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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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The storm loss history here would suggest risk is low. We just changed to Tower Hill Insuance Exchange, a “reciprocal” insurance company, which sounds like a mutual to me. I was reluctant, but then I looked at my old Farmer’s Insurance policy, and found it was underwritten on the California Truck Insurance Exchange, a similarly structured company. Tower Hill ha $1Billion in reinsurance, and a good history and BBB rating.