[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?

[JohnN]

Good idea. I'd sure consider it.

[Stu from NYC]

Do not think it could work. A tornado wiping out a bunch of homes would wipe out such a group rather quickly

[Normal]

Originally Posted by Stu from NYC

Do not think it could work. A tornado wiping out a bunch of homes would wipe out such a group rather quickly

If you have been around here long enough, there are way too many reasons to not undertake the endeavor. Variable construction techniques from mobile homes to block cover the villages is one. Then there was the Mallory Hills twister that destroyed many villages homes around the housing crisis time around 2008.

[Kenswing]

To become an actual insurance company the legal and financial hurdles are tremendous. If any of the participants in your group still have a mortgage I’m sure that the mortgage company would also balk at such an arrangement.

[Jayhawk]

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?

No one with a mortgage would be eligible.

[vintageogauge]

And don't forget, one slight mistake and Morgan & Morgan will be at your doorstep. Personal injury attorneys advertise very heavily down here, never seen anything like it anywhere else.

[mikemalloy]

Originally Posted by Normal

If you have been around here long enough, there are way too many reasons to not undertake the endeavor. Variable construction techniques from mobile homes to block cover the villages is one. Then there was the Mallory Hills twister that destroyed many villages homes around the housing crisis time around 2008.

I've lived here 10 years. You mention one incident that occurred over 15 yrs. ago. Consider what the premium collection from 5,000 homes over those years would have been. The company could have easily covered all the claims.

[mikemalloy]

Originally Posted by Jayhawk

No one with a mortgage would be eligible.

I'm suggesting that we form our own insurance company. Why would individuals with a mortgage not be able to purchase a policy through it?

[mikemalloy]

Originally Posted by vintageogauge

And don't forget, one slight mistake and Morgan & Morgan will be at your doorstep. Personal injury attorneys advertise very heavily down here, never seen anything like it anywhere else.

Love thos guys. Spent 40 years of defending their mostly baseless claims. Remember that the loss to the insurance company is capped by the policy limits. Reinsurance is another way to lower risks.

[JRcorvette]

Rather than forming an insurance company which has many State Regulations it might be possible to form some sort of Co-Op type of self-insurance that would have limited peril catastrophic coverage on the structure only such as Wind - Fire. Wind damage to roof shingle was be base on age and paid on an ACV bases. You would only get paid for limited things.

Just a though since someone brought up Self-Insurance

[TSO/ISPF]

Interesting that the Developers haven't thought of that. They have Banks,
Health insurance, etc... Why not set up an insurance company for eligible village residents? Might help sell properties.

[Stu from NYC]

Originally Posted by TSO/ISPF

Interesting that the Developers haven't thought of that. They have Banks,
Health insurance, etc... Why not set up an insurance company for eligible village residents? Might help sell properties.

Somewhere along the line either the developer or someone approached them about this.

If they thought this would make them money without great risk it would have been done

[Jayhawk]

Originally Posted by mikemalloy

I'm suggesting that we form our own insurance company. Why would individuals with a mortgage not be able to purchase a policy through it?

Good luck obtaining a financial rating for a localized group of residents. Would never happen. Even loans provided by CitizensFirst are written to Fannie guidelines.

General Property Insurance Requirements for All Property Types | Fannie Mae

[tophcfa]

Originally Posted by TSO/ISPF

Interesting that the Developers haven't thought of that. They have Banks,
Health insurance, etc... Why not set up an insurance company for eligible village residents? Might help sell properties.

Most very successful businesses focus on what they are very good at and don’t try to be jacks of all trades and get spread too thin.