Insurers Are Deserting Homeowners as Climate Shocks Worsen
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Re: Insurers Are Deserting Homeowners as Climate Shocks Worsen
#2I hate the insurance industry so much, bros.
What I hate, most of all, is that it's so often mandated -- and, yet, at the same time, so complex and annoying to attain. Half the time I need to buy some BS insurance for my business, I can't even purchase it online, I need to fill out a 20-part form and then "Speak with an Agent," who will resist giving me all of my options and make purchasing a personal ordeal.
I had considered, in a half-serious way, setting up an "insurance" company (probably incorporated in Sealand) that sells "basic packages" for very low prices -- and when you "speak with an agent," explicitly tells its customers that it will never pay out any claims. It would be nothing more than a fig-leaf, so that you can tell third parties, "yeah, I have insurance, don't bother me about it."
It would probably be illegal, which is sad. I just don't want to be annoyed and don't like being forced to deal with grifters.
Re: Insurers Are Deserting Homeowners as Climate Shocks Worsen
#3I hate the insurance industry so much, bros. What I hate, most of all, is that it's so often mandated -- and, yet, at the same time, so complex and annoying to attain. Half the time I need to buy some BS insurance for my business, I can't even purchase it online, I need to fill out a 20-part form and then "Speak with an Agent," who will resist giving me all of my options and make purchasing a personal ordeal. I had c…
That's how it works in Poland. A client required me to get an insurance for my 1-person contracting company, and I was able to get a policy that only covers trivial things like spilling hot coffee on someone, but none of the software risks. The client was satisfied (they're a giant bureucracy, and the the contractor procurement people just needed any policy to be able to tick a box), while I spent minimal cash.
Re: Insurers Are Deserting Homeowners as Climate Shocks Worsen
#4So if property price drops completely because insurance do not want to insure, it should make buying houses in cash and avoid mortgage easier right? House becomes a cheap commodity, everybody can then buy a house again, insurers can insure them again because they are cheap. The market correct itself.
Problem solved?
Re: Insurers Are Deserting Homeowners as Climate Shocks Worsen
#5I hate the insurance industry so much, bros. What I hate, most of all, is that it's so often mandated -- and, yet, at the same time, so complex and annoying to attain. Half the time I need to buy some BS insurance for my business, I can't even purchase it online, I need to fill out a 20-part form and then "Speak with an Agent," who will resist giving me all of my options and make purchasing a personal ordeal. I had c…
That's how it works in Poland. A client required me to get an insurance for my 1-person contracting company, and I was able to get a policy that only covers trivial things like spilling hot coffee on someone, but none of the software risks. The client was satisfied (they're a giant bureucracy, and the the contractor procurement people just needed any policy to be able to tick a box), while I spent minimal cash.
I would hate this, I think.
The relatively low (and I have to tick boxes for most of the high risk industries on the form) amount that I pay each year for what seems to be a nice PI policy is easily worth it for the peace of mind.
Re: Insurers Are Deserting Homeowners as Climate Shocks Worsen
#6So if property price drops completely because insurance do not want to insure, it should make buying houses in cash and avoid mortgage easier right? House becomes a cheap commodity, everybody can then buy a house again, insurers can insure them again because they are cheap. The market correct itself. Problem solved?
In theory, sure. In reality the racket between insurers, government and banking will find strings to pull so that that never happens. They're in on every deal. They're gonna fight tooth and nail to prevent the precedent of getting cut out.
I don't think it's fundamentally uneconomical to live in these places. It's just uneconomical in the current "nobody has any responsibility for anything it's all just financialized away" status quo in which it's ok to have plastic siding over a plastic-wood structure and shrubbery all about status quo. People will have to return to the "old ways" of corrugated steel, clapboard (or masonry or cement board) and super short grass and dirt for large distances around structures.
Re: Insurers Are Deserting Homeowners as Climate Shocks Worsen
#7Earlier quoted context omitted.
That's how it works in Poland. A client required me to get an insurance for my 1-person contracting company, and I was able to get a policy that only covers trivial things like spilling hot coffee on someone, but none of the software risks. The client was satisfied (they're a giant bureucracy, and the the contractor procurement people just needed any policy to be able to tick a box), while I spent minimal cash.
I would hate this, I think. The relatively low (and I have to tick boxes for most of the high risk industries on the form) amount that I pay each year for what seems to be a nice PI policy is easily worth it for the peace of mind.
I would love it.
As things are now, I'm mandated to spend $XXXX/year on insurance that I've never used and know, for a near certainty, that I'm never going to use. I'd really rather not. I've looked at the statistics and, for me, it's a better bet to eschew insurance. (Which, generally speaking, it would have to be, otherwise the insurance industry would be losing money.)
Re: Insurers Are Deserting Homeowners as Climate Shocks Worsen
#8Re: Insurers Are Deserting Homeowners as Climate Shocks Worsen
#9So if property price drops completely because insurance do not want to insure, it should make buying houses in cash and avoid mortgage easier right? House becomes a cheap commodity, everybody can then buy a house again, insurers can insure them again because they are cheap. The market correct itself. Problem solved?
Everyone (with some degree of savings, which really isn't everyone) will be able to buy a house in an area where that housing and local infrastructure will be regularly devastated. Areas with a more amenable climate will continue to have insurable mortgages and inaccessible housing prices.
So if the 'problem' is _simply_ that people can't buy houses, I guess it's solved? If one words it more carefully - people can't buy houses that allow for a greater degree of economic stability and wealth accumulation - then no, problem not at all solved.
Re: Insurers Are Deserting Homeowners as Climate Shocks Worsen
#10So if property price drops completely because insurance do not want to insure, it should make buying houses in cash and avoid mortgage easier right? House becomes a cheap commodity, everybody can then buy a house again, insurers can insure them again because they are cheap. The market correct itself. Problem solved?
They'd need to be so cheap that rebuilding (or maybe even repairing) are not things people would care to do. For a $40k house, in today's dollars, it might just be a risk I wouldn't care to rebuild if there's massive damage; just move away. Someone would have to take care of cleanup/removal though.
I see where you're going, and sort of think it could happen in some areas, but regulations might not permit that any time soon, even if 'pure' market conditions might call for it.
Interesting to think what this might do for the 'tiny house' market. Start zoning more places where people can put up $30k tiny houses. You might still need insurance for protection against personal injury on/in the property, but rebuild/repair wouldn't need to be a factor.