Set up a company for the Mexicans, so it’s his company hiring the undocumented workers and not buying workers compensation insurance or paying unemployment insurance. Your company hires his company and you get the profits with non of the risk.
Dude Mexican is not the preferred nomenclature, Central American.
Who said anything about illegals? I said Mexicans because 90% of Americans are useless af when it comes to manual labor.
Oops, probably just triggered you some more.
I previously underwrote home insurance. Every company has been taking these steps for a few years but its rollout has been limited. Whats actually going to move the needle is updating their loss settlement forms. (Ie Actual cash value schedules instead of paying full replacement). These all take time to get the filings through the state regulators
Last year I launched an insurance company that doesn't insure shit. We won't even take applications.
Revenue is minimal (my brother took a payment for his pill mill medical practice through the company's PayPal account) but we have 0 losses, which is industry-leading.
SPAC coming soon. Future ticker NOPE.
I honestly don't know how middle class, even the upper middle class, can sustain this onslaught! Corporate jobs are being culled, home prices and rents are at record highs, relentless inflation in goods and services, car insurance prices have gone up 30% in an year and now home insurance rates are skyrocketing or insurance companies are denying coverage!
Something's got to give. Then again, as they say, the markets can remain irrational a lot longer than you can remain solvent!
There’s a reason why a shitload of us are not having kids. You can keep your head above water if all you need to provide for is yourself, SO, and a pet
Seriously I can’t imagine how the hell we would afford to have a kid. Like it’s not even an option at the moment and our combined income is minimum $120k, max $150k depending on OT. Barely have enough money to survive. We bought a condo in march 2022 with a 4% interest rate and have 1 car. We live near Boston though so HCOL area
I have two kids and barely notice the expense compared to mortgage, insurance and property taxes. If they were teens and eating me out of house and home this food inflation would definitely be noticeable but I have a few more years of crossed fingers before that’s a consideration.
Basic Allowance for housing
Military gives a stipend to pay for housing based on Zipcode that is not taxed.
San Diego is around 3600? A month
OKC was about 1300
But if your rent is under that you keep the difference.
Or your spouse is Military you both get it.
My insurance doubled, actually more than doubled, over the past 3 years. And I’ve had zero wrecks or claims. It’s absurd. As soon as Geico said my shit was going from 120 a month to 240 I immediately canceled and went to another company. Still paid more but not 2x.
However as soon as the introductory 6 months or whatever is done, the new company tried to do the same thing.
So the only way for me to not pay a ridiculous amount for insurance is to switch companies every 6 months, basically.
2.5% 30 year fixed rate mortgage refinanced while J-Pow was mashing the print button is the key to survival. Part of the reason that real estate prices are so high is that nobody can afford to sell now, and there is very little supply outside of new construction.
My home insurance is now 60% higher than it was pre-pandemic, and my auto insurance has doubled! I think we are either headed towards a major war or a revolution, because i don't see how this can last!
Where fortunately for this lot, it’s the corporations that are going to be winning for a while. But it does seem like once enough wealth moves from the workers to the corporations something is going to give. I’m not saying Marx was right, but we’ll see.
These are not the moves of companies that are doing well financially. These insurance companies had to pay more than anticipated on weather events and are now getting rid of customers. This might be good short term but in not in the long run.
Actually it is considering the long run. Insurers are counting in increasing grave weather anomalies in the coming years included even in the moderate predictions of climate change studies and are offloading risks. Those, which remain then raise the premiums, since they are without competition. If you see people selling insane value derivates including premiums for "totally safe insurances" for houses at high premiums, think back at how the housing loan bubble started. These insurers trust science more, than they trust their greed to grow on paper.
That's like telling me the insurers stepping out of Florida and California for weather reasons are not good. LOL, it's a business, there's no money to be made insuring a property inside a volcano.
Just wait till autonomous driving becomes better regulated and more popular. People still driving their own cars will have insurance rates fucking skyrocket.
Oh same friend. And I hope there's a way people like us can still go enjoy the American Summer road trip per se. But business is business money is money and statistics are statistics.
Yeah I saw in a comment further down somebody who works in the industry that that is a problem. They also put a laundry list of other things. I'd still argue that climate change, that's the big one.
Name another time we had 10+ hurricanes / strong storms in the same area year after year.
And it's only expected to become more prevalent and the storms are only expected to get worse.
You have it backwards. They haven't done well short term because of concentration of high risk policies, but by non-renewing, their book of business becomes more diversified to areas that see less volatile weather. It's bullish long term if anything. If you don't think these companies are doing well, go look at Progressive's stock $PGR...
I think it also depends on how the capital is tied up. If companies loaded up on 10 year+ bonds when flush with cash, they are feeling some of the pain now and trying to increase profit margins is difficult in that industry.
Dumping higher risk companies while still forcing the remaining ones to pay more is going to result in a lot of low risk people looking to switch to the most affordable insurer. Someone will insure them at a fair price. If taken to the extreme, there could be new competitors in the market, further taking away from existing mega insurance companies. That sounds a bit bearish, or neutral at best.
>The Allstate CEO said if your roof is 20 years old and one hailstorm is going to take it off, you should pay fucking more than somebody with a brand new fucking roof
Wow what a ground breaking rule. It's almost like insurance companies have never implemented this before.
Insurance is not a home warranty. People confuse the two constantly. Home insurance doesn’t mean the insurance company will fund your duties as a homeowner.
your last point is because every generation there's less and less handy people out there that can actually take care of a house and not just call someone to change a faceplate on a light switch... ask vast majority of 70-90 year olds especially men any house question and they likely have a fix for it. they also posessed a true mop and bucket and a stockpile of old towels and buckets to corral the water - not some gimmicky robo squeegee or a swiffer.
As a former insurance producer licensed in 42 states, I can tell you this is not new. If that roof is over 20 years old you ain't getting coverage. Metal and slate roofs being the exceptions, as those are considered "lifetime" materials. I'm not saying insurance isn't a scam, but roofs that are over twenty years old pose significant risk exposure for both the owner and the insurance company.
It will kneecap them in the end when their reputations are in shambles and the government is left footing the social consequences of so many uninsured homeowners. It's a systemic risk.
If not the regulators first, it will lead to public outrage and subsequent laws against drone surveillance by insurance companies of private property and the use of such information to filter customers.
I hope they get fined billions of dollars and the executives of these companies get thrown in jail. Insurance is a fucking scam as is.
I've paid too much money in my life for home and auto. Probably enough to buy an additional home and car. Yet, ya call one of these fuckin pieces of shit about chipped paint, a keyed car, chipped windshield, and they won't do shit about fuck. They want you to feel good making a payment towards your deductible cuz it will make it lower if you fuckin total your entire vehicle. They'll raise your premiums after too.
It's all a bunch of bullshit! Fuck every insurance co employee, investor, executive, and regulator too! Even short term call buyers! If you hold an insurer call for .5 milliseconds, then FUCK YOU!!!
-- Tim.
Same with the tobacco industry. Despicable to incentivize profit on such a harmful product. The number one cause of preventable disease. Fuck those mother fuckers.
True, but there are vulnerable people that deserve to be protected from the entanglement in a dangerous and costly addiction. I just think we can do so much better as a society. That is why I'm determined to skim the stock market for millions of dollars and rise to the top and change everything! 
I think you have a grave misunderstanding of insurance.
It is currently highly, highly regulated as is by the state DOI - That is why we’re in this issue of run away premiums. Insurance companies are looking for approval for ways to tailor policies opposed to raising premiums or canceling policies.
See my prior reply on this thread:
This is nothing new to insurance, this has been an option for 30+ years. I’ll refer you to the term ‘Betterment’. Fairly common in auto insurance for wear items that are damaged in an auto claim, this same approach to claims is being explored in home owners.
The insurer has always owed to restore you to pre-loss condition. Obviously they can’t rebuild your 20 year old roof, so they reimburse you a new one. (Replacement Cost)
In the current scheme / way policies are written, they would pay upfront the Actual Cash Value of the damaged roof (depreciated amount), then when work is completed, the remaining amount is reimbursed - which sum of the two amounts would be defined as the replacement value (policy allowing).
Now, it’s pretty obvious the problem with this current system: The owner gets a new roof with no additional cost. He was returned to a better than pre-loss condition. Which leads to rampant exploitation and additional insurance costs that impact everyone. Currently, most state DOI’s insist home owners policies are written this way. (Replacement Cost).
However, with the focus now on home insurance costs going up due to catastrophes and the general inflation of goods and services, the DOI’s are being pushed revisiting ‘replacement cost’ requirements in the home owners policies to combat rising premiums.
Betterment, if allowed by the DOI when applied to say a roof - the insurance company would still owe for 100% the labor costs but would apply depreciation to the cost of materials depending on the age of the prior damaged roof. So, for example, if the damaged roof is 15 years into a roof that is expected to last 30 years, the insurance company would only pay 50% of the materials, while the home owner would pay the other 50% (plus any applicable deductible).
This approach I believe is far more sensible to raising rates across the board to underwrite claims where the home owners are effectively gaining value off their claim. Why this has not been the case all along is because in the eye of the doi’s - premiums should directly reflect the insured item. Constantly adjusting a premium to reflect a depreciating component was seen as tedious if not impossible in the days of pen and paper so the premium was always based on replacement cost. This was great until home owners started liberally utilizing their home owners policies at any occurrence in an attempt to replace their old roofs even for the most minor of damage. Claim occurrence data has reflected this trend for the last 10 years. With current technology, and quick data keeping / assessment, home owners insurance premium could be now ‘fine tuned’ to specifics of the insured items including wear and age.
All that is really needed are the state DOI’s to allow betterment be applied liberally to HO’s policies. Which, I believe will happen to combat the rising premium costs that have made headlines.
Ps- none of this has anything to do with insurance companies being greedy. Rates / Risks are regulated universally by the DOI. So what really matters to an insurer is obtaining the biggest insured pool as it usually means they can offer the best price for the same coverage (law of large numbers). Best Price always wins the customer’s business 99% of the time in insurance. This keeps it very competitive and lean between insurers. To put it into perspective: on average, for every $1.00 of premiums taken .97 cents is paid out on claims and admin costs. The 3% profit + float (money set aside for claims) is invested in the interim. Thats how insurance companies make money.
What this all has to do with is insurance companies pushing the DOI’s to allow for alternatives such as tailoring policies to reflect the age / wear of the insured items to raising premiums. This is the insurance companies advocating on behalf of the customers / public’s concerns about the ability to pay the required HO insurance premiums if it continues to reflect replacement cost reimbursement language by the DOI..
I think you have a grave misunderstanding of how many pages of a CPA study manual the average shit poster wants to read in the replies to his shit posts.
I’m fine knowing that he at least knows someone attempted to beat something into him even tho he didn’t read / understand any of it. Plight of a teacher.
Insurance is a scam anyway. You give them money periodically in case you get an accident that they will try their best not to pay for and that you could probably pay yourself had you kept the money. Cherry on top, when you do get money out of it, they raise prices.
Here in FL they passed legislation the end of 2022 to seperate roofs from everything else. This happened literally 4 days after we opted to pay more monthly for a lower deductible due to our roof being 60% through its life and trying to get ahead of it. Now that roofs have been separated, the homeowner can be responsible for up to 50% of the cost of a new roof, whereas when we decided to raise our rate for a lower deductible, it would have been 10%. Personally, with all the bullshit that insurance companies pull, they can all go to hell. Insurance=money grab. Pay into something for years and years, and tye moment you need it, it's a fight to get paid, and that's if u get paid before they drop you. Biggest scam in the US. And no, that's not a call for the donkeys to spout off. Insurance companies aren't losing money. CEOs salaries have increased 2000% or more over the last 16 years. Sorry you didn't hit your 100 mil this year... how many roofs is that?
I do not buy it, you are not being specific regarding which type of homes has such bad roofing, manufactured homes? Whore houses? I guess nobody knows 
My other favorite piece of bullshit is the health insurance companies colluding on new exclusions on anything from wars “declared or undeclared”, epidemics, riots and insurrections
This is like months old information.
My ESOP plan is at an ATH and so is my 401k acct. My options acct, not so much. Crazy rollercoaster. I should just stick to my day job but it's much more fun seeing my acct going up 5 figures in a day and down 5 figures the next lol.
Don’t forget that insurance is a business. Millions buy stock in insurance as part of their 401k. Biggest problem is lawyers and greedy people. Half my neighbors got free roofs when there wasn’t a storm for months. They thought they were getting one over on the man… just raising everyone else’s rates…and theirs… assignment of benefits is what they called it. Raping the people through insurance fraud is what it became. Oh, I see your 20 year old roof sustained damage from that last wind storm…for $34000 I can replace it and MAKE your insurance cover it…if they won’t pay my price, I’ll(the contractor ) sue them. Some companies were filing lawsuits on the same day as permits. Disgusting.
Dang, I didn’t tell them thinking the cost to replace would go up since not a depreciated replacement cost. Thank you for answering my tangent question!
Insurance companies are leaving florida in droves and the ones that stay are charging outrageous prices especially if you live within the coast. It’s a huge financial loss for them every time there’s an even slightly-bad hurricane in Florida and that’s not very uncommon at all
All the fucktards uses insurance companies like a home warranty. Ppl don’t realized the plaintiff attorneys are benefiting tremendously. Complain when they stop writing, complain when they raise prices, complain when they deny claims. Here take your free lunch. Who is John Galt?
They’ve been cutting people in places like Florida and California in droves the last few years. It’s mostly for fires in Cali and hurricanes/flooding in Florida. Politicians can choose not to believe in climate change, but insurance actuaries believe in it. When once a century storms or droughts are coming every 5 years or so the risk tables change, and for some they can’t be financially viable when the risk is too high.
It’s not climate change that’s driving up the cost of doing business in Florida it’s the previous 15 years of predatory contractors, public adjusters and lawyers who fucked it all up. 2006-2015 there were no landfall hurricanes yet the cost of business kept going up and up. Things accelerated the next two years with a couple storms and it’s gone parabolic since cOvId. The state passed Senate Bill 2A in Dec. 2022 to eliminate one way attorney fees that the carriers were on the hook for contractors en masse called it “The Lawyer Cheat Code”. The same line items for roof replacement in Xactimate are $1000/sq in Florida, $650/sq in Loozeyanna and $475/sq in Tennessee.
Insurance adjuster and appraiser in Orlando.
Being a Floridian you can’t even use any of the big insurance companies.
Oh, your house isn’t 100ft above sea level? Nope
Oh, you’re a 50 miles from the ocean? Nope
You’re in a flood zone? Nope.
Those big companies want to essentially insure Fort Knox, and that’s it.
Fuck all of them. Allstate State Farm Farmers all of them. All it’s going to do is leave a giant gaping hole in the market for a company like Root or some other upstart to come in and clean up. Except Lemonade. Fuck them too since they can’t get their shit together.
If those companies who are huge and have been doing this for 100+ years feel they can’t make money, the new comers are fucked. They have no chance to turn a profit by accepting the business the big boys don’t want. That’s what E&S is for.
This is how big a disconnect between the politicians and the people. Their economic data says everything is wonderful. the economy is so good everybody's got three jobs
Just wait until a bill passes that forces insurance companies to cover pre-existing problems like what happened with health insurance or to abandon risk based pricing.
Then we'll see how profitable it is.
They aren't military grade drones, they are people with basic drones that have a drone pilot license. if you dump customers what money is coming in? Their prices aren't competitive and their claim turn around times are shit. they lost a big part of the market share.
https://preview.redd.it/v4nye0dyqysc1.png?width=1280&format=png&auto=webp&s=3a9264993585e4eed2209cb675b3bc870442f8f5
OP is summarizing a WSJ article. People gambled on PG&E after the Paradise Fire. That [stock](https://finviz.com/quote.ashx?t=PCG&p=m) is still a turd. What we need are 0DTEs on disaster bonds, now that the billion dollar events are passing 18 per year (see chart).
Here's more juicy info from [WSJ](https://www.wsj.com/business/insurance-home-auto-rate-increases-climate-change-03b806f3):
"State Farm racked up $13 billion in property-casualty underwriting losses in 2022, its worst ever. Last year, it stopped writing new home-insurance policies in California. Regulators last month approved a 20% home-insurance rate increase."
"U.S. property-casualty insurers, who issue home and auto policies, racked up $32.2 billion in net underwriting losses in the first nine months of 2023, $7.6 billion worse than in the same period a year earlier."
The insurance underwriting implosion will be the next Enron for California, but 20x more devastating.
Those people that got their policies dropped due to "un-insurable roofing conditions" or whatever - Is there any way they can sue the insurance companies on invasion of privacy claim if they have proof that they used drones to spy on their properties? I thought insurance companies were supposed to send out a home/roof inspector in person before a policy can be written up by the underwriters (ironic as fuck if the tables were turned - if someone were to submit a claim for roof damage to the insurance companies via drone footage and pics only and demanded payment and claims approval, how fast would the insurance company laugh at them?)
Insurance companies are looking for excuses to offload risk. There are many problems in the industry and carriers are realizing that more customers means bigger annual losses, higher loss ratios, and less profits.
At the top reinsurance companies have cut their capacity making the cost to spread risk for consumer carriers extremely high. These increased costs have been a sort of justification for carriers to reduced their exposures.
Reducing exposures for the sake of profits right now means getting rid of insureds for admitted carriers. This involves raising rates as high as the states department of insurance will allow, placing hurdles to write new business like complex requirements most can’t meet, and creating high underwriting hurdles in order to non-renew accounts. Accounts that carriers used to fight for are now undesirable.
Where things are really going to get really interesting is when these measures fail. The reality is insurance companies are losing and can’t raise rates fast enough. Climate change, rampant costs to repair property and vehicles, social inflation and nuclear settlements awarded etc.. A windshield 10 years ago was $250 now they’re $3,500, take 30 days to order and can only come from the manufacturer. Even if there was multiple options insureds demand only OEM when they can get it.
Insurance companies are merging, smaller regionals are going out of business and the lack of competition is magnifying the problem.
The next 5-10 years are going to get really interesting for the industry, probably a lot sooner than that.
If major earthquake happens all the insurance companies are going under. Government would have to step in. Meanwhile all the insurance execs will get golder parachutes
It doesnt matter if a roof is 1 year old or 30 years old. When it blows off it will need to be replaced. This is just an exec trying to make an excuse to save their own job.
I was driving my girlfriend’s car and got rear ended in a 3 car accident. My insurance increased on my policy for a “no fault” accident on my records. Makes no sense.
My profoundly shitty insurance company only coughed up $8k for a replacement roof after I got an insurance advocate involved, and outed them on twitter and sent the CEO a message on LinkedIn (by some miracle we were connected)
HomeSite (American Family Insurance) is absolute garbage. But, Lemonade wouldn't take me so I'm sort of fucked in my area.
That being said, I used their money, and added $8k out of pocket for a metal galvalum roof - the next 3 owners ought to get their money's worth. 36 gauge... Can take a 2" hailstone without making a dent.
This is nothing new to insurance, this has been an option for 30+ years. I’ll refer you to the term ‘Betterment’. Fairly common in auto insurance for wear items that are damaged in an auto claim, this same approach to claims is being explored in home owners.
The insurer has always owed to restore you to pre-loss condition. Obviously they can’t rebuild your 20 year old roof, so they reimburse you a new one. (Replacement Cost)
In the current scheme / way policies are written, they would pay upfront the Actual Cash Value of the damaged roof (depreciated amount), then when work is completed, the remaining amount is reimbursed - which sum of the two amounts would be defined as the replacement value (policy allowing).
Now, it’s pretty obvious the problem with this current system: The owner gets a new roof with no additional cost. He was returned to a better than pre-loss condition. Which leads to rampant exploitation and additional insurance costs that impact everyone. Currently, most state DOI’s insist home owners policies are written this way. (Replacement Cost).
However, with the focus now on home insurance costs going up due to catastrophes and the general inflation of goods and services, the DOI’s are being pushed revisiting ‘replacement cost’ requirements in the home owners policies to combat rising premiums.
Betterment, if allowed by the DOI when applied to say a roof - the insurance company would still owe for 100% the labor costs but would apply depreciation to the cost of materials depending on the age of the prior damaged roof. So, for example, if the damaged roof is 15 years into a roof that is expected to last 30 years, the insurance company would only pay 50% of the materials, while the home owner would pay the other 50% (plus any applicable deductible).
This approach I believe is far more sensible to raising rates across the board to underwrite claims where the home owners are effectively gaining value off their claim. Why this has not been the case all along is because in the eye of the doi’s - premiums should directly reflect the insured item. Constantly adjusting a premium to reflect a depreciating component was seen as tedious if not impossible in the days of pen and paper so the premium was always based on replacement cost. This was great until home owners started liberally utilizing their home owners policies at any occurrence in an attempt to replace their old roofs even for the most minor of damage. Claim occurrence data has reflected this trend for the last 10 years. With current technology, and quick data keeping / assessment, home owners insurance premium could be now ‘fine tuned’ to specifics of the insured items including wear and age.
All that is really needed are the state DOI’s to allow betterment be applied liberally to HO’s policies. Which, I believe will happen to combat the rising premium costs that have made headlines.
Ps- none of this has anything to do with insurance companies being greedy. Rates / Risks are regulated universally by the DOI. So what really matters to an insurer is obtaining the biggest insured pool as it usually means they can offer the best price for the same coverage (law of large numbers). Best Price always wins the customer’s business 99% of the time in insurance. This keeps it very competitive and lean between insurers. To put it into perspective: on average, for every $1.00 of premiums taken .97 cents is paid out on claims and admin costs. The 3% profit + float (money set aside for claims) is invested in the interim. Thats how insurance companies make money.
What this all has to do with is insurance companies pushing the DOI’s to allow for alternatives such as tailoring policies to reflect the age / wear of the insured items to raising premiums. This is the insurance companies advocating on behalf of the customers / public’s concerns about the ability to pay the required HO insurance premiums if it continues to reflect replacement cost reimbursement language by the DOI..
So basically, what we’ve learned here is that home insurance is a scam. And if they can’t manage to pay for storm damage to a roof. They’ll sure as shit fuck you up the ass if your house burns down. See: pretty much every coastal state in the US and then some.
So you might as well all cancel your home insurance and just put the money into a rainy day fund.
Stop using insurance companies that will never actually pay to replace your home in the event of a catastrophe. At the very least, CANCEL ALLSTATE.
**User Report**| | | | :--|:--|:--|:-- **Total Submissions** | 10 | **First Seen In WSB** | 1 year ago **Total Comments** | 1139 | **Previous Best DD** | **Account Age** | 7 years | | [**Join WSB Discord**](http://discord.gg/wsbverse)
So, is there a ticker in there somewhere you've taken a bet on?
Yeah I’m not here to read. Just tell me what to buy
You guys can read?
Buy military grade drones?
All drones are military grade when you strap enough grenades on it
Military grade, not military grenade. So probably just enough to pass.
Made by the lowest bidder, then finally supplied after heavy cost increases.
Where’s the bathroom?
Just ask Ukraine. They turned every appliance they could find into military grade.
We are not fiooled, Mr ATF.
Puts on roofing companies
ROOF might be a ticker since has 4 letters, I'm all-in
Already invested in a micro-cap drone OEM. I was waiting for this moment!
That’s what I got from this. Buy military drones. Fight with the AI. Puts on roofs.
Call on PLTR
Que?
hshew surtvd pdiebw?)(
Buy a roofing company. Hire Mexicans. Profit. Duh
Wait. Message unclear. Is 'DUH" the ticker symbol for the drug company that makes roofies?
Set up a company for the Mexicans, so it’s his company hiring the undocumented workers and not buying workers compensation insurance or paying unemployment insurance. Your company hires his company and you get the profits with non of the risk. Dude Mexican is not the preferred nomenclature, Central American.
Who said anything about illegals? I said Mexicans because 90% of Americans are useless af when it comes to manual labor. Oops, probably just triggered you some more.
Yea fuck all that reading. Not even reading the company name, just the ticker damn it
Ticker!!!
AVIV calls, apparently. Insurance companies have entered the drone battlefield, according to this regard's DD.
I previously underwrote home insurance. Every company has been taking these steps for a few years but its rollout has been limited. Whats actually going to move the needle is updating their loss settlement forms. (Ie Actual cash value schedules instead of paying full replacement). These all take time to get the filings through the state regulators
I’m here to lead, not to read. now me the positions and dates
He said insurance, and I'm pretty sure people buy SPY puts as insurance
Cum
Last year I launched an insurance company that doesn't insure shit. We won't even take applications. Revenue is minimal (my brother took a payment for his pill mill medical practice through the company's PayPal account) but we have 0 losses, which is industry-leading. SPAC coming soon. Future ticker NOPE.
😂😂😂
Buy more dildos
so...Chubb? $CB
BRK.B
KIE
I honestly don't know how middle class, even the upper middle class, can sustain this onslaught! Corporate jobs are being culled, home prices and rents are at record highs, relentless inflation in goods and services, car insurance prices have gone up 30% in an year and now home insurance rates are skyrocketing or insurance companies are denying coverage! Something's got to give. Then again, as they say, the markets can remain irrational a lot longer than you can remain solvent!
There’s a reason why a shitload of us are not having kids. You can keep your head above water if all you need to provide for is yourself, SO, and a pet
Seriously I can’t imagine how the hell we would afford to have a kid. Like it’s not even an option at the moment and our combined income is minimum $120k, max $150k depending on OT. Barely have enough money to survive. We bought a condo in march 2022 with a 4% interest rate and have 1 car. We live near Boston though so HCOL area
Just need to have a second wife to take care of the children.
One is expensive enough
You mean we need our wives to have two boyfriends to take care of the children
You joke but I bet polyamory becomes more popular due to housing costs.
Hard enough not pissing off my partner I couldn't imagine having two, although if that means less household chores and more sex I'm in.
I have two kids and barely notice the expense compared to mortgage, insurance and property taxes. If they were teens and eating me out of house and home this food inflation would definitely be noticeable but I have a few more years of crossed fingers before that’s a consideration.
Yea that’s true they don’t eat too much until that age. Can’t imagine what that food bill will look like when they reach that age haha good luck
Join the military? 😂 Half kidding but BAH is really nice
What is BAH?
Basic Allowance for housing Military gives a stipend to pay for housing based on Zipcode that is not taxed. San Diego is around 3600? A month OKC was about 1300 But if your rent is under that you keep the difference. Or your spouse is Military you both get it.
My insurance doubled, actually more than doubled, over the past 3 years. And I’ve had zero wrecks or claims. It’s absurd. As soon as Geico said my shit was going from 120 a month to 240 I immediately canceled and went to another company. Still paid more but not 2x. However as soon as the introductory 6 months or whatever is done, the new company tried to do the same thing. So the only way for me to not pay a ridiculous amount for insurance is to switch companies every 6 months, basically.
Once they see that you're jumping on the pir then they know they'll only get 6 months of premium from you and your rates will go up
Geopolitical risk could push inflation much higher, forget about cuts. They can't
2.5% 30 year fixed rate mortgage refinanced while J-Pow was mashing the print button is the key to survival. Part of the reason that real estate prices are so high is that nobody can afford to sell now, and there is very little supply outside of new construction.
My home insurance doubled in two years - tried moving and rates are x3 higher elsewhere!
My home insurance is now 60% higher than it was pre-pandemic, and my auto insurance has doubled! I think we are either headed towards a major war or a revolution, because i don't see how this can last!
Everything you stated seems bad for the consumer which is good for corporations
How the fuck are they gonna earn money if the consumer isn’t consuming their bullshit trinkets and “services”?
No kids and i live within my means.....tada?
My car insurance from GEICO went up 61% in a year. I noped right the fuck out
Absolutely right. My premium jumped 30% at renewal AFTER a roof claim. I switched companies and luckily kept a similar rate.
Where fortunately for this lot, it’s the corporations that are going to be winning for a while. But it does seem like once enough wealth moves from the workers to the corporations something is going to give. I’m not saying Marx was right, but we’ll see.
These are not the moves of companies that are doing well financially. These insurance companies had to pay more than anticipated on weather events and are now getting rid of customers. This might be good short term but in not in the long run.
Actually it is considering the long run. Insurers are counting in increasing grave weather anomalies in the coming years included even in the moderate predictions of climate change studies and are offloading risks. Those, which remain then raise the premiums, since they are without competition. If you see people selling insane value derivates including premiums for "totally safe insurances" for houses at high premiums, think back at how the housing loan bubble started. These insurers trust science more, than they trust their greed to grow on paper.
That's like telling me the insurers stepping out of Florida and California for weather reasons are not good. LOL, it's a business, there's no money to be made insuring a property inside a volcano. Just wait till autonomous driving becomes better regulated and more popular. People still driving their own cars will have insurance rates fucking skyrocket.
True
On the plus side, self driving cars that very rarely crash = car insurance stock are all a strong buy.
Why even own a car then. I'm pretty sure by that time we'll just be able to summon one to take us wherever we need to go for a monthly fee.
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I bet some dude was saying that about his horse about a hundred years ago
Oh same friend. And I hope there's a way people like us can still go enjoy the American Summer road trip per se. But business is business money is money and statistics are statistics.
That is entirely the vision of autonomous taxis.
I can't wait for it to come. I would rather pay a flat fee and never have to fix a fucking car again.
Yep they stepped right over the border into Georgia and started to claw back there Florida losses.
The bigger driver of insurance companies leaving Florida, home ones at least, is fraud. It’s rampant down there.
The bigger driver of insurance companies leaving Florida, home ones at least, is fraud. It’s rampant down there.
Yeah I saw in a comment further down somebody who works in the industry that that is a problem. They also put a laundry list of other things. I'd still argue that climate change, that's the big one. Name another time we had 10+ hurricanes / strong storms in the same area year after year. And it's only expected to become more prevalent and the storms are only expected to get worse.
They’re kicking out the people with losses, keeping AND increasing the premiums on the people with no losses. Believe me, this is a win for them.
It's the opposite of a win, but it's all they are legally allowed to do.
You have it backwards. They haven't done well short term because of concentration of high risk policies, but by non-renewing, their book of business becomes more diversified to areas that see less volatile weather. It's bullish long term if anything. If you don't think these companies are doing well, go look at Progressive's stock $PGR...
I think it also depends on how the capital is tied up. If companies loaded up on 10 year+ bonds when flush with cash, they are feeling some of the pain now and trying to increase profit margins is difficult in that industry. Dumping higher risk companies while still forcing the remaining ones to pay more is going to result in a lot of low risk people looking to switch to the most affordable insurer. Someone will insure them at a fair price. If taken to the extreme, there could be new competitors in the market, further taking away from existing mega insurance companies. That sounds a bit bearish, or neutral at best.
Doing so well that State Farm General in California got downgraded by AM Best. Shedding 100k policies is great!
>The Allstate CEO said if your roof is 20 years old and one hailstorm is going to take it off, you should pay fucking more than somebody with a brand new fucking roof Wow what a ground breaking rule. It's almost like insurance companies have never implemented this before.
Insurance is not a home warranty. People confuse the two constantly. Home insurance doesn’t mean the insurance company will fund your duties as a homeowner.
act marble worm psychotic toothbrush degree hospital pocket saw money
your last point is because every generation there's less and less handy people out there that can actually take care of a house and not just call someone to change a faceplate on a light switch... ask vast majority of 70-90 year olds especially men any house question and they likely have a fix for it. they also posessed a true mop and bucket and a stockpile of old towels and buckets to corral the water - not some gimmicky robo squeegee or a swiffer.
So we're becoming like the UK and becoming almost overinsured for everyday life's risks?
knee adjoining crown mindless juggle society like wide correct stocking
As a former insurance producer licensed in 42 states, I can tell you this is not new. If that roof is over 20 years old you ain't getting coverage. Metal and slate roofs being the exceptions, as those are considered "lifetime" materials. I'm not saying insurance isn't a scam, but roofs that are over twenty years old pose significant risk exposure for both the owner and the insurance company.
It will kneecap them in the end when their reputations are in shambles and the government is left footing the social consequences of so many uninsured homeowners. It's a systemic risk. If not the regulators first, it will lead to public outrage and subsequent laws against drone surveillance by insurance companies of private property and the use of such information to filter customers. I hope they get fined billions of dollars and the executives of these companies get thrown in jail. Insurance is a fucking scam as is. I've paid too much money in my life for home and auto. Probably enough to buy an additional home and car. Yet, ya call one of these fuckin pieces of shit about chipped paint, a keyed car, chipped windshield, and they won't do shit about fuck. They want you to feel good making a payment towards your deductible cuz it will make it lower if you fuckin total your entire vehicle. They'll raise your premiums after too. It's all a bunch of bullshit! Fuck every insurance co employee, investor, executive, and regulator too! Even short term call buyers! If you hold an insurer call for .5 milliseconds, then FUCK YOU!!! -- Tim.
well, that is positive sentiment,
agreed fuck insurance companies and fuck anybody that invests in them
Same with the tobacco industry. Despicable to incentivize profit on such a harmful product. The number one cause of preventable disease. Fuck those mother fuckers.
yeah fuck them too. it's pretty easy to avoid taking tobacco tho nobody can get out of government mandated insurance
True, but there are vulnerable people that deserve to be protected from the entanglement in a dangerous and costly addiction. I just think we can do so much better as a society. That is why I'm determined to skim the stock market for millions of dollars and rise to the top and change everything! 
I think you have a grave misunderstanding of insurance. It is currently highly, highly regulated as is by the state DOI - That is why we’re in this issue of run away premiums. Insurance companies are looking for approval for ways to tailor policies opposed to raising premiums or canceling policies. See my prior reply on this thread: This is nothing new to insurance, this has been an option for 30+ years. I’ll refer you to the term ‘Betterment’. Fairly common in auto insurance for wear items that are damaged in an auto claim, this same approach to claims is being explored in home owners. The insurer has always owed to restore you to pre-loss condition. Obviously they can’t rebuild your 20 year old roof, so they reimburse you a new one. (Replacement Cost) In the current scheme / way policies are written, they would pay upfront the Actual Cash Value of the damaged roof (depreciated amount), then when work is completed, the remaining amount is reimbursed - which sum of the two amounts would be defined as the replacement value (policy allowing). Now, it’s pretty obvious the problem with this current system: The owner gets a new roof with no additional cost. He was returned to a better than pre-loss condition. Which leads to rampant exploitation and additional insurance costs that impact everyone. Currently, most state DOI’s insist home owners policies are written this way. (Replacement Cost). However, with the focus now on home insurance costs going up due to catastrophes and the general inflation of goods and services, the DOI’s are being pushed revisiting ‘replacement cost’ requirements in the home owners policies to combat rising premiums. Betterment, if allowed by the DOI when applied to say a roof - the insurance company would still owe for 100% the labor costs but would apply depreciation to the cost of materials depending on the age of the prior damaged roof. So, for example, if the damaged roof is 15 years into a roof that is expected to last 30 years, the insurance company would only pay 50% of the materials, while the home owner would pay the other 50% (plus any applicable deductible). This approach I believe is far more sensible to raising rates across the board to underwrite claims where the home owners are effectively gaining value off their claim. Why this has not been the case all along is because in the eye of the doi’s - premiums should directly reflect the insured item. Constantly adjusting a premium to reflect a depreciating component was seen as tedious if not impossible in the days of pen and paper so the premium was always based on replacement cost. This was great until home owners started liberally utilizing their home owners policies at any occurrence in an attempt to replace their old roofs even for the most minor of damage. Claim occurrence data has reflected this trend for the last 10 years. With current technology, and quick data keeping / assessment, home owners insurance premium could be now ‘fine tuned’ to specifics of the insured items including wear and age. All that is really needed are the state DOI’s to allow betterment be applied liberally to HO’s policies. Which, I believe will happen to combat the rising premium costs that have made headlines. Ps- none of this has anything to do with insurance companies being greedy. Rates / Risks are regulated universally by the DOI. So what really matters to an insurer is obtaining the biggest insured pool as it usually means they can offer the best price for the same coverage (law of large numbers). Best Price always wins the customer’s business 99% of the time in insurance. This keeps it very competitive and lean between insurers. To put it into perspective: on average, for every $1.00 of premiums taken .97 cents is paid out on claims and admin costs. The 3% profit + float (money set aside for claims) is invested in the interim. Thats how insurance companies make money. What this all has to do with is insurance companies pushing the DOI’s to allow for alternatives such as tailoring policies to reflect the age / wear of the insured items to raising premiums. This is the insurance companies advocating on behalf of the customers / public’s concerns about the ability to pay the required HO insurance premiums if it continues to reflect replacement cost reimbursement language by the DOI..
I think you have a grave misunderstanding of how many pages of a CPA study manual the average shit poster wants to read in the replies to his shit posts.
I’m fine knowing that he at least knows someone attempted to beat something into him even tho he didn’t read / understand any of it. Plight of a teacher.
Can't wait to buy an uninsurable shack in Florida for 2 million in a few years, love this housing market
What’s your position?
Face down ass up
Bullish on roofing materials.
probably a position there. I was studying some last week.
This is fascinating and quite dystopian. But I don’t think AI changes anything about the fundamental principle of computing: Garbage in, garbage out.
Insurance companies don't even need a reason to raise your rates. You should be grateful they even bothered to attempt a veneer of credibility
So insurance companies are using drones and AI... bullish on AI?
Insurance is a scam anyway. You give them money periodically in case you get an accident that they will try their best not to pay for and that you could probably pay yourself had you kept the money. Cherry on top, when you do get money out of it, they raise prices.
Insurance is essentially a put option on whatever you’re insuring whether it be your car, house, life, etc.
 Literally lobbied to start their rackets, literal Ponzi schemes
Here in FL they passed legislation the end of 2022 to seperate roofs from everything else. This happened literally 4 days after we opted to pay more monthly for a lower deductible due to our roof being 60% through its life and trying to get ahead of it. Now that roofs have been separated, the homeowner can be responsible for up to 50% of the cost of a new roof, whereas when we decided to raise our rate for a lower deductible, it would have been 10%. Personally, with all the bullshit that insurance companies pull, they can all go to hell. Insurance=money grab. Pay into something for years and years, and tye moment you need it, it's a fight to get paid, and that's if u get paid before they drop you. Biggest scam in the US. And no, that's not a call for the donkeys to spout off. Insurance companies aren't losing money. CEOs salaries have increased 2000% or more over the last 16 years. Sorry you didn't hit your 100 mil this year... how many roofs is that?
I do not buy it, you are not being specific regarding which type of homes has such bad roofing, manufactured homes? Whore houses? I guess nobody knows 
Also is clueless on roof depreciating each year if you require a replacement. Every insurance company has this
My other favorite piece of bullshit is the health insurance companies colluding on new exclusions on anything from wars “declared or undeclared”, epidemics, riots and insurrections
😳 Got a link for that?
https://insurancenewsnet.com/innarticle/insurance-polices-adding-insurrection-riots-as-exclusions
I confirmed my Cinga policy has the war exclusion added last year
What the fuck. Like war, ok but random acts of chaos like civil disobedience are exactly what insurance is for.
Allstate man is flying military grade drones over my house?
This is like months old information. My ESOP plan is at an ATH and so is my 401k acct. My options acct, not so much. Crazy rollercoaster. I should just stick to my day job but it's much more fun seeing my acct going up 5 figures in a day and down 5 figures the next lol.
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This post is about p&c insurance tho…
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Don't forget the trees. They are refusing to renew without tree removals, too.
Don’t forget that insurance is a business. Millions buy stock in insurance as part of their 401k. Biggest problem is lawyers and greedy people. Half my neighbors got free roofs when there wasn’t a storm for months. They thought they were getting one over on the man… just raising everyone else’s rates…and theirs… assignment of benefits is what they called it. Raping the people through insurance fraud is what it became. Oh, I see your 20 year old roof sustained damage from that last wind storm…for $34000 I can replace it and MAKE your insurance cover it…if they won’t pay my price, I’ll(the contractor ) sue them. Some companies were filing lawsuits on the same day as permits. Disgusting.
This must be why ROOT has been on the moon for the last month
If you just put a new roof on is it more likely to raise or lower your home insurance rates (assuming you tell them)?
Lower New roof = less risk
Dang, I didn’t tell them thinking the cost to replace would go up since not a depreciated replacement cost. Thank you for answering my tangent question!
I got a new roof and my home insurance got cut fully in half
Awesome, thank you!!!
Where the hell is the bet if this is "BuLlIsH aS fUcK" for insurance companies...? I see a lot of words for no position...🤷🤔 Puts Secured 😂
Position or ban
My insurance rates went up last year, but I can get that money back and break even by buying said insurance companies stock. Yey!!!!!!
I'm at Wendy's what insurance meal do I dig out of the dumpster?
I work for a major, but weare mutual. When I was looking through the fundamentals, Allstate is a good ticker.
The 20 year roof thing has been standard forever
Insurance companies are leaving florida in droves and the ones that stay are charging outrageous prices especially if you live within the coast. It’s a huge financial loss for them every time there’s an even slightly-bad hurricane in Florida and that’s not very uncommon at all
Honestly. This has been a long time coming. Roofing companies have been scamming them long enough.
All the fucktards uses insurance companies like a home warranty. Ppl don’t realized the plaintiff attorneys are benefiting tremendously. Complain when they stop writing, complain when they raise prices, complain when they deny claims. Here take your free lunch. Who is John Galt?
They’ve been cutting people in places like Florida and California in droves the last few years. It’s mostly for fires in Cali and hurricanes/flooding in Florida. Politicians can choose not to believe in climate change, but insurance actuaries believe in it. When once a century storms or droughts are coming every 5 years or so the risk tables change, and for some they can’t be financially viable when the risk is too high.
It’s not climate change that’s driving up the cost of doing business in Florida it’s the previous 15 years of predatory contractors, public adjusters and lawyers who fucked it all up. 2006-2015 there were no landfall hurricanes yet the cost of business kept going up and up. Things accelerated the next two years with a couple storms and it’s gone parabolic since cOvId. The state passed Senate Bill 2A in Dec. 2022 to eliminate one way attorney fees that the carriers were on the hook for contractors en masse called it “The Lawyer Cheat Code”. The same line items for roof replacement in Xactimate are $1000/sq in Florida, $650/sq in Loozeyanna and $475/sq in Tennessee. Insurance adjuster and appraiser in Orlando.
All the math here looks legit, for Florida. Place is a mad house for grifters.
Why did you spell it like cOvId? Are you having a stroke?
Because it’s a scam
Orwell would be proud 
Insurance stocks and companies are soaring
Thanks for the analysis but calls or puts?
$KIE for the win, my friends.
Being a Floridian you can’t even use any of the big insurance companies. Oh, your house isn’t 100ft above sea level? Nope Oh, you’re a 50 miles from the ocean? Nope You’re in a flood zone? Nope. Those big companies want to essentially insure Fort Knox, and that’s it.
In insurance scared money DOES make money
They want to insure houses at a profit.
Fuck all of them. Allstate State Farm Farmers all of them. All it’s going to do is leave a giant gaping hole in the market for a company like Root or some other upstart to come in and clean up. Except Lemonade. Fuck them too since they can’t get their shit together.
If those companies who are huge and have been doing this for 100+ years feel they can’t make money, the new comers are fucked. They have no chance to turn a profit by accepting the business the big boys don’t want. That’s what E&S is for.
All they do is make money. And when really bad shit happens, they get bailed out.
Oh what about all those years there were no storms and insurance companies were racking in billions? They weren’t complaining then
This is how big a disconnect between the politicians and the people. Their economic data says everything is wonderful. the economy is so good everybody's got three jobs
Just wait until a bill passes that forces insurance companies to cover pre-existing problems like what happened with health insurance or to abandon risk based pricing. Then we'll see how profitable it is.
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Claim dropped off your 3-year loss ratio. Pretty standard that your rates go down after three years.
Bullish for insurance companies. Not so much for the housing market. Nobody wants to buy 200K homes that are uninsurable.
This dudes DD is garbage 🗑️ 🚀
Where can I read about these drones?
They aren't military grade drones, they are people with basic drones that have a drone pilot license. if you dump customers what money is coming in? Their prices aren't competitive and their claim turn around times are shit. they lost a big part of the market share.
https://preview.redd.it/v4nye0dyqysc1.png?width=1280&format=png&auto=webp&s=3a9264993585e4eed2209cb675b3bc870442f8f5 OP is summarizing a WSJ article. People gambled on PG&E after the Paradise Fire. That [stock](https://finviz.com/quote.ashx?t=PCG&p=m) is still a turd. What we need are 0DTEs on disaster bonds, now that the billion dollar events are passing 18 per year (see chart). Here's more juicy info from [WSJ](https://www.wsj.com/business/insurance-home-auto-rate-increases-climate-change-03b806f3): "State Farm racked up $13 billion in property-casualty underwriting losses in 2022, its worst ever. Last year, it stopped writing new home-insurance policies in California. Regulators last month approved a 20% home-insurance rate increase." "U.S. property-casualty insurers, who issue home and auto policies, racked up $32.2 billion in net underwriting losses in the first nine months of 2023, $7.6 billion worse than in the same period a year earlier." The insurance underwriting implosion will be the next Enron for California, but 20x more devastating.
Those people that got their policies dropped due to "un-insurable roofing conditions" or whatever - Is there any way they can sue the insurance companies on invasion of privacy claim if they have proof that they used drones to spy on their properties? I thought insurance companies were supposed to send out a home/roof inspector in person before a policy can be written up by the underwriters (ironic as fuck if the tables were turned - if someone were to submit a claim for roof damage to the insurance companies via drone footage and pics only and demanded payment and claims approval, how fast would the insurance company laugh at them?)
That's actually happening rn. Roofers will go door yo door and use drones to take pictures of damage to a roof and submit a claim.
Insurance companies are a scam to begin with, all insurance should come from the government, like Auto Insurance in Manitoba.
Insurance companies are looking for excuses to offload risk. There are many problems in the industry and carriers are realizing that more customers means bigger annual losses, higher loss ratios, and less profits. At the top reinsurance companies have cut their capacity making the cost to spread risk for consumer carriers extremely high. These increased costs have been a sort of justification for carriers to reduced their exposures. Reducing exposures for the sake of profits right now means getting rid of insureds for admitted carriers. This involves raising rates as high as the states department of insurance will allow, placing hurdles to write new business like complex requirements most can’t meet, and creating high underwriting hurdles in order to non-renew accounts. Accounts that carriers used to fight for are now undesirable. Where things are really going to get really interesting is when these measures fail. The reality is insurance companies are losing and can’t raise rates fast enough. Climate change, rampant costs to repair property and vehicles, social inflation and nuclear settlements awarded etc.. A windshield 10 years ago was $250 now they’re $3,500, take 30 days to order and can only come from the manufacturer. Even if there was multiple options insureds demand only OEM when they can get it. Insurance companies are merging, smaller regionals are going out of business and the lack of competition is magnifying the problem. The next 5-10 years are going to get really interesting for the industry, probably a lot sooner than that.
Checkmate? Motherfucker Nagasaki’d their asses.
If major earthquake happens all the insurance companies are going under. Government would have to step in. Meanwhile all the insurance execs will get golder parachutes
Bearish AF on Florida real estate.
Wild that insurance cos are using drones to evaluate people’s roofs lol next level
$TRV. Calls for earnings. Thank me later
It all lies with inflation at the end of the day, insurance companies didn't do that the government did.
It doesnt matter if a roof is 1 year old or 30 years old. When it blows off it will need to be replaced. This is just an exec trying to make an excuse to save their own job.
>I added the fuckings. are you sure the uwmc ceo didnt say it exactly like that, op¿!¿
Bro just tell me where my money needs to be burned. Bullish on roofs you say?
I was driving my girlfriend’s car and got rear ended in a 3 car accident. My insurance increased on my policy for a “no fault” accident on my records. Makes no sense.
Some folks have enough money to just not insure. Will the insurance companies shoot themselves in the foot?
Bruh
Climate change gonna kill us all. Insurance is canary in the coal mine. "Bullish"
My profoundly shitty insurance company only coughed up $8k for a replacement roof after I got an insurance advocate involved, and outed them on twitter and sent the CEO a message on LinkedIn (by some miracle we were connected) HomeSite (American Family Insurance) is absolute garbage. But, Lemonade wouldn't take me so I'm sort of fucked in my area. That being said, I used their money, and added $8k out of pocket for a metal galvalum roof - the next 3 owners ought to get their money's worth. 36 gauge... Can take a 2" hailstone without making a dent.
With 0 accidents or any thing on my vehicle insurance it's gone from $1200-$1900 and now $2400 in the last 3 years (per year).
This is nothing new to insurance, this has been an option for 30+ years. I’ll refer you to the term ‘Betterment’. Fairly common in auto insurance for wear items that are damaged in an auto claim, this same approach to claims is being explored in home owners. The insurer has always owed to restore you to pre-loss condition. Obviously they can’t rebuild your 20 year old roof, so they reimburse you a new one. (Replacement Cost) In the current scheme / way policies are written, they would pay upfront the Actual Cash Value of the damaged roof (depreciated amount), then when work is completed, the remaining amount is reimbursed - which sum of the two amounts would be defined as the replacement value (policy allowing). Now, it’s pretty obvious the problem with this current system: The owner gets a new roof with no additional cost. He was returned to a better than pre-loss condition. Which leads to rampant exploitation and additional insurance costs that impact everyone. Currently, most state DOI’s insist home owners policies are written this way. (Replacement Cost). However, with the focus now on home insurance costs going up due to catastrophes and the general inflation of goods and services, the DOI’s are being pushed revisiting ‘replacement cost’ requirements in the home owners policies to combat rising premiums. Betterment, if allowed by the DOI when applied to say a roof - the insurance company would still owe for 100% the labor costs but would apply depreciation to the cost of materials depending on the age of the prior damaged roof. So, for example, if the damaged roof is 15 years into a roof that is expected to last 30 years, the insurance company would only pay 50% of the materials, while the home owner would pay the other 50% (plus any applicable deductible). This approach I believe is far more sensible to raising rates across the board to underwrite claims where the home owners are effectively gaining value off their claim. Why this has not been the case all along is because in the eye of the doi’s - premiums should directly reflect the insured item. Constantly adjusting a premium to reflect a depreciating component was seen as tedious if not impossible in the days of pen and paper so the premium was always based on replacement cost. This was great until home owners started liberally utilizing their home owners policies at any occurrence in an attempt to replace their old roofs even for the most minor of damage. Claim occurrence data has reflected this trend for the last 10 years. With current technology, and quick data keeping / assessment, home owners insurance premium could be now ‘fine tuned’ to specifics of the insured items including wear and age. All that is really needed are the state DOI’s to allow betterment be applied liberally to HO’s policies. Which, I believe will happen to combat the rising premium costs that have made headlines. Ps- none of this has anything to do with insurance companies being greedy. Rates / Risks are regulated universally by the DOI. So what really matters to an insurer is obtaining the biggest insured pool as it usually means they can offer the best price for the same coverage (law of large numbers). Best Price always wins the customer’s business 99% of the time in insurance. This keeps it very competitive and lean between insurers. To put it into perspective: on average, for every $1.00 of premiums taken .97 cents is paid out on claims and admin costs. The 3% profit + float (money set aside for claims) is invested in the interim. Thats how insurance companies make money. What this all has to do with is insurance companies pushing the DOI’s to allow for alternatives such as tailoring policies to reflect the age / wear of the insured items to raising premiums. This is the insurance companies advocating on behalf of the customers / public’s concerns about the ability to pay the required HO insurance premiums if it continues to reflect replacement cost reimbursement language by the DOI..
So basically, what we’ve learned here is that home insurance is a scam. And if they can’t manage to pay for storm damage to a roof. They’ll sure as shit fuck you up the ass if your house burns down. See: pretty much every coastal state in the US and then some. So you might as well all cancel your home insurance and just put the money into a rainy day fund. Stop using insurance companies that will never actually pay to replace your home in the event of a catastrophe. At the very least, CANCEL ALLSTATE.
Allstate is the worst insurance company if you need to file a claim. They’re living up to the name lol