Thank You State Farm.........................

[BBQMAN]

And by that I mean F@ck you very much you rotten beastardios.

I sit down to the puter, and this is what I see:

http://www.baynews9.com/content/36/2008/7/16/365677.html

This year I at least did not get my coverage dropped (jeez, thanks).

Last year 35% hike in my rate.

The year before- 30%.

What a joke...................................
_________________
BBQMAN
"I Turned A Hobby Into A Business".
Providing "IMHO" Since 2005.

[CrazyChef]

Wow - I was just listening to the SAME NEWSCAST (5:06 PM) and answered their digital poll - NO

For everyone else, They want to increase their Florida rates by 45% JUST TO BREAK EVEN!!!

Total BS.
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"The difference between stupidity and genius is that genius has its limits" - Albert Einstein

[BBQMAN]

The company overall has made good profits lately. No major storms here since 2005.

Total bunch of crap.

They have also made 100% profit from me since 1990.....................
_________________
BBQMAN
"I Turned A Hobby Into A Business".
Providing "IMHO" Since 2005.

[Big Tom]

Well guys with inflation and all they got to try and stay ahead of the oil companies.

State farm still isn't writing any new homeowners policies that I am aware of. I know we looked into that when we moved in KY. They really put the screws to many MS residents after Katrina washed through the Gulf Coast.
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Big Tom
Pigs-R-Us Cooking Team
Owensboro, KY / Corinth, MS

[smokingmusic]

What was the total money giving away during the All Star Game Home Run Derby by who (State Farm) for any home run hit while being pitched a gold ball. Hmmmmmmmmmmmmmmmmmmmm.

[BBQMAN]

[Harry Nutczak]

I was also amazed how bad state farm was in Florida.

Allstate is the one that screws everyne up here, But down by you they are the saints!! What is allstate offering? (GOOD LUCK IF YOU EVER NEED TO MAKE A CLAIM THOUGH)

After being insured with SF for 5-6 years up here then and making the transition to FL, I got quoted $550 a month after paying $2,500.00 downpayment for full coverage on my Jeep CJ-7 with $5K deducts on comp & collision.

I didn't pay that much for it brand new right out of the showroom!!

Up here they are dirt cheap!! Too add the DPP onto the homeowners insurance, it cost me 67-cents annually.


Is there any sign that the fed govt will step in and help you guys out in insurance pricing?
_________________
Just remember that the toes you may step on during your climb to the top will also be attached to the a$$es you'll be forced to kiss on your way back down!

[BBQMAN]

The state was SUPPOSED do do something about this last year.

Allstate has also had a moratorium placed on writing any new policies due to their practices, of course the courts overturned that decision.

It's still a pretty good place to live, with no state income tax.

The cost of living everywhere has gone up............................
_________________
BBQMAN
"I Turned A Hobby Into A Business".
Providing "IMHO" Since 2005.

[FairWeatherSmoker]

I have State Farm for both auto & home owners. They do pay pretty good on an auto accident. Near as I can tell on the homeowners - IF the house burnt to the ground on a Thursday in August, if it was between the 15th & 20th, and a full moon, and that date fell during a weekday and the temperature in Houston was 65 degrees, they MIGHT consider a claim. But hey, I've only had it for 35 years.

[VaGriller]

I felt your pain from a stint in FL.

[Poppa's PTL Club]

OK, I'll be Mr Unpopularity and bring up some simple (although admittedly infuriating) facts about insurance in FL. These quotes are from the South Florida Business Journal:

David Miller, president and CEO of Jacksonville-based insurance agency Brightway Insurance said "What's created is not a viable long-term market, for large, national insurers that have a business model to be in Florida for decades, filing a rate decrease "is not worth it to them to be unsound."

"State Farm said it expects to pay $2 in claims and expenses for every $1 in premiums collected in 2009."

"Some insurance industry officials fear that denying requests for rate increases or forcing rate reductions could cause more insurers to stop writing policies in Florida or further reduce their limits on numbers of policies."

Here's the problem, the statistical models show that the insurers can't make money at the rates the state wants them to use. Trust me, if they could make money writing in FL, they would. Insurance is a very competitive business.

As for the solution the state was implementing, it is really pretty simple; they were transferring the real cost of the insurance from the insurance companies onto the taxpayers directly. The money for the claims, etc, was not actually going away; they were just trying to take it out of the "insurance" marketplace and put the onus on the taxpayers. It's just that they couldn't go far enough to be politically viable.

As far as a federal solution goes, I don't want to pay for Florida's higher rate of catastrophe, do you? This is the real problem; Florida is a risky place to live. I know that individuals might be fine and not have claims (such as BBQ Man); but as a whole, it's very difficult to make money down there.

Think about it, if the state mandated that you had to sell your catrering services below cost, how long would you stay in the business, especially if you had other markets where you could sell it at a profit? They can hide it all they want, but the reality is, if the cost of pork is $10/lb raw in in FL, you can't make money trying to sell it for $8/lb. In the same sense, the insurance industry as a whole has taken a beating over the past 10 years in FL. I understand your need to vent, but it's like shaking your fist at the sky; it may make you feel better, but it ain't gonna' solve the problem.

That being said, I really feel for you guys down there. If it were me, I would actually think about relocating (I hear the N Ga mountains are beautiful!)
_________________
I likes to eat 'da pig!
Acts 11:5-9

[tic]

10 years never a claim one! My insurance has doubled.

I finally just called and asked if I could make my deductable the same as the insured amount. He said "that wouldnt make much sense"

I said neither does these increases every feaking year.

Im now up to a $5,000 dollar deduct. Started at 500.00

It really hurts when you have escrow.

Every year my house payment has went up because of increase of insurance and taxes!

Oh well. Low income housing is looking better every year.

[BBQMAN]

Poppa, no offense but that is very typical "insurance speak" terms for "we now need to give it to you up the yang, and you will like it or else".

It seems that the insurance agencies also made very handsome profits FOR YEARS AND YEARS, then when it comes time to pay up it's boo-hoo, we are not making any money!

Insurance companies make money because their "business model" is set up like Las Vegas. Overall, the house makes a (very good) profit on the gamble.

Comparing profit margins of catering to insurance is hoot- I'm evidently in the wrong business!

And yes, the North Georgia mountains are beautiful. But I can't make a living there- unless I change proffesion and possibly become an insurance agent!

BTW, the cost of taxes to insurance (and vs vrs) are almost the same for my cost of living here. It's a wash on the expense.......................
_________________
BBQMAN
"I Turned A Hobby Into A Business".
Providing "IMHO" Since 2005.

[Poppa's PTL Club]

I know it's hard to face, but you are actually getting a deal; you are paying less for your coverage than it costs. You keep saying that the companies are making huge profits; where is that happening? The return on equity in the insurance industry is very low (usually less than 10%). The other side of that coin is that unless you really go off the rails, you generally make money, it's just not that much. Capital runs away from any other company that gets that kind of ROE. Insurance is a safe bet because if it is done correctly, it's hard to lose money. One way to do it wrong is to write a lot of policies for less than it costs you.

If you are looking at the profit of the company as a whole, then you are asking for me and everyone in every other state to subsidize your cost of insurance. Exactly why should I do that? It still comes back to the simple problem; FL is more catastrophe prone than the rest of the country because of its geography and position (wind damage is a killer and hits large swaths of the state when it happens). Every few years, it is guaranteed that there is going to be a large storm event (or several) that is going to cause huge losses in the state, whether it hits you specifically or not. You can't escape the simple fact of that.

Again, I'm waiting on BBQMAN to open a Blue Ridge location! C'mon, I'm waiting!
_________________
I likes to eat 'da pig!
Acts 11:5-9

[Harry Nutczak]

Poppa's brought up some items I didn't even think about.

Nothing personal towards any Fl residents, But I guess there is a price that needs to be paid for living in an area like that. And the rest of the country should not need to foot the bill for those people that chose to live there.
_________________
Just remember that the toes you may step on during your climb to the top will also be attached to the a$$es you'll be forced to kiss on your way back down!

[BBQMAN]

Florida: Property Tax's $231.00 a year. Property Insurance $2,000

Georgia: Property Tax's $1500.00. Property Insurance $800.00 (building value only).

Florida total $2,231. Lets assume "Like a good neighbor" my rate gets hiked 47%. That would add an additional $940.00 to that figure bringing the "new' total to $3171.00

Current georgia total $2300.00.

Then lets add in Georgia State Income Tax, and the fact that there is no industry whatsoever to speak of outside of realtors and contractors up there.

Don't hold yer' breath Poppa!

And a footnote to "we should not have to pay for you to live there"

That's a real load fellas.

How about the fires and earthquakes in Cali, the floods out West, the droughts in the heartland, tornadoes in the midwest...........................Common, give me a break!

I don't live on the water, and my elevation is at 47' above sea level negating the need for mandatory flood insurance or evacs.

State Farm made record profits across the board as the biggest insurers in the area. If they didn't want to be number 1 for all these years, why write the policies?

Furthermore, the jackwads actually threatened (it wasn't a direct threat, but more of a "suggestion") to drop me if I didn't insure my vehicles and life with them for twice the cost of Progressive.

Yupp, like a good neighbor.............................
_________________
BBQMAN
"I Turned A Hobby Into A Business".
Providing "IMHO" Since 2005.

[BBQMAN]

How do you explain this:

Most of the homes in my hood were built in the 1920s and 1930s. We have seen any number of major storms in the past 80+ years.

They are all mostly still standing. Lost a few to fires, some to termites, but none to wind/flood damage.

Who's been raking in the bucks for those policies, while basically paying out zero in damages?
_________________
BBQMAN
"I Turned A Hobby Into A Business".
Providing "IMHO" Since 2005.

[Poppa's PTL Club]

There's a few simple questions you need to ask yourself and conditions you need to consider.

If all of the companies are making these killer profits in FL, why isn't there a land rush of insurance companies trying to write business in FL?
Instead, why are all of the major insurers trying to reduce writings or getting out as quickly as the law will allow? I guess they're tired of making a killing writing all that lucrative business in FL and need some time to go blow all their profits at the track.

You also bring along another common misperception about the insurance industry. It doesn't matter how many years you or your neighbors go without a loss; the thing to watch is the experience in the State of FL as a whole, which has been absolutely abysmal. You might think, but I don't live close to the coast! Well, to write business in FL, the insurers are assessed for the wind fund based on their total writings in the state. Where do you think that money comes from? Do you think they want to write the safer business if writing it forces them to subsidize the coastal exposure they don't want in the first place? That's what the wind fund effectively does.

OK, I'm done trying to convince you that you're wrong (trust me, you are). I think you've seen me around here enough to know that I'm a straight shooter and I wish I could get you to understand that I'm right on this one. You guys aren't going to come to a workable solution until everybody understands the problem and why some fixes just won't work. On the positive side, FL did a wonderful job fixing their WC construction subcontractor problem (now there's another topic altogether).

Just remember what I said over the next few years as more and more insurers pull out because they aren't allowed to charge adequate rates. I don't want to say I told you so, but I will be able to if I were that kind of person.
_________________
I likes to eat 'da pig!
Acts 11:5-9

[BBQMAN]

Well I certainly do see your point Poppa (and I'm not saying that your wrong)!

But how do you explain 42 Billion in profits, with 27 states that showed losses?

Are those areas also being hit with a 47% increase?
_________________
BBQMAN
"I Turned A Hobby Into A Business".
Providing "IMHO" Since 2005.

[BBQMAN]