Quote:
Originally Posted by bimmertl
Sorry Steve, you are wrong on this one.
We moved here from Illilnois. The HO rates here are not even close to the "two to three times higher" number you picked out of the air. Actually the non hurricane portion of the premiums is similar to coverage everywhere else, which it should be.
Our policy premiums are clearly outlined in our bill. The hurricane portion of our yearly premium is roughly 27% of the yearly premium with a 2% hurricane deductible. If your home is "hurricane proof" opt out of the hurricane coverage.
Premiums are based upon sound actuarial data applied on a county to county basis, typically done be zipcodes. There is no "state rate", whatever the heck that is.
We previoulsy lived in Pasco county Florida. Pasco is the sinkhole claim capitol of Florida. Our premiums there were over twice as much as in TV for less coverage than we have now. Clearly a location based premium.
This move won't "bite" State Farm and USAA was never bitten by their withdrawal. They remain one of the strongest property and casualty carriers in the US. State Farm will no doubt be stronger as a result of their move if in fact they do eventually leave.
Great point on the joy of a free market. State Farm should have been allowed to adjust their rates to whatever they wanted and then let the consumers decide if they want to remain customers or go elsewhere. Instead, over 1 million policyholder will have to look elsewhere in a market limited by inadequate rates mandated by inept bureacrats. If you think there are always companies willing to see Florida as an oppurtunity for homeowners insurance, you haven't been paying attention. Most major carriers won't touch this place.
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I've been wrong many times in my life - probably daily on some things....
When I lived in Seminole County (moved away duringl 2004), my property rate was
dollar-for-dollar three times more than my rate in the DC area - same company (USAA). That came as quite a shock (a positive one) when I moved North. And now returning to FL, USAA said
Nyet to covering the new home. I ended up with coverage, but not with a company having a nationally-recognized mascot.
I guess there's no good way with this.
Strange though, when the property insurers want to escalate rates to the stratosphere and the State gets involved, that's undue regulation. However, when health care insurers do the same, that's another story.