Quote:
Originally Posted by acornhome
Just read the ad from the Villages Insurance that says that their rates are going up substantially because of all of these new roof claims. One street in our neighborhood has 1/2 of the homes with signs that say “approved”. Usually you get dropped from the company if you file a claim. Is this happening? Or am I just going to have to pay for everyone’s claim?
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You have summed up what insurance is - a group of people putting money into a pot to cover the costs of one or more of you claiming for a loss. Whether this is done through a third party (an insurance company) or informally amongst yourselves, anyone who does not make a claim ends up paying for those who do.
I wouldn't feel too sorry for the insurance companies. They make out like bandits when times are good, and squeal like stuck pigs (and raise premiums) when times are not. There is a way that they can reduce their risk (reinsurance, whereby they lay off a percentage of their claims with other insurance companies) if they think they are too exposed in a certain area, but that means handing over some of the premium income which they don't like to do.
The fact that a number of roofs in your area are being replaced at the same time is no great surprise either. If the roofs are basically the same in terms of age and construction, since they have all been exposed to the same strong winds they are likely to be affected similarly.
As others here have said, the best thing is to get quotes each year from reliable companies each year and get the best deal for the coverage that you want.