Finally, there is an article from The Conservative Voice I can applaud.
Diane Grassi is ready to reel in [regulate] a property insurance industry poised to destroy communities nationwide with cancellations and outrageous premium increases. Diane needs to visit with Florida homeowners who are already in shock over these supposedly justifiable steps. The reeling in needed to start about 6 months ago.
An unexpected phenomenon followed the 2005 hurricane season and is primarily fueling the fires for insurance reform and that is the record high premium rate hikes on homeowners as well as commercial property policies. In addition, hundreds of thousands of policies are being dropped and non-renewed by the country’s two largest insurance companies, namely State Farm Insurance Co. and Allstate Insurance Co., from the Gulf Coast all the way up to the tip of Maine.
With premiums on the Gulf Coast having at least doubled since 2005, thousands of dollars have been added to mortgage loans. In some cases, many homeowners policies were not renewed at all, preventing homeowners from obtaining mortgages or rebuilding at all.
With insurers’ withdrawal from writing homeowners policies throughout regions of the U.S. and gutting those with less and less coverage for those in place, the industry believes it will be able to stay healthy. Astonishingly, in 2005 it made a record profit of $45 billion post-Katrina and after four storms in 2004 it realized a profit of $38 billion.
Over the next year, 43% of the U.S. population which covers 18 states can expect their policies to either be dropped by their insurance carriers or have their premiums escalate between 20% and 100%. And for that reason alone it might be time to reel in an industry which not only is in business to make a profit, but also has a moral obligation to help protect communities nationwide and such becomes necessary in the face of absolute destruction.