Quote:

Insurance is not simply a group of people paying into a pool to cover occalsional bad things happening.

It is that plus 15-20% over that (profits dontcha know).

Insurance greed does exist. And the more you 'need' it the more they profit on it.

Then again, that is what they are there for! I look at some of the insurance costs and realize I could personally rebuild the house for about 10 years of premiums. Then again, some of those places need rebuilding more than once every ten years.. tough call there. I wouldn't live around the gulf myself.



This is really my point, Bob. You're throwing the dice by living in a hurricane zone and since they're basically unpredictable as to where they're going to hit, the fact that one hasn't hit any given area in that zone in 40 years just means that area is overdue. I read a few years ago that some of the very rich people in Palm Beach opted to hurricane proof their mansions rather than pay the insurance. It's cheaper. If you can afford a 10-20 million estate and the insurance can be in the high six figures a year which is what I read, then for maybe another mil or so you can turn your house basically into a land locked submarine capable of withstanding 200 mph winds and a 25 foot surge and that's what several of them did. That of course means squat for any regular folks who may want to live in that area.
As far as insurance company profits are concerned, realize they are like a big casino using the best economic software available to place their bets. How would you like to run a company where for several years, money is coming in hand over fist but let one Katrina sized event happen, you can be wiped out? This will definitely make your eyes glaze over and you're probably not interested but here's a pretty decent article about it and it's particularly interesting where the profits come from.
Wikipedia

Bob

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