Hurricane Alley and Insurance

Hmmm.  Hadn't thought of this.  A note from Chaney on Category 10--Insurance

Your blog provides very helpful information to those who are just beginning in life or those who have hit a slight bump in the road. However, your suggestion about not obtaining Renters Insurance could be costly especially if you live in areas where hurricanes and tornadoes are a part of life. Yes, your personal belongings of value may be limited, but at least you would not have to start over at the end of each storm season and it does provide some peace of mind. This coming from someone who is just starting out and happens to live in the heart of hurricane alley "Sunny South Florida"

Like I said, hadn't thought of that but my experience with hurricanes and tornadoes is somewhat limited though my car, with me in it, was reduced to looking like a golf ball due to a massive hail storm a few years ago. 

We were in Florida and Louisiana  in March and insurance did come to mind.  Like in "Who is paying for all this?"  The condo we were in was near Pensecola and pretty much knocked out in 2003, I think, and drove over to Biloxi which got knocked out by Katrina.  (Saw a cute little sign--You Loot, We Shoot)  In Florida, the construction was booming and in Biloxi the clean up was just about finished.

But back again to "Who is paying for this?"  because I don't know.  But I want to so if anyone has any insight let me know.  Most people I talked to assume that 'insurance' will pay for it.  Yeah, maybe once but I would think those insurance guys would be sitting there looking at all the money going out the door and someone would say "Hey, maybe insuring condos right on the beach, right in the line of a hurricane is not such a good idea!" 

Or then does some smart analyst pull out the hurricane forecasting machine and says 'There will not be another hurricane like this for a billion years so let's insure everything."  Or does somebody just raise rates to cover the damage.  Don't see how that can happen as the amount being paid out appears huge. 

Or, and I hate to think this but in the back of my mind a little voice is asking "Is the government paying for this?" or put more directly "Am I paying taxes so some clown can sit in his condo on the beach and if it gets wiped out by a hurricane, he gets bailed out by the government?"  Hope this is not the case but I can't figure out why any insurance company would take the risk.

Anybody know out there?

Comments

[Paula]

I know here in Texas, State Farm is asking for a 9.1 increase in Home Insurance rates and I think there are some other changes they want to implement as well as a result of the hurricanes last year.

Here's a link to one of the local TV stations. I think you might have to register to see it.

http://www.khou.com/topstories/stories/khou060601_ac_statefarmrates.425f9957.html