What it means is rates will go up for just about every one as insurance
companies are in business to make money and not pay claims.
They are going to get that money back one way or another, BUT if the more
people self insure, use higher deductibles, and eliminate replacement value
riders, they are eliminating income to those companies which means even
higher rates for a longer period while they are trying to recover.
It's a vicious cycle and particularly for those of us with towers and lots
of electronic equipment. If I have a claim on my antenna system it will not
be small, particularly if I have to hire any climbers. I doubt I could have
the tri-bander replaced for less than a couple thousand dollars, but
considering how long I've been paying an extra premium the insurance company
would still be ahead. OTOH Only those who haven't watched the weather didn't
realize higher premiums were on the way.
I will most likely be dropping the ARRL insurance which used to be a good
deal, but now there are so many disclaimers I'm better off with a rider on
my home owners policy. Just look at what kind of damage they don't cover and
that included lightning, power line surges, and I believe water damage.
(plus lots more)
However I do agree, with the policy of not making small claims. Use the
insurance, but only when you really need it. Whether we will be able to
afford the necessary insurance in the future remains to be seen.
Roger Halstead (K8RI and ARRL 40 year Life Member)
N833R - World's oldest Debonair CD-2
> Towertalk folks:
> Today's Wall St. Journal carried news that home insurance rates are going
> rise due to the reeling insurance industry following last year's
> and an expected active 2006 season. Insurers are dropping policies in
> coastal areas including Massachusetts, and increasing premiums nationwide
> recover losses due to hurricane damage payouts which are estimated at $56
> billion currently. Rate increases are expected to spread far beyond hit
> coastal states, as the industry comes under new pressures since
> companies, whose business it is to insure the insurers, have begun
> sharply higher prices in anticipation that hurricanes will become more
> frequent and more intense, and some primary insurers say they will try to
> recoup these added costs from consumers.
> Allstate has reported it plans to seek premium increases in a "majority"
> the 49 states in which it does business to help offset higher reinsurance
> The full report is in today's (thursday Mar. 23) WSJ on p. D1.
> What does this have to do with hams. Hams have antennas. The newspaper
> report says industry experts are advising consumers to keep a low profile
> this time. This means that you should consider self-insuring as much as
> possible by carrying as high a deductible as you can afford, to keep
> premiums low and remain attractive to insurers. Also, avoid filing small
> petty claims. Never file a claim for maintenance-related damages such as
> chronic water leak; even one such claim could cause you to be dropped by
> your insurer, according to the WSJ report. I interpret this to mean that
> this is not a good time to file an antenna or radio related claim on a
> homeowners policy.
> rob / k5uj
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