Wind/hurricane prop...
 
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Wind/hurricane property insurance  

 

IslandBoomer
(@IslandBoomer)
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November 11, 2014 11:36 pm  

Perhaps this is a really dumb question, but I have to ask it:

Hurricanes have a season, occurring within just a few months of the year, so why not carry wind insurance only in season for Aug through Oct or something?
Do the insurance companies drop you if you do this? Is it fair if they do?

Wind insurance is so expensive, literally adding several thousands of dollars to your property insurance bill per year and not really needed several months of it.

(Yes I know there can be very rare fluke storms out of season, but putting that aside for now.)
Am I being silly? imagine the savings.


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Alana33
(@Alana33)
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November 11, 2014 11:47 pm  

Which is exactly why they make you pay for 12 months instead of 6.
They won't sell you a 6 month policy. They want your money.


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Afriend
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November 12, 2014 12:50 am  

The insurance industry has a term for what you are suggesting - it's called "Adverse Selection" and the companies go to great lengths to avoid it.

So, yes, insurance companies will not only drop you like a hot potato if you try it and you'll have extreme difficulty trying to find replacement coverage from a different company. It may not seem fair but that's the way it is.

Sorry, IslandBoomer but to use your words you are "being silly".


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speee1dy
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November 12, 2014 10:57 am  

June 1 to November 30 , so half of the year


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divinggirl
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November 12, 2014 10:59 am  

That's like saying I won't buy health insurance until I wake up sick. Then I'll call in and get a policy before I go to the doctor. Insurance is risk pool - sometimes you pay for it when you don't need it so it's there when you do need it.


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stt007
(@stt007)
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November 12, 2014 11:42 am  

Only way out of it is to self insure.


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sunshinefun
(@sunshinefun)
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November 12, 2014 1:27 pm  

Or not have a mortgage.


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CruzanIron
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November 12, 2014 1:37 pm  

Or have a hurricane proof house...


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Alana33
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November 12, 2014 1:42 pm  

Just make sure if you self insure that you have enough money to rebuild your house and replace everything in it (as many were forced to do), if we were to have another Hugo or Marilyn type storm. Most people can't afford that and as sunshinefun mentions, not have
a mortgage.

After my insurance company paid out after Hugo, they dropped me. I was paying $800 a yr. back then. Way higher these days. Still use the company that paid out after Marilyn but of course, at a much higher price.


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IslandBoomer
(@IslandBoomer)
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November 12, 2014 4:09 pm  

Yeah, I just had to put it out there. Silly me 😉

My primary home is on the northeast coast of the US mainland and wind insurance is included in my policy- even for hurricanes, which we get bad here too now and then. But they keep the premium extremely low with a very broad sliding scale deductible that's based on the storm category when you make a claim. It's a great compromise if you can afford the larger deductibles.


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OldTart
(@the-oldtart)
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November 12, 2014 4:56 pm  

My primary home is on the northeast coast of the US mainland and wind insurance is included in my policy

NE USA is not the USVI by any stretch. Have you lived here year round?


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IslandBoomer
(@IslandBoomer)
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November 12, 2014 5:35 pm  

Not yet, and of course I know the VIs are much worse for tropical storms being right in the hurricane belt. The NE only gets hit by strays now and then.

Thanks all for educating me. 🙂


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Alana33
(@Alana33)
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November 12, 2014 6:12 pm  

Seems like that trend might be changing for the NE, given recent history. We have dodged several bullets in the VI, since 1995 and
the storms we've had, have done no significant damage but our premiums are still sky high.

Don't want to pay hurricane insurance? RENT!


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STXBob
(@STXBob)
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November 12, 2014 7:37 pm  

Seems like that trend might be changing for the NE, given recent history.

True that. I moved from New Jersey to STX nine years ago. In that time, my old NJ neighbors have had several week-long power outages from storms, whereas in STX we had just one such outage (Hurricane Omar in 2008).


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