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Shattering some insurance myths

Shattering some insurance myths

I would like to explore some of the myths involving casualty insurance companies. Since I have had 35 years experience as an all-lines claim adjuster, I feel I am somewhat qualified to make these comments.

Myth one: All insurance companies are awash in money.

This is untrue. Yes, life insurance companies are extremely solvent (they only pay once), but casualty companies, the ones that insure our homes, consider themselves lucky if they have a 90 percent loss ratio.

Myth two: Our legislators need to get tough with insurance companies.

Our government officials have the power to do something about soaring property taxes. However, it's a totally different story in dealing with insurance companies. Several years ago one of the large auto carriers red-lined Dade County and refused to write in an area where it is impossible, due to the large number of lawsuits, to make any money. The insurance commissioner told them either to write in Dade or they could not write anywhere. The auto carrier said "thank you" and left the state.

Insurance companies are part of the free enterprise system and if government tries to get tough and this results in the companies unable to make a profit, they will simply leave.

Myth three: Insurance companies could easily reduce their homeowners rates and still make a lot of money.

This one is easy. If that is true, why aren't casualty carriers flocking into the state, undercutting the rates of all current carriers and gathering up all the homeowners business for themselves?

Bill Bravick, New Port Richey

State must do more for homeowners

All the emphasis is on Citizen's Insurance, no one is addressing the insurance rates being charged by Allstate, State Farm and the rest of the 400 plus insurance companies in this state.

I may not have a master's degree, but, I have followed the rate increases. How do they end up being a 300 percent to 500 percent increase in premiums when you go from $600 a year to $,3000 a year over a three-year period? We are a so called high risk state, but when was the last direct hit of a hurricane in Pasco County? Or Pinellas? Or Hernando?

It is time for the State of Florida to step in and rectify the problem. Let there be a Florida Insurance Company that strictly insures those of us who love this state and chose to reside here. Just us. Pull Citizen's and reorganize it and let us, the public, choose. The elimination of business overhead (all the offices of the homeowner's insurance companies) would probably make our premium rates quite affordable.

The sinkhole coverage came after the fuss about dropping policies because of the fear of claims from hurricane damage. They had to make money someplace, so, presto, label the area a sinkhole danger and charge higher rates.

There should be a very big piece of coal in the stockings of every representative in this state!

Christina Ennist, New Port Richey

Citizens needs more managing

Isn't Citizens Property Insurance Co. a state-run company? So why are we having so much trouble with it? It seems that no one is watching the store.

Citizens is suggesting that property owners drop their sinkhole coverage, by doing so it would reduce their premiums by 50 percent. Isn't that great? Next they will suggest that we drop our windstorm and hurricane coverage. I do not think that mortgage companies or banks holding mortgage on property will go along with it. If the mortgage people loan $200,000 or whatever amount to a property owner they want insurance to cover the loan.

It's possible some property owners that do not have mortgages may go for it. Others will drop their property insurance. I know a few that already did. Of course all the property insurers will love it.

Attorney Timothy Volpe suggested that most sinkholes claims result from natural settling of the sandy soil beneath the structures. Strange that it is only happening in Pasco and Hernando counties. I think that the true reason is over-developing of our land, pumping our underground streams and lakes dry, causing the Earth to move and sink making what we now have under our homes sinkholes. Can anyone at Citizens disprove my opinion?

If sinkholes are not truly sinkholes, why are the insurers paying to repair them? Doesn't the insurer send an adjuster or inspector to the home in question to inspect the home and grounds to see if it is indeed a sinkhole or is it just settling of the sandy soil? Am I correct in saying that it is the responsibility of the insurers before they cut a check for the claim?

It seems that the Legislature was listening to the insurance companies' lobbyists and not the citizen taxpayers of Florida.

I have a word for our representatives in Tallahassee. Get off the fence, get down to brass tacks and do your job. Next time around, you may not have a job. It happened in Washington and it can happen in Florida.

Frank DeAngelo, Hudson

[Last modified December 26, 2006, 06:52:37]