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19171 |
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Date: May 24, 2024 at 10:10:50
From: ao, [DNS_Address]
Subject: Soaring rates for property insurance in wake of natural disasters |
URL: Many say they’re getting notices that say “your insurance will expire and will not be renewed” |
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Full Headline: In wake of disasters, homeowners report soaring rates for
property insurance
Policy cancellations and sticker shock.
That’s what Hawaii residents are grappling with when it comes to their
property insurance.
Kaneohe homeowner Carol Fahy is among those impacted.
Last month, she got an email from her insurance agent saying “DB
insurance is adapting to the evolving insurance market.” As a result, the
email said, her policy wouldn’t be renewed.
Fahy was able to get coverage from another carrier, but now pays $500
more per year.
“It’s not fun when these numbers keep going up,” she said.
Fahy isn’t the only one.
Homeowners and agents tell HNN insurance premiums have shot up by as
much as tens of thousands of dollars each year for everything from single-
family homes to condos.
Many say they’re getting notices that say “your insurance will expire and will
not be renewed” or we “will not be renewing this policy due to a change in
underwriting guidelines and high exposure to a fire hazard.” That’s left folks
scrambling to secure a new policy.
It’s even worse on Maui, where primary carriers are leaving the market.
“For years, insurance companies have been collecting these premiums
without any losses. And it goes in this big kitty,” Lahaina-based independent
insurance broker Mahealani Strong said.
“Every time there’s a disaster, that kitty tips, some comes out, goes back
up, they’re able to refill it. Well, the disasters have not given any relief these
past three years alone.”
She says many factors are fueling the state’s insurance crisis.
“Inflation was already bringing it up now you have the catastrophic losses
nationwide,” she said. “And now because they’ve undercharged for
insurance, we’ve got an empty kitty.”
By undercharging, she means most homebuyers only bought the bare
minimum of insurance to satisfy their mortgage requirement so the
collected premiums are not enough to cover losses.
Now carriers are reevaluating risks and raising rates to offset as much as
$100 million in losses they’ve seen in four of the past five years.
In one extreme case, an $800 condo policy has jumped to $8,000 a year.
“I don’t think the carriers are out there trying to gouge the market, I don’t
think that we’re seeing that. I think that the carriers are trying to balance out
their constant losses,” Strong said.
“You share a rate with a bunch of people that are bad insureds,” she added.
“Because you guys all swim in the same pool, everybody gets the dirty
water.”
She advises homeowners to be prepared and adjust their budgets now.
“Never take the advice of a bank telling you how much coverage you should
have,” she said. “Rely on a contractor that you might know to give you a
really good estimate of where your property value should be. Have a
conversation with your agent, a real human conversation.”
In a statement to HNN, the Hawaii Insurance Division wrote:
“The insurance industry as a whole is experiencing a hard market,
characterized by high rates and limited availability.
Insurance rates have been increasing over the past several years across the
nation. Reinsurance markets, or insurance for insurance companies to
manage risks, have contracted resulting in increasing rates to insurance
carriers for reinsurance policies. Amidst a challenging market cycle
predating the Maui wildfires, the reinsurance market has observed losses of
approximately $100 million in four of the past five years.
Nationwide rate increases, influenced by reinsurance market contractions,
have led to substantial cost increases upward of 50% for carriers over the
past several years. Insurers are reevaluating risks, impacting availability and
affordability.
In preparation for a potential decline in the availability of insurance within
the Hawaii market, discussions are ongoing to expand the Hawaii Property
Insurance Association (HPIA)and its capacity to take on new business and to
restart the state-managed Hawaii Hurricane Relief Fund to underwrite
hurricane coverage. The Hawaii Insurance Division also continues to actively
work with insurers to maintain availability of coverage and affordable
options in compliance with statutory mandates.”
Strong urges the state to remove red tape to ensure people don’t lose their
homes.
She says it could take a decade before rates come back down.
“Brace for impact. Hope that it’s a slap instead of a punch, but it’s coming.
It’s coming,” she said.
The Hawaii Insurance Division publishes an annual premium comparison
sheet and guide for homeowners, condominiums and rentals and motor
vehicle insurance. Policyholders receiving non-renewal notices or significant
rate increases should explore alternative insurers.
The premium comparison guide and other resources are available here.
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Responses:
[19189] [19190] [19191] [19177] [19173] [19174] [19175] [19176] |
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19189 |
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Date: June 01, 2024 at 12:36:21
From: eaamon, [DNS_Address]
Subject: Re: Soaring rates for property insurance in wake of natural disasters |
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Houston TX average home prices are $4590 and above due to rains and flooding.
insurers say they are paying out $110 for every $100 they take in.
will probably go up more next year...
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Responses:
[19190] [19191] |
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19190 |
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Date: June 01, 2024 at 17:33:22
From: Eve, [DNS_Address]
Subject: Re: Soaring rates for property insurance in wake of natural disasters |
URL: https://www.realtor.com/realestateandhomes-search/Houston_TX/overview |
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At June 01, 2024 at 12:36:21, eaamon wrote:
Houston TX average home prices are $4590 and above due to rains and flooding.
insurers say they are paying out $110 for every $100 they take in.
will probably go up more next year...
When I read your post less than $5000 for a house in Houston it did compute (maybe you are referring to average insurance cost per year (?)....Anyways I thought to look it
up average cost per house and here is an excerpt of what came up first FWIW:
EXCERPT:
Houston, TX housing market
The median listing home price in Houston, TX was $340K in April 2024, trending down -2.9% year-over-year. The median listing home price per square foot was $182. The median
home sold price was $317.3K.
Houston, TX 2024 Housing Market | realtor.com®
https://www.forbes.com/advisor/mortgages/real-estate/median-home-prices-by-state/
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[19191] |
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19191 |
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Date: June 01, 2024 at 19:02:38
From: Eve, [DNS_Address]
Subject: Re: Soaring rates for property insurance in wake of natural disasters |
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correction: did not compute
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19177 |
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Date: May 28, 2024 at 01:49:24
From: kay.so.or, [DNS_Address]
Subject: Re: Soaring rates for property insurance in wake of natural disasters |
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the owners took down our tree out front, afraid it might fall on us and/or neighbor, made us all sad, and we miss the shade too, i wonder if they got a notice too.i have mused for years about this happening, as we all have seen so many disasters all over the world.
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19173 |
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Date: May 24, 2024 at 10:55:21
From: Redhart, [DNS_Address]
Subject: Re: Soaring rates for property insurance in wake of natural disasters |
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Yeah, I got on of those notices. Their reason was our
roof was too old.
We were discussing reroofing anyway, so we're getting
it done.
But next year, it will be something else. All our
neighbors are getting notices like that..if not a roof,
it's tree removal, it's special water lines, it's
replacing all their fencing...whatever. It's clear the
insurance industry has declared war on the state.
And, the roof is 20 yrs old, and it's a 30 yr rated
roofing. No leaks.
Watched my neighbor cry when she had to pay to remove
trees she planted her self because they were 20 feet
from the house and not 30. But they told her they'd not
renew her policy unless they were removed.
We're going to help her plant new trees this summer.
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Responses:
[19174] [19175] [19176] |
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19174 |
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Date: May 24, 2024 at 11:28:32
From: ao, [DNS_Address]
Subject: Re: Soaring rates for property insurance in wake of natural disasters |
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This is going to keep getting worse.. the insurance companies are trying
to ‘balance their books’ against their loses, and we can only expect those
loses to keep getting worse until they just fold.
Natural weather phenomenon is based on contrasts. Hot next to cold
creates wind.. the greater the contrast the greater the wind.. and with
the current trends we can only expect the contrast to become greater.
The same holds for dry verses moist. The Paradise fire was extraordinary
not in the electric lines in contact with vegetation but rather the extreme
dry air.. and the changes that have happened so far are just the
beginning of the changes still to come.
I can’t see how the insurance industry can avoid going belly up.. how
could they not? Their business model is predicated on a reality that no
longer exists. And still, with the entire mortgage industry relying on the
insurance companies.. yep, big changes are coming, and of course maga
will blame it all on the democrats..
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[19175] [19176] |
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19175 |
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Date: May 25, 2024 at 07:06:25
From: Redhart, [DNS_Address]
Subject: Re: Soaring rates for property insurance in wake of natural disasters |
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And that's the rub...if you don't have insurance, the
mortgage company can call in the loan as they require
insurance.
The problem with the insurance industry is that it's
going to be hard to balance losses if you keep cutting
out clients that create their income.
These issues are arising in so many states..not just
california. Texas and Florida having issues. I had a
chat with someone in North Carolina, and they're having
issues (sea level rises and hurricane. All coasts, all
mountain areas and the plains due to hail and
tornadoes.
Soon, there will be no one left to cancel and they'll
go under.
This isn't a sustainable strategy for insurance corps,
mortgage banks or home owners.
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Responses:
[19176] |
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19176 |
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Date: May 25, 2024 at 17:09:13
From: ryan, [DNS_Address]
Subject: Re: Soaring rates for property insurance in wake of natural disasters |
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the lenders are going to end up with lots of properties and no one to rent them...the crash is coming...
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Responses:
None |
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