[BrianL99]

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?

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?

[Shipping up to Boston]

Originally Posted by mikemalloy

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.

So you worked for M&M or were opposing counsel?

[mikemalloy]

Originally Posted by Shipping up to Boston

So you worked for M&M or were opposing counsel?

I worked as opposing council.

[Shipping up to Boston]

Originally Posted by mikemalloy

I worked as opposing council.

For the (other) people!

[Desiderata]

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?

I like the way you think. It’s a great idea!

[JGibson]

If we're paying ridiculous prices what are people living on the coast paying.
Or are we subsidizing the people on the coast.

[NachoMama]

Originally Posted by 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.

Exactly!

And then there are the logistical and practical issues:

Who would run the company and how would they be chosen?

What sort of staff would you need, and with what backgrounds?

What would you do with the pool of premiums? Who would create the investment policies and execute them?

What safeguards would you have against staff or management absconding with funds?

Who would create and execute the compliance policies?

What would your legal team look like? Would you have in-house counsel, or contracts with law firms?

Who would do the actuarial work?

Would thousands of Villagers sign up to be insured by a loosely aligned group of amateurs just by word-of-mouth? Or would you need a salesforce? What would that look like and how would they get paid?

[Fastskiguy]

Originally Posted by BrianL99

Or even buy a policy with a $50,000 -$100,000 deductible ... you're most self-insured.

Is that really an option? Like as in....will insurance companies actually sell you a policy like that?

Joe

[Robnlaura]

Just think of how much you would have in the bank if you saved that insurance cost. After three years you will have plenty to cover a roof or a leak..

[Robnlaura]

The sort of good news: the governor announced, "We are waiving all taxes on insurance premiums for a full year for homeowners' policies and flood insurance policies," a greatly needed step considering Florida's standing as the state with the highest homeowners insurance in the country.

In 2023, Florida homeowners paid the most for homeowners insurance with an average annual rate of $10,996 with six of the 10 most expensive cities in the country for homeowners insurance located in Florida.

The U.S. average? $2,337, NewsPress reports.

[Lisanp@aol.com]

I am insured through a member-owned property and casualty exchange plan. I have mortgages so that is a nonissue. However, they would not issue a homeowners policy on my Florida property. There is your answer on this being a possibly.

[mikemalloy]

Originally Posted by BrianL99

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?

The "pros" have been writing policies in the whole state. They've taken large losses such as the collaps of the Champlain towers and the damage done by hurricane Ivan. Because the proposed ins. company wouldn't be writing policies where there are high rise buildings or exposure to the extensive damage caused by hurricanes on the coast it could be successful. Additionally the need to turn a profit would not be there since the purpose of the company would be to provide property and casualty coverage to occupants at a reasonable cost.
I wonder about the risk is writing policies on Villages autos. Many sit in the garage for days at at a time with the owners prefering to use their golf carts for local trips. There are lots of questions my proposal raises but rates are getting to the point where such and idea should be at least explored.

[gorillarick]

I lived on the FL east coast. My insurance dropped to about 25% of what it was, to a TV house about 66% of previous value.

However, my car insurance has somewhat slowly doubled since.
Go figure.

[bigeasy]

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?

Drop your insurance. Then you will be self insured like the Amish.

[nn0wheremann]

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?

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.