Quote:
Originally Posted by The Gaijin
Granted - I think a lot of increases are not about the actual cost of a risk as they are about chasing customers away...
But if you look at the big picture - over the long term - we have built too much in this country (not to mention the piss-poor quality) in flood, wind and storm prone areas. This has been encouraged by lax underwriting by insurance companies, federal flood insurance, bad zoning and shoddy construction pracitices.
The market will determine the cost of insurance in these places and it will not be pretty....
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I am about to cancel my insurance and self insure. I have decided to sell my vacation home and get rid of my mortgage and just self insure putting $6500 a year in a savings account. I have not had any damage in 12 years so far so I am willing to take this bet, 10 years from now I'll habe $65K in my bank account instead of State Farm. A friend of mine did this 20 years ago with a vacation home in the Bahamas and even after Floyd destroyed it in '99 he is still ahead of the game.