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Re: [TowerTalk] Why insurance companies hate Florida

To: "C Dwight Baker" <>,<>
Subject: Re: [TowerTalk] Why insurance companies hate Florida
From: "K8RI on Tower talk" <>
Date: Fri, 24 Mar 2006 16:37:37 -0500
List-post: <>

>I wonder if the CLUE system could be construred to be a violation of
> "Privacy"??  It might be nice if a class action suit filed against the 
> whole
> insurance industry for sharing our private information to others??
> I, too, live in Florida and was an Allstate customer for over 30 years and

Remember the add where you are "in good hands when insurred by Alstate". 
They just don't say what the hands are holding.

> the turkeys cancelled my homeowner's policy with nary a claim against them
> for 30 years.  Something doesn't compute.  Now I am covered by a second
> class company.  I had no damage from Frances, Jeanne or Wilma.  Frances 
> and
> Jeanne came through Vero Beach and the town looked like "Blue Roof Haven"
> afterwards.

Very simple.  You live in a "high risk area" and the odds of them having to 
pay out are higher than average even though you've never had a claim.  The 
odds are they can't insure you and *expect* to make a profit.  If they are 
already in a sutuation where they are having cash flow problems (paying out 
billions for  a devistating hurricane season with the prospect that at least 
the next few seasons are predicted to be as lively or even moreso) then it 
becomes a business decision not to take on, or renew any high risk clients, 
or minimize or eliminate the number they already carry.

It's not a just a case of frivolous claims, which do happen but are a small 
percent of claims. It is a case of the companies picking clients in areas 
who are unlikely to make a claim.  Insurrance is just like going to Vegas. 
You *normally* pay based on the odds that IF you ever have a major claim the 
insurrance will pay off the losses. The insurrance companies charge based on 
the odds that given the "risk factors" for any given area, *they* will not 
have to pay and will make a profit over so many years by charging a specific 
rate.  Those rates are *normally* based on how much they think they will 
have to pay out (on average) for that area over that same period.  Auto 
insurrance is rate based even on areas such as whether you live in town, the 
country, which state, which town, age, sex, driving history, or lack there 
of, as well as the make and model of vehicle. If you have a car that is a 
prime target for thieves it'll really cost.  The kicker with car insurrance 
is in most states you are required by law to carry that insurrance and the 
"uninsurred motorist" rider on your policy really does very little for the 

IF you are in an area where they are *likely* to show a loss over that 
period (what ever the length) they will do their best to prevent that 
happening.  If their rates are limited, then they will find a reason to not 
provide insurrance (if they need to provide a reason other than they don't 
want to have to pay out the money)

Insurrance is a business and they are expected to show a profit.  OTOH the 
way they maintain a profit, or recoupe loses is sometimes perceived as being 
a bit less then ethical.

Roger Halstead (K8RI and ARRL 40 year Life Member)
N833R - World's oldest Debonair CD-2
> Dwight
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