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Home insurers are dropping customers based on aerial images

wsj.com

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Re: Home insurers are dropping customers based on aerial images

#21

Post by gmd63 »

mb7733 wrote: post #6
malfist wrote: post #4

If insurance is individually priced to this degree, what's the point of insurance?

Why would insurance being individually priced negate its value? The benefit of insurance is the pooling of the risk. The more individually it is priced, the more efficiently it works. (Not that I'm a fan of insurers spying on their customers from the sky...)

Insurance incentives would drive them to want to predict as accurately as possible who is going to cost them money, and then deny them coverage. They make money from selling to people who are afraid of a calamity but likely won't experience one.

Re: Home insurers are dropping customers based on aerial images

#22

Post by ozr »

sircastor wrote: post #12

I'm going to assume that nobody's insurance premiums or deductibles are going down from this data. No analysis is making the insurer say "Oh, that roof is in much better condition despite its age." Insurance feels like the biggest scam in the history of the world. You are legally obligated to pay us for nothing, most of the time.

Insurance carriers have an incentive to compete on price like any other business. There are plenty of options. The margins are generally pretty small, and there is a lot of regulation around what portion of payments must be used for claims.

There's a few obvious exceptions, but plenty of insurance isn't required.

Re: Home insurers are dropping customers based on aerial images

#23

Post by jcims »

mb7733 wrote: post #6
malfist wrote: post #4

If insurance is individually priced to this degree, what's the point of insurance?

Why would insurance being individually priced negate its value? The benefit of insurance is the pooling of the risk. The more individually it is priced, the more efficiently it works. (Not that I'm a fan of insurers spying on their customers from the sky...)

Because at the limit, the size of the pool is one...you.

Re: Home insurers are dropping customers based on aerial images

#25

Post by op00to »

egeozcan wrote: post #11
antisthenes wrote: post #7

Undeclared trampolines? What kind of insurance is this? I don't remember my house insurance (or medical, or any other kind really) being this detailed. I just picked rough estimates for the value of my structure and the items inside, and that was about it? There might have also been a waiver about not doing any hazardous activities like open fires or storing chemicals on the property. It definitely wasn't this detail…

After reading that, my mind is generating weird scenarios in which undeclared trampolines are causing tragedies. Trampolines can indeed cause accidents but is that big of a risk to have one? That feels so out of place it's beyond comical.

Yes. Growing up I saw my friend’s foot pointed the wrong direction after a “double bounce” caught his foot in the gap between the trampoline surface and the supports. We were careful kids.

Re: Home insurers are dropping customers based on aerial images

#26

Post by kjkjadksj »

flutas wrote: post #15
egeozcan wrote: post #11

Earlier quoted context omitted.

After reading that, my mind is generating weird scenarios in which undeclared trampolines are causing tragedies. Trampolines can indeed cause accidents but is that big of a risk to have one? That feels so out of place it's beyond comical.

It's probably about risk more than anything. Trampoline installed well (i.e. staked down) with proper netting = who cares Trampoline unsecured, no net = wind risk, personal injury risk, death risk

Honestly from growing up the riskiest bit was when the springs gave out from holding the material. Net or no kids are going to drag it over to the garage one day and jump from the roof onto it. Better hope the webbing the springs mount into is in good shape.

Re: Home insurers are dropping customers based on aerial images

#27

Post by mb7733 »

jcims wrote: post #23
mb7733 wrote: post #6

Earlier quoted context omitted.

Why would insurance being individually priced negate its value? The benefit of insurance is the pooling of the risk. The more individually it is priced, the more efficiently it works. (Not that I'm a fan of insurers spying on their customers from the sky...)

Because at the limit, the size of the pool is one...you.

Accurately pricing insurance doesn't reduce the size of the pool.

When you buy insurance, you aren't just pooling risk with other customers with the exact same risk profile as yourself. You're pooling with all customers of the company. (Plus all customers of any reinsurance company, etc.)

Re: Home insurers are dropping customers based on aerial images

#28

Post by newprint »

antisthenes wrote: post #7

Undeclared trampolines? What kind of insurance is this? I don't remember my house insurance (or medical, or any other kind really) being this detailed. I just picked rough estimates for the value of my structure and the items inside, and that was about it? There might have also been a waiver about not doing any hazardous activities like open fires or storing chemicals on the property. It definitely wasn't this detail…

Hello ! I writes software that deals with Home insurances. 1. Staggering number of people are getting seriously hurt on trampolines each year, so other people can sue you (=> insurance company) for injuries. It is on your property (((. 2. Same thing with pets and "vicious" dogs breeds on your property.
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