What Is Hurricane insurance ?
This year showed a lot of people who live in the interior everything is like when a hurricane or tropical storm comes their way. So far it's mostly been living on the coast folk who have had the joy of seeing a hurricane dismantle their towns and villages. Now people who live in the hills of Vermont are learning to live with the consequences. They range from simple job to repair roads and bridges, picturesque wood for gruesome task of trying to find the bodies that were washed cemeteries. After Katrina, there was considerable hysteria, not just people living on the coasts that were finally forced to face the reality of nature into anger. There was also panic in the boards of insurers. Although there were hurricanes and storms regularly, these companies had managed to remain profitable. But if the claims of the magnitude observed in the Mississippi had become more common, they could all be destroyed. The result has been observed in two very distinct changes. The first was to fight against a higher percentage of claims. Indeed, many have criticized the ethics shown by some insurers who pay the premiums insurance adjusters to avoid payment of claims or accept very low settlements.
The second set of changes was seen in the policies, where many words have been completely rewritten to exclude or limit the claims that can be made. The first signs were evident in the definition of the franchise. The majority of insurers used to rely on a fixed amount. This has changed over to require policyholders to pay a percentage of the insured value of the house that the franchise. The percentages range from 1 to 5%. So if you have a house with a low value, you could end up paying a higher percentage. Homeowners with high value could "only" have to pay 1 or 2% for each claim. Of course, insurers have not accepted the plan so standard, you drive down a street, each house may have a different deductible according to the insurer who writes their policy.
Did you know eighteen states allow insurers to change the franchise according to the definition of the weather event? This leads to a higher deductible for hurricanes than other storms. So the big question is how to define a hurricane. Unfortunately, there is no agreement. Some insurers expect a storm is appointed by the National Hurricane Center, others have different guidelines depending on the amount of rain falling and / or the wind. In the same neighborhood, this can lead to deductibles and different approaches to decide whether to accept the claims. To address this problem, some of the insurance commissioners have adopted new regulations. In Connecticut, no insurer shall be authorized to impose a higher deductible if winds exceed 74 mph on a regular basis over a period of time. In states where similar rules were introduced, insurers responded by requiring the insured to pay out of pocket expenses. As insurance companies home find their profits under pressure, they turn to other means to recover their profits. It's a vicious circle and unless Insurance Commissioners step with greater force, home insurance policies will become unaffordable when hurricanes are in the wind.
The second set of changes was seen in the policies, where many words have been completely rewritten to exclude or limit the claims that can be made. The first signs were evident in the definition of the franchise. The majority of insurers used to rely on a fixed amount. This has changed over to require policyholders to pay a percentage of the insured value of the house that the franchise. The percentages range from 1 to 5%. So if you have a house with a low value, you could end up paying a higher percentage. Homeowners with high value could "only" have to pay 1 or 2% for each claim. Of course, insurers have not accepted the plan so standard, you drive down a street, each house may have a different deductible according to the insurer who writes their policy.
Did you know eighteen states allow insurers to change the franchise according to the definition of the weather event? This leads to a higher deductible for hurricanes than other storms. So the big question is how to define a hurricane. Unfortunately, there is no agreement. Some insurers expect a storm is appointed by the National Hurricane Center, others have different guidelines depending on the amount of rain falling and / or the wind. In the same neighborhood, this can lead to deductibles and different approaches to decide whether to accept the claims. To address this problem, some of the insurance commissioners have adopted new regulations. In Connecticut, no insurer shall be authorized to impose a higher deductible if winds exceed 74 mph on a regular basis over a period of time. In states where similar rules were introduced, insurers responded by requiring the insured to pay out of pocket expenses. As insurance companies home find their profits under pressure, they turn to other means to recover their profits. It's a vicious circle and unless Insurance Commissioners step with greater force, home insurance policies will become unaffordable when hurricanes are in the wind.
Category Article General Insurance
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