[Wondering]

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?

2007 tornado wiped out homes in the Villages. Block and stucco survived but not stick houses.

[Marine1974]

Sounds like you and 4,999 homeowners would be rolling the dice
with self insuring 5000 homes . Better option would be to self insure your home with no mortgage and see how you would sleep at night .
Would you hire a contractor who self insures their business?

[Spartan86]

Originally Posted by nn0wheremann

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.

I am not “dissing” Tower Hill, and have no experience with them. One problem personally would be that my homeowners insurance must be underwritten by a company with at least an A- AM Best rating for my auto insurer to write my umbrella policy. Tower Hill, as I understand it chose to delist from AM Best a couple of years ago. Just something to think about if you are carrying an umbrella policy.

[sallyg]

Great idea!

[Robojo]

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

I was thinking the same however if we did self-insure and we diversified areas it might work. Like if people self-insured their home in the other state as well

[Robojo]

Originally Posted by Wondering

2007 tornado wiped out homes in the Villages. Block and stucco survived but not stick houses.

Now I know what kind I'm gonna buy thank you

[Shipping up to Boston]

Originally Posted by bigeasy

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

I’m sure in the dozens of threads on this topic....the self insurance model has come up just as many times. For me, self insured will always mean you’re riding dirty (no insurance). Unless you have obscene wealth or are part of some larger entity...this will never make any sense to me. If the majors wanted to .....to paraphrase Kevin O’Leary from Shark Tank....they would squash your little group product like a bug!

[mikemalloy]

Originally Posted by Robojo

I was thinking the same however if we did self-insure and we diversified areas it might work. Like if people self-insured their home in the other state as well

It's been over 15 years since that incident. Just think of how much of a claims reserve the Villages Ins. Co. wuuld have if it had been collecting $1,500 from 5,000 homeowners for 15 yerars. You don't think $112,500,000 could have covered the claims?

[dewilson58]

Originally Posted by mikemalloy

It's been over 15 years since that incident. Just think of how much of a claims reserve the Villages Ins. Co. wuuld have if it had been collecting $1,500 from 5,000 homeowners for 15 yerars. You don't think $112,500,000 could have covered the claims?

5000 homes, say $500,000 replacement value creates $2.5B in exposure, would need 250,000,000 in reserves.

All those premiums don't even cover 1/2 of the reserve requirements, not to mention claims paid over the 15 years, operating expenses, etc.

[Shipping up to Boston]

Originally Posted by mikemalloy

It's been over 15 years since that incident. Just think of how much of a claims reserve the Villages Ins. Co. wuuld have if it had been collecting $1,500 from 5,000 homeowners for 15 yerars. You don't think $112,500,000 could have covered the claims?

You don’t think with all of these semi retired or actively retired insurance pros here in TV....that the idea hasn’t already been looked at and vetted? Just saying. It obviously is an uphill battle in a very volatile home insurance marketplace (FL). Too much risk and not enough (potential) gain IMO

[Blueblaze]

If the insurance companies don't regain their senses soon, I'll be tempted to "self insure" -- in other words, just do without. When the house is paid off, insurance is kind of dumb, when you think about it. It's kind of like keeping that million dollar life insurance policy you had before the kids left home and you retired. What are you insuring against?

On the 1-in-a-million chance your house is reduced to rubble, what's the worst that happens? You wind up with a mortgage to rebuild? OMG! Wait... maybe that's not as bad as the 100% certainty of handing over four mortgage payments every year to an insurance company -- until the day you die -- FOR NOTHING.

OK, maybe a windstorm merely blows your roof off? What did your four-mortgage-payments- a-year-til-the-day-you-die buy you? A $20K roof you were going to have to buy someday yourself, anyway?

I'm willing to buy a reasonable amount of insurance against disaster. I'm not willing to spend twice the grocery bill to insure against groceries.

The insurance industry has become a scam. If they don't pull their head out soon, they may wake up one morning to discover that 50 million retirees without a mortgage have suddenly realized they have enough scams in their life.

[mikemalloy]

Originally Posted by Shipping up to Boston

You don’t think with all of these semi retired or actively retired insurance pros here in TV....that the idea hasn’t already been looked at and vetted? Just saying. It obviously is an uphill battle in a very volatile home insurance marketplace (FL). Too much risk and not enough (potential) gain IMO

I'd appreciate comment from some of those insurance pros.

[Shipping up to Boston]

Originally Posted by mikemalloy

I'd appreciate comment from some of those insurance pros.

Crickets!

[Fastskiguy]

Originally Posted by Blueblaze

If the insurance companies don't regain their senses soon, I'll be tempted to "self insure" -- in other words, just do without. When the house is paid off, insurance is kind of dumb, when you think about it. It's kind of like keeping that million dollar life insurance policy you had before the kids left home and you retired. What are you insuring against?

On the 1-in-a-million chance your house is reduced to rubble, what's the worst that happens? You wind up with a mortgage to rebuild? OMG! Wait... maybe that's not as bad as the 100% certainty of handing over four mortgage payments every year to an insurance company -- until the day you die -- FOR NOTHING.

OK, maybe a windstorm merely blows your roof off? What did your four-mortgage-payments- a-year-til-the-day-you-die buy you? A $20K roof you were going to have to buy someday yourself, anyway?

I'm willing to buy a reasonable amount of insurance against disaster. I'm not willing to spend twice the grocery bill to insure against groceries.

The insurance industry has become a scam. If they don't pull their head out soon, they may wake up one morning to discover that 50 million retirees without a mortgage have suddenly realized they have enough scams in their life.

100% agree!!!

Joe

[Gatorfan1]

[QUOTE=Spartan86;2329829]I am not “dissing” Tower Hill, and have no experience with them. One problem personally would be that my homeowners insurance must be underwritten by a company with at least an A- AM Best rating for my auto insurer to write my umbrella policy. Tower Hill, as I understand it chose to delist from AM Best a couple of years ago. Just something to think about if you are carrying an umbrella policy.[/QUOTE

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