With all the insurance companies threatening to stop coverage in areas where there is a risk of hurricanes, they all may just stop coverage due to the risks involved. A scary thought if you're planning to sell your home soon. Will we see the day when insurance won't exist in coastal states?
2006-08-03 16:41:39 · 5 answers · asked by ? 1 in Local Businesses ➔ United States ➔ New Orleans
Yes. But that might not be a bad thing considering how awful these insurance companies are anyhow!
Where I live you can't even get a real insurance policy. You have to go through the state and the coverage sucks. My house is grossly underinsured and I can't get more coverage no matter how much I am willing to pay. Plus, I got hit by 2 hurricanes last year and the insurance company didn't pay us squat. And we got screwed with 2 seperate deductables. Lots of people around here are starting to think that they are better off without insurance. They can save up those premiums and apply the money to storm damages. More cost effective for many.
2006-08-03 17:00:32 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Hopefully that won't be the case. There has always been the risk of hurricanes along coastal states, but the insurance companies never imagined that they would ever have to a catastrophe like Katrina. If they decide not to insure coastal states, then they would also have to not insure states along "tornado alley". Unfortunately, natural disasters happen, thankfully not on a regular basis. But when they do, we expect our insurance companies to do as they have promised over the years when they readily took our money.
2006-08-04 00:11:24 · answer #2 · answered by Kat 2 · 1⤊ 0⤋
Forget about the coast. Have you tried getting insurance south of I-12? I doubt it will go into extinction because there is certainly opportunity in insuring high risk enterprises. At the very least, the state and feds would have to step in as they already do with other forms of high risk policies.
Either way, everyone pays and always has. That is nothing new and it isn't new to the insurance industry. The cost of doing business is always passed on to the consumer. Look at oil!
2006-08-05 18:09:41 · answer #3 · answered by Sam B 4 · 0⤊ 0⤋
I would hope so. Every time a hurricane hits a coastal area, rates go up throughout the country.
2006-08-03 23:51:09 · answer #4 · answered by denlp96 5 · 0⤊ 0⤋
It already has!
2006-08-04 00:36:58 · answer #5 · answered by suequek 5 · 0⤊ 0⤋