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.
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Twice Burned
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Despite Allstate's decision, Miller, the Insurance Information Institute's spokesperson, argues that it would defy economic logic for carriers to abandon the state. With a $6.59 billion homeowner's insurance market, California makes up nearly 11 percent of total homeowner premiums in the U.S. "Go back to the size of the economy," she says. "It's huge. You can't afford to ignore it. Insurers don't want to walk away from California." A small consolation, perhaps, for Californians bracing for the next disaster.
© 2007
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