Will insurance companies abandon fire-prone California?
Comment: All insurance companies are doing business, and profit is a must. All we can do is figured out what kind of disasters that prequently involve in our area then buy an appropriate insurance. And ofcourse, tricky is a way for insurance companies to make profits.
Comment: Allstate is being idiotic here. They keep on saying "We don't have enough money to insure more people!" while their industry is pulling in quite big profits just like the oil and gasoline companies are.
It's gotten to the point where I think that the states should start to step in and tell insurers "Time to put up or shut up! Either you insure all people who come to you whose houses meet a certain standard, or you get the hell out of our state with your insurance."
Comment: Bottom line is having the right coverage. You may have big expensive items in your house which is fine. If you have a loss your insurance company will pay for them unless your LYING. Big ticket items aren't usually paid with CASH so keep your receipts and take pictures. I work in the insurance claims industry for a private company help replace people property they lose in a loss. Time and time again I see claims with no receipts for $10,000 item. Well they will pay you for it but they will depreciate it till you replace it and that means you will have to front money till you get reimbursed. Trust me take pics. and when a company like mine wants to help trust us we know the business. We can get you back up and running faster then they can and they listen to us more then you.
Comment: Bottom line is having the right coverage. You may have big expensive items in your house which is fine. If you have a loss your insurance company will pay for them unless your LYING. Big ticket items aren't usually paid with CASH so keep your receipts and take pictures. I work in the insurance claims industry for a private company help replace people property they lose in a loss. Time and time again I see claims with no receipts for $10,000 item. Well they will pay you for it but they will depreciate it till you replace it and that means you will have to front money till you get reimbursed. Trust me take pics. and when a company like mine wants to help trust us we know the business. We can get you back up and running faster then they can and they listen to us more then you.
Comment: With the Katrina damage was caused by wiind and flood. Insurance policies cover wind damage but ot flood. Flood insurance has to be purchased form a Federal plan. The whole crux of the New Orleans problem is the government did not do an adequate job of making people who are in a flood plain by flood insurance. In California the damage is covered with no questoin. Insurance policies protect against fire damage. IF the people did not have adequate insurance coverages that blame falls upon themselves and their AGENTS. A good insurance agent would assure their customers have adequate coverage and explain to them the penalties if they do not. There are endorsements available that automatically increase the policy limits to adequate amounts AT THE TIME OF LOSS. If the homeowner's in California were not aware of this or were underinsured and not aware of it they need to be changing agents and need to stop blaming the companies. Thats why they pay the agents.
Comment: It's hard to insure homes that are going up in value everyday. But you have to be sure that you have adequate coverage. Too late now for the people that lost everything.
Comment: My sympathies to the families. The problem with the insurance companies is they never had proof that people had pianos or expensive furniture. So now you guys have to prove that you had a nice home and it's hard to do that. My inlaws cleaned up in 1989 with the fires. They got everything that they needed and more. I'm so sorry that there isn't a better way to prove that you have so many precious belongings.
Comment: The homeowner is responsible for the amount of coverage is on the home. The car owner is responsible for the amount of coverage placed on the vehicle... However, I believe there should be a law in every state that requires insurance companies to state in writing on the policy that they feel that a person's coverage is inadequate. Then let the customer decide after he/she understands that fully... Then, there is no body else to point the finger at!
Comment: Wind is not covered by Homeowners insurance in MS, LA or Florida. Homeowners only covers fire and theft. We still have to have seperate polices: Homeowners, flood, wind, and earthquake.
Comment: My sympathies to the California residents facing a long uphill battle. You will soon find yourselves in a similar situation to Katrina victims. Delays and objections have been commonplace and continue even though it has been 2 years plus since Katrina. Insurance rates are so high now, new home owners must decide not only what house note they can afford, but what insurance rate they can afford before they even attempt to purchase a home. I note a comment was made that wind is a covered event under homeowners policies. Not in Louisiana it isn't - you must purchase a separate policy, similar to the flood policy, from greedy insurers who have made record profits and still refuse to pay legitimate claims. Good luck, California, you're going to need it.
Comment: My sympathies are with the California homeowners - 2 years plus after Katrina, many have never been paid for their damages and those who have, have received far less than they needed - Insurers in this area have played the "it's not wind it's flood" and the "it's not flood it's wind" game to confuse and delay any settlement in many areas - insurance rates in the metropolitan New Orleans area have escalated so high that new home owners must choose between the home they can afford and the insurance they can afford attached to a much smaller home - when monthly insurance rates rival the principal and interest owed in monthly payments, as they now do here, it's time to stop the unbridled greed of the insurance companies and insist they make good on the contracts they have signed. Who is going to fight for that I wonder.
Comment: it doesnt matter what is covered and what is not. For instance, the houses that blew down during Andrew were covered by wind, no flooding occurred. However, the insurance companies whined about the cost and rates jacked up. All the industry has to do is pump money into re-election campaigns and plead poverty. Come on folks!
Comment: Fire is covered by every homeowners policy, as is Wind.
Flood is not a covered peril by a normal homeowners policy.
It's pretty simple
California Wildfires and Katrina are totally different
Comment: The California Wildfire is NOTHING like the Katrina Storm. Fire is covered under homeowners policies. Wind damage is covered, but flood is not. It's pretty simple.
Comment: Of course insurance will cover, its called -fire-coverage-not flood by nature, plus stupidity for not living in Calif, and not taking care of the dams in N.O. kinda money. if the floods hit Calif it would be paid for, after all that's what the rich pay for. if the fires occured in N.O. it would not be covered cause its in N.O. and not Calif! Bottom line its Calif ,and fire insurance will pay there way, cause of all the money the judge saved them in N.O. cases, of NATURAL FLOODING requiring hurricane ins not flood ins.! they would have paid Calif, if they suffered a bio-huricane,earthquake,flood,then volcano, fire, as long as its Calif, it's covered ! not N.O. not ever, not nothing, would insurance pay a dime even if covered?-no, they would blame an unisurable source for the problem, no pay for N.O., just for Calif though!!
Comment: I work for an insurance company in the claims department. The call center I work at, serves the Southwest region. I can tell you first hand, that we were proactive. We sent several employees from all over the US, to be at the stadium walking around with signs, we are there looking for our insureds. With technology today, we were able to get to our customer's homes before they did. One of my co-workers on my team, did nothing but make outbound calls. Searching for our customers, and telling them the condition of their homes. We are not waiting for them to find us, we are here to help them during a tragic time in their lives. We are trying to find them so we can meet them, get them an anitial check, to buy clothing, food, temporary housing etc.. Claims don't always run smoothly, and no one likes to pay high premiums. I have to say, I have never been so proud to be with my company, and to have the most amazing co-workers that really care. We (the employees) have already started raising money, gathering clothing, and toys for small children. We want to help. Our CEO has already donated almost $200,000 to different organizations, such as, The Red Cross. Not all insurance companies are bad. I have been with this company for 6 years. We were there in '03 when CA burned, and we will be there in the future. We were also there for hurricane Katrina. Some of our field reps flew out prior to the hurricane, slept on cots in the agents office, road through the storm with the customer. We still insure families in LA. I pray for these families and what they are going through. I hope for them, that they will not have to fight to rebuild. What a horrible experience this is for them. Everyone cuts pennies, to make ends meet, including on insurance. You choose the lowest rates you can find. You work with your agent to get that low price, and usually this intails cutting coverage. Unfortunately most people do not max out their coverage because they hope they will never have to use it. Where I live, the price of homes have gone up 60% in the last 4 years. I'm sured most people have not increased their coverage to reflect the raising costs of construction materials, should they ever have to rebuild.
Comment: Wow, where is law enforcement? People who run freely to destroy others are the real problem. Maybe insurance companies themselves should sponsor Police, Fire and Sheriff's Departments to protect their insured, instead of supporting lobbyists/legislators who can not pass effective legislation, thereby successfully protecting the masses.
Don't pretend that sick people are capable of good reasoning and should roam freely to harm others. They roam free in an open society because they *can*. They do not need trees and shrubs to destroy all that they choose to destroy. Blame the trees and shrubs? Blame the wind? Preposterous!
Where is our preventive approach toward a better society?
Hidden in secret alliances of friends, neighbors and/or relatives who feel love and actually protect sick individuals primed with intent to destroy others. Law enforcement can not defy the law. They uphold that which has been set forth...not a leg to stand on to put sick people behind bars before they harm someone.
Who pays? Everyone! Some have paid with their lives; some have paid with all that they have ever owned...the rest of us (across the nation) will pay each time that we pay an insurance premium.
We, as a society, place more credence on assigning undercover agents to men's restrooms waiting for vague hand gestures under a bathroom partition...
I never cease being amazed by our country's true values.
Comment: I work for an insurance company in the claims department. The call center I work at, serves the Southwest region. I can tell you first hand, that we were proactive. We sent several employees from all over the US, to be at the stadium walking around with signs, we are there looking for our insureds. With technology today, we were able to get to our customer's homes before they did. One of my co-workers on my team, did nothing but make outbound calls. Searching for our customers, and telling them the condition of their homes. We are not waiting for them to find us, we are here to help them during a tragic time in their lives. We are trying to find them so we can meet them, get them an anitial check, to buy clothing, food, temporary housing etc.. Claims don't always run smoothly, and no one likes to pay high premiums. I have to say, I have never been so proud to be with my company, and to have the most amazing co-workers that really care. We (the employees) have already started raising money, gathering clothing, and toys for small children. We want to help. Our CEO has already donated almost $200,000 to different organizations, such as, The Red Cross. Not all insurance companies are bad. I have been with this company for 6 years. We were there in '03 when CA burned, and we will be there in the future. We were also there for hurricane Katrina. Some of our field reps flew out prior to the hurricane, slept on cots in the agents office, road through the storm with the customer. We still insure families in LA. I pray for these families and what they are going through. I hope for them, that they will not have to fight to rebuild. What a horrible experience this is for them.
Comment: Wow, where is law enforcement? People who love to destroy others are the real problem all across our nation. The law protects them from scrutiny. Change the laws to protect the masses, not the few who can run free to destroy.
There is no way that people who are problematic to a free and open society have not given signs along the way. If someone lives hatred and seeks power through destruction, they can quite easily...without trees and brush.
Insurance companies should really target the problem itself: Sick individuals who attack to destroy properties belonging to other people.
Where is the preventive approach to protect both homeowners and insurance companies too? Insurance companies should sponsor Police, Fire and Sheriff's Departments to protect their best interests instead of rallying around those who merely think about new legislation...or cast a vote for/against what is constitutional.
Most fires could have been prevented. Someone out there knew that their friend or neighbor or relative had a problem. Because they protect their own, everyone will pay. Some have paid with their own lives; some have paid with everything they have ever owned, and others will pay simply because they pay for insurance.
Comment: It's amazing - when you buy insurance, the amount of insurance is WRITTEN up front for everyone to see. It is not the insurance companies responsibility. You read your application and sign it saying you have read it and all your answers are correct. You get bills - they show the amount of coverage - you get something called a Declaration page - it shows the amount of coverage. So, with all of that information readily available, it is somehow still the insurance companies fault? With all of this knowledge, if the coverage isn't high enough, ask for it to be raised or go to a different company.
I can fully understand why insurers are pulling out of coastal areas. People living far inland should not have to share the risk and see their rates raised because people want to live on the ocean. People living in California - same thing - you want to live surrounded by brush and trees that burn and are effectively in the middle of a desert, don't cry when you are non-renewed or when your insurer will not risk insuring your house at full value. It's your personal choice to live there just don't expect me to pay an inceased premium as well to cover your lifestyle.
Learn something calld personal responsibility - it's your own fault.
Comment: Guess what? Central Florida, around the Orlando area , is known to be a high-rent area. If you look at your property appraiser's workup on your piece of the American Dream, you'll find that much of the value he places on your property is for your land. That's why in watching HGTV's and Discovery's shows on flipping houses, you'll see that the replacement cabinetry is not of any higher appreciable value; they're just newer. :-)
Anyway, check it out, you're building's probably worth only $65,000 to your PA - but your land is worth from $37,000 to $160,000, OK? :-)
It's also why I really LOL when I see folks building what amounts to be huge cedar shacks "with a view" and particle-board cabinetry on land known to be tinderbox-dry.
The insurance companies are known to be flush with assets, thank you very much to the state legislatures and their other buddies, the banking corporations. Besides only 1500 houses or so were completely demolished.
As for FEMA, after Hurricane Charley blew by my place, some of my neighbors had a real crying need for generators to get their A/Cs going again - their medical conditions quite frankly did not allow them to live under Florida's heat and humidity for any length of time without any escape into A/C. So, FEMA very generously paid out dollars so these homeowners could get the generators they needed. As for my wife and I, we were able to survive quite nicely without A/C until our electric co-op hooked us back up.
As a Catholic, I find it interesting that your practice of Christianity is confined to some form of hellfire-and-damnation preaching. There is a wisdom to praying as if everything depends on the Lord and doing as if everything depends on your good graces. When we help our brothers and sisters in times of crisis, we acknowledge the Lord. Let's prevail upon our brothers and sisters in the insurance companies to do the same. :-)
Comment: What I learned when I moved to Fla was that nothing was insured above $65,000 in central Florida
Made sense to me because of the natural disaster proneness. Didn't matter that your house was
valued at $325,000 or $102,000. I of course learned this after purchase. Interesting, isn't it?
Now, how will the San Diego fire affect the secondary mortgage housing disaster? What are the assets of these insurance companies anyway? How can they afford replacement cost in such a disaster?
In all things give thanks for that is the will of Christ Jesus for you. We serve a God of judgment and mercy.
Regarding FEMA. I like the sign here in WV..."Help Captain Self". Do you think that Fema's job is
to recognize where local strengths of organization are and support them rather than to create their own
? Do you think that Fema should give out money at all? The Jewish settlement that helped had it right on
in my opinion, look to the Lord and get guidance from him... In all your ways acknowledge Him and He will direct your path. The good news is that the Lord is returning and we can have salvation here. Time for
America to get back to God....God is talking....He gave us just a taste of what is coming. Thank you Lord,
for once again trying to wake up America..... This is the 40 days of prayer and fasting to end abortion
in this country. God is trampling out the vintage where the grapes of wrath are stored...
Comment: Well, well, well, well, well! Here's the real problem: the insurance "industry" lobbies each state's legislature to make homeowner's insurance mandatory for every house under a mortgage with a bank, mortgage company, or credit union. Then the insurance companies compete with each other in a market suddenly made "price sensitive" - because it's the law, the homeowners try to get insurance at the lowest rates possible. Then everyone's house is suddenly flattened (hurricane and floods in Florida, fire and quakes in California). Then the insurance companies won't honor their commitments to the homeowners to help them rebuild. Anybody thinks I got this game down to a piece of con artistry? It's tempting to make just enough of a claim to pay off the mortgage and leave town - except that global warming has just about burned up all the green grass on the other side of the fence. My house is on my books at a value some $25,000 higher than it is on the property appraiser's register, because of Southwest Florida's crazy-as-hell real estate market. My insurance company has my house at the PA's rather than my "replacement value". I'm working to lower my premium the honest way, by showing the company I have in fact decreased our risk with code-compliant and engineered shutters. We refi'd our mortgage some six years ago and the "independent" appraisal added $275 to our refi'd balance. Am I going to spend another $275 to keep our true replacement value at 100% with the insurance company? That's a real hard sell for me. And I'm working my tail off holding up my end of the bargain. Why is it that persons who already have the money don't have to work even 5% as hard to hold up their end? Maybe that's why insurance companies are corporations - like every other piece of paper you hang on the wall, they're dead to our sensibilities, until some sympathetic souls make this whole thing come alive again.
Comment: Every homeowner should review their policy annually when it comes up for renewal. The irony of insurance is that if the insurance company were to say, "You aren't insured enough, you should purchase more coverage", most people would refuse, arguing that they don't want to pay the extra premium that comes with additional coverage. However, when they do finally need to use the coverage, they find they are underinsured because they did not review their policy and did not ask their agent to increase their policy limits. A consumer of insurance bears equal responsibility to the insurance company.
Comment: I take issue with Doug Heller who says "it is the insurance companies' responsibility to make sure homeowners have enough coverage" --- it is NOT -- it is the homeowner who is her/his own risk manager who bears that responsibility. I don't know of a single company who does not try to get homeowners to properly value their property and to insure it to value. It is not in "fine print" -- it is fully legible in the same type size as the rest of the policy, confirming it is the homeowner's responsibility. Many companies offer assistance with free use of Boekh index/American Appraisal institute worksheets to arrive at replacement cost. In addition most offer "inflation guard" options and some "guaranteed replacement cost". Most agents offer clients a minimum annual review of coverages and limits. Mr. Heller is doing an injustice by placing the responsibility on the insurance companies. Misinformation such as this fuels the fires (no pun intended) of ignorant backlash when tragedies such as the wild fires in Southern California hit us. Find the idiots/criminals/murderers who started these fires -- they bear the responsibility for the devastation and the attendent costs.
Comment: "Most agents offer clients a minimum annual review of coverages and limits. Mr. Heller is doing an injustice by placing the responsibility on the insurance companies. "
There is still that little bit about "principal-agency relationship" in commercial law, so even if the agent is an "independent contractor", he or she should be assumed to represent the insurance company or companies. Agents earn commissions from the companies for selling these documents called "policies". Usually, the commission is a percent of first-year premiums. So even if agents offer clients that minimum annual review of coverage, there is some marginal compensation for doing that, so there has to be at least some "dotted line" or implied relationship between the insurance company and the agent, where the agent is likely to earn compensation from the insurance company for pushing this increase in coverage. Mr. Heller is exactly right - the responsibility should be placed on the insurance companies.
As for the perpetrators, arson is a crime, but the only thing the state can do on conviction is to jail them and (hopefully) throw away the keys. You're unlikely to enforce civil judgement on these characters for the "attendant costs" as most of them are likely to be far too poor to even begin to make up for the costs.
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