What is house insurance (needed if you have a mortgage) skyrocketing in hurricane country?

What is house insurance (needed if you have a mortgage) skyrocketing in hurricane country? Surely we're not getting 10x as many hurricanes?

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  1. 1 month ago

    For homes outside of hurricane zones, the likelihood of a total loss payout within any given 40 year period is very, very low. Even rarer are incidents where you'll have a large number of concurrent claims. In hurricane zones, you're far more likely to have a total loss payout in any given 40 year window, and it is almost guaranteed that there will be a large number of concurrent claims.

    Combine even a slightly increased likelihood of a damaging hurricane with skyrocketing property values, and you're looking at hugely increased exposure for the insurance company. So they have increase premiums to ensure they have the funds available to actually pay out possible claims.

    >once every year a house burns down in Bumfrick, MN (1000 homes) with average home value $200k
    >single claim for $200k
    >$200,000/yr exposure
    >need to collect at least $200 a year per home in premiums to be covered

    >every ten years Hurricane Frickyouall takes out 500 homes in Weresofricked, FL (1000 homes) average home value $750k
    >500 claims for $750k
    >$37,500,000/yr exposure
    >need to collect $37,500 a year per home in premiums to be covered

    • 4 weeks ago

      in desirable locations all the money is in the land, not the house
      The insurance company only pays out the cost of the house
      so a similar amount regardless of location, only depending on actual cost of the erected structure (after all the land is still there even if the house is completely destroyed)

      • 4 weeks ago

        in a whole lot of the "flyover" part of the country, you can get a decent 3 bedroom house for $200K.

        There are no decent 3 bedroom houses for $200K in any beach community in Florida.
        I don't think that your explanation holds up.

        • 4 weeks ago

          yes, the difference is due to different cost of land
          building an equivalent structure costs more or less the same (some differences are still there, but not 3X)

    • 4 weeks ago

      This. Also, most (if not all) hurricane insurance is underwritten by the state because traditional carrier got the frick out. Florida is experiencing a crisis because the state has to approve the premium increases, and they desperately need those premium increases so their reinsurer will agree to insure the states potential losses. It doesn't help that the entire system was underwater from Irma, let alone Ian.
      >t. Contractor gay that works insurance claims exclusively
      Also, when you factor in Law and Ordinance, ALE, and contents coverage, the insured value is generally a multiple of your homes appraised value. Usually 1.5-2.1x appraised value for your policy.

    • 4 weeks ago

      Insurancegay here, ama.

      Is at least partially right, but doesn't tell the entire story.
      "Hurricane country" is a bit skewed, I assume you mean places like Florida where homeowners insurance is skyrocketing. DeSantis enacted some laws that put all the leverage on the homeowners side and removed power from insruance carriers. Basically if a homeowner hires an attorney or public adjuster to represent them and the carrier ends up paying the claim, they also pay whatever fees or costs with hiring that representative. Because of that, almost every claim has a representative trying to get paid too. In order to cover this additional payout, premiums get raised significantly making hiring a representative for a bigger payout more appealing, basically inflation specifically for insurance.

      Secondarily, with building codes, cost of labor cost of materials also spiralling up especially during widespread damages, everyone swarms storm/disaster areas like a cloud of locusts, again compounding that "inflation for insurance" problem again.

      Texas is experiencing this problem now too: Abbot didn't give homeowners carte blanche to withdraw cash from insurance like in FL, however because literally the entire state is a level 4 hail zone and roofers don't need a license, they're hiring estimating outfits to inflate estimates and get a cut of the payout too. With homes spiralling out of control for purchase price (nothing to do with insurance) there are more people wanting a perfect house, and everything to look excellent, thus constantly challenging insurance to paint the entire frickin thing, replace their roof every 3 years due to hail damage, and similarly because of the "open floor plan" concepts, 1 overflowed toilet in the back of the house might mean replacing all 4000sqft of hardwood floor on the bottom level for $50-100k while the homeowner pays $5k a year in premiums.

  2. 1 month ago
    i suffer no woman to speak

    jews are exaggerating hurricane intensity as part of their global warming/climate change hoax, by mis-classifying them using measurements taken a mile up in the sky rather than at ground level and hoping no one catches on

    next question

  3. 4 weeks ago

    They sure are full of themselves aren't they. A walking condrum. Claiming discrimination in everything, yet spewing absolute vitriol out of their own mouths.

    Talking about home owners insurance, of course.

  4. 4 weeks ago

    Jokes on her. I'm illiterate, so I can't read her stupid shirt.

  5. 4 weeks ago

    > Surely we're not getting 10x as many hurricanes?

    more frequent, and peak intensity is getting higher. Pretty much predicted since the 1980s. No real surprises here.

    • 4 weeks ago

      >more frequent, and peak intensity is getting higher.
      Wrong: there are simply more houses in a given zipcode. Where there was farm land, ranch land, empty land, theres now 2000 mcmansions being damaged. Additionally as outlined above, each house simply costs more to repair due to materials, labor, and customer expectations.

      Flyover houses are a little cheaper to insure (outside of tornado alley) because theres simply fewer perils that can happen to them. Tornadoes sure, but they're not likely to get hail, hurricanes, earthquakes, and are typically built expecting extreme low temperatures for frozen pipes. ADDITIONALLY as the theme is; when 80% of Iowa is a cornfield, theres comparatively a much smaller amount of insured risks that even can be damaged.

      Something of note too: when interest rates were 0% or even negative, a LOT of people were taking out helocs or other loans to do $100-500k of renovations and improvements to a house. These improvements weren't always accounted for in an insurance policy (and subsequent premiums collected) so the first time they had a loss because their contractor was a moron and only paid Juan $12/hour to wire it up resulting in a fire, that addition to the house now costs $100-500k to repair.

      • 4 weeks ago

        One of the dumbest possible things you can say as a homeowner is
        >I'm just trying to get back some of the premiums I've paid into insurance over the decades!
        >I've never had a claim before!
        Policies are written usually for 1 year at a time. It just doesn't matter if you've never had a claim, that has no real calculation on your coverage, however it can affect premiums. But once that policy is done, its done and covered you for so frickin much like $1mil in liability, the full cost of rebuilding your house if it burned down, all of your shit inside the house, you name it it was probably covered.

        If you paid in an expensive state like TX or FL for your average house, for the last 20 years you probably paid an average of 4-5k per year. That comes out to a grand total of $100k for 2 decades of living in the house. If that b***h ever burned down insurance would be paying today -at minimum- $750,000 to rebuild your house, pay for all the garbage in your house, put you in a hotel, and costs associated with rebuilding a house like architect, engineer, permits, and other bullshit. Anyone can see when an insurance carrier is obligated to pay for a catastrohpic loss like that, they've lost money on your address for 100 years. I personally have had these arguments with boomers "just tryna get my money back" where I calculate the premiums based on todays dollars, and the current amount being paid to them showing they've gotten back 300% the amount they've paid in and still demanding more money.

        >what is insurance for if it won't cover my loss?!?!
        Again, it covers so frickin much, but its not for general maintenance or neglect. If you don't like that your second story drain pipe has been leaking for years causing termites, mold, rot, and basically hour house is fricked, insurance was never intended to cover that shit. You have to constantly be inspecting and repairing your house if you don't want a denial of coverage.

        • 4 weeks ago

          Last post from me unless someone can think up some good questions to ask regarding insurance adjusting, agency, sales, and overall costs.

          You think insurance is too expensive? Pay off your mortgage so there isn't another party with a financial interest in your property and never pay for homeowners insurance again. I've told so many boomers asking the dumbass rhetorical questions and complaints about paying $3000 a year to cover their $1.6mil house and $2mil of boomer relics inside of it.

          Aptly, some ask or point out if the house burns down or a tornado takes it down to the slab they'd be footing the bill for everything and don't have a spare $4mil to rebuild their lives. Aha, you're finally understanding what the frick insurance is for! Actual substantial losses. Nobody uses their health insurance to buy Dayquil or asprin. Nobody uses their car insurance when they get a flat tire or need a $500 windshield (I know thats a thing, but insurance carriers aren't giving away windshields without you paying for it eventually).

          Yes, you are being a dumbass using your homeowners insurance to pay for a $3000 broke pipe and minor drywall damage. Yes, you're a jackass demanding insurance pay for your rosebushes or decorative palm trees because it was -10 in texas for a week. Thats not what homeowners insurance is for. I get it, people don't want to come up with $2000 to $10,000 for repairs on their house, but this is EXACTLY why insurance costs are going up. If there were a policy that only covered major catastrophic stuff (or had a $25,000 deductible), and was significantly cheaper, would more people flock to that model, or would people be equally pissy about having to come up with that huge chunk of money?

          BTW, places like TX are moving to that model: anything to do with wind, hail, tornadoes, tropical storms, easily 1, 2, and 5% deductibles. $400k house? 2% deductible? Heres your $8000 deductible, frick off with your $9,000 roof claim idiot.

  6. 4 weeks ago

    >What is house insurance (needed if you have a mortgage) skyrocketing

    Hurricanes are energy that's built up. The energy comes from the sun. Climate change means there is more energy on the earth. While every moron sticks their head in the sand, insurers actually have to pay for it and can't ignore it. They've been factoring increased risk to their actuary tables for at least a decade at this point.

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