
Quick google search shows State Farm's advertising budget is >$1B each of the last few years. They also doubled exec pay from 2019 to 2020 and continued increasing it after 2020.
From my experience and talking to others most of these insurance companies seem to low ball their customers for claims and then ultimately pay 2x-3x once lawyers get involved (for legitimate claims). There is a lot of insurance fraud but there are also plenty of legit claims that get denied because of their incompetence or greed.
They should be allowed to run the company how they see fit but I sure wouldn't be defending them. Insurance in general seems to be a ripe market for fraud from either side (the company or the customer) and in all types of insurance.
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