Tens of thousands of homeowners who suffered wind and storm damage this week will get financial relief from rulings by several governors that insurers must treat Sandy as a tropical storm and not a hurricane. …
“Whether they call it a hurricane or something else, that translates into the percentage I have to pay to get my apartment redone,” she said before Gov. Andrew Cuomo announced Wednesday that homeowners would not have to pay hurricane deductibles. “I had no idea. It’s crazy, and it’s going to cost so much money.”Homeowners’ insurance policies in coastal areas almost always include a provision that the deductible will be higher when damage is caused by a hurricane than a lesser windstorm. The difference can be steep — in the thousands of dollars — because the regular deductible is a flat dollar amount, while the hurricane deductible is connected to the replacement value of the house.
Right about now dozens of actuaries at all the big insurance companies tossed a huge pile of paper in the air and started to bang their head against the wall.
The title of this story at the NYT is “Governors Promote Lower Deductibles for Homeowners” which is one way of looking at it. The other way is to say, “Governors pander for votes, interfere with the insurance system, annual premiums going to go up up up.”
You don’t get to negotiate your insurance policy terms after the fact. If you wanted a lower deductible then you could have purchased insurance with a lower deductible. If you wanted hurricane replacement value insurance then you could have bought that as well. But if you went cheap and bought the typical policy… then you got the typical policy.
So when the insurance companies start running the numbers they will figure out how much more they’re going to pay out as a result of Gov. Cuomo’s unilateral action. Then they divide that amount over all the policies in the area over 5 or 10 years.
So take your joy now. Because when you get your insurance bill next year something tells me the NYT will not be writing a story about how you can’t afford to pay it.
One thought on “Dem Governors Force Ins. Premiums Higher”
Andrew Cuomo announced Wednesday that homeowners would not have to pay hurricane deductibles.Right about now dozens of actuaries at all the big insurance companies tossed a huge pile of paper in the air and started to bang their head against the wall. If you wanted a lower deductible then you could have purchased insurance with a lower deductible. Notify me of new posts via email. Premiums Higher at James Bosco.What is Life Insurance?
Life insurance is a contract between the insured (person taking the cover) and the insurer (the insurance company issuing the policy) stipulating the insured will pay an agreed amount of premium, and the insurer will pay an agreed amount of money free of income tax to the beneficiaries of the insured upon his or her death if the insurance policy was still in force. Life insurance is assurance for the insured that his beneficiaries will be catered for financially hence giving them a peace of mind. They will be protected and financially stable enabling them to maintain a certain lifestyle or at least be able to settle funeral fees, hospital bills, educate the children, etc. The life insurance. Therefore, in a way replaces the loss of income suffered by the beneficiaries when the provider or one who brings home the majority of income passes on.
A good life insurance policy goes beyond replacing the loss of income. It covers the insured’s funeral expenses, taxes, probate costs, need for helpers, child care, etc. The cash benefit can also provide college education for the children and part if not all the surviving spouse retirement needs. How the beneficiaries use the cash benefits is not usually restricted, and so in most cases, they use it as they deem fit.
It can also be another way of contributing towards a saving plan. It provides the option of the contributor making regular payments to the insurance company. If person wishes, the life insurance can form part of their pension plan. This kind of pension is considered private pension arrangements.
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