I work in insurance and all you said above is so true. We constantly keep looking for trends, events around the globe and do everything to make risk assessment better.
My children are sick to death of me lecturing about the wisdom of the actuaries, but if there’s one thing I learned from a family in finance and a grandfather obsessed with proving the life expectancy tables wrong, it’s to listen to the damned actuaries.
Traditional housing in the southeast coastal hurricane alley was a tin roof fishing shack. When the big blow came, the shack blew away and then the folks went out on their boat to retrieve their tin roof. A week later, they were back in business. Now, it is $10 million mansions with glass windows overlooking the ocean. When the big blow comes, they run to their insurance company.
I wouldn't insure them either. Hamilton uses the word stupid in this article. A fine word to describe the decisions of the people who didn't consult the locals.
This article is true. Two things to add. One, FL politicians have allowed their friends who own insurance companies to pick the least risk properties to maximize profits while leaving the worst risk properties to other companies, causing more insurance company collapses and higher premiums. Second, according to the actuaries, the biggest reason for increasing premiums in FL is fraud and not weather events. So, while increasingly damaging weather events do increase our premiums, fraud is a far bigger reason.
You are spot on. If you read rFlorida, everyone is in denial. Doesn't matter if liberal or conservative, they blame it on the greedy insurance companies, trial lawyers, and politicians. Where is Tome Cruise when you need him? We cant handle the truth. Our insurance premiums are skyrocketing because we choose to move into a place that is being hammered by climate change!
I got two large increases in my property insurance over the past couple of years. They are blaming it on the cost of materials, which sure that makes sense but also here in the northern suburbs of PHILADELPHIA we had a few tornados two summers ago that ripped the roofs off of houses in suburban development a few miles away. Tornados, mind you, were never a thing until about 2019.
As more and more Floridians are forced to move to state-backed insurers like Citizens, Senate Bill 2-A from the 2022 session requires Citizens insured homes to carry flood insurance even if they are in FEMA Flood Zone X.
I just got my homeowner's renewal today. $600 more than last year. I'm like wtf - we are not in a "bad weather" zone, at least not yet. So I did some reading and then your article appeared. Thanks so much for all the education, but it depresses the hell out of me. Still, I'm gonna call the insurance company and complain.
I work in insurance and all you said above is so true. We constantly keep looking for trends, events around the globe and do everything to make risk assessment better.
My children are sick to death of me lecturing about the wisdom of the actuaries, but if there’s one thing I learned from a family in finance and a grandfather obsessed with proving the life expectancy tables wrong, it’s to listen to the damned actuaries.
[atop my private seawall, screaming into the Cat5 wind] STOP POLITICIZING THE WEATHER
Have you read "The Deluge"? I mean it's long, but it games out the politics of climate change pretty well https://www.amazon.com/Deluge-Stephen-Markley/dp/1982123095
[insert that shirtless guy in a hurricane holding an American flag gif here]
As if on cue: https://www.curbed.com/2023/05/state-farm-california-insurance-climate-change.html
Fantastic piece. I encourage everyone to read this (not as good, and much longer, but still excellent) companion piece. https://slate.com/news-and-politics/2023/05/rich-republicans-party-car-dealers-2024-desantis.html
Fantastic piece. You made me a subscriber.
Hey man just wanted to say that this is a great piece and I'm going to share it far and wide. Well done!
Traditional housing in the southeast coastal hurricane alley was a tin roof fishing shack. When the big blow came, the shack blew away and then the folks went out on their boat to retrieve their tin roof. A week later, they were back in business. Now, it is $10 million mansions with glass windows overlooking the ocean. When the big blow comes, they run to their insurance company.
I wouldn't insure them either. Hamilton uses the word stupid in this article. A fine word to describe the decisions of the people who didn't consult the locals.
This article is true. Two things to add. One, FL politicians have allowed their friends who own insurance companies to pick the least risk properties to maximize profits while leaving the worst risk properties to other companies, causing more insurance company collapses and higher premiums. Second, according to the actuaries, the biggest reason for increasing premiums in FL is fraud and not weather events. So, while increasingly damaging weather events do increase our premiums, fraud is a far bigger reason.
You are spot on. If you read rFlorida, everyone is in denial. Doesn't matter if liberal or conservative, they blame it on the greedy insurance companies, trial lawyers, and politicians. Where is Tome Cruise when you need him? We cant handle the truth. Our insurance premiums are skyrocketing because we choose to move into a place that is being hammered by climate change!
I got two large increases in my property insurance over the past couple of years. They are blaming it on the cost of materials, which sure that makes sense but also here in the northern suburbs of PHILADELPHIA we had a few tornados two summers ago that ripped the roofs off of houses in suburban development a few miles away. Tornados, mind you, were never a thing until about 2019.
Fantastic piece. You just made me a subscriber.
As more and more Floridians are forced to move to state-backed insurers like Citizens, Senate Bill 2-A from the 2022 session requires Citizens insured homes to carry flood insurance even if they are in FEMA Flood Zone X.
For reference:
https://www.abcactionnews.com/news/price-of-paradise/homeowners-with-citizens-upset-over-mandatory-flood-insurance-in-non-flood-zones
https://www.flsenate.gov/Session/Bill/2022A/2A/ByVersion
I just got my homeowner's renewal today. $600 more than last year. I'm like wtf - we are not in a "bad weather" zone, at least not yet. So I did some reading and then your article appeared. Thanks so much for all the education, but it depresses the hell out of me. Still, I'm gonna call the insurance company and complain.