This is awesome, and by awesome I mean it totally sucks! I live in Ohio, where hurricanes don’t hit that often. The socialist in Congress think I should help pay for hurricane insurance, though, and the insurance companies agree.
How about this instead - if you live by a river, you pay a much higher flood insurance premium than ol’ boy who built his house where it doesn’t flood; if you live on a coast that gets hit every year by a tropical storm and/or hurricane, you pay a much insurance premium than ol’ boy who doesn’t like rebuilding his house every year; and if you live on a fault line, you pay a much higher insurance premium than ol’ boy who doesn’t like his world rocked.
I like year-round sunshine, and I hate the cold of winter. I’m not a big fan of the beach, but I love the ocean. Florida seems like the ideal place to live - except they get hit every year by hurricanes! So, I live in Ohio, which has tornados and some pretty wicked hail storms - occassionally - and when it does happen, we don’t expect the citizens of Florida to pay for our damages.
If the insurance companies can’t afford to pay for hurricane damages, they need to rethink their business model. Here are my common sense suggestions:
1) charge enough in premiums to ensure you can afford to replace the covered property - premiums should be based on risk, not affordability - if your clients can’t afford to insure their $5 million dollar homes against a hurricane hit, don’t build a $5 million dollar home where a hurricane can hit it. For example, I pay for flood insurance because there are a few rivers and creeks nearby. I don’t pay a lot for flood insurance, though, as I’m not in a flood zone - meaning it would take rain of biblical proportion to flood my house. If I live near the Cedar River in Iowa, I’d expect to pay a much higher premium for flood insurance.
2) Refuse to insure homes in high risk areas, or insure only to a specific amount, and make the homeowner who likes hurricane hits take the brunt of the costs. This way, less people would build million dollar homes in areas that are prone to hurricane hits. If it can’t be insured, banks won’t finance the building - banks don’t finance, building doesn’t get built - building doesn’t get built, hurricane can’t destroy it - hurricane doesn’t destroy, insurance companies don’t have to pay for damages
Bottom line, it is all about personal choices. You choose to smoke, you choose die from lung cancer. You choose to drink, you choose to die from a destroyed liver. You choose to take drugs, you choose to die from an overdose. You choose to build your house in an area prone to hurricane hits, you choose to have your home destroyed. I feel as sorry for the home owners who had their homes destroyed by a hurricane as i do for the drug addict who overdosed and died - not at all.
Those of us who actually think about the areas we live in before we build or buy a house may be forced to pay for the poor choices made by people who insist living on or near the beach in areas prone to hurricane hits. Do we include earthquakes, floods, tornados, blizzards and hail in this national coverage? Insurance is a business, not a socialist program. You aren’t guaranteed coverage, and if you do get coverage, it should only be guaranteed to the point the insurance company has agreed to cover - and that coverage is the insurance company’s responsibility, not the tax payer’s.
June 12th, 2008 by admin | 2 Comments »