Kristan H
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These fires happen every year. Earthquakes too. The media has blown it more out of hand than it actually might be. I think this fire series is no worse than any other in the past. |
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Don Drapers woman
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This is where insurance companies pay people called actuarials a lot of money to try to predict the future of their company's losses based on past losses. Also, most insurance companies have comprehensive investments to have excess money on hand for something like these fires. However, this is a really bad situation, so it makes me want to review my homeowners policy to see what is all covered. The insurance companies may not be shivering, but they are probably watching things very closely. |
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Ryan C
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No, This is a soft insurance market we are currently experiencing. Meaning Insurance companies are lowering rates trying to gain a larger market share and still making a killing off of investments. The losses in Cali are bad but w/ reinsurance the impact will be spread so thin it won't have much of an impact. |
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Donna C
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Yes, they are. And even the companies that do not have houses insured in that area should be worried. companies are having big losses. Even though they have re-insuranced the reinsurance has to pay. Guess what - how are (they)going to get their money back. By raising rates. Who pay those rates, all companies that take re-insurance with that company. Who do the companies pass their extra expense to. The consumer.
Also, just like when the hurricanes hit, the price of lumber goes up. All states are hit with the price increase. So if there is a loss in Texas, the increase to fix that loss goes up because of cause and effect.
Yes, all companies all over are concerned about the California fires. And you should be to. Because it may effect the cost of your insurance. |
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Eddie B
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No I don't think so, that's what reinsurance is for. Insurance companies only get scared when:
1. Their company is targeted but other companies are not (class action lawsuit for example)
2. Court decisions reinterpret the scope of their coverage to include more than was intended (such as losses from storm surge flooding).
Anytime there is a big loss it just means their reinsurance goes up and so everyone raises rates 5-10%. |
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MSAD
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No.
Insurance companies are prepared for things like this. In the industry when a large scale incident happens (be it wild fire, hail storm, tornado or hurricane) the insurance companies consider it a Catastrophe (Cat for short). The insurance companies have protocols in place and adjusters that are designated to work Cat's. The insurance companies in California already had a plan on how to deal with a large fire before this one even started. Now they just implement it.
As far as the financial end of it goes - insurance companies pay billions of dollars each year for re-insurance. Re-insurance is insurance for insurance companies. (and yes, our re-insurance premiums have gone through the roof over the last few years!). Once losses hit a certain amount, the insurance companies can file back against their re-insurance policies and get paid back some of the money they paid out. An insurance company with a strong re-insurance program should be able to handle at Cat and not go bankrupt. |
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nigyar_98
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Insurance Assistance
The wildfires raging throughout San Diego and other Southern California counties have resulted in scores of insurance claims already, the Insurance Information Network of California reported today.
(continued at http://house-insurance-site.blogspot.com/2007/10/insurance-assistance.html ) |
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mbrcatz
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Not yet. Give it a thousand more houses on fire, though, and you'll see some "issues" with homeowners insurance rates next year in CA. |
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Mikie Likes It!
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Hell yea. Insurance companies are in the business of denying claims. It is a giant ponzi scheme to get money hoping that these kind of disasters never happen. Watch, when the coast is clear, people are going to have the fight of their lives just to get a percentage of the money they were promised by these insurance companies. |
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Angie
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I saw an article today that talked about the measures that insurance companies will go to for some of these high priced houses in the area. They will actually go to the house and spray flame retardants on them. Guess having money is a good thing!! |
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messinger1965
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They will find a way to worm a way out of it. |
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