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Vic Smith

On Mon, 26 Oct 2009 23:23:13 -0400, wrote:

I agree with those who say there may be a huge pullback in the health
insurance industry. They will just stop writing insurance and the
employers will stop providing insurance.
I know everyone in favor of the government option say that is great
but we already saw that with homeowners in Florida and our rates
skyrocketed when "the public option" was the only one writing new
policies.
The legislature put caps on premiums and the insurers simply canceled
everyone. There were a few bridge companies that picked up some of the
policies but they are canceling people for the least little thing..

Different situation. You got insurance reserve requirements,
sensitivity to share prices (though State Farm is privately held),
and hurricanes.
Looks like it's still a mess down there. Big mistake capping rates
and driving them out.
I was still in the business then and my impression was the damages
versus reserves didn't justify the rate increases.
But with all those hurricanes hitting at once the insurance companies
got spooked.
But I won't stand by those impressions since I didn't look hard.
Maybe your state insurance commission did.
Remember the insurance business exists only to maximize profit.
They ain't your friend.
I'm still thinking that renting my home here and renting one down
there instead of buying is a good option.
Don't want to deal with that insurance.
I think if I bought down there it would be cash, and I wouldn't insure
except liability. Tricky, but it could work.
Much of home value is the land and contents anyway.
If the house doesn't get blown flat of float away, and the contents
aren't costly, it could work.
I bet many down there are doing exactly that.
So I would buy a beat up place above most flooding, get a crew in
there to retrofit hurricane ties and shutters, then furnish from the
goodwill store, pop a beer and relax.
Hey, relaxing is what Florida is for, right?
I'll try not to have any Chevys on cinder blocks in the front yard.
If I have a back yard, that is.
And no damn HOA.

--Vic