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Started By
Message
re: Louisiana homeowners insurance market “unraveling.”
Posted on 4/2/22 at 9:17 am to Lsupimp
Posted on 4/2/22 at 9:17 am to Lsupimp
quote:
Does this unraveling extend to inland parishes like EBR ?
Yep. My house in EBR just had this happen. GEICO doubled my rate. I managed to find a new company that wrote me for 20% over what I had been paying. But only by bringing my commercial auto policies over to them. GEICO also stopped writing commercial auto in LA across the board. They were tired of the litigation atmosphere here.
2
Posted on 4/2/22 at 9:20 am to udtiger
quote:
You missed my point. Auto insurance lines are typically what keeps insurers in the green. It allows them to write property and casualty at a "loss."
I was agreeing with you, sorry if it didn’t seem that way.
I was trying to get through to the people who think it’s evil insurance companies being greedy.
Posted on 4/2/22 at 9:22 am to WaWaWeeWa
quote:
I was agreeing with you, sorry if it didn’t seem that way.
I was trying to get through to the people who think it’s evil insurance companies being greedy.
Posted on 4/2/22 at 9:24 am to udtiger
The value of a commodity and the costs to repair that commodity can not increase without a simultaneous increase in the cost of insurance to protect that commodity.
That’s economics 101
Any other scenario is not a viable, sustainable model
Every SINGLE thing you pay for will increase significantly
That’s economics 101
Any other scenario is not a viable, sustainable model
Every SINGLE thing you pay for will increase significantly
This post was edited on 4/2/22 at 9:25 am
Posted on 4/2/22 at 9:26 am to Bayou_Tiger_225
quote:
Does this unraveling extend to inland parishes like EBR ?
I would also like to know this.
———————————————————-
I live in Ascension, had roof replaced after storm (26k), insured by National General a subsidiary of Allstate, $1000 deductible, renewal was this month.
Increase was minimal, $93 more per year.
Does this unraveling extend to inland parishes like EBR ?
I would also like to know this.
———————————————————-
I live in Ascension, had roof replaced after storm (26k), insured by National General a subsidiary of Allstate, $1000 deductible, renewal was this month.
Increase was minimal, $93 more per year.
Posted on 4/2/22 at 9:27 am to jbgleason
quote:
They were tired of the litigation atmosphere here.
People sue everywhere
Posted on 4/2/22 at 9:27 am to tide06
quote:
ied to tell people this was happening throughout the coastal areas and got downvoted to oblivion. In parts of FL and the gulf coast the major players are not writing within 5 miles of the coast. It’s going to be a huge mess the next time a storm hits.
Cue blaming it on climate change… the Deep South owes it to themselves to do whatever can mitigate and reduce the intensity of hurricanes and storms in the future
Posted on 4/2/22 at 9:30 am to lepdagod
quote:
quote:
They were tired of the litigation atmosphere here.
People sue everywhere
Research how many other states are direct action (you can name the insurance company as a defendant) in a 3rd party case.
Posted on 4/2/22 at 9:32 am to udtiger
quote:
Homeowners insurance is a loser. Most of these companies' bottom lines are supported through their auto business and that's becoming dicey because of the litigation environment.
Yes and really auto insurance has been a loser of late too in most states. High loss ratios and the insurance companies having to adjust is an unfortunate part of the whole big picture. Insurance is not a magic fix where they just pull money out of thin air. They have to take in more than they pay out to even operate like any other business, but they are an easy target for ire when folks pay and don’t use it. Then have to pay premium for increases based on things totally out of the hands of the carrier.
As an agent, I remind folks all the time who talk about not having claims and still paying out premiums that trend up that they’re literally and perpetually a split second away from losing that claims free status and warranting a huge pay out. That seems to escape some folks.
This post was edited on 4/2/22 at 9:34 am
Posted on 4/2/22 at 9:33 am to Slippy
You have so many issues.
1) Repair costs are skyrocketing
2) Claims run in cycles - and right now we are in a high point in the cycle
3) Many of these smaller insurers are undercapitalized which hurts not only their ability to pay claims, but also to process claims
4) Our government isn't helping
Fact is, insurers are public traded for the most part and exist to maximize shareholder profits. To do that, you have to have revenues, over time, which exceed costs.
When that doesn't happen, your options are to raise prices, lower costs (i.e. squeeze your claims) or say peace out.
Between this and the mortgage market, I think you are going to start to hear again the terms "assumable polices" and "assumable mortgages".
1) Repair costs are skyrocketing
2) Claims run in cycles - and right now we are in a high point in the cycle
3) Many of these smaller insurers are undercapitalized which hurts not only their ability to pay claims, but also to process claims
4) Our government isn't helping
Fact is, insurers are public traded for the most part and exist to maximize shareholder profits. To do that, you have to have revenues, over time, which exceed costs.
When that doesn't happen, your options are to raise prices, lower costs (i.e. squeeze your claims) or say peace out.
Between this and the mortgage market, I think you are going to start to hear again the terms "assumable polices" and "assumable mortgages".
Posted on 4/2/22 at 9:35 am to Crimson1st
quote:
Yes and really auto insurance has been a loser of late too in most states. High loss ratios and the insurance companies having to adjust is an unfortunate part of the whole big picture.
Have you seen car prices lately?
The more expensive it is to replace something / the more it's going to cost in premiums
Posted on 4/2/22 at 9:47 am to LSUFanHouston
An easy way to reduce your premium is to raise your deductible for non-hurricane coverage. Take on as much risk as possible. Instead of spending that tax refund on something frivolous, put that money aside and raise your deductible.
Posted on 4/2/22 at 9:59 am to goinallout
quote:
An easy way to reduce your premium is to raise your deductible for non-hurricane coverage. Take on as much risk as possible. Instead of spending that tax refund on something frivolous, put that money aside and raise your deductible
This is true
Posted on 4/2/22 at 10:01 am to udtiger
My insurance is up $100/month due to property value increase.
That’s a lot of $$ regardless of who you are.
That’s a lot of $$ regardless of who you are.
Posted on 4/2/22 at 10:11 am to LSUBALLER
quote:
Even government companies? USSA
USAA rates are fricking ridiculous now. Quoted me like a 3900 annual premium policy for just wind and hail coverage.
Posted on 4/2/22 at 10:16 am to Slippy
Once again Louisiana needs to look to Florida for the solution. Florida faced this in the early 90’s after hurricane Andrew. We ended up creating an insurance catastrophic trust fund that serves the purpose of bailing out the companies upon a natural disaster. It’s worked great since then.
Of course in Louisiana your crooked politicians would steal every penny of it.
Of course in Louisiana your crooked politicians would steal every penny of it.
Posted on 4/2/22 at 10:16 am to udtiger
Not only is Louisiana a direct action state, but our Supreme Court has interpreted the statute to mean you only have to name the insured in the petition and you don't actually have to serve the insured and actually bring him/her into the suit.
How can an insurer be liable if there is no judgment against the insured to pay? Plaintiff paradise.
How can an insurer be liable if there is no judgment against the insured to pay? Plaintiff paradise.
Posted on 4/2/22 at 10:24 am to Slippy
What many fail to understand is.... the "One call that's all" gets paid by someone. Attorneys sucking up 30-40% of the claim settlements comes at the expense of their clients or the insurance companies. If it falls on the insurance company, they pass that on to the customer.
Nothing is for free. We all pay for this crap!
In Illinois I paid $1500 a year for essentially the same coverages my home will have in Lafayette parish when completed. The premium (even with new home discounts) will be double that amount. Same company BTW.
To bad we can't have "I did that" stickers on premium renewals with our TV lawyers.
Nothing is for free. We all pay for this crap!
In Illinois I paid $1500 a year for essentially the same coverages my home will have in Lafayette parish when completed. The premium (even with new home discounts) will be double that amount. Same company BTW.
To bad we can't have "I did that" stickers on premium renewals with our TV lawyers.
Posted on 4/2/22 at 10:25 am to Slippy
Sounds like a good time for someone's house to burn down with mysteriously none of their belongings inside. Prolly be good to relocate to east TN.
Posted on 4/2/22 at 10:29 am to LSUwag
quote:
Florida faced this in the early 90’s after hurricane Andrew. We ended up creating an insurance catastrophic trust fund that serves the purpose of bailing out the companies upon a natural disaster. It’s worked great since then.
How is that funded?
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