Oh how I hate insurance companies

[Chainfire]

I bought my first house when I was about 25 years old. Since that time I have paid insurance premiums to various companies, roughly 45 years and have never filed an insurance claim. I may be about to drop it.

When I built my house about 20 years ago, I had a 30 year roof installed. My insurance company sent us a note that they will no longer write a policy on a roof that is over 20 years old. My roof is fine, it went through the worst hurricane that this part of Florida had seen in recorded history three years ago without losing a shingle...It is good for another 10 years or more. (Which will probably be longer than I live!!!)

Not only do I have to get a new roof, but they can't tell me what the cost of the new policy will be when it expires in four months, if we do get a new roof....So, I can buy a $20.000.00 new roof that I don't need and then will be stuck with whatever the new policy will cost. It may double or triple? Who knows and who knows about next year? The insurance industry just doesn't want to write in coastal areas. (and I am 60 miles from the coast, but in Florida)

Of course, I went into a slow simmer and started checking out other companies. It appears that no insurance companies in Florida are writing new policies on houses that are over 20 years old! Now I will have to guess but that must be about 80% of the houses in Florida.

I am down to the short rows on my mortgage, and have the money in the bank to pay it off. I think that I will pay off the mortgage and tell the insurance company to go to hell and take my chances. I just can't stand the thought of having to do business in a situation where I have no options, no control and no say. It seems like everywhere we turn the working class people are being put over a barrel.

[XanaDUer2]

1. Oh, insurance companies of all stripes suck

Good luck

[jimfields33]

2. My neighbors have been getting drop letters the last 12 months

They either find another insurance company or got a new roof. Me. I’m at 18 year roof and so far my insurance company has left me alone (except they raised it 200 bucks a year the last two years). I’m hoping to make it to 20 and the spend the 18K to get a new roof.

[rsdsharp]

3. When we bought our current house (19 years ago)

the first company we asked for a quote opined that they didn’t think the underwriters would approve a policy because the FORMER owners had made two claims — both for less than $250 (who does that?). I asked if they thought the house was responsible, and bought the policy from a different company.

BTW, our roof is nine years old, but it has a fifty year, parts and labor, transferable warranty. I wouldn’t want to be the insurance agent who tells me I have to replace a roof with 30 years left on the warranty.

[SheltieLover]

4. Ins cos suck!

[Chainfire]

5. I am fortunate that I am such a tightwad that I have put back more money than

most old construction workers. Because of that I have some options.

What is going to happen with the new underwriting policies in Florida is that there will be a hell of a lot of people who simply can't afford to replace a good roof, will lose their insurance and then have their mortgage foreclosed. The next thing that happens is that the big investors will swoop in and convert the houses to permanent rentals, insuring that the next generation will be paying whatever they ask for rent.

[Shermann]

6. Did they even offer to allow an inspection in lieu of a new roof?

Generally speaking, insurance companies aren't going to manufacture reasons for a non-renewal of a policy. If the roof is in good condition, which can be demonstrated, it is generally in their best interest to renew the policy. It sounds like they want to slowly exit that coastal area market.

[Chainfire]

7. Nope, we asked. They don't care.

I understand that, the last thing an insurance company wants to do is to accept a risk.

I live closer to Georgia than I do to my post office. Some of my neighbor's insurance went from $1800.00 last year to $3800.00 this year. Who knows what next year brings.

It is 60 air miles to the nearest salt water. I am 300' above sea level, on top of a hill, so I am not a flood risk unless Noah comes back into play. I built my house as if I was expecting a hurricane, hip roof, high end wind resistant windows, etc. I lost 60"% of my trees on 30 acres of woods, in the last storm, but the house suffered no damage. The exterior of my house is fireproof materials. I have literally never filed an insurance claim in 45 years of paying homeowner's insurance. Yet, because I am in Florida I am a risk.

You are right, the companies want to stop writing in Florida and just sell other types of insurance and the policy changes are meant to drive customers away. If I knuckled in to them this year, there will be a new crisis and rate hike next year. Climate change is real to the Republicans in the insurance business, regardless of what they have the politicians tell you. To hell with the insurance company.

[TomSlick]

8. Insurance companies operate on the balance of premiums and risk.

With climate change, I would expect all insurance companies to be leery of insuring property in Florida.

Have you examined policies that exclude coverage for the roof?

[Hoyt]

9. Insurance is a waste, until you need it.