LSP2005
Bunny kisses are so cute!
Member since 5/05 19457 total posts
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Fearing Storms, Some Insurers Pull Homeowners Policies Rates Soar
I posted this on LIW too, b/c there were some wondering about Allstate -- see below.
Fearing Storms, Some Insurers Pull Homeowners PoliciesRates Soar in Coastal Areas Heading Into Hurricane Season
Hurricane Katrina
March 23, 2006 — All along the Atlantic coastline, insurance rates are jumping, and some homeowners are losing their policies altogether. And there isn't a lot that many can do.
On Massachusetts' Cape Cod, Doug Azarian hasn't seen a hurricane in years. But he's felt the effects of the Florida and Gulf Coast storms. His private homeowners insurance was not renewed.
"We haven't had damage in 15 years," Azarian said, adding that he's "paying for what happened 1,500 miles away."
Homeowners in parts of Massachusetts have seen their insurance rates jump 75 percent. Insurance companies feel at risk. They've been paying out billions for Katrina and Rita damage, and they are listening to the weather forecast.
"What's really scary for insurers is, number one the forecasts for upcoming storm seasons are horrific," said Julie Rochman, senior vice president of public affairs with the American Insurance Association. "Number two, we've got so much building along the coastlines — these are houses built on sand dunes on barrier islands."
With more hurricanes expected and the northern coastline more vulnerable, according to forecasters, some companies are completely pulling out.
A Growing Trend
In New York, Allstate Insurance is leaving eight coastal counties — 28,000 homeowners will lose their insurance, and those who still have policies will see an increase of 8.5 percent. It's a story being repeated all along the coastlines.
"Where regulators will allow insurance companies to price according to risk, not only is it fairer but it provides an incentive for people to build smart," Rochman said.
But it's not just Katrina causing the problem. The tsunami and floods all over the world have led the companies that insure the insurance companies to double some rates, a cost that's being passed on and the reason some insurance companies say they are being forced to make difficult choices.
"If you live in a multimillion-dollar house in Miami Beach, it's not a God-given right that an insurance company has to provide you with homeowners insurance for that multimillion-dollar house," said Robert Rusbuldt of the Independent Insurance Agents.
Mary Poss is another Cape Cod resident who has lost her homeowners insurance. Like her neighbors, a state program now provides insurance, but her premium has tripled. And after 30 years, she may be forced to move.
"I don't want to," Poss said. But she says she can't afford to stay.
There's another dire warning from the insurance industry: this may be just the beginning of escalating rates and of some homeowners finding it nearly impossible to get insured.
ABC News' David Kerley reported this story for "World News Tonight."
Message edited 3/23/2006 6:53:15 PM.
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Fearing Storms, Some Insurers Pull Homeowners Policies Rates Soar
Allstate SUKS! After a big song and dance interview on the phone... they told me in the end they weren't writing any more policies in Long Island.
But they did happen to add that "Oh but we will give you a policy if you switch your car insurance over to us".
Thank you.... but NO THANK YOU. "Why didn't you tell me this when I first started talking to you 45 minutes ago!" 
Very happy with Liberty Mutual BTW.
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LisaW
Time for me to FLY!
Member since 5/05 13199 total posts
Name:
Did I ever tell you that I hate people?
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Re: Fearing Storms, Some Insurers Pull Homeowners Policies Rates Soar
Posted by DjPiLL
Allstate SUKS! After a big song and dance interview on the phone... they told me in the end they weren't writing any more policies in Long Island.
But they did happen to add that "Oh but we will give you a policy if you switch your car insurance over to us".
They did the same to me...I told them if they can beat my current rate (no way  ), I would certainly switch over... 
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Fearing Storms, Some Insurers Pull Homeowners Policies Rates Soar
Posted by LisaW
They did the same to me...I told them if they can beat my current rate (no way ), I would certainly switch over...
I have three companies that can beat my current GEICO policy rate. But sometimes the lowest price isn't always the best.
My wife totalled a brand new Jeep Liberty. GEICO paid us NICELY for it. Didn't get cheap in a situation where they could have.
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LisaW
Time for me to FLY!
Member since 5/05 13199 total posts
Name:
Did I ever tell you that I hate people?
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Re: Fearing Storms, Some Insurers Pull Homeowners Policies Rates Soar
Posted by DjPiLL
Posted by LisaW
They did the same to me...I told them if they can beat my current rate (no way ), I would certainly switch over...
I have three companies that can beat my current GEICO policy rate. But sometimes the lowest price isn't always the best.
There is NOBODY that can beat my current rate...My family is in the biz...
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