Quote:
Originally Posted by OrangeBlossomBaby
Absolutely not. We've moved south enough in The Villages for some of the homes to be in direct line of the tornadoes that show up every year. If you lose 10 homes, your "captive insurance" would have to pay out for ALL of them. PLUS damage to nearby homes, plus hotel costs for those who are displaced, plus the contents of their homes - and you'd still need to be able to pay out for ALL the homes if (god forbid) some catastrophe should hit the entire community with any damage or loss. Don't forget the more recent sinkholes at properties south of 466a lately - insurance covers that too.
Paying out a few million dollars total when you're a company getting premiums from tens of millions of homes scattered around the country - is not the same as paying out a few million when you're a community paying in premiums to cover only a few thousand homes, all located within the same concentrated 70-square-mile area.
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Afe you familiar with reinsurance?