12-02-2011, 01:14 PM #1
Florida Homeowner's Insurance: RIP-OFF!!!!
If you live in Florida, you have probably seen your homeowner's insurance rates skyrocket lately. If you haven't, get ready. We have been with State Farm for 30 years, but this year they have decided to trust their crazy computer models and SCREW their central Florida customers by making them pay for the risk of their other customers who live on the coast.
WTH, a 35% increase from State Farm for a house in the middle of Florida? I've never filed a claim, and we don't live on the coast, but I still have to take money out of my pocket and compensate for the guy with the beach house? Did State Farm recently adopt "wealth redistribution" as an official policy? If I stay with State Farm, the annual insurance premium on our home will now be more expensive than our annual property taxes!
The State Farm agent says they need more compensation because of "mega-storms" and the costs of their "reinsurance" is going up (that's code word for shady offshore stuff like DaVinci that State Farm has invested $200 million in).
All this might not piss me off so bad if it wasn't for the fact that I read how State Farm recently made 1.8 billion in after tax profit and paid around $10 million to one man - their CEO.
I'm a capitalist. I'm not ready to pick up my Occupy Florida sign yet, and I hate communists; but it seems like if they paid a guy that much he would be smart enough to avoid pissing off ALL his customers at one time (see Netflix). It would be tempting to move into his house and eat groceries there for a while (since we're paying for them), but I think it's time to start shopping for other insurance options. That is, if there are any left in the state.
Florida Homeowners' Insurance Pains Likely To Deepen
12-02-2011, 01:42 PM #2
I was with Farmers and they hammered us right after Rita in 05.
With all the "financial crisis" bs, you never hear about insurance companies going out of business.
12-02-2011, 02:09 PM #3
12-02-2011, 03:00 PM #4
- Join Date
- May 2006
I hope we can give these ceos with 10mil bones extra per year some tax breaks so it will tilickel down on me.
12-02-2011, 03:29 PM #5
Yo, what I'm going to tell you isn't going to be a revelation by any measure, but what you've experienced is nothing more than another form of the good paying for the bad. That's the way it has been (since we invented government) and will always be... Nope, not fair by a long-shot. Sorry to hear about this (we in SoLA went through this in the post-Andrew, post-"Katrita", and post-Gustave seasons). Start shopping and, hopefully, saving.
12-02-2011, 03:54 PM #6
i live across the street from a bayou , bought it in 2004, HO insurance was 700 year from allstate, after ivan/dennis they dropped me, usaa wont cover because im in a hail zone, WTF? never seen hail here. farmers was only insurer i could find, 2000 year, dropped to 1400 with the wind mitigation inspection, this year my taxes went down, my assessed value has dropped every year and my insurance is back up to 2200 year. time to start shopping again.
12-02-2011, 04:34 PM #7
I may have to stay with State Farm, I don't know.
I'm shopping around now, but what I'm hearing is there are simply no more large well-known companies writing new policies in Florida at this time. None. Zip. Zero. Nada. I'm starting to think we're some of the lucky ones that didn't get dropped.
The ones that are still writing new policies are all smaller companies in business for less than 10 years, but some do have A ratings. This is one of the companies my local agent is suggesting; "St. Johns" - they claim to have "Financial Stability Rating of A, Exceptional, from Demotech, Inc." Whatever that means.
For all I know it could be a scam or another rip-off. What's to keep them from low-balling you the first year then sticking it to you on the next? Should I just bite the bullet and stay with State Farm? I wouldn't be surprised if State Farm didn't bail next year anyway, they've been talking about leaving for years and in 2009, "State Farm spokesman Chris Neal said the settlement "allows us to stay in the game a little longer" as Florida continues to seek a long-term solution for its exposure to costly storm damage."
A little longer? WTH does THAT mean? Does that sound "STABLE" to you?
Does that sound like "a good neighbor?"
The entire state of Florida is in an insurance disaster; some of my neighbors were already dropped by Allstate and other big brand companies who have now stopped writing new policies anywhere in Florida. They just send you a dear john letter in the mail and bam, your'e on your own. The whole thing is a crock!
12-02-2011, 05:20 PM #8
Here are a couple more big nasty secrets with Florida insurance;
First, if you think you have sinkhole coverage, you better make sure.
Because almost all Florida carriers have recently changed that coverage and chances are if your house is partially damaged by sinkhole, you will NOT be covered. State Farm still has full coverage for sinkholes, but most others do not. Most of them will only cover sinkhole damage if it's so bad you can no longer live in the home. But if you only lose say, your garage or part of your living room, you're screwed!
Secondly, things have gotten so bad here that hundreds of thousands of homeowners have now turned to the STATE-RUN, last resort option called CITIZENS.
In fact, as I understand it, Citizens is now the largest property insurer in the state with nearly 1.5 million policies. Ready for the nasty part? Get this -- ALL automobile and property insurance policyholders in the state would be ASSESSED for damages and fees if a major hurricane triggers deficits for Citizens. That means if one area with huge beach houses on the coast gets wiped out, every insured homeowner in Florida could be paying for it! How's that plan for wealth redistribution?
State officials are now in a panic, trying to dump customers, raise rates and downsize Citizens, because this stop-gap program has grown so big it's becoming a major threat to all insured homeowners:
Citizens insurance prepares to drop or reduce coverage, raise premiums
Gov. Scott quietly trying to kill Citizens insurance
12-02-2011, 05:43 PM #9
And I was going to ask if FL had a "citizens"; aka the "fair plan" in LA. -Which is, usually, the insurer of last resort. The older I get, the more apparent to me it becomes that the insurance co's. only want to be in the premium collecting business... Exemptions to claims paying now seems to be more of the rule rather than the exception as compared to policies from years ago.
12-02-2011, 07:20 PM #10
Heck then you should live inland here in south florida. Ours is over 4000.00 a year. And I live 2 miles east of the everglades.
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