The issue is that either the renter or the owner must in some way pay insurance and property taxes if they want a "permanent roof" with utilities like electricity, gas and water. Because of this, many people-at least in California, where I currently reside-are living in tents. No taxes, rent, mortgages, or insurance. The number of people who tell me they live in their car that I meet amazes me. Its crazy out here!
It’s getting wild by the day. The prices of homes are quite ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%). Sometimes i wonder if to just invest my spare cash into the stock market and wait for a housing crash or just go ahead to buy a home anyways.
I get such worries too. I'm 50 and retiring early. Already worried of the future and where its headed, especially in terms of financies and how to get by. I'm also considering making my first investment in the stock market, but how can I do so given that the market has been in a mess for the majority of the year?
I wholeheartedly concur; I'm 60 years old, just retired, and have about $1,250,000 in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy’’ for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.
Consider buying stocks when the economy is not doing well, like during a recession. It could be a chance to buy them at a lower price and sell later when prices go up. Just keep in mind, this isn't financial advice, but sometimes it's better than keeping a lot of cash.
Accurate asset allocation is crucial. Some use hedging or defensive assets in their portfolio for market downturns. Seeking financial advice is vital. This approach has kept me financially secure for over five years, with a return on investment of nearly $1 million.
Sonya lee Mitchell is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Listen to what theyre saying, insurance companies are straight up Business only! They are NOT like a good neighbor. You are a number with a risk, nothing like a neighbor
As you grow older and mature, you come to an understanding that no company is going to operate at a loss. They need to profit in some way or break even at the very least and if they cant, than they will close down business and leave, which leaves you with state run insurance where as ever taxpayers will suffer even if they don't own a home.
Bingo bullseye correct. Always have. Just another scam money grab. It's just another business like any other for profit. Unfortunately all the violent destructive damaging events in last 2 decades have cost billions in loses for home and auto insurance and greed plays a big part in insurance premiums skyrocketing. It's all going to get worse. So insurance premiums will keep going up. Soon $2000 a month premiums will be the norm. And that's just on average homes. Mansions will be a lot lot more, but if you have a mansion you are part of the rich elite oligarchs millionaires and billionaires and well off financially affluent society and can easily afford it, no matter how pricey it gets. The rest of us will keep paying or do with out. No money no honey is the name of the game.
The simple truth is that we are allowing people to build in places that have no business being built up. Especially in Florida where they backfill some swamp and throw a subdivision on it only for it to suffer from sink holes or flooding, because those swampy areas served a purpose for flood mitigation. Take it away and the water has nowhere to go. Then you have cities like Miami which even on a sunny day will have flooding during a King Tide. You can't expect insurance providers to cover those risks when the state government refuses to even acknowledge that climate change even exists
This especially, right now all of Cali is currently being flooded and since they already built over all of the natural waterways they used to have, and the constant tilling from farming and pumping well water has caused the soil to lose its capability to absorb water deeper than a few feet worsening the issue, and now there are tones of Yankees moving to the Gulf Coast region and developing on top of estuaries that we depend on for water management just because the value of a dollar goes much farther here, their unrealistic views on investment and monetary value leads them to not even take the interior of the state into consideration even though they would practically have a mansion and several tens of acres of land for the same amount of cash with a much much greater long term benefits, instead of piling like rats in a flood into one single location
I expect insurance providers to cover risks because that's exactly what they're supposed to be doing. Don't let them off the hook, this is how insurance companies make money.
@@adamk.7177Insurance companies are business that need profit. Insuring FL homes that flood yearly due to hurricane is insane! Praying against climate change is also insane!
I’m a new dad, I moved to the Bay Area a few years ago and I’m thinking of purchasing a single family home, but with real estate prices currently through the roof, is it still a good idea to buy a home or should I invest in stocks for now and just wait for a housing market correction? I heard Nvidia and AMD are strong buys.
Certain Ai companies are rumoured to be overvalued and might cause a market correction, I’d suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
I’m in Construction. On a new home build I pay 150 dollars a square for a 30 year asphalt shingle roof. After a hail storm I can charge 550 dollars a square to replace a 30 year asphalt roof. The only difference is the tear off. (Which is a very small portion). This is only allowed because “insurance” is paying for it. This is why insurance companies are leaving. Some contractors go to schools to become Storm Chasers. The system is broken.
Everybody I know is just waiting for a "free" roof. The joke is that it just raises the price of homeowners insurance for everybody because nothing is free.
Some of the BS with the roof replacements started with the insurance companies themselves. They started making the homeowners get a new roof if the asphalt roof was over a certain age. This started the whole "Hail Damage" industry of reroofing everyone's houses, now the rates are going up. It's a classic case of the tail wagging the dog.
This has been a huge problem in Florida. It was state law that insurers had to pay for full roof replacement if there was over a certain percentage amount of damage. So roofing companies basically canvassed neighborhoods and knocked on doors saying, "I saw the hail damage on your roof, we can do a new roof and insurance will pay for it. Just sign this assignment of benefits." We get people coming to the front door every few months and giving the same speech. When you sign, they contact your insurer and the insurer typically denies at first. Because there hasn't been a recent storm and the damage is almost always things that have happened over time (not covered by insurance). Most of them here aren't storm chasers, they just see existing wear and claim there was a storm recently, because it's Florida and we have frequent storms other than hurricanes. So after the denial, they file a suit and the insurer caves and the roof is replaced. It's been a very profitable racket. Companies in Florida have gone bankrupt. Some of those roofers are really pushy about it. I've had to rescue my elderly mother at the door when they kept going on and on even after she said no multiple times. Then they get salty when you have to push back. I've even come outside to find someone on my actual roof marking it for me to see before they even knocked on the door to sell the idea.
Came here to say this. My town has never expierenced a tornado, but the over did. I guess since we're in the same county that was enough to raise rates. Even tho the towns are 20 minutes a part
Yes, insurance companies are moving out of high-risk areas because it doesn’t fit insurance model. I’m not sure why you think rates are going up in low risk states to make up for it. That’s not how insurance works. It’s not how state licensing works.
I received a non renewal letter from nationwide saying I needed to replace my roof in 30days.. I spent the money and got it done. My contractor sent me a one item invoice remove and fully replace the roof. Nationwide turned around and said if your roofer doesn’t provide a line item invoice for every task he did we will still drop you. lol so my broker shop all my insurance policy’s and we switched. If nationwide doesn’t want my business fine. Other companies will happily take it. That’s what we did. Saved money as well.
Insurance companies ( all of them) want a client who never in their lifetime files a claim. But they want you to pay monthly. Pay your mortgage full, keep your property with no trees and have money for a roof replacement if needed and screw the insurance. They dont care for your loyalty. That doesnt exist.
What would you want if you ran an insurance company? How would you pay for the Billions in damages while your customers were screaming, damning you for charging what it costs to 100% rebuild everything they lost??
I have worked for many years as an insurance investigator and my records showq only a maximum of 6-7% of injury claims are exaggerated above contract limits. But the other 94% of claims that I have been assigned have gone through the claims process which is Deny, Delay and Minimize wherever possible and at the same time tell the insured what a good deal they got on their claim. AFIK there is NO state law that requires that insurance companies actually pay legitimate claims! This is where the big bucks are made. Make outrageous TV ads showing you pay frivolous claims quickly while at the same time denying legitimate claims knowing that most of the time people do not have the money to sue insurance companies. My Claims Manager once told me that Insurance companies have more Gold than God.
There are stories like this one on NPR, too. The sad fact is we've allowed people to build homes in known flood zones. Some homes are even built in overflow zones. It's so incredibly irresponsible that these properties were ever even sold to people as livable. They never were. Home buyers were tricked into thinking these places were safe when they weren't.
Great comment. At minimum there should be a mortgage ban on those area so people don't borrow money to buy in those areas making the banks not involved in lending for those lands.
Not only did they let them build in these zones, but in CA they also blocked insurance companies from raising the rates on these people. In the end, homeowners who own homes in low risk areas are subsidizing people who live in high risk areas. No wonder the companies are exiting the market.
Its a non stop 24 hour propaganda on climate agenda hoax. NPR is owned by ruling elites/oligarchs/WEF. Their goal is to make the whole world renters. I see a pattern. Farmers are getting out of farming due to policies imposed by the ruling cabal. Same is happening for home owners. When you jack up home insurance, owners are forced out of good expensive real estate or they rent. Remember the mantra of WEF - "You own nothing, but be happy" . Please be aware that these are not happening in isolation.
This is my fifth year after retirement. I’ve been following the 4% rule thing I saw on a UA-cam channel, but this isn’t really how hard I expected things to be. After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get worried.
Amazingly, you were able to save that much during your active years. Not a lot of people can save that much in a lifetime. But now you are retired and depend on your investment, it’s best you redistribute your capital, so you are not left devastated during a market crash or recovery. To simplify the process, you could allocate your resources with the help of a financial advisor.
@@MelindaMatsuda Yeah, I’m also closing in on retirement, and I have benefitted much from using a financial advisor. I didn’t start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who have been investing for many years.
@@elegboozioma7267 Hey, this caught my interest. I worry that I have a couple more months before retirement, and I want to switch to using a financial advisor, but I don’t know how to find one.
@@ShellyHuerta Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Victoria Carmen Santaella for the last five years or so, and her returns have been pretty amazing.
@@elegboozioma7267 Thank you for this tip. it was easy to find your coach. Did my due diligence on her. She seems very proficient and I'm grateful for your guidance.
My thought on insurance companies has always been the fact that their whole business model is based on a conflict of interests. It is the only model that I know where the company is selling you something that it does not want you to get at all. So when you need it the most, you are going to have some trouble. It is basically a bet after all, and their structure is build on the premise that the house always win.
Here is what I learned after Katrina, if you have faithfully had home insurance they will fight you every step of the way so they don't have to pay out. They kept my mom in court for years, and they did stunts like pulling up weather reports from the wrong state and giving her the report with just the county name but not the state. They offered her a pittance of what she was insured for. She finally gave up because her new husband pitched a fit about the time it was taking. Now she puts the money aside that she would have used to pay insurance for problems that come up..Granted she owns her own home.
That was my point, my mom doesn't pay insurance, she puts that money aside so that if something happens she'll actually have money to pay for it. I know others that do almost the same, except they get cheap insurance with a high deductible to pay for catastrophic damage. @@allwayzangry8290
I live in Oklahoma. My homeowners insurance went up a whopping 280% in one year!!! I bought my home just two years ago and am only 25 years old. I called my insurance agent and even multiple agents nearby and all the rates were the same or higher. It is a truggle to have the highest premium homeowners in the nation, despite being among the lowest paid workers.
Recent (2020) young homeowner in OKC as well, my first premium renewal was at least 50% I remember going wtf lol. Rates are insane in Oklahoma. Idk who you use but found Allstate to have the lowest auto and home by a long shot. Other companies wanted $3-6k to insure my 1,135 square foot, 1 bathroom house in the middle of the city.
Well, you ARE in the heart of tornado alley🤷♀️. Aren't there some construction styles that are more tornado resistant? If so, those should have lower rates.
CANCEL Self insure, if you can. If you have 20% paid on your mortgage you can handle your( escrow ) taxes and insurance on your own. At that point just cancel your insurance. Punish the industry, and fight back.
@@jonlj77*Absolutely! Always self insure if your house is paid off; or if your mortgage is paid down 20%. Take roughly $10k per year (for home losses) and pay yourself through mutual funding. You may just get rich through your self invested insurance money instead of making the insurance crooks rich! As well- any money you spend out of pocket to cover property loss is tax deductible*
Insurance is a scam but so are most contractors. Every time there's even a small storm I get these snakes coming by trying to get me to defraud my insurance company by putting in a claim for a new roof or new windows due to "hail damage." The first time they came around I was genuinely concerned that there was damage to my home but when I asked them to point out said "damage" it was negligible. I don't care if there's a dent the size of a grain of rice on the metal border around my windows. You want to disrupt my life for weeks while you pull out all my windows because of that? Sounds great for you. You get tens of thousands of dollars while my insurance company gets screwed and I do too since they'll probably jack up my rates, all for a tiny dent the size of a grain of rice. Same thing happened when my hot water heater leaked. A tiny part of my carpeting got wet and the contractor wanted me to claim it on insurance so I could get all the carpeting in my house replaced. I took a carpet cleaner to the small area that got wet and you can't even tell now. Insurance fraud is rampant. That's why they keep jacking up rates. Contractors get rich while the insurance companies and homeowners get screwed.
Yup - I negotiated claims for years around the country. It’s all about the profits. The contractor even get an additional 10% “overhead and profit” (free money) if they find 3 or more different trades needed to make repairs. Which is why they point out windows, screens, gutters, roof, fence blah blah blaahhhh….
@@bu5761 Some of the overhead is probably legitimate. They have to pay for office space, equipment & tool storage, etc. No idea if 10% is reasonable or not, though. I'd rather see it broken out than hidden in the operating costs.
We live in a suburb in Boston, quite a ways from the coast, so we are not in a high-risk area. But our insurer of over 30 years, Mapfre, has tried to refuse to renew our insurance. After fighting with them, and spending $20k on a new roof that we didn't need, we finally got them to agree to renew our policy, but at a 40% increase in price. We have never missed an insurance payment nor have we ever had a homeowners insurance claim, and yet they have still tried to drop us. I don't know what the answer is, but it is very clear that insurance companies do not deserve your loyalty.
State Farm did this to my father in law in CA years ago. The insurers just do not like the fact that your house has gotten old and is at more risk of plumbing leaks, roof leaks, etc.
@@CDHPLAYLIST-uq7cg Agree, I saw a news video about State Farm dragging their feet in fixing tornado damage. The potential repair contractor said "Get getter insurance-I do not have this type of trouble with other companies". If you Google "Worst Insurance Companies", State Farm, Farmers, and Allstate are always up in the top 10.
Here in florida, we paying like 5k for house insurance. For first time in 10 year, we had a leakage and they won't cover it. Sometime I wonder, is there any worth to have an insurance.
They like to use the word "flood" which is a different insurance not included under regular homeowners insurance. It's all a scam design to get as much money as they can from people!
@@danieluva2848 If we can't come together to bring ourselves to have an honest conversation about this, then we can't expect things to improve, at least not on their own
@@danieluva2848 And certainly politicos want to keep the folks that traditionally work in construction from entering/staying. Those 2x4s aren't going to get framed up by themselves!
Insurance is a scam. You pay "In case something happen", Then if something happens or could happen the insurance don't want to pay... Insurance is like banks "They only lend to those who DON'T need the loan"...Insurance companies like to insure those who don't really need insurance
The lady, Darlene, clearly explained the reason why her policy was cancelled. She said 18 years ago she never had smokey summers and wildfires but now they’re common. Her insurance price was capped at how fast it could change but the environment changed dramatically faster. That sucks for her and everyone else.
Wild fires have always existed in California, even before people. The issue recently is CA no longer has prisoners work by clearing the dead brush and debris from the forest floor. Now, once a small fire occurs it has plenty of fuel to burn and get out of control. In the past prisoners cleaned this up, that's why wild fires weren't as frequent.
$2,000 a year for insurance on horse property in Cali is crazy. That’s the average for a townhome in Arizona with no natural hazards. So the real problem is she’s (and most other in California) have been underpaying for years
@@user-ks2uo3qh7i or we are funding outrageous prices for building materials over there. If "controls" were put in place no one in California would be able to afford insurance.
I live in a 2000 sq ft home built in 1978, In a subdivision in Plant City, Fl. Been here forty years. On social security. My annual premium for Homeowners Insurance is, drum-roll. $7,400. Just glad I didn't a non-renewal notice.
You know we were hooting and hollering about the climate crisis. Turns out, when flooding is almost assured, you're gonna get massive insurance premiums. Likewise for living in a flammable forest during droughts.
It has nothing to do with “climate change”. California has had wild fires for tens if thousands of years. It just wasn’t until recently we built homes in these areas that burn and flood.
This isn't just high risk states. I live in the Midwest far from the fire or hurricane zones. My insurance doubled over the last year. I have a good agent and went over everything with him and was able to get it down, but a lot of that meant taking higher deductibles for things. I was also able to reduce or eliminate some coverage I simply didn't use, like a clause that would have covered $20,000 in loss of "accessory structures" of which I have none. I got it back to within distance of what it had been but what happens next year and the year after? I'm sort of out of clever areas to trim the policy. It's going to get to the point where a lot of people are going to be faced with insurance premiums equal to what they pay in mortgage, and if you have a mortgage, you can't get rid of the insurance.
Not surprised that insurance companies are exiting the market. The video clearly explains that California voters have passed Proposition 103 in the 80s to artificially block their rates from increasing in high risk areas. Homeowners in low risk areas have been subsidizing homeowners in high risk areas for a long time, and it seems like this set up stopped working
Strange how in some people's minds, a business can do no wrong until they associate with a transgender. The billion dollar industry just didn't have a choice, big mean government made them sociopaths.
@@lisabaltzer4190 how do you expect retired individuals to pay ever-increasing property taxes? Why do you want me to suddenly have to pay double what I did a couple years ago?
I live in Minnesota and used to be with State Farm. But the rates kept going up in spite of the fact that the risk to my own home hasn't really increased any. In Minneapolis the prime risk is probably hail damage to your roof. In any case, I ended up dropping them and going with an insurance company that is only in Minnesota. That cut my rates back significantly. I think that a lot of the large insurance companies have too much risk on the coasts and in fire prone areas, so the costs get shifted to people paying premiums in lower risk areas.
It's called subsidizing, and yes they all do it. They run higher underwriting profit margins in certain states to pay for losses CA, NV, WA, NY, NJ, and GA make them take. All within actuarially sound margins of error, but it does happen.
@@PelosiStockPortfolio Sorry I don't think so, if it was tied to roof replacement costs why were the rates from the local insurance company back down around the 2019 rates from State Farm?
@@brianh9358Why company A charges a different price than company B can depend on many things. Now back to the main point... you know the costs of materials have gone up significantly due to inflation the last 3 years, and therefore the insurance company has to pay more to replace the same roof if you make a claim. Yet you dont think that is why they increased your premium? You might want to read that again and think about it
Should talk about insurance companies more: How much their CEOs are paid? How much they spend on their ads? How much they spend on customer service or how they decreased C. Service locally? They used to care & now they treat their customers like a # once they make the sale.
Insurance companies lost money last year. With inflation, the higher cost of materials and labor, increased liability costs, litigation,... it is not a surprise that insurance companies are reevaluating risk.
This is why houses should not be used as an investment tool. Houses should just be consider shelter. The more property values rise the more property taxes rise and the more home owners insurance rise. Really all everyone needs is a roof over their head to keep the elements out.
A lot of these places are in areas that had skyrocketing prices in comparison to the rest of the nation. Made even worse by some states (like Cali) capping interest rates below the rate of inflation and ..... Well people and companies are going to invest. There isn't a law that helps the little guy without the big guys having an even bigger benefit from it. 🫠
All real estate is an investment one way or another - either to you or to your landlord. You can either pay rent for 15-30 years or you can pay a mortgage. Yes, property taxes, insurance and maintenance fall to the homeowner but the renter is also paying for those things whether they want to admit it or not - it’s just an indirect cost. The difference is that the homeowner has equity at the end of the mortgage and now will just pay taxes, insurance and maintenance. The renter at the end of 30 years has zero to show for it.
Again I keep having to say this Wall Street owns only 3% of the houses market. 90%are baby boomers and gen x. The demand for housing is increasing because it’s expensive to build houses (plus immigrants, tech companies, retirees from northern states etc.). By using housing incentives and building MORE multi family housing this will fix it. And fixing zoning laws this anti-capitalist bs isn’t going anywhere long term.
I’m a disabled military veteran and have been working very hard to try to get myself my first home, given everything going on I am losing more and more hope every day. Anything that qualifies the VA loan is way too expensive, which destroys my hope of living anywhere near where I work. George Carlin said it best “They call it the American dream because you have to be asleep to believe it.“
If you had 5k, knew about building and remodeling. And wanted to move to north Dakota... I know a house we could buy for 10k. But then again people maybe never be compatible. But in this time... I'm at survival mode.
My insurance company dropped me in October after being them for 15 years and not making one single claim. Their excuse is that they are no longer insuring structures built after 1995. This place was built in 87. What a crock.
Can someone explain why insurance isn't run as non-profit or publicly owned. The shareholders are gonna take a chunk of the premiums. Shareholder returns could instead be used to cover the insurance.
Many states provide an insurance of last resort. They also keep premiums down generally but deductible will be high and in many cases the state scheme is losing money. This is really a case of people throwing away money by building in the wrong place and then demanding that someone else pay for the mistakes. People shouldn't be building on the beach, barrier islands, areas that were previously swamp, or out in high fire risk areas. People shouldn't be able to make hail damage claims for minor damage to a roof. All of those things are happening and insurers have been telling everyone that has to stop. Politicians however find it easier to blame them for being greedy rather than tightening up zoning laws to prevent new construction in high risk areas.
@@karlmiller5009 you might want to look at Florida. Their state insurance scheme is incredibly underfunded and there is a significant chance it will blow up with one bad hurricane. Then all Florida taxpayers will be on the hook.
The guy in the video was right when he said governments don’t do well with keep insurance profitable or solvent. The national flood insurance program operates as a loss but is propped up by the government
@@petermacnamee5791why should insurance be run at a profit? Sure, if it's run at a loss that's also not ideal, but it should be targeted to be a net-zero institution
I was notified my home insurance wouldn't renew. I'm in Wisconsin. They said my house is a fire risk, but no explanation as to why it's suddenly a fire risk. There are 2 fire hydrants within 500 feet, and the fire station is 5.5 miles away. I found another company and my rates won't change much at all, but this is still concerning.
I’m in Michigan, tried for 5 weeks to get insurance, ended up not closing and losing my deposit. Gone through over 20 companies, not one would bind their quote.
I can't speak for other states. But in Florida, one of the issues was that during years when we got lucky and didn't see a major storm, many insurance companies paid out huge bonuses to the execs and board with some of the excess premiums collected. That money wasn't invested, and so wasn't available to help pay for claims in later years when we did have huge storms. Also, Florida allows people to win 3x their claim if an insurer denies their claim, but a court rules in favor of the homeowner. A lot of people are talking about the roofing scams, which is also a part of it, but completely gloss over the fact that these companies are losing money because they keep trying to deny claims that were, in fact, found to be legitimate in a court of law! Insurance companies are just upset that they actually have to provide a service for the premiums they were collecting and they've been cut off from the free money machine.
Something doesn’t add up here. These people bought a house for $400,000.18 years ago and now owe $380,000? Sound like typical spend spend spend boomers who’ve been pulling equity out of that house this whole time. This home should be 2/3 paid off by now. Anyone who owns more than one horse on their own property certainly can afford an extra thousand dollars per month. Just sell one horse! And when she says she’s moving I called BS. Again, she loves her horses, where exactly are they going to move to where they can keep their horses for less? I have zero sympathy for these people.
You hit the nail on the head. There is NO REASON that house should not be paid for. They spent their money on a lavish lifestyle never thinking the bad times would hit. If you are not flush with money like Jeff Bezos or Elon Musk, YOU DON'T NEED HORSES! Is she considering how much the care and maintenance of horses cost per year? It's crazy to keep them and then whine about your house insurance premiums. She claims she doesn't have a choice. Yeah you do, sell the damn horses.
Boomers always squander their potential children legacy future down the drain when playing lottery machines. It's who I always see playing them... carelessness. My grandmother sold her house and lost 25k in two weeks.
Do you know how much it costs to keep an old horse on rural acreage property? They eat grass.🤗 Depending on climate, $500 a year, maybe.😉 Trimmed hooves and self vaccinate (maybe if they are going to leave property). Possible food supplements depending on health & size of acreage. There are horses turned out on huge acreage on military base in Southern California for 2+ years while owners stationed overseas (just need water stations). Sometimes I think humans in cities have no clue as to how herbivores live outside of dense human environments.(they aren’t leaving the property so they won’t get exposed to sickness)Biggest expense, having them euthanized and digging a very large hole.
This guy crying like insurance companies are hurting, over the last three years mine went from $3400 to $5600 to $9800, switched providers and I’m back down to $3200…don’t give me crap about risky for them and their models….pure greed
The thing is the insurance companies are actually hurting. State Farm had its first loss in 100 years. It’s not just claims. Insurance companies take your premiums and make low risk investments, often government bonds- and they have suffered significant losses doing this as higher yields have crushed bond prices.
Over the past five years, revenue has been growing at a CAGR of 3.8% to $147.8 billion, including an expected 0.3% decline in 2023. Profit is also expected to climb to 12.1% of revenue in 2023 from 11.9% in 2018.
You hit the nail on the head. insurance companies are INSANELY profitable. Why? Their model is predicated upon NOT paying out, but requiring you to have their product. A captive market is a profitable one. And suddenly, when the risk gets great, they are all too happy to wash their hands and walk away.
Insurance can be an effective tool to protect your financial security while leaving a larger estate for your beneficiaries, providing a cushion for transitioning a business to the next generation, and covering taxes and other major expenses resulting from estate liquidation.I will assess your current insurance coverage and identify any risks to your financial security, filling any gaps in coverage, including death, disability, and critical illness.I will show you how to get better value for premiums paid by managing insurance as a cost-effective defensive strategy.
A lot of people in the comment seem to forget that an insurance company is a business and they need to make a profit or at least break even. They won't operate at a loss. So if there is no profit to made, they will close business or leave, which leave you with government-run insurance, where the taxpayer will pay for it even if you dont own a home.
Not related to insurance, but she bought her home for $420K, apparently 18 years ago... Then, "Darlene and her husband still owe about $360 thousand dollars..." So, in 18 years, she's only paid down about $60K? That seems low. I'm guessing there was a refi in there somewhere... My parents "scared" home ownership and interest rate worries into me, so we made sure we not only didn't refi, but went for a 15 year. Yes, I know that technically with a low mortgage interest rate, it's better to not do a 15 and invest the extra, but I am so glad I went with a 15. Paid off home takes so much stress off... Of course, that doesn't address the insurance mess, but luckily I don't live in an area that has been hit by insurance company concerns like this... It is really disappointing that doing fire protection won't help that... Seems like that should be an option. That said, I think Florida also has legal issues and insurance fraud as a major problem. I was seeing that roof replacement fraud was also killing the insurance companies there...
That's exactly what I was thinking. Also they don't mention the real reason the Insurance companies are leaving Cali.....the state gov made it impossible for insurance companies to increase their rates. So the current insurer drops the policy and a "new" insurer offers a much higher rate.
Low debt is always a good thing. And a 15 yr note gives you options if something awful happens. I’ve always paid off my housing fast. I always want a roof over my head. Toys can wait.
18 years paying faithfully, and nothing to show for it. I think insurance companies should have to pay a certain percentage of a premium back if they’re going to do non-renewals, with the length of time the customer has been with them considered, that’s only fair.
Nothing to show for it? The insurance company accepted the risk for the duration of the policy. In a fire zone, she was paying only $2k. Sounds like she did OK transferring the risk.
We find the insurance industry can be very lazy. They don't want to expend any effort assessing actual risk. Our home insurer (State Farm), showed zero interest in the wildfire resistance design features of our home. That is, provision of a defensible space next to the home (example, an area of gravel and pavement surrounding the entire house). Utilizing Class A fire-rated roofing materials, and non-combustible cementitious siding (Hardie board).
Because insurance people are a scam bro! They work with big corporations in forcing you to sell your house at a loss so they can buy it and rent back to you at a profit 🤬
@@Chicago_jake If you conduct research on wildfire defense you will find that the studies by the US Forest Service and others do show the measures we took make a difference. Unfortunately, too many people shoot from the hip and don't look into the actual fire risk factors.
@@tedbellWRVto be fair, it shouldn't really matter if the insurance company cares about those features. If, as you mention, those installations are shown to be effective, your home should be able to survive a wildfire. So spending money on fire insurance would be a waste anyways. If you're confident in your risk management, you shouldn't need the insurance, at least the wildfire insurance, anyhow
@@WeAreChecking You may not be aware unless you have a home mortgage, but it is a requirement to have homeowners insurance for a home loan. Homeowners insurance includes fire insurance and you can't just drop the fire insurance. No one would anyway, as fires can be caused by all kinds of things, not just wildfire. The whole point of the CNBC video is the insurance companies are cancelling homeowners policies in certain areas due the wildfire risk. This leaves the homeowner in the lurch as the home loan requires homeowners insurance and the standard policies from companies like State Farm are not available. To comply with their home loan, they have to go to special insurance companies at many times the cost. If the insurance companies would actually assess the risk, they would see that older homes with wood shingle roofs and wood siding and wood decks or sheds attached to the house are the cause of the wildfire risks. These are what catches fire in a wildfire. If those are not existing, the risk is greatly reduced.
Last spring I was on a luxury cruise from Istanbul to Athens. Most of the other passengers were employees or family of employees from Farm Bureau Insurance. I’m guessing their per person costs was around 6k per person and there were probably 60 of them. This is where your premiums go !
It’s not ordinary insurance employees getting these trips but their top salespeople and sone execs. If they didn’t, the top reps would flee to another insurer who do give rewards like trips.
@@mbthe8731 How about they ALL knock that sh*t off and pass the savings to the customer ? Because you know what.......on a lot of this stuff I'm just gonna go naked and not get as much insurance products as I used to because I'm not going to put up with being gouged. They wanna keep being greedy then they won't be getting my business.
I dropped my homeowners insurance. My house is paid off. My social security went up $46.00 but my homeowners insurance went up $45.75 😮 Faced with increased food prices, utility bills and property taxes, that .25 cents just won't cut it 😢
You’re better off not having insurance and just self insuring yourself. They don’t want to cover you anyway when you need them. They’re coverages are horrible as are there high deductible’s.
@@jonlj77 The lady in the video paid $2000 for insurance. You thinking saving $2000/yr to "self insure" a $400,000 house is prudent? If you can't afford to build a house from scratch, you cannot honestly say that self insurance is the best move. It may be necessary, but that doesn't mean it's smart.
@@jameswalker590 Incorrect , it USE to be $2000 now it’s up to over $12,000 as she stated in the video. So yes it is worth it to self insure nowadays if that’s what people are facing. Would you pay $12,000 from $2k? Didn’t think so..
Because insurance companies are not there to protect you. Its there to assess your risk and gamble appropriately on the outcome. Then when they lose, they try to find any loophole possible.
Businesses are in business to make money. We can’t blame them when they decide to opt out of an area when government gets involved. If the state government never rears its ugly head, California residents would still have these carriers available to them. Now they reap what they sowed.
Happened to us. After 25 years with Plymouth Palisades here in NJ, with never one claim, we got a cancellation notice. We replaced our roof which was still in good shape and cleared all the brush and trees from around the house as they requested. Renewed us for a year and got another notice. They demanded a whole slew of stuff including clearing "debris", a new garage door, removal of our oil tank, etc. We have a home business with some stuff stored on our property. Our broker was at a loss and said "the homeowners market has drastically changed. You're one of hundreds like this I'm dealing with". After doubling our rates, they canceled us. We are going without since we own our home but what a nightmare.
And Citizen in FL is out of this world expensive. But if you look at the state as a whole, its on an eroding island, floods, hurricanes, tropical storms, overcrowded cities and towns, etc. equals sky high risk everywhere.
Don’t forget the Florida roofing scam that was legalized by previous administrations. And don’t forget previous administrations allowed builders to build on areas that had previously been excluded, because hurricane damage was almost a certainty
I don’t understand how anyone would buy a house without even considering the disasters in their area. It would make sense if it was just a matter of climate change, but she admitted herself that she didn’t put any thought into it. Also, how do you buy a house for $400k+ and still owe $350k nearly 20 years later?
@@badactor3440 Home equity loans and cash out refinances more likely. Also making the minimum payments every month. Interest is compounded but only on principal balance.
The risk is actually not having a water source in the near future, something people are being really oblivious about but is coming fast. People are chasing this California dream without realizing that the majority of the state is soon to be without water. Look at the Colorado river rights versus the population living in Southern California.
Potential solution... Banks give homeowners the option to carry mortgage payoff insurance instead of home owners insurance. This could substantially reduce insurance costs especially for folks with large down payments and good credit. Homeowners would be on the hook for home repairs which they effectively are anyway. No one wants to file a claim that will give insurers a reason to jack up rates.
That's a really good idea. Banks don't like homes on their balance sheets anyways, they want the loan, it's a more profitable asset. Of course the flip side to this is a lot more tragic, because unfortunately if the banks don't demand it, no one will carry home owners insurance and then if they lose their home or suffer serious damage to their home, they could end up homeless.
How much are the top executives at these companies making? Bonuses? Just like with medical insurance, all insurance should be affordable because people need to be able to live. On the other hand, people should also consider the risks of where they want to live and budget for that.
I have a relative working in an insurance company. I think something like 85% is used to cover damages. What drains the budgets is not executives, its houses in risky areas.
The first sentence contradicts the second sentence. I'd say that the first sentence is WRONG. The second sentence is correct. So you are half right --- a better average than most posting comments who can only imagine themselves as victims.
She’s owned a 420k house for 18 years and still owes 360k. This isn’t possible without a cash out refinance. In addition, her insurance is only going up to 12k a year. Likely less than the cost of caring for 1 of her several horses. She should have no trouble paying for this and if she can’t than she needs to reprioritize her spending. There is absolutely no way the government should be subsidizing her insurance. All this does is help prop up unrealistic property values, prioritizing those that own real estate over those that don’t.
I think it makes sense. My family bought a house 26 years ago for 440k. After 22 years of paying off the house, we ended up paying around a million dollars all together. We now own 4 houses all paid off.
If you don’t want to move, self-insure and invest in fire damage mitigation. (Appropriate landscaping, adequate setback, metal roof, automated outdoor and indoor fire suppression, etc.) Also, work with the local government to mitigate fire risk at the source, such as downed utility lines.
I had to change insurance companies twice in 2 years since they dropped me as a customer. Within that time frame my premiums doubled! Even though I’ve never filed a single claim in the 9 years that I’ve owned my home!
My car insurance went from $2k per year to $4k over a renewal period...plus they said i had to pay it all upfront and not receive any glass coverage. I looked around and thats the best deal i can get nowadays.
After 12 years with American Family through Costco, I had a huge tree blow down during monsoon season and filed a claim. Then several months later had 2 plumbing leaks develop at the same time, but cancelled the claim when a family friend (and insurance agent) said they could cancel you. They cancelled me anyway, and it was a stressful scramble to find a new company who would insure my house.
> Perhaps you should be a tenant and let the landlord worry about such things. Why didn't you have the big tree removed before it caused damage? Wilderness areas are for animals and trees. Urban areas are for people, not trees. My bias would be to cut down ALL trees in urban areas. I have none on my properties. I see LOTS of properties where the owners let trees grow to huge size without maintaining them, and then they are surprised when they blow down of fall down du to that neglect.
I Live in louisiana, we have price increases across the state and bankrupted a few insurance companies that operated here. It is a tough situation to balance having reasonable insurance but also having people understand that they live in a risky area for flooding and should expect higher costs if they do
Insurance companies will give you a lot of BS to justify their rates. The bottom line is they want to continue to make that 50% or more profit on your insurance policies. I have been paying for homeowner insurance for 50+ years and never had to file a claim for anything. So all of the money I have paid is 100% profit for them. A couple years ago I called my insurance company to question why my rate went up. The answer was that they had to cover the costs of hurricane and flood damages in other parts of my state. So I am paying for someone else's home too.
insurance rates are not based on real estate appraisals they are calculated based on the cost to rebuild. Her house could be worth $100K on the real-estate market and cost $250K to rebuild. Insurance only worries about the replacement cost of the structure.
I'm in Florida, in a no flood, no forest, no hazard zone. I just dropped my insurance on my primary residence as it jumped $300 from last year. My rental house jumped $800 from last year. I left the insurance on the rental, but plan to take it off in June when they will need another $1,200 payment. I paid the first installment two days ago of $1,200. It's out of control. So I am dropping down to liability only, if someone hurts themselves on the rental property only. It is not covered if a hurricane blows it away. If that happens, I will just sell the lot, worth around $180,000. Prices for everything are so out of touch with reality. And any business that can get on the band wagon, does. But homeowners with a mortgage can't decide not to have insurance, as that is the requirement. But my two houses are paid off. So I will put that money in a separate account and let it accumulate. If I get storm damage, it will be there for me.
My Auto insurance just went up by 200 bucks for the next 6 months, with no claims or tickets, No accidents in the last 15 years. Last one was a deer I hit after hit was knocked into my lane from a car going the opposite direction as stated over 15 years ago. I called Progressive to ask why. They said risk factor in my area has gone up, but if I wanted to use the snapshot, it may decrease my premium. I asked could it go up if you think there is to much hard braking or sudden swerves? he said yes it can. I said so you only the data it reports but not why that brake application happened right? He says yes that is correct. I said so I'll use your snapshot only if I can submit dash cam footage to show why I hit the brakes hard or had tow make a sudden swerve or accelerate hard. He said that is not an option. I told forget it then, I'll go shop around. I now have cheaper insurance with lower deductible. Where I live I have to pull out from my road onto a hwy where the speed is 70mph and you get ran over doing that speed. If you don't put the pedal to the floor when you pull out you are a danger to the guy behind you. I know you'll say wait till it's clear. OK I have waited over 10 minutes to pull out before in the middle of summer during the peak of tourists trying to get to Glacier Park.
They raise your rate because they know you'll probably pay it. Nationwide tried that with me; I ended up switching to Mercury and got more coverage plus a 20% savings. I later switched to Geico and saved even more. It pays to shop around.
So, does Darleen realise that the insurance company thinks her house has a close to 100% chance of burning down within the next ~10-50 years (that would add up to the replacement cost of $12,000 a year). Or is she thinking, "Oh, it's not going to happen to me."
Yeah, the reality is that the majority of the expected loss component of that premium is the increased likelihood of a massive inferno destroying everything in a 3 mile radius. I'd guess she's got an expected loss of roughly $7,500 considering underwriting costs and profits in excess markets, which isn't going to be moved much even if she removes all vegetation and digs a moat around her property.
The lady with 12k quote and a 15K deduct: in 1 year a 27K damage claim breaks even with self-insurance in 2 years that's 39K in 5 years that's 75K damage claim that would break even if you self-insure Also, if you self-insure, you have a small (less than 1% chance) you lose 275 K (350K total loss damage -15K deduct and 60K insurance saved) over insured But there is a real good chance (80% or more) you will go claim free, and save 60K by self-insuring in 5 years 120K in 10 If you can weather a total loss financially , its a good option to self-insure in that scenario if you can
have you ever known of a major insurance company go broke? What the largest insurance companies is have multiple smaller companies underwrite their policies. Then when a regional disaster occurs, the big company has their smaller companies declare bankruptcy because they were unable to pay off all their claims
US building cheap houses made from crap for around 100 years. Now you pay for crap house staying on expensive lot (yes, not house itself makes real worth), but you pay for the whole property as insurance premium. Which is made from wood and ignites like a match. Insurance providers are making tons of money. Their business model by far become just squeezing money from customers paying back as few claims as possible and using legal loopholes to put most of collected premiums into pure profits.
Over the past five years, revenue has been growing at a CAGR of 3.8% to $147.8 billion, including an expected 0.3% decline in 2023. Profit is also expected to climb to 12.1% of revenue in 2023 from 11.9% in 2018.
@SomeUserNameBlahBlah I now live in a city in a condo tower, and here it is reinforced concrete. But in a place where I originally from private houses were built with bricks.
Not necessarily. As insurance prices go up housing prices could go down. People pay what they can afford. If insurance goes up by $5000 per year that’s going to affect how much mortgage you can get to buy the house. As far as people who built their houses and areas that are endangered, unfortunately there’s not much anybody can do to help them. When an entire town burns the insurance companies take notice. Paradise California was a wake up call for a lot of insurers that all of a sudden realized they had massive exposure.
My home got roof damage from a severe rain storms. I called my insurance agent to see if I could get help with the repairs and the agent told me that if I filed a claim I ran the risk of getting a non-renewal letter. Seriously, what are we paying insurance for if we are afraid of filing a claim? I had to shut my mouth and make the repairs myself, and continue paying the high cost of insurance because my mortgage demands it. It doesn't matter what the lady on the video used her money for... what matters is that she used her hard earned money to pay for insurance for years and now can't even get help. What is happening to the home affordability is depressing.
I was with Amica. Had a storm roll through and sustained some roof damage. Called them and had the money deposited to my account in less than a week that covered the full amount for the roof and soffit repair. It was a hassle free experience. Amica had cheap prices for home and auto in my specific area. I had an excellent experience with them.
the town of Paradise, Cal was burnt to the ground, one smart man installed a sprinkler system outside his home and saved his home, in the midst of a total, almost total fire loss environment, this is the key, outdoor sprinkler systems, good business for some fire fighters to start, lol! I mean, it is what is needed when you can't find insurance for a fire.
Great idea, but you left out one vital part. He would have to be on well water because the city pressure would be way below normal because of the firefighting. Another tip: Metal roofing! It does not have to be ugly tin panels anymore. Plant fire-retardant trees and shrubs away from the house. Have a Fire Shelter cellar or room. Fires move incredibly fast!
People usually don't want to spend the money on a sprinkler system INSIDE their house to mitigate fire risks. Perhaps people should take a page from this guy and install an outdoor sprinkler system, including sprinklers on the roof! During a period of fire risk, turn on the sprinklers around and on top of the house and let them run, getting everything good 'n wet. I wonder how an insurance company would evaluate THAT risk?
Everyone, at least those that live in America, should know, Insurance is not for your benefit. Insurance is a for profit business, when they see they can't profit from the home, they pull out. Insurance is the biggest scam in this country.
I live in western NY and I think I'm shelling out some insurance money to help cover some damaged and destroyed property in area that are prone to violent storms. It keeps going up around $150 per year and I never have made a claim in the entire eight years I've owned my home, and my geographical location is lower risk.
I just bought a home have ZERO homeowners claims and no insurance claims of any kind in 20 years or more, yeah I'm paying $200 a month for home owners for a policy that covers just under 100k, I didn't even cover the whole property just what it would cost ME to replace the home and/or garage, I'd probably be doing the majority of the labor as well. 2k deductible. Insurance agents are pure greedy people.
You are. It is not about your behavior as much as it is the overall market risk to the insurer. They got to be able to repair the homes camaged/lost and then make a profit in order to stay in business. They make coverage decisions many times on a state level after looking at how much the insurance INDUSTRY paid last year for damages in teh state and how much new repairs are forecast to be. As easy as it is to blame climate change, the lack and cost of insurance problems mostly stems from builders and individuals building where and how they shouldn't. Partly this is the fault of local government (think city/county zoning dept's and inspectors) allowing construction where it shouldn't, but mostly it is our collective greed and irresponsibility - and within this group it is mostly from the folks pushing anti-regulatory politics. Cheaters don't want to be caught, so they push tax reduction in order to shrink "government" so there won't be an inspector to catch they incorrectly filled in the swamp before selling it to the builder who won't be there the next time it floods.
@@jerryvanderwier2310I was on board until you got to that last sentence. There simply aren't that many people who do that and think that way. You're giving them way too much credit. EVERYONE I've ever spoken to who wants smaller government is sick and tired of paying for bloated and corrupt bureaucracies which pick our pockets.
Outright, non-profit government backed insurance is the solution. Private insurance is beholden to Stock Market greed, not civilization building. Plus, private insurance has been subsidized by our tax money, anyway.
@@radishpineapple74 yes you are right 800 is just for fire.. I am not on a flood zone and if I would get earthquake coverage it would be way more than 1700..
Good grief; we've been dealing with fires, earthquakes and hurricanes for decades; housing standards have improved and state regulations now mandates that new homes are built to code. Climate change is certainly a contributor, but let's not beat around the bush: the main cause of skyrocketing premiums is FRAUD...which is hardly mentioned ANYWHERE in this video.
In Tortola BVI we have experienced hurricanes for many years and have built structures out of concrete with galvanized roofs. We thought we were very secure until we got hit by two Cat 5 Hurricanes back to back Hurricanes Irma and Maria in 2017. Irma was so strong it ripped the grass off the ground and the paint off the walls. There was so much devastation and roof damage, that it traumatized a whole generation. Now many folks are building their gable stile roofs out of concrete. The point is every place has unique environmental challenges and there is no reason for a house to be built or retrofitted without having that in mind. Why continue building houses in a style that does not work for a river plane or why build a tinderbox in forest that can catch afire. Build resilient or don't build at all.
Oh of course the corporate guy says the government can't do insurance well. So tell me what happens when a wild fire happens and the insurance company won't pay to rebuild. Oh yea the government and the tax payers pick up the bill. We are already paying for it in taxes. Makes no sense to pay these corporations so they can not pay for the things they are supposed to be covering.
So you want government to take over insurance? I’m confused I thought private industry did everything better? The problem in Florida is Florida. The problem in California is fire, and the math they use to control rates. It’s based on past claims. Increased fire has changed the math in the insurance companies eyes, but the state hasn’t changed the law.
Lady said we did everything right. My parents just retired and paid of there house and they are immigrants that did the worst jobs in America the past 25 years. You should not have a mortgage in your 60’s if you did everything right.
You are not entitled to cheap homeowners insurance. If you build in a flood zone, hurricane zone, earthquake zone, area prone to wildfires - expect to pay more.
@@Feliciations Places not near oceans and bodies of water, slightly elevated are less likely to flood... Therefore should have lower home insurance rates. Places outside of California not prone to wildfires or earthquakes should have cheaper home insurance.
@@Feliciations Those areas that are elevated, not near bodies can still flood - especially if something goes wrong with plumbing or leaky roof. They are just less likely.
My Statefarm agent explained the CA issue to me. Basically each insurance agency has a maximum percentage they can insure in california, this is to maintain certain amounts of competition. A lot of smaller insurers have left California. Statefarm has now put in a request to increase their cap so they can sell new homeowners insurance again. They want to sell insurance to new houses in urbam areas such as LA and the Bay Area, but cant due to anti trust laws.
Insurance companies are showing their true colors, I always felt insurance was a bit of a scam if they can just deny claims and cancel coverage whenever, glad I built my home myself, overbuilt it with fire resistant material and in an area that's dry.
We replaced 20 of our vents with ones that help prevent embers from coming into the attic. Many houses about 8 miles away burned down about 16 years ago from embers getting in their attic from a fire many miles away.
Here's a question. If you have a payment on your home and car, but actually don't own either, why isn't the bank paying the insurance since you don't actually own anything just yet? You don't own it yet, you're just using it. Like using an airplane when you fly. Or a hotel room. You don't pay the insurance for the hotel room because you don't own it. Your just using it.
That’s a terrible idea that you are alluding to. You wouldn’t want the banks to pay for the insurance because they’ll chose any carrier they want and then turn around and tack that insurance premium to your loan. Either way you are still paying. At least this way, you can shop around and choose the carrier you want.
Actually you do pay insurance on a hotel room. It is just built into the cost of the rate. You don't see it as an expense. That's how the hotel can pay their insurance.
Boomers complained about the GenZ avacado toasts instead of understanding the problem with housing. Now, it finally caught up to them through insurance.
But in reality, that is not how it works. Even if you didn't claim for 18 years, people in a similar position (location, housing type, etc.) as you did, as a result it has gotten more expensive, and is projected to continue to get more expensive.
@@ReadThisOnly true, but also true is if the insurance company profits grew during that time. insurance as a for profit business is a corrupt model for what is a social function that should serve the benefit of the public. not investors.
So? Why don't you self insure? Take THAT you greedy insurance company! (I do self insure my residence) And what about every big business that has all kinds of insurance? You think they are all being ripped off? You obviously don't have a clue about how risk is managed. You just imagine that the big, bad insurance company is ripping you off.
@3:20 that's misleading. They match premium to risk. What is being described is subsidization, which is not desired as then they're underpriced on bad risks and overpriced on good risks. Insurance companies make money on underwriting by the fact that in aggregate losses are generally predictable when risk is managed...
Imagine having to have states creating insurance welfare programs because we can't convince our f'ing government to regulate insurance and corporate profits. They post year over year record profit margins and then claim its costing them too much to payout claims.
Completely agree. This is a misalignment of incentives - they want profits and no payouts. And aren’t regulated for what they have to provide but also there aren’t limits to where houses are built, like floodplains or fire prone areas. So the system is jacked but I’m going to bet the main culprit is corporate profits and not enough regulation.
Profits are what ensure solvency - and the ability to pay claims. The prime duty of Insurance Commissioners is to ensure insurers are solvent. In the insurance business model, a 5% profit is considered excellent. But that’s below the 8% rate of return that’s considered acceptable for investments. Often insurance companies barely make any profits.
I have noticed that in flood prone areas houses are normally slab houses. It they had at least good sized crawl spaces most of the houses would be fine.
Australia just puts the houses on stilts. The garage can go underneath, so unless you're getting 8' floods, your living space is safe. ...but I expect that even if the developers did that, you'd get homeowners converting the garage space and we're back to square one.
What a blessing her home is still insurable but yes it will cost her more. She can still sell her home very easily and the new buyer will make an offer based on the risk factors associated with the property.
Listen to what theyre saying, insurance companies are straight up Business only! They are NOT like a good neighbor. You are a number with a risk, nothing like a neighbor🔥🔥🔥🔥🔥
I work in insurance here in Michigan. Been in the industry for 10 years and i gotta agree rates are just getting insane. That lady said "raise the price", then adds the word "reasonably" at 12:52 . What is reasonable to an insured? We have people calling because their rate went up $50 a year. Im like heck our grocery bill have increased more that per month are you yelling at the store manager. So i ask again what is a "reasonable" increase to an insured? People will gladly pay $100 extra a month for a new car note but wont pay $5 more a month for insurance premiums.
@@radicalaccounting without seeing policy its impossible to narrow down a 40% increase. Tickets and accident all that stuff effects a rate. But ill be honest the whole "my rate went up this percentage" comments really isnt logical because percentage increase is relative. I mean 40% increase of $100 is all of $40 but yet 40% of $2000 is $800. Which one seems more substantial? As to where the money goes? Cnbc did a video on mechanics having to charge more. Thats where i would start looking for an answer. Just like every business its money in vs money out. Mechanics charge more to repair cars, then insurance has to charge clients more to cover it or risk going out if business. Then u can look at the world around you as well as see everything has increased 30 to 40%. I used to buy ground beef where i live for $5.99 a lb now its $7.99 a lb. Thats a 33% increase. I used to buy a half gallon of milk for $1.50 now its $1.99. thats a 33% increase. The streaming service Disney plus increased their price from 10.99 a month to 13.99 a month in october 2023, which is a near 30% increase. The other streaming services; max, paramount+ all them did the same thing. Thats called inflation and just because you dont understand an industry doesn't mean theyre exempt from the issues impacting every industry. I get not understanding it, i tell people all the time insurance is the most misunderstood industry in the world because everything else you pay money and get something tangible with it but with insurance you pay money and get a piece of paper with numbers that noone understands. Then u forget about it until either you pay again or something really bad happened to you. I get it, noone wants to pay more (me included) but unfortunately unless your going to live off the grid, move to the woods and live off the land, thats part of life
The issue is that either the renter or the owner must in some way pay insurance and property taxes if they want a "permanent roof" with utilities like electricity, gas and water. Because of this, many people-at least in California, where I currently reside-are living in tents. No taxes, rent, mortgages, or insurance. The number of people who tell me they live in their car that I meet amazes me. Its crazy out here!
It’s getting wild by the day. The prices of homes are quite ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%). Sometimes i wonder if to just invest my spare cash into the stock market and wait for a housing crash or just go ahead to buy a home anyways.
I get such worries too. I'm 50 and retiring early. Already worried of the future and where its headed, especially in terms of financies and how to get by. I'm also considering making my first investment in the stock market, but how can I do so given that the market has been in a mess for the majority of the year?
I wholeheartedly concur; I'm 60 years old, just retired, and have about $1,250,000 in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.
That's fascinating. How can I contact your Asset-coach as my portfolio is dwindling?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy’’ for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Paid $400k for their home 18 years ago, and still owe $360k?? I think they used that home as a piggy bank with home equity loans.
I was thinking abt that too
If they are as bad off as they claim, they probably shouldn't have retired with that much debt.
they must really like paying pmi
Stupid people
nope. they are paying the interest on the loan first then the primary. add 5$ towards the payment and you will see how that will significantly reduce
I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.
Consider buying stocks when the economy is not doing well, like during a recession. It could be a chance to buy them at a lower price and sell later when prices go up. Just keep in mind, this isn't financial advice, but sometimes it's better than keeping a lot of cash.
Accurate asset allocation is crucial. Some use hedging or defensive assets in their portfolio for market downturns. Seeking financial advice is vital. This approach has kept me financially secure for over five years, with a return on investment of nearly $1 million.
Mind if I ask you to recommend this particular coach you using their service?
Sonya lee Mitchell is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I just checked her out on google and I have sent her an email. I hope she gets back to me soon.
Listen to what theyre saying, insurance companies are straight up Business only!
They are NOT like a good neighbor. You are a number with a risk, nothing like a neighbor
And?
As you grow older and mature, you come to an understanding that no company is going to operate at a loss. They need to profit in some way or break even at the very least and if they cant, than they will close down business and leave, which leaves you with state run insurance where as ever taxpayers will suffer even if they don't own a home.
You tellin' me State Farm been lying this whole time?
then why are they insurance companies if they don't care about their intended purpose seriously@@arshdeep691
Bingo bullseye correct. Always have. Just another scam money grab. It's just another business like any other for profit. Unfortunately all the violent destructive damaging events in last 2 decades have cost billions in loses for home and auto insurance and greed plays a big part in insurance premiums skyrocketing. It's all going to get worse. So insurance premiums will keep going up. Soon $2000 a month premiums will be the norm. And that's just on average homes. Mansions will be a lot lot more, but if you have a mansion you are part of the rich elite oligarchs millionaires and billionaires and well off financially affluent society and can easily afford it, no matter how pricey it gets. The rest of us will keep paying or do with out. No money no honey is the name of the game.
The simple truth is that we are allowing people to build in places that have no business being built up. Especially in Florida where they backfill some swamp and throw a subdivision on it only for it to suffer from sink holes or flooding, because those swampy areas served a purpose for flood mitigation. Take it away and the water has nowhere to go. Then you have cities like Miami which even on a sunny day will have flooding during a King Tide. You can't expect insurance providers to cover those risks when the state government refuses to even acknowledge that climate change even exists
This especially, right now all of Cali is currently being flooded and since they already built over all of the natural waterways they used to have, and the constant tilling from farming and pumping well water has caused the soil to lose its capability to absorb water deeper than a few feet worsening the issue, and now there are tones of Yankees moving to the Gulf Coast region and developing on top of estuaries that we depend on for water management just because the value of a dollar goes much farther here, their unrealistic views on investment and monetary value leads them to not even take the interior of the state into consideration even though they would practically have a mansion and several tens of acres of land for the same amount of cash with a much much greater long term benefits, instead of piling like rats in a flood into one single location
I expect insurance providers to cover risks because that's exactly what they're supposed to be doing. Don't let them off the hook, this is how insurance companies make money.
@@adamk.7177Insurance companies are business that need profit. Insuring FL homes that flood yearly due to hurricane is insane! Praying against climate change is also insane!
@adamk.7177 so make a company all the people there chose too get house place where risk don't mater can go
We need a different form of government that is more fair to working people.
I’m a new dad, I moved to the Bay Area a few years ago and I’m thinking of purchasing a single family home, but with real estate prices currently through the roof, is it still a good idea to buy a home or should I invest in stocks for now and just wait for a housing market correction? I heard Nvidia and AMD are strong buys.
it’s a personal decision, but according to Forbes, housing activities will remain stagnant for the most part of the year, so maybe hold off a little.
Certain Ai companies are rumoured to be overvalued and might cause a market correction, I’d suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I.
this is all new to me, where do I find a fiduciary, can you recommend any?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
she actually appears to be well-read and educated. I just did a Google search for her name and found her webpage, I appreciate you sharing
I’m in Construction. On a new home build I pay 150 dollars a square for a 30 year asphalt shingle roof.
After a hail storm I can charge 550 dollars a square to replace a 30 year asphalt roof. The only difference is the tear off. (Which is a very small portion). This is only allowed because “insurance” is paying for it. This is why insurance companies are leaving. Some contractors go to schools to become Storm Chasers. The system is broken.
So its just like health insurance lol
Everybody I know is just waiting for a "free" roof.
The joke is that it just raises the price of homeowners insurance for everybody because nothing is free.
Some of the BS with the roof replacements started with the insurance companies themselves.
They started making the homeowners get a new roof if the asphalt roof was over a certain age.
This started the whole "Hail Damage" industry of reroofing everyone's houses, now the rates are going up.
It's a classic case of the tail wagging the dog.
Most policies issued or renewed now don't cover roofs at all.
This has been a huge problem in Florida. It was state law that insurers had to pay for full roof replacement if there was over a certain percentage amount of damage. So roofing companies basically canvassed neighborhoods and knocked on doors saying, "I saw the hail damage on your roof, we can do a new roof and insurance will pay for it. Just sign this assignment of benefits." We get people coming to the front door every few months and giving the same speech. When you sign, they contact your insurer and the insurer typically denies at first. Because there hasn't been a recent storm and the damage is almost always things that have happened over time (not covered by insurance). Most of them here aren't storm chasers, they just see existing wear and claim there was a storm recently, because it's Florida and we have frequent storms other than hurricanes. So after the denial, they file a suit and the insurer caves and the roof is replaced. It's been a very profitable racket. Companies in Florida have gone bankrupt. Some of those roofers are really pushy about it. I've had to rescue my elderly mother at the door when they kept going on and on even after she said no multiple times. Then they get salty when you have to push back. I've even come outside to find someone on my actual roof marking it for me to see before they even knocked on the door to sell the idea.
Insurance companies are moving out of high risk areas and getting states to increase premiums in low risk states to make up the loss of business.
Came here to say this. My town has never expierenced a tornado, but the over did. I guess since we're in the same county that was enough to raise rates. Even tho the towns are 20 minutes a part
Yup, I think it's more about paying back their debts. They accumulate debts to pay out for natural disaster in other states.
Yes, insurance companies are moving out of high-risk areas because it doesn’t fit insurance model.
I’m not sure why you think rates are going up in low risk states to make up for it. That’s not how insurance works. It’s not how state licensing works.
@@atchmon902
There was a tornado one town over. So you think your immune from tornadoes? Your insurance company decided hey their tornado area now.
TRANSLATION POCcriminals ruining this country
I received a non renewal letter from nationwide saying I needed to replace my roof in 30days.. I spent the money and got it done. My contractor sent me a one item invoice remove and fully replace the roof. Nationwide turned around and said if your roofer doesn’t provide a line item invoice for every task he did we will still drop you. lol so my broker shop all my insurance policy’s and we switched. If nationwide doesn’t want my business fine. Other companies will happily take it. That’s what we did. Saved money as well.
🎵Nationwide is not on your side 🎵
Insurance companies ( all of them) want a client who never in their lifetime files a claim. But they want you to pay monthly. Pay your mortgage full, keep your property with no trees and have money for a roof replacement if needed and screw the insurance. They dont care for your loyalty. That doesnt exist.
What would you want if you ran an insurance company? How would you pay for the Billions in damages while your customers were screaming, damning you for charging what it costs to 100% rebuild everything they lost??
@@davenone7312 Make them build themselves. Like old times. Insurance is just fraud we all know that.
@@davenone7312 Insurance is a scam. If they really lost money they would close up and never insure anyone. Its all a scam.
I have worked for many years as an insurance investigator and my records showq only a maximum of 6-7% of injury claims are exaggerated above contract limits. But the other 94% of claims that I have been assigned have gone through the claims process which is Deny, Delay and Minimize wherever possible and at the same time tell the insured what a good deal they got on their claim. AFIK there is NO state law that requires that insurance companies actually pay legitimate claims! This is where the big bucks are made. Make outrageous TV ads showing you pay frivolous claims quickly while at the same time denying legitimate claims knowing that most of the time people do not have the money to sue insurance companies. My Claims Manager once told me that Insurance companies have more Gold than God.
Truth@@crimestoppers1877
There are stories like this one on NPR, too. The sad fact is we've allowed people to build homes in known flood zones. Some homes are even built in overflow zones. It's so incredibly irresponsible that these properties were ever even sold to people as livable. They never were. Home buyers were tricked into thinking these places were safe when they weren't.
Great comment. At minimum there should be a mortgage ban on those area so people don't borrow money to buy in those areas making the banks not involved in lending for those lands.
Not only did they let them build in these zones, but in CA they also blocked insurance companies from raising the rates on these people. In the end, homeowners who own homes in low risk areas are subsidizing people who live in high risk areas. No wonder the companies are exiting the market.
home buyers weren't "tricked" into anything, nobody forced them to buy homes in bad locations. how about some self accountability?
My dream is to build my house in Iceland, next to a volcano, like the Laval Level in Super Mario Bros.
Its a non stop 24 hour propaganda on climate agenda hoax. NPR is owned by ruling elites/oligarchs/WEF. Their goal is to make the whole world renters. I see a pattern. Farmers are getting out of farming due to policies imposed by the ruling cabal. Same is happening for home owners. When you jack up home insurance, owners are forced out of good expensive real estate or they rent.
Remember the mantra of WEF - "You own nothing, but be happy" . Please be aware that these are not happening in isolation.
This is my fifth year after retirement. I’ve been following the 4% rule thing I saw on a UA-cam channel, but this isn’t really how hard I expected things to be. After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get worried.
Amazingly, you were able to save that much during your active years. Not a lot of people can save that much in a lifetime. But now you are retired and depend on your investment, it’s best you redistribute your capital, so you are not left devastated during a market crash or recovery. To simplify the process, you could allocate your resources with the help of a financial advisor.
@@MelindaMatsuda Yeah, I’m also closing in on retirement, and I have benefitted much from using a financial advisor. I didn’t start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who have been investing for many years.
@@elegboozioma7267 Hey, this caught my interest. I worry that I have a couple more months before retirement, and I want to switch to using a financial advisor, but I don’t know how to find one.
@@ShellyHuerta Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Victoria Carmen Santaella for the last five years or so, and her returns have been pretty amazing.
@@elegboozioma7267 Thank you for this tip. it was easy to find your coach. Did my due diligence on her. She seems very proficient and I'm grateful for your guidance.
My thought on insurance companies has always been the fact that their whole business model is based on a conflict of interests. It is the only model that I know where the company is selling you something that it does not want you to get at all. So when you need it the most, you are going to have some trouble. It is basically a bet after all, and their structure is build on the premise that the house always win.
And you as the home / vehicle owner hope you never have to use it either.
Yes. Although they do cover alot. But your best option would be to hire a lawyer to sue your insurance company if they deny you coverage
Gambling basically
Here is what I learned after Katrina, if you have faithfully had home insurance they will fight you every step of the way so they don't have to pay out. They kept my mom in court for years, and they did stunts like pulling up weather reports from the wrong state and giving her the report with just the county name but not the state. They offered her a pittance of what she was insured for.
She finally gave up because her new husband pitched a fit about the time it was taking.
Now she puts the money aside that she would have used to pay insurance for problems that come up..Granted she owns her own home.
Insurance scams.you got it right
If you have to put money aside what's the point of insurance. Why are we allowing ourselves to be robbed
@allwayzangry8290 we aren't allowing it, we're just being robbed by the upper class. They buy the politicians, they write the laws, and we go vote.
@@allwayzangry8290 literally
That was my point, my mom doesn't pay insurance, she puts that money aside so that if something happens she'll actually have money to pay for it. I know others that do almost the same, except they get cheap insurance with a high deductible to pay for catastrophic damage. @@allwayzangry8290
I live in Oklahoma. My homeowners insurance went up a whopping 280% in one year!!! I bought my home just two years ago and am only 25 years old. I called my insurance agent and even multiple agents nearby and all the rates were the same or higher. It is a truggle to have the highest premium homeowners in the nation, despite being among the lowest paid workers.
Recent (2020) young homeowner in OKC as well, my first premium renewal was at least 50% I remember going wtf lol. Rates are insane in Oklahoma. Idk who you use but found Allstate to have the lowest auto and home by a long shot. Other companies wanted $3-6k to insure my 1,135 square foot, 1 bathroom house in the middle of the city.
Well, you ARE in the heart of tornado alley🤷♀️. Aren't there some construction styles that are more tornado resistant? If so, those should have lower rates.
CANCEL
Self insure, if you can. If you have 20% paid on your mortgage you can handle your( escrow ) taxes and insurance on your own. At that point just cancel your insurance. Punish the industry, and fight back.
I have a mortgage thats about 50% paid but they require me to have insurance. @@jonlj77
@@jonlj77*Absolutely! Always self insure if your house is paid off; or if your mortgage is paid down 20%. Take roughly $10k per year (for home losses) and pay yourself through mutual funding. You may just get rich through your self invested insurance money instead of making the insurance crooks rich!
As well- any money you spend out of pocket to cover property loss is tax deductible*
"retired" with a 360k mortgage? I'm beginning to see the problem...
Lol, seriously.
Anon stands to close to the trees to see the forest...
Do ya think?
She retired with negative net worth, i'm willing to bet, and claims she did everything right. Incredible.
yep, only mortgage should be paying for is the remainder of an old one
Insurance is a scam but so are most contractors. Every time there's even a small storm I get these snakes coming by trying to get me to defraud my insurance company by putting in a claim for a new roof or new windows due to "hail damage." The first time they came around I was genuinely concerned that there was damage to my home but when I asked them to point out said "damage" it was negligible. I don't care if there's a dent the size of a grain of rice on the metal border around my windows. You want to disrupt my life for weeks while you pull out all my windows because of that? Sounds great for you. You get tens of thousands of dollars while my insurance company gets screwed and I do too since they'll probably jack up my rates, all for a tiny dent the size of a grain of rice. Same thing happened when my hot water heater leaked. A tiny part of my carpeting got wet and the contractor wanted me to claim it on insurance so I could get all the carpeting in my house replaced. I took a carpet cleaner to the small area that got wet and you can't even tell now. Insurance fraud is rampant. That's why they keep jacking up rates. Contractors get rich while the insurance companies and homeowners get screwed.
I concur
INSURANCE IS ONE BIG SCAM DUDE
No it isn't Walter. Insurance is a necessary industry. It's called risk mitigation and it makes getting a loan possible
Yup - I negotiated claims for years around the country. It’s all about the profits. The contractor even get an additional 10% “overhead and profit” (free money) if they find 3 or more different trades needed to make repairs. Which is why they point out windows, screens, gutters, roof, fence blah blah blaahhhh….
@@bu5761 Some of the overhead is probably legitimate. They have to pay for office space, equipment & tool storage, etc. No idea if 10% is reasonable or not, though. I'd rather see it broken out than hidden in the operating costs.
We live in a suburb in Boston, quite a ways from the coast, so we are not in a high-risk area. But our insurer of over 30 years, Mapfre, has tried to refuse to renew our insurance. After fighting with them, and spending $20k on a new roof that we didn't need, we finally got them to agree to renew our policy, but at a 40% increase in price.
We have never missed an insurance payment nor have we ever had a homeowners insurance claim, and yet they have still tried to drop us. I don't know what the answer is, but it is very clear that insurance companies do not deserve your loyalty.
Same thing is happening to us, Farmers Insurance are not renewing us. We’ve paid them for over 30 yrs without one claim!! Not once!
State Farm did this to my father in law in CA years ago. The insurers just do not like the fact that your house has gotten old and is at more risk of plumbing leaks, roof leaks, etc.
You need to change insurance companies
@@CDHPLAYLIST-uq7cg Agree, I saw a news video about State Farm dragging their feet in fixing tornado damage. The potential repair contractor said "Get getter insurance-I do not have this type of trouble with other companies". If you Google "Worst Insurance Companies", State Farm, Farmers, and Allstate are always up in the top 10.
Here in florida, we paying like 5k for house insurance. For first time in 10 year, we had a leakage and they won't cover it. Sometime I wonder, is there any worth to have an insurance.
I have State Farm and I wonder the same. I know they’ll never pay if I need to use them. Awful reputation for that one.
They like to use the word "flood" which is a different insurance not included under regular homeowners insurance. It's all a scam design to get as much money as they can from people!
Have you noticed that most of FL is at sea level AND tropical storms are getting stronger EVERY year? I think it’s called climate change.
@solarwind907 yeah I notice, and in Miami Dade area there was recently a tornado warning too
@@solarwind907 Have you noticed that insurance companies want only profits and don't care about your claim or coverage.
A big part of the problem is the current sky high housing prices.
And no one wants to talk about it.
@@danieluva2848 If we can't come together to bring ourselves to have an honest conversation about this, then we can't expect things to improve, at least not on their own
@@danieluva2848 And certainly politicos want to keep the folks that traditionally work in construction from entering/staying. Those 2x4s aren't going to get framed up by themselves!
I looked it up and that is correct. Almost 40% of homes carry no mortgage. I’m surprised .
Insurance is a scam. You pay "In case something happen", Then if something happens or could happen the insurance don't want to pay...
Insurance is like banks "They only lend to those who DON'T need the loan"...Insurance companies like to insure those who don't really need insurance
How did you pay in insurance over the years?
💯
RIGHT ON.. I AM IN THIS LOOP RIGHT NOW IN 2024!
An obvious one too.
The lady, Darlene, clearly explained the reason why her policy was cancelled. She said 18 years ago she never had smokey summers and wildfires but now they’re common. Her insurance price was capped at how fast it could change but the environment changed dramatically faster. That sucks for her and everyone else.
Time 003 to 005 " thought it was over our heads " there is part of the problem.
Wild fires have always existed in California, even before people. The issue recently is CA no longer has prisoners work by clearing the dead brush and debris from the forest floor. Now, once a small fire occurs it has plenty of fuel to burn and get out of control. In the past prisoners cleaned this up, that's why wild fires weren't as frequent.
@@SomeUserNameBlahBlah Trump said that the forests weren't being raked and everyone laughed at him even though he was right.
@@bwofficial1776 Trump paid for hookers. I doubt he is a good choice for almost anything that involves intelligence
Guess which generation didn’t do anything to prevent climate change (but were told about it over and over for years)
Car insurance is getting ridiculous too
Ride a bicycle!
$2,000 a year for insurance on horse property in Cali is crazy. That’s the average for a townhome in Arizona with no natural hazards. So the real problem is she’s (and most other in California) have been underpaying for years
Yeah, even Texas, average paying $3k
Yup exactly. And your rates are going up because of risky policies like her.
@@user-ks2uo3qh7i or we are funding outrageous prices for building materials over there. If "controls" were put in place no one in California would be able to afford insurance.
I live in a 2000 sq ft home built in 1978, In a subdivision in Plant City, Fl. Been here forty years. On social security. My annual premium for Homeowners Insurance is, drum-roll. $7,400. Just glad I didn't a non-renewal notice.
$700 a year for a house in a flood zone in Washington state. $2000 is crazy. Maybe you guys are getting ripped off.
You know we were hooting and hollering about the climate crisis. Turns out, when flooding is almost assured, you're gonna get massive insurance premiums. Likewise for living in a flammable forest during droughts.
It has nothing to do with “climate change”. California has had wild fires for tens if thousands of years. It just wasn’t until recently we built homes in these areas that burn and flood.
USA only cares about the %0.01 of the rich
imagine if instead of reporting on just the problem they could try and be apart of the solution news organizations
Insurance companies never lose. If they pay out they'll just add it to your premiums.
"By 2030, you'll own nothing and be happy" - World Economic Forum.
This isn't just high risk states. I live in the Midwest far from the fire or hurricane zones. My insurance doubled over the last year.
I have a good agent and went over everything with him and was able to get it down, but a lot of that meant taking higher deductibles for things. I was also able to reduce or eliminate some coverage I simply didn't use, like a clause that would have covered $20,000 in loss of "accessory structures" of which I have none. I got it back to within distance of what it had been but what happens next year and the year after? I'm sort of out of clever areas to trim the policy. It's going to get to the point where a lot of people are going to be faced with insurance premiums equal to what they pay in mortgage, and if you have a mortgage, you can't get rid of the insurance.
Same
Not surprised that insurance companies are exiting the market. The video clearly explains that California voters have passed Proposition 103 in the 80s to artificially block their rates from increasing in high risk areas. Homeowners in low risk areas have been subsidizing homeowners in high risk areas for a long time, and it seems like this set up stopped working
Strange how in some people's minds, a business can do no wrong until they associate with a transgender. The billion dollar industry just didn't have a choice, big mean government made them sociopaths.
The republican government of Florida has also screwed themselves in a similar way by having the government step in
Wait so you want to overcharge people and you want to run people dry?
Sounds something like Proposition 13. Newer home buyers subsidize longer term home owners. Both are very unfair.
@@lisabaltzer4190 how do you expect retired individuals to pay ever-increasing property taxes? Why do you want me to suddenly have to pay double what I did a couple years ago?
I live in Minnesota and used to be with State Farm. But the rates kept going up in spite of the fact that the risk to my own home hasn't really increased any. In Minneapolis the prime risk is probably hail damage to your roof. In any case, I ended up dropping them and going with an insurance company that is only in Minnesota. That cut my rates back significantly. I think that a lot of the large insurance companies have too much risk on the coasts and in fire prone areas, so the costs get shifted to people paying premiums in lower risk areas.
It's called subsidizing, and yes they all do it. They run higher underwriting profit margins in certain states to pay for losses CA, NV, WA, NY, NJ, and GA make them take. All within actuarially sound margins of error, but it does happen.
Your risks stayed the same, but the cost to replace your roof went up a lot. Therefore your premium went up
You are absolutely correct.
@@PelosiStockPortfolio Sorry I don't think so, if it was tied to roof replacement costs why were the rates from the local insurance company back down around the 2019 rates from State Farm?
@@brianh9358Why company A charges a different price than company B can depend on many things. Now back to the main point... you know the costs of materials have gone up significantly due to inflation the last 3 years, and therefore the insurance company has to pay more to replace the same roof if you make a claim. Yet you dont think that is why they increased your premium? You might want to read that again and think about it
Should talk about insurance companies more:
How much their CEOs are paid?
How much they spend on their ads?
How much they spend on customer service or how they decreased C. Service locally?
They used to care & now they treat their customers like a # once they make the sale.
Insurance companies lost money last year. With inflation, the higher cost of materials and labor, increased liability costs, litigation,... it is not a surprise that insurance companies are reevaluating risk.
This is why houses should not be used as an investment tool. Houses should just be consider shelter. The more property values rise the more property taxes rise and the more home owners insurance rise.
Really all everyone needs is a roof over their head to keep the elements out.
A lot of these places are in areas that had skyrocketing prices in comparison to the rest of the nation.
Made even worse by some states (like Cali) capping interest rates below the rate of inflation and ..... Well people and companies are going to invest.
There isn't a law that helps the little guy without the big guys having an even bigger benefit from it. 🫠
It's a tad more nuanced than that but I get the general idea. People use their homes as piggy banks instead of their homes
LOL, you have zip zero understanding of economics.
All real estate is an investment one way or another - either to you or to your landlord. You can either pay rent for 15-30 years or you can pay a mortgage. Yes, property taxes, insurance and maintenance fall to the homeowner but the renter is also paying for those things whether they want to admit it or not - it’s just an indirect cost. The difference is that the homeowner has equity at the end of the mortgage and now will just pay taxes, insurance and maintenance. The renter at the end of 30 years has zero to show for it.
Again I keep having to say this Wall Street owns only 3% of the houses market. 90%are baby boomers and gen x. The demand for housing is increasing because it’s expensive to build houses (plus immigrants, tech companies, retirees from northern states etc.). By using housing incentives and building MORE multi family housing this will fix it. And fixing zoning laws this anti-capitalist bs isn’t going anywhere long term.
I’m a disabled military veteran and have been working very hard to try to get myself my first home, given everything going on I am losing more and more hope every day. Anything that qualifies the VA loan is way too expensive, which destroys my hope of living anywhere near where I work. George Carlin said it best “They call it the American dream because you have to be asleep to believe it.“
If you had 5k, knew about building and remodeling. And wanted to move to north Dakota... I know a house we could buy for 10k. But then again people maybe never be compatible. But in this time... I'm at survival mode.
My insurance company dropped me in October after being them for 15 years and not making one single claim. Their excuse is that they are no longer insuring structures built after 1995. This place was built in 87. What a crock.
Where is this at so i can make sure to not move there accidentally?
Insane!
I bet people build houses they can afford and don't build in a forest or on a beach.@@Balletified
Can someone explain why insurance isn't run as non-profit or publicly owned. The shareholders are gonna take a chunk of the premiums. Shareholder returns could instead be used to cover the insurance.
Many states provide an insurance of last resort. They also keep premiums down generally but deductible will be high and in many cases the state scheme is losing money.
This is really a case of people throwing away money by building in the wrong place and then demanding that someone else pay for the mistakes. People shouldn't be building on the beach, barrier islands, areas that were previously swamp, or out in high fire risk areas. People shouldn't be able to make hail damage claims for minor damage to a roof. All of those things are happening and insurers have been telling everyone that has to stop. Politicians however find it easier to blame them for being greedy rather than tightening up zoning laws to prevent new construction in high risk areas.
Because private companies don’t like competition from the public sector. It makes it hard to make a profit.
@@karlmiller5009 you might want to look at Florida. Their state insurance scheme is incredibly underfunded and there is a significant chance it will blow up with one bad hurricane. Then all Florida taxpayers will be on the hook.
The guy in the video was right when he said governments don’t do well with keep insurance profitable or solvent. The national flood insurance program operates as a loss but is propped up by the government
@@petermacnamee5791why should insurance be run at a profit? Sure, if it's run at a loss that's also not ideal, but it should be targeted to be a net-zero institution
I was notified my home insurance wouldn't renew. I'm in Wisconsin. They said my house is a fire risk, but no explanation as to why it's suddenly a fire risk. There are 2 fire hydrants within 500 feet, and the fire station is 5.5 miles away. I found another company and my rates won't change much at all, but this is still concerning.
I’m in Michigan, tried for 5 weeks to get insurance, ended up not closing and losing my deposit. Gone through over 20 companies, not one would bind their quote.
That's cause too many folks in your area filed claims so you're in a high risk area and insurance company don't wanna keep paying out.
LOL, no fire risk because you are close to a hydrant?
@@Pete.across.the.street That's not what they said.
@@bwofficial1776 it was implied
I can't speak for other states. But in Florida, one of the issues was that during years when we got lucky and didn't see a major storm, many insurance companies paid out huge bonuses to the execs and board with some of the excess premiums collected. That money wasn't invested, and so wasn't available to help pay for claims in later years when we did have huge storms. Also, Florida allows people to win 3x their claim if an insurer denies their claim, but a court rules in favor of the homeowner. A lot of people are talking about the roofing scams, which is also a part of it, but completely gloss over the fact that these companies are losing money because they keep trying to deny claims that were, in fact, found to be legitimate in a court of law! Insurance companies are just upset that they actually have to provide a service for the premiums they were collecting and they've been cut off from the free money machine.
Like the CEO of Travelers, OVER $20 MILLION ANNUAL SALARY PLUS SHAREHOLDERS DIVIDEND.
Something doesn’t add up here. These people bought a house for $400,000.18 years ago and now owe $380,000? Sound like typical spend spend spend boomers who’ve been pulling equity out of that house this whole time. This home should be 2/3 paid off by now.
Anyone who owns more than one horse on their own property certainly can afford an extra thousand dollars per month. Just sell one horse! And when she says she’s moving I called BS. Again, she loves her horses, where exactly are they going to move to where they can keep their horses for less? I have zero sympathy for these people.
You hit the nail on the head. There is NO REASON that house should not be paid for. They spent their money on a lavish lifestyle never thinking the bad times would hit. If you are not flush with money like Jeff Bezos or Elon Musk, YOU DON'T NEED HORSES! Is she considering how much the care and maintenance of horses cost per year? It's crazy to keep them and then whine about your house insurance premiums. She claims she doesn't have a choice. Yeah you do, sell the damn horses.
It's extremely difficult for me to have much sympathy for this retired couple who obviously spent money on the wrong things.@@evecarrington562
Boomers always squander their potential children legacy future down the drain when playing lottery machines. It's who I always see playing them... carelessness. My grandmother sold her house and lost 25k in two weeks.
#Facts!
Do you know how much it costs to keep an old horse on rural acreage property? They eat grass.🤗 Depending on climate, $500 a year, maybe.😉 Trimmed hooves and self vaccinate (maybe if they are going to leave property).
Possible food supplements depending on health & size of acreage. There are horses turned out on huge acreage on military base in Southern California for 2+ years while owners stationed overseas (just need water stations). Sometimes I think humans in cities have no clue as to how herbivores live outside of dense human environments.(they aren’t leaving the property so they won’t get exposed to sickness)Biggest expense, having them euthanized and digging a very large hole.
This guy crying like insurance companies are hurting, over the last three years mine went from $3400 to $5600 to $9800, switched providers and I’m back down to $3200…don’t give me crap about risky for them and their models….pure greed
What company is giving the better rate?
The thing is the insurance companies are actually hurting. State Farm had its first loss in 100 years. It’s not just claims. Insurance companies take your premiums and make low risk investments, often government bonds- and they have suffered significant losses doing this as higher yields have crushed bond prices.
AMEN 100% greed.
Over the past five years, revenue has been growing at a CAGR of 3.8% to $147.8 billion, including an expected 0.3% decline in 2023. Profit is also expected to climb to 12.1% of revenue in 2023 from 11.9% in 2018.
You hit the nail on the head. insurance companies are INSANELY profitable. Why? Their model is predicated upon NOT paying out, but requiring you to have their product. A captive market is a profitable one. And suddenly, when the risk gets great, they are all too happy to wash their hands and walk away.
Insurance can be an effective tool to protect your financial security while leaving a larger estate for your beneficiaries, providing a cushion for transitioning a business to the next generation, and covering taxes and other major expenses resulting from estate liquidation.I will assess your current insurance coverage and identify any risks to your financial security, filling any gaps in coverage, including death, disability, and critical illness.I will show you how to get better value for premiums paid by managing insurance as a cost-effective defensive strategy.
Thank you. I see certifications on your website, with good experience. Intrigued, can’t wait to hear from you. just search up her name on goo gle
I looked up her full name online and found her page. I emailed and made an appointment to talk with her; hopefully, she gets back to me.
A lot of people in the comment seem to forget that an insurance company is a business and they need to make a profit or at least break even. They won't operate at a loss. So if there is no profit to made, they will close business or leave, which leave you with government-run insurance, where the taxpayer will pay for it even if you dont own a home.
Not related to insurance, but she bought her home for $420K, apparently 18 years ago...
Then, "Darlene and her husband still owe about $360 thousand dollars..."
So, in 18 years, she's only paid down about $60K? That seems low. I'm guessing there was a refi in there somewhere...
My parents "scared" home ownership and interest rate worries into me, so we made sure we not only didn't refi, but went for a 15 year.
Yes, I know that technically with a low mortgage interest rate, it's better to not do a 15 and invest the extra, but I am so glad I went with a 15. Paid off home takes so much stress off...
Of course, that doesn't address the insurance mess, but luckily I don't live in an area that has been hit by insurance company concerns like this...
It is really disappointing that doing fire protection won't help that... Seems like that should be an option.
That said, I think Florida also has legal issues and insurance fraud as a major problem. I was seeing that roof replacement fraud was also killing the insurance companies there...
That's exactly what I was thinking. Also they don't mention the real reason the Insurance companies are leaving Cali.....the state gov made it impossible for insurance companies to increase their rates. So the current insurer drops the policy and a "new" insurer offers a much higher rate.
Low debt is always a good thing. And a 15 yr note gives you options if something awful happens. I’ve always paid off my housing fast. I always want a roof over my head. Toys can wait.
18 years paying faithfully, and nothing to show for it. I think insurance companies should have to pay a certain percentage of a premium back if they’re going to do non-renewals, with the length of time the customer has been with them considered, that’s only fair.
Nothing to show for it? The insurance company accepted the risk for the duration of the policy. In a fire zone, she was paying only $2k. Sounds like she did OK transferring the risk.
@@briangasser973 I don’t think it’s the money. It’s the principle. To get dropped in that area with barely any notice.
We find the insurance industry can be very lazy. They don't want to expend any effort assessing actual risk. Our home insurer (State Farm), showed zero interest in the wildfire resistance design features of our home. That is, provision of a defensible space next to the home (example, an area of gravel and pavement surrounding the entire house). Utilizing Class A fire-rated roofing materials, and non-combustible cementitious siding (Hardie board).
Because insurance people are a scam bro! They work with big corporations in forcing you to sell your house at a loss so they can buy it and rent back to you at a profit 🤬
It’s more likely that they asses doing those things have very minimal impact on your house not burning down come another massive wildfire.
@@Chicago_jake If you conduct research on wildfire defense you will find that the studies by the US Forest Service and others do show the measures we took make a difference. Unfortunately, too many people shoot from the hip and don't look into the actual fire risk factors.
@@tedbellWRVto be fair, it shouldn't really matter if the insurance company cares about those features. If, as you mention, those installations are shown to be effective, your home should be able to survive a wildfire. So spending money on fire insurance would be a waste anyways. If you're confident in your risk management, you shouldn't need the insurance, at least the wildfire insurance, anyhow
@@WeAreChecking You may not be aware unless you have a home mortgage, but it is a requirement to have homeowners insurance for a home loan. Homeowners insurance includes fire insurance and you can't just drop the fire insurance. No one would anyway, as fires can be caused by all kinds of things, not just wildfire. The whole point of the CNBC video is the insurance companies are cancelling homeowners policies in certain areas due the wildfire risk. This leaves the homeowner in the lurch as the home loan requires homeowners insurance and the standard policies from companies like State Farm are not available. To comply with their home loan, they have to go to special insurance companies at many times the cost. If the insurance companies would actually assess the risk, they would see that older homes with wood shingle roofs and wood siding and wood decks or sheds attached to the house are the cause of the wildfire risks. These are what catches fire in a wildfire. If those are not existing, the risk is greatly reduced.
Last spring I was on a luxury cruise from Istanbul to Athens. Most of the other passengers were employees or family of employees from Farm Bureau Insurance. I’m guessing their per person costs was around 6k per person and there were probably 60 of them. This is where your premiums go !
Yep. My stepmom works for an insurance company and they go to Hawaii every year.
All expense paid trips on OUR dime! It’s sickening!
@@MisterWhatWhat
It’s just kind of flawed that the insurance companies think it’s necessary to have these trips in order for people to do their jobs.
It’s not ordinary insurance employees getting these trips but their top salespeople and sone execs. If they didn’t, the top reps would flee to another insurer who do give rewards like trips.
@@mbthe8731
How about they ALL knock that sh*t off and pass the savings to the customer ? Because you know what.......on a lot of this stuff I'm just gonna go naked and not get as much insurance products as I used to because I'm not going to put up with being gouged. They wanna keep being greedy then they won't be getting my business.
I dropped my homeowners insurance. My house is paid off. My social security went up $46.00 but my homeowners insurance went up $45.75 😮 Faced with increased food prices, utility bills and property taxes, that .25 cents just won't cut it 😢
Thank you Biden!
You’re better off not having insurance and just self insuring yourself.
They don’t want to cover you anyway when you need them. They’re coverages are horrible as are there high deductible’s.
@@jonlj77 The lady in the video paid $2000 for insurance. You thinking saving $2000/yr to "self insure" a $400,000 house is prudent? If you can't afford to build a house from scratch, you cannot honestly say that self insurance is the best move. It may be necessary, but that doesn't mean it's smart.
@@jameswalker590 Incorrect , it USE to be $2000 now it’s up to over $12,000 as she stated in the video. So yes it is worth it to self insure nowadays if that’s what people are facing. Would you pay $12,000 from $2k? Didn’t think so..
@@jameswalker590so yes to answer your question it IS PRUDENT.
Because insurance companies are not there to protect you. Its there to assess your risk and gamble appropriately on the outcome. Then when they lose, they try to find any loophole possible.
Yup. Essentially, an actuaries job; then, the lawyer's job.
Businesses are in business to make money. We can’t blame them when they decide to opt out of an area when government gets involved. If the state government never rears its ugly head, California residents would still have these carriers available to them.
Now they reap what they sowed.
My homeowners insurance has been $1,300 a year for 10+ years without a rate change, this year it jumped to $5,800
Sheesh!
Merica!!🇺🇸
I’d drop it and take my chances. That is if you own it of course.
Damn
@daveh71 no, this is not true
Happened to us. After 25 years with Plymouth Palisades here in NJ, with never one claim, we got a cancellation notice. We replaced our roof which was still in good shape and cleared all the brush and trees from around the house as they requested. Renewed us for a year and got another notice. They demanded a whole slew of stuff including clearing "debris", a new garage door, removal of our oil tank, etc. We have a home business with some stuff stored on our property. Our broker was at a loss and said "the homeowners market has drastically changed. You're one of hundreds like this I'm dealing with". After doubling our rates, they canceled us. We are going without since we own our home but what a nightmare.
And Citizen in FL is out of this world expensive. But if you look at the state as a whole, its on an eroding island, floods, hurricanes, tropical storms, overcrowded cities and towns, etc. equals sky high risk everywhere.
Don’t forget the Florida roofing scam that was legalized by previous administrations.
And don’t forget previous administrations allowed builders to build on areas that had previously been excluded, because hurricane damage was almost a certainty
I don’t understand how anyone would buy a house without even considering the disasters in their area. It would make sense if it was just a matter of climate change, but she admitted herself that she didn’t put any thought into it.
Also, how do you buy a house for $400k+ and still owe $350k nearly 20 years later?
Interest is paid up front
@@badactor3440 Home equity loans and cash out refinances more likely. Also making the minimum payments every month. Interest is compounded but only on principal balance.
Also how do you retire owing 350k on your house lol. Who the hell is going to pay that off?
RIGHT ON. MUST BE DUE TO THEIR UNPAID COLLEGE DEBT.
@@lindanorris2455 Yes, they are screaming "Please, Socialist Democrats, please give us tax-dollars to pay off our debts! That's why we voted for you!"
The risk is actually not having a water source in the near future, something people are being really oblivious about but is coming fast. People are chasing this California dream without realizing that the majority of the state is soon to be without water. Look at the Colorado river rights versus the population living in Southern California.
You never heard the word desalination ??? UAE has no river at all, 90% of the war comes from the Persian Gulf, they take sea water and produce water.
ua-cam.com/video/taMWUjda3fA/v-deo.html
Potential solution...
Banks give homeowners the option to carry mortgage payoff insurance instead of home owners insurance. This could substantially reduce insurance costs especially for folks with large down payments and good credit. Homeowners would be on the hook for home repairs which they effectively are anyway. No one wants to file a claim that will give insurers a reason to jack up rates.
That's a really good idea. Banks don't like homes on their balance sheets anyways, they want the loan, it's a more profitable asset. Of course the flip side to this is a lot more tragic, because unfortunately if the banks don't demand it, no one will carry home owners insurance and then if they lose their home or suffer serious damage to their home, they could end up homeless.
Why not just make the people pay more principle with this added cost instead of making it an insurance? Same deal with PMI....
what is mortgage payoff insurance
@@jonnym4670based on its name, what do you think mortgage payoff insurance does?
You don't need mortgage payoff insurance. Most insurance has an option to pay off early. At the end of the day there's no free lunch.
How much are the top executives at these companies making? Bonuses? Just like with medical insurance, all insurance should be affordable because people need to be able to live. On the other hand, people should also consider the risks of where they want to live and budget for that.
I have a relative working in an insurance company. I think something like 85% is used to cover damages.
What drains the budgets is not executives, its houses in risky areas.
The first sentence contradicts the second sentence.
I'd say that the first sentence is WRONG.
The second sentence is correct.
So you are half right --- a better average than most posting comments who can only imagine themselves as victims.
She’s owned a 420k house for 18 years and still owes 360k. This isn’t possible without a cash out refinance. In addition, her insurance is only going up to 12k a year. Likely less than the cost of caring for 1 of her several horses. She should have no trouble paying for this and if she can’t than she needs to reprioritize her spending. There is absolutely no way the government should be subsidizing her insurance. All this does is help prop up unrealistic property values, prioritizing those that own real estate over those that don’t.
I think it makes sense. My family bought a house 26 years ago for 440k. After 22 years of paying off the house, we ended up paying around a million dollars all together. We now own 4 houses all paid off.
If you don’t want to move, self-insure and invest in fire damage mitigation. (Appropriate landscaping, adequate setback, metal roof, automated outdoor and indoor fire suppression, etc.) Also, work with the local government to mitigate fire risk at the source, such as downed utility lines.
She can't self insure. She has a $350k mortgage and you MUST carry insurance with a mortgage. Sell the stupid horses and pay your insurance bill.
I had to change insurance companies twice in 2 years since they dropped me as a customer. Within that time frame my premiums doubled! Even though I’ve never filed a single claim in the 9 years that I’ve owned my home!
My car insurance went from $2k per year to $4k over a renewal period...plus they said i had to pay it all upfront and not receive any glass coverage. I looked around and thats the best deal i can get nowadays.
After 12 years with American Family through Costco, I had a huge tree blow down during monsoon season and filed a claim. Then several months later had 2 plumbing leaks develop at the same time, but cancelled the claim when a family friend (and insurance agent) said they could cancel you. They cancelled me anyway, and it was a stressful scramble to find a new company who would insure my house.
I had them and they drop us for no reason
>
Perhaps you should be a tenant and let the landlord worry about such things.
Why didn't you have the big tree removed before it caused damage?
Wilderness areas are for animals and trees.
Urban areas are for people, not trees.
My bias would be to cut down ALL trees in urban areas. I have none on my properties.
I see LOTS of properties where the owners let trees grow to huge size without maintaining them, and then they are surprised when they blow down of fall down du to that neglect.
I Live in louisiana, we have price increases across the state and bankrupted a few insurance companies that operated here. It is a tough situation to balance having reasonable insurance but also having people understand that they live in a risky area for flooding and should expect higher costs if they do
Insurance companies will give you a lot of BS to justify their rates. The bottom line is they want to continue to make that 50% or more profit on your insurance policies. I have been paying for homeowner insurance for 50+ years and never had to file a claim for anything. So all of the money I have paid is 100% profit for them. A couple years ago I called my insurance company to question why my rate went up. The answer was that they had to cover the costs of hurricane and flood damages in other parts of my state. So I am paying for someone else's home too.
Same with electricity bills here in California, I'm paying for somebody else solar panels.
If they paid $420K 16 years ago it’s probably worth close to $1M now. How long did she expect to insure it for $2k a year?
Wow they we're getting a sweet deal for a million dollar home.
insurance rates are not based on real estate appraisals they are calculated based on the cost to rebuild. Her house could be worth $100K on the real-estate market and cost $250K to rebuild. Insurance only worries about the replacement cost of the structure.
Being in California, i've seen friends who got a non renewal notice then tried to sell and they lost about 15% of their value... from 950K to 710K
Who's going to buy an uninsurable house?
@@SomeUserNameBlahBlahThe big corporations that work with their insurance buddies - Come on Man Keep up the good
They can buy Fair Plan which will insure them.
I'm in Florida, in a no flood, no forest, no hazard zone. I just dropped my insurance on my primary residence as it jumped $300 from last year. My rental house jumped $800 from last year. I left the insurance on the rental, but plan to take it off in June when they will need another $1,200 payment. I paid the first installment two days ago of $1,200. It's out of control. So I am dropping down to liability only, if someone hurts themselves on the rental property only. It is not covered if a hurricane blows it away. If that happens, I will just sell the lot, worth around $180,000. Prices for everything are so out of touch with reality. And any business that can get on the band wagon, does. But homeowners with a mortgage can't decide not to have insurance, as that is the requirement. But my two houses are paid off. So I will put that money in a separate account and let it accumulate. If I get storm damage, it will be there for me.
My Auto insurance just went up by 200 bucks for the next 6 months, with no claims or tickets, No accidents in the last 15 years. Last one was a deer I hit after hit was knocked into my lane from a car going the opposite direction as stated over 15 years ago. I called Progressive to ask why. They said risk factor in my area has gone up, but if I wanted to use the snapshot, it may decrease my premium. I asked could it go up if you think there is to much hard braking or sudden swerves? he said yes it can. I said so you only the data it reports but not why that brake application happened right? He says yes that is correct. I said so I'll use your snapshot only if I can submit dash cam footage to show why I hit the brakes hard or had tow make a sudden swerve or accelerate hard. He said that is not an option. I told forget it then, I'll go shop around. I now have cheaper insurance with lower deductible. Where I live I have to pull out from my road onto a hwy where the speed is 70mph and you get ran over doing that speed. If you don't put the pedal to the floor when you pull out you are a danger to the guy behind you. I know you'll say wait till it's clear. OK I have waited over 10 minutes to pull out before in the middle of summer during the peak of tourists trying to get to Glacier Park.
They raise your rate because they know you'll probably pay it. Nationwide tried that with me; I ended up switching to Mercury and got more coverage plus a 20% savings. I later switched to Geico and saved even more. It pays to shop around.
Oh ya! Progressive went on a RIP OFF spree lately
@@KreemieNewgatt I use Geico as well they did finally raise my rates this last year but still reasonable I guess
You are being lied to by insurance company
So, does Darleen realise that the insurance company thinks her house has a close to 100% chance of burning down within the next ~10-50 years (that would add up to the replacement cost of $12,000 a year). Or is she thinking, "Oh, it's not going to happen to me."
That’s not how insurance math works hunny.
Yeah, the reality is that the majority of the expected loss component of that premium is the increased likelihood of a massive inferno destroying everything in a 3 mile radius. I'd guess she's got an expected loss of roughly $7,500 considering underwriting costs and profits in excess markets, which isn't going to be moved much even if she removes all vegetation and digs a moat around her property.
The lady with 12k quote and a 15K deduct: in 1 year a 27K damage claim breaks even with self-insurance
in 2 years that's 39K in 5 years that's 75K damage claim that would break even if you self-insure
Also, if you self-insure, you have a small (less than 1% chance) you lose 275 K (350K total loss damage -15K deduct and 60K insurance saved) over insured
But there is a real good chance (80% or more) you will go claim free, and save 60K by self-insuring in 5 years 120K in 10
If you can weather a total loss financially , its a good option to self-insure in that scenario if you can
She also was able to pay 10% of her house down in 18 years like obviously nobody is insuring that
While being retired
have you ever known of a major insurance company go broke? What the largest insurance companies is have multiple smaller companies underwrite their policies. Then when a regional disaster occurs, the big company has their smaller companies declare bankruptcy because they were unable to pay off all their claims
Sounds like they pull out of California because they can't get away with that.
US building cheap houses made from crap for around 100 years. Now you pay for crap house staying on expensive lot (yes, not house itself makes real worth), but you pay for the whole property as insurance premium. Which is made from wood and ignites like a match. Insurance providers are making tons of money. Their business model by far become just squeezing money from customers paying back as few claims as possible and using legal loopholes to put most of collected premiums into pure profits.
Time to invest in insurance business?
@yikwonjang2978 Thinking from that perspective... yes. But, you know, nearly every American corporate doing more or less the same.
Over the past five years, revenue has been growing at a CAGR of 3.8% to $147.8 billion, including an expected 0.3% decline in 2023. Profit is also expected to climb to 12.1% of revenue in 2023 from 11.9% in 2018.
How are houses built in your area?
@SomeUserNameBlahBlah I now live in a city in a condo tower, and here it is reinforced concrete. But in a place where I originally from private houses were built with bricks.
This only makes the housing affordability issue worse in places like California. It’s getting to the point where you just can’t win.
Not necessarily. As insurance prices go up housing prices could go down. People pay what they can afford. If insurance goes up by $5000 per year that’s going to affect how much mortgage you can get to buy the house.
As far as people who built their houses and areas that are endangered, unfortunately there’s not much anybody can do to help them. When an entire town burns the insurance companies take notice. Paradise California was a wake up call for a lot of insurers that all of a sudden realized they had massive exposure.
@neilkurzman4907 no "people" don't drive prices. Corporations do. That's why there's more empty units than homeless people in the U.S.
My home got roof damage from a severe rain storms. I called my insurance agent to see if I could get help with the repairs and the agent told me that if I filed a claim I ran the risk of getting a non-renewal letter. Seriously, what are we paying insurance for if we are afraid of filing a claim? I had to shut my mouth and make the repairs myself, and continue paying the high cost of insurance because my mortgage demands it. It doesn't matter what the lady on the video used her money for... what matters is that she used her hard earned money to pay for insurance for years and now can't even get help. What is happening to the home affordability is depressing.
I was with Amica. Had a storm roll through and sustained some roof damage. Called them and had the money deposited to my account in less than a week that covered the full amount for the roof and soffit repair. It was a hassle free experience. Amica had cheap prices for home and auto in my specific area. I had an excellent experience with them.
the town of Paradise, Cal was burnt to the ground, one smart man installed a sprinkler system outside his home and saved his home, in the midst of a total, almost total fire loss environment, this is the key, outdoor sprinkler systems, good business for some fire fighters to start, lol! I mean, it is what is needed when you can't find insurance for a fire.
Great idea, but you left out one vital part. He would have to be on well water because the city pressure would be way below normal because of the firefighting. Another tip: Metal roofing! It does not have to be ugly tin panels anymore. Plant fire-retardant trees and shrubs away from the house. Have a Fire Shelter cellar or room. Fires move incredibly fast!
That ia great for the risk of fire but there are also mudslides / earthquakes etc. ....
People usually don't want to spend the money on a sprinkler system INSIDE their house to mitigate fire risks.
Perhaps people should take a page from this guy and install an outdoor sprinkler system, including sprinklers on the roof!
During a period of fire risk, turn on the sprinklers around and on top of the house and let them run, getting everything good 'n wet. I wonder how an insurance company would evaluate THAT risk?
Because the cost to replace things has grown a ton (inflation)
Truth!
Everyone, at least those that live in America, should know, Insurance is not for your benefit. Insurance is a for profit business, when they see they can't profit from the home, they pull out. Insurance is the biggest scam in this country.
I live in western NY and I think I'm shelling out some insurance money to help cover some damaged and destroyed property in area that are prone to violent storms. It keeps going up around $150 per year and I never have made a claim in the entire eight years I've owned my home, and my geographical location is lower risk.
I just bought a home have ZERO homeowners claims and no insurance claims of any kind in 20 years or more, yeah I'm paying $200 a month for home owners for a policy that covers just under 100k, I didn't even cover the whole property just what it would cost ME to replace the home and/or garage, I'd probably be doing the majority of the labor as well. 2k deductible. Insurance agents are pure greedy people.
Home owners insurance is just like car insurance, you're paying for everyone else's accidents.
You are. It is not about your behavior as much as it is the overall market risk to the insurer. They got to be able to repair the homes camaged/lost and then make a profit in order to stay in business. They make coverage decisions many times on a state level after looking at how much the insurance INDUSTRY paid last year for damages in teh state and how much new repairs are forecast to be. As easy as it is to blame climate change, the lack and cost of insurance problems mostly stems from builders and individuals building where and how they shouldn't. Partly this is the fault of local government (think city/county zoning dept's and inspectors) allowing construction where it shouldn't, but mostly it is our collective greed and irresponsibility - and within this group it is mostly from the folks pushing anti-regulatory politics. Cheaters don't want to be caught, so they push tax reduction in order to shrink "government" so there won't be an inspector to catch they incorrectly filled in the swamp before selling it to the builder who won't be there the next time it floods.
@@jerryvanderwier2310I was on board until you got to that last sentence. There simply aren't that many people who do that and think that way. You're giving them way too much credit. EVERYONE I've ever spoken to who wants smaller government is sick and tired of paying for bloated and corrupt bureaucracies which pick our pockets.
Executive Compensation is increasing faster than anything else...
amen!
Outright, non-profit government backed insurance is the solution. Private insurance is beholden to Stock Market greed, not civilization building. Plus, private insurance has been subsidized by our tax money, anyway.
best comment.
I live in los Angeles and I just got my renewal quote and it 109% more than last year.. it went from $800 to $1700 for the year 🤯
$800 is too low to reflect the risks of fires, flooding, and earthquakes.
@@radishpineapple74 yes you are right 800 is just for fire.. I am not on a flood zone and if I would get earthquake coverage it would be way more than 1700..
Same thing here in inland empire. Mine shot up 122%
Good grief; we've been dealing with fires, earthquakes and hurricanes for decades; housing standards have improved and state regulations now mandates that new homes are built to code. Climate change is certainly a contributor, but let's not beat around the bush: the main cause of skyrocketing premiums is FRAUD...which is hardly mentioned ANYWHERE in this video.
Just self insure your house, if you think its safe enough
In Tortola BVI we have experienced hurricanes for many years and have built structures out of concrete with galvanized roofs. We thought we were very secure until we got hit by two Cat 5 Hurricanes back to back Hurricanes Irma and Maria in 2017. Irma was so strong it ripped the grass off the ground and the paint off the walls. There was so much devastation and roof damage, that it traumatized a whole generation. Now many folks are building their gable stile roofs out of concrete. The point is every place has unique environmental challenges and there is no reason for a house to be built or retrofitted without having that in mind. Why continue building houses in a style that does not work for a river plane or why build a tinderbox in forest that can catch afire. Build resilient or don't build at all.
Oh of course the corporate guy says the government can't do insurance well. So tell me what happens when a wild fire happens and the insurance company won't pay to rebuild. Oh yea the government and the tax payers pick up the bill.
We are already paying for it in taxes. Makes no sense to pay these corporations so they can not pay for the things they are supposed to be covering.
So you want government to take over insurance?
I’m confused I thought private industry did everything better?
The problem in Florida is Florida. The problem in California is fire, and the math they use to control rates. It’s based on past claims. Increased fire has changed the math in the insurance companies eyes, but the state hasn’t changed the law.
Lady said we did everything right. My parents just retired and paid of there house and they are immigrants that did the worst jobs in America the past 25 years. You should not have a mortgage in your 60’s if you did everything right.
How about stop building in wild fire areas or on flood zones?
You are not entitled to cheap homeowners insurance. If you build in a flood zone, hurricane zone, earthquake zone, area prone to wildfires - expect to pay more.
Tell me sir, where do these non disaster zones occur? LMAO
@@Feliciations Places not near oceans and bodies of water, slightly elevated are less likely to flood... Therefore should have lower home insurance rates. Places outside of California not prone to wildfires or earthquakes should have cheaper home insurance.
@@Feliciations Those areas that are elevated, not near bodies can still flood - especially if something goes wrong with plumbing or leaky roof. They are just less likely.
My mortagage bank, Flagstar, got a letter that the escrow went up I'm leaning insurance is the true culprit. Now my payment increased by $200.
My Statefarm agent explained the CA issue to me. Basically each insurance agency has a maximum percentage they can insure in california, this is to maintain certain amounts of competition. A lot of smaller insurers have left California. Statefarm has now put in a request to increase their cap so they can sell new homeowners insurance again. They want to sell insurance to new houses in urbam areas such as LA and the Bay Area, but cant due to anti trust laws.
Insurance companies are showing their true colors, I always felt insurance was a bit of a scam if they can just deny claims and cancel coverage whenever, glad I built my home myself, overbuilt it with fire resistant material and in an area that's dry.
So she can afford $7k for tree trimming but cant afford a $12k insurance policy?
Right? The level of stupidity is off the charts.
Yes when bills stack up, affordability gets difficult when insurance prices multiply 6x
Quick answer: NO
Paying the $12k policy doesn't save you from tree trimming.
I get your point, but the $7k was a one time charge. The $12k insurance rate would be every single year, and likely increase.
We replaced 20 of our vents with ones that help prevent embers from coming into the attic. Many houses about 8 miles away burned down about 16 years ago from embers getting in their attic from a fire many miles away.
Here's a question. If you have a payment on your home and car, but actually don't own either, why isn't the bank paying the insurance since you don't actually own anything just yet? You don't own it yet, you're just using it. Like using an airplane when you fly. Or a hotel room. You don't pay the insurance for the hotel room because you don't own it. Your just using it.
That’s a terrible idea that you are alluding to. You wouldn’t want the banks to pay for the insurance because they’ll chose any carrier they want and then turn around and tack that insurance premium to your loan. Either way you are still paying. At least this way, you can shop around and choose the carrier you want.
Actually you do pay insurance on a hotel room. It is just built into the cost of the rate. You don't see it as an expense. That's how the hotel can pay their insurance.
Boomers complained about the GenZ avacado toasts instead of understanding the problem with housing. Now, it finally caught up to them through insurance.
It still sucks regardless of what generation you are
Yeah, but if people identify with others about their hardships. Then things could of been fixed.
**Millenial Avocado Toasts
Lmfao what’s the connection to avocado toast??
This is horrifying and it’s happening, not just in high fire or flood risk areas. It’s not inflation, it’s forcing you out of your home and vehicles.
From $2k to $12k a year is insane😢😢
if you haven't had claim in 18 years than that was free money for insurance company, now probability goes up for the claim and they ran away.
But in reality, that is not how it works. Even if you didn't claim for 18 years, people in a similar position (location, housing type, etc.) as you did, as a result it has gotten more expensive, and is projected to continue to get more expensive.
@@ReadThisOnly true, but also true is if the insurance company profits grew during that time. insurance as a for profit business is a corrupt model for what is a social function that should serve the benefit of the public. not investors.
So? Why don't you self insure? Take THAT you greedy insurance company!
(I do self insure my residence)
And what about every big business that has all kinds of insurance? You think they are all being ripped off?
You obviously don't have a clue about how risk is managed. You just imagine that the big, bad insurance company is ripping you off.
@3:20 that's misleading. They match premium to risk. What is being described is subsidization, which is not desired as then they're underpriced on bad risks and overpriced on good risks. Insurance companies make money on underwriting by the fact that in aggregate losses are generally predictable when risk is managed...
Imagine having to have states creating insurance welfare programs because we can't convince our f'ing government to regulate insurance and corporate profits. They post year over year record profit margins and then claim its costing them too much to payout claims.
Completely agree. This is a misalignment of incentives - they want profits and no payouts. And aren’t regulated for what they have to provide but also there aren’t limits to where houses are built, like floodplains or fire prone areas. So the system is jacked but I’m going to bet the main culprit is corporate profits and not enough regulation.
Profits are what ensure solvency - and the ability to pay claims. The prime duty of Insurance Commissioners is to ensure insurers are solvent. In the insurance business model, a 5% profit is considered excellent. But that’s below the 8% rate of return that’s considered acceptable for investments. Often insurance companies barely make any profits.
you are financially illiterate. don't post about anything financial.
@@jillhoffman9179 you sound just like a Boomer
I have noticed that in flood prone areas houses are normally slab houses. It they had at least good sized crawl spaces most of the houses would be fine.
Australia just puts the houses on stilts. The garage can go underneath, so unless you're getting 8' floods, your living space is safe. ...but I expect that even if the developers did that, you'd get homeowners converting the garage space and we're back to square one.
Until the water rises another foot.
What a blessing her home is still insurable but yes it will cost her more. She can still sell her home very easily and the new buyer will make an offer based on the risk factors associated with the property.
Listen to what theyre saying, insurance companies are straight up Business only!
They are NOT like a good neighbor. You are a number with a risk, nothing like a neighbor🔥🔥🔥🔥🔥
spam, this comment is in this thread from multiple bot accounts
Grants? For home Owners?! And what about the people who doesn't own anything at all and has to rent a flat?
I work in insurance here in Michigan. Been in the industry for 10 years and i gotta agree rates are just getting insane. That lady said "raise the price", then adds the word "reasonably" at 12:52 . What is reasonable to an insured? We have people calling because their rate went up $50 a year. Im like heck our grocery bill have increased more that per month are you yelling at the store manager. So i ask again what is a "reasonable" increase to an insured? People will gladly pay $100 extra a month for a new car note but wont pay $5 more a month for insurance premiums.
my auto insurance is up 40%. where is the money going? Wall street?
@@radicalaccounting without seeing policy its impossible to narrow down a 40% increase. Tickets and accident all that stuff effects a rate. But ill be honest the whole "my rate went up this percentage" comments really isnt logical because percentage increase is relative. I mean 40% increase of $100 is all of $40 but yet 40% of $2000 is $800. Which one seems more substantial? As to where the money goes? Cnbc did a video on mechanics having to charge more. Thats where i would start looking for an answer. Just like every business its money in vs money out. Mechanics charge more to repair cars, then insurance has to charge clients more to cover it or risk going out if business. Then u can look at the world around you as well as see everything has increased 30 to 40%. I used to buy ground beef where i live for $5.99 a lb now its $7.99 a lb. Thats a 33% increase. I used to buy a half gallon of milk for $1.50 now its $1.99. thats a 33% increase. The streaming service Disney plus increased their price from 10.99 a month to 13.99 a month in october 2023, which is a near 30% increase. The other streaming services; max, paramount+ all them did the same thing. Thats called inflation and just because you dont understand an industry doesn't mean theyre exempt from the issues impacting every industry. I get not understanding it, i tell people all the time insurance is the most misunderstood industry in the world because everything else you pay money and get something tangible with it but with insurance you pay money and get a piece of paper with numbers that noone understands. Then u forget about it until either you pay again or something really bad happened to you. I get it, noone wants to pay more (me included) but unfortunately unless your going to live off the grid, move to the woods and live off the land, thats part of life
@@radicalaccountingpulling a sam bankman
We have been Having a hard time getting home insurance in Chicago. It’s not just Florida and Texas
Why there?