Quote:
Originally Posted by mikemalloy
I have some experience with insurance companies created by groups such as doctors when their insurance costs had large increases. It appears to me that the current rise in insurance premiums comes from a combination of increases in cost of repairs such as lumber prices, and the losses they sustained from hurricane Ivan.
It seems to me that The Villages is located far enough away from the coast that severe damage from hurricanes is a slight threat. Similarly, the flooding damages we've seen like those along the St. John's river are also much less likely here. I wonder if we in The Villages are subsidizing the risks found in areas susceptible to catastropic damages.
My question is, would it be possible for The Villages residents to self insure? Could we form our own insurance company? I"m not familiar with what the state requirements are for capitalizing an insurance company perhaps some of you have some information about that.
I'm sure that the premiums we are paying are much higher than they need to be and that self insuring if possible would be a benefit to us all. Thoughts?
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Self-Insurance and setting up an Insurance company, are 2 completely different tracks.
Anyone can "self-insure". Just don't buy insurance ... BINGO! You're self insured. Or even buy a policy with a $50,000 -$100,000 deductible ... you're most self-insured.
As for setting up an insurance company?
Insurance companies that have been in business for generations, are going broke and moving out of Florida. Even if the obstacles others have mentioned weren't real (they are), what makes you think a bunch of retired folks, setting up a mutual insurance company, would be better at it, than the pros?