The Cost Of Insurance Is About To Jump

Home Forums Financial Preparedness Emergency Funds The Cost Of Insurance Is About To Jump

This topic contains 7 replies, has 7 voices, and was last updated by  Old Goat 1 week ago.

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  • #5426

    Crow Bar
    Participant

    https://www.zerohedge.com/news/2018-11-28/cost-insurance-about-jump

    Per the article:

    <u>The take-away? It’s going to become increasingly hard for people living in disaster-prone areas to insure their stuff. </u>And this trend might not be gradual. Note the term “non-linear” a couple of paragraphs above. This refers to the tendency of markets in times of stress to suddenly jump to dramatically higher or lower price ranges. For homeowners insurance, that could mean Floridians or Californians paying two or three times more than just a few years earlier – at a time when property taxes are also rising due to clean-up costs of past disasters.

    #5427

    Crow Bar
    Participant

    So, if you live in a “disaster prone-area,” what do you do?

    Is moving viable?

    #5464

    Red Carnation
    Participant

    That’s crazy!  Not everyone can move, for various reasons, of course. 🙁

    #5477

    OldMt Woman
    Participant

    The insurance companies have already begun to require Wildfire assessments in areas like ours.  We’ve had personal experience with that.  Property owners in the case of wildfire, can do some fire mitigation that might satisfy the insurance companies.  But some cannot get insurance at all…..without penalty prices.

    Log homes.  The formerly-popular shake shingles [most dangerous part during wildfires!]  Trees close for shade.  All are forbidden.  Whole subdivisions in towns are changing the ‘rules’.  Stucco and cement walls are encouraged.  Metal, cement, or tile roofing materials really do help.  Shut up those vents under the roof overhang if fire threatens.  Sprinkler system on a well if you’re allowed.  Don’t stack firewood near the house.  Trim up trees to eliminate ‘ladder’ fuels. Lots of things to improve the chances.

    However….areas with hurricanes, constant flooding, etc.  Not sure how much mitigation can be done in the large magnitude events.  Some river towns have simply moved their whole town up hill when they’d been flattened too many times.  for hurricanes, I’ve seen Caribbean homes that are cement domes..on higher ground.  Metal shutters have become popular.  Well, maybe that would be a smart trend to start before the insurance companies force people into it.

    Tornadoes and earthquakes are hard to forecast.  { shrug }

    Insurance companies are about profit….

    OldMtWoman…. “climate change” …lol, can’t miss with that nebulous phrase!

    #5509

    James Mitchner
    Participant

    If we stop to consider it, the denial of insurance could be used as a tool to make citizens compliant on things they ordinarily would never consent to.  For instance, insurance could be denied if you own firearms and do not keep them locked up in “approved” safes.  Or, insurance could be denied if you own firearms at all!  Sounds extreme now, but think back to how things have changed up to now.

    I was on North Topsail Island in N.C. shortly after Hurricane Florence came ashore.  The only roofs I saw without wind damage were the houses with metal roofs. Costs more to install, but I’m sure the owner’s were happy with their investment.

    #5528

    Josefina Arenas
    Participant

    The insurance companies could pay for people to move to less disaster prone areas…and save money.  They could work with companies looking to relocate.  Sounds like a plan to me!

    #5530

    namelus
    Participant

    More like call act of God pay nothing,  government can’t print more so…..Fire sale or mass defaults.

    #5965

    Old Goat
    Participant

    After a series of floods in the 90’s we experienced at our old place,  we got these little notices from the insurance company in the tiniest print (no kidding I needed a magnifying glass to read it ) they would no longer cover Acts of God including earthquakes, tornadoes, volcanoes and oh yes floods. Mind you there hadn’t been any floods in the area for decades and we were not on a flood plain. It was just a way to get out of future “problems” for them not us.

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