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I know when i was writing policies, USAA would non-renew your ass after 3 home perils claims over a certain threshold in three years.
The insurers now have a serious horse in the climate debate.
Long story short: It is getting harder, and more pricey to get disaster coverage for your home.
Full article here:PITTSBURGH (Reuters) - As weather disasters strike with more frequency, homeowners first get hit with the destruction or total loss of property. Many are then hit with the unexpected loss of homeowners insurance policies as insurance companies re-evaluate their financial liabilities.
...
. Insurance companies are raising rates, cutting coverage, balking at some payouts and generally shifting more expense and liability to homeowners, according to reports from the industry and its critics.
"Insurance companies have significantly and methodically decreased their financial responsibility for weather catastrophes like hurricanes, tornados and floods in recent years," the Consumer Federation of America said in a statement after studying industry data.
The industry concedes that it is trying to avoid getting trounced by those same punishing weather patterns.
"Last year (2011) was an extraordinary year for natural disasters," said Michael Barry of the Insurance Information Ins ute (III), an industry trade group. "Insurers have taken a step back to assess whether or not they can absorb severe losses."
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Florida, where insurers have been dropping coverage since Hurricane Andrew in 1992, is a good example of where this can lead. With an annual average of $1,460 per home, homeowners' premiums there are second-highest in the country (Texas, at $1,511 is first), according to the most recent data available, a 2010 report from the Insurance Information Ins ute.
"Florida's off the charts when it comes to pricing," said Mike McCartin, an Ashton, Maryland, independent insurance agent.
The state has stepped in to cover some 1.5 million properties via its publicly funded Citizens Property and Insurance Corporation as insurers drop more and more homes.
"You simply have major private insurers that are unwilling to write policies in Florida," said Robin Westcott, the state's insurance consumer advocate.
... homeowners' insurance premiums have been rising sharply. They have increased an average 6.33 percent annually between 2002 and 2009, according to the National Association of Insurance Commissioners (NAIC). This year, insurers have asked for rate increases of 18 percent or more in 11 states, according to the Consumer Federation.
Robert Hunter, the author of the consumer report, has questioned whether limit-laden policies are worth the rising costs. But mortgage lenders require homeowners insurance, and anyone who has observed a devastating house fire or storm is unlikely to be willing to go without coverage.
[end of excerpt]
http://news.yahoo.com/insurers-rethi...124608977.html
Worth reading the whole thing, if you own, or intend to own a house.
I know when i was writing policies, USAA would non-renew your ass after 3 home perils claims over a certain threshold in three years.
The insurers now have a serious horse in the climate debate.
That is touched on in the article. If you make claims you get dropped, as that is standard industry practice.
USAA is, in my opinion, one of the best run companies anywhere. I am seriously considering switching all my insurance over to them.
Would you believe (and a weather check would confirm) that there is a tornado heading my way as I type this and I live in central Cali. Looking west (it's heading east) it's as black and dangerous looking as I've ever seen it. I grew up here in the valley, first time I've ever heard anything about a tornado. Little weird and yep I'm concerned being a homeowner.
RG, didn't you post an article a while back about a Swiss reinsurer who is injecting climate change into their actuary calculations?
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