31–40 of 89 posts
Congratulations. I wish there were more like Goodcover.
How would you handle premiums and claims from high risk earthquake and fire prone areas (in California)?
For example, if I invested in building a defensible area around my house, would you give me a discount on "fire insurance"?
Looks really cool. I'm in MO so I can't check it out quite yet. I know you can't give specifics but could you give some generalities on the plan to roll out to the rest of the US? Is that something you are _actively_ working on now or are you really just trying to establish yourself in CA first and then will work on other states later? Basically, are we looking at months or years? In either case, I've already added m…
Thanks! Short answer, Months - but perhaps not in 2020. Definitely recommend you get renters insurance if you don't have it. More info: We have to roll out state by state, meaning we need to get approved in a state before we can do business there. That can be a pretty tedious process. So although we are working on it, we don't really have a good estimate for when we'll be available in each one. Since our model is a b…
Chris, Congratulations. I wish there were more like Goodcover. How would you handle premiums and claims from high risk earthquake and fire prone areas (in California)? For example, if I invested in building a defensible area around my house, would you give me a discount on "fire insurance"?
To your question: Premium: Our model has granular rating for high risk areas (fire is the biggest issue there). And part of that is the defensibility of the specific property for sure. But unfortunately the biggest factors there are all location specific - distance to water, slope, ease of access, distance to burnable area, etc, which not much can be done about. This is why although it is hard, communities investing in collective defense has the biggest impact on insurance prices.
On claims: We have reinsurance, so no need to fear us being blown out capital-wise. To actually get the claims paid and work done we (like most others) have contracts with emergency-overflow claims administration teams, so that a force is ready at peak times.
Earlier quoted context omitted.
Thanks! Short answer, Months - but perhaps not in 2020. Definitely recommend you get renters insurance if you don't have it. More info: We have to roll out state by state, meaning we need to get approved in a state before we can do business there. That can be a pretty tedious process. So although we are working on it, we don't really have a good estimate for when we'll be available in each one. Since our model is a b…
That makes sense! I have renters insurance now but will be needing to renew within the next few months so I'll probably still have to go somewhere else for now but I'll keep checking back with Goodcover. Thanks for the reply and congrats on the launch!
Congrats! Awesome that you use Scala!
Earlier quoted context omitted.
Whether or not your max ALE limit is "normal" is beside the point: my experience tells me that the amount is insufficient to cover one's probable downside risk in a major metro area, especially for unit larger than 1 bedroom. I live in SF. My personal best case scenario in the event of a permanent relocation (insurer freely pays out limits without me having to hire an attorney, I use none of my ALE coverage in the im…
> 100k might last 4 years ALE is not meant to permanently replace your apartment. I don't understand why you would be expecting 4 years of living expenses to be covered in the case of your apartment burning down. I wouldn't even expect 4 months. It is meant to help you get back on your feet, and go to a hotel for the immediate aftermath while you look for a new place to stay. You lost your apartment, not your entire…
1. ALE time limits are set by the policy unless otherwise defined by statute. In CA, for example, if you are displaced due to a natural disaster, your ALE coverage remains in place by law "for a period of no less than 24 months from the inception of the loss" (CA Insurance Code 2051.5(b)(2))
2. There is no statutory ALE time limit on uninsured losses (at least not in CA). In theory (and in practice), you can make a claim for an indefinite period of time if you can prove you'd more likely than not stay in your apartment forever (I have recently seen one such actual claim in SF for 30 years of ALE, for example).
3. If you live in SF, you should expect 4 years of ALE because it might well take that long to rebuild. The building owner may spend the better part of a year deciding whether or not to rebuild, 3-6 months getting estimates, and 2 years actually rebuilding. This happens all the time.
4. I won't speak for what other people want from their insurance, but the loss I am personally trying to protect against is not the out of pocket cost while I look for a temporary apartment, it's the additional $2K or $3K+ per month that a temporary apartment is going to cost me until I can either find something cheaper, move back into my old unit after a rebuild, or decide to permanently leave the Bay Area. I want to buy myself as much time for that process/decision as possible, because the odds are good I'll need it.
Chris, Congratulations. I wish there were more like Goodcover. How would you handle premiums and claims from high risk earthquake and fire prone areas (in California)? For example, if I invested in building a defensible area around my house, would you give me a discount on "fire insurance"?
Thanks! Yeah, if the whole industry ended up working the way we do, we'd be thrilled. To your question: Premium: Our model has granular rating for high risk areas (fire is the biggest issue there). And part of that is the defensibility of the specific property for sure. But unfortunately the biggest factors there are all location specific - distance to water, slope, ease of access, distance to burnable area, etc, whi…
A few months ago during the socal fires my community was up in flames, as were a lot of other's.
The house a mile down from me burned. We were evacuated
There is no insurance company willing to insure our area
> This is why although it is hard, communities investing in collective defense has the biggest impact on insurance prices.
100%. My neighbors and I self insure. We have built defensible areas and maintain it together.
It's cheaper (?) to self insure than pay premiums some, who managed to get a quote, said.
It is a lot of work maintaining that defensible area and keeping it up to spec!
We like to say our actions stopped the fire from spreading but when I saw embers in the air around me, I could not stay around to verify whether that was true.
Our firefighting department, incidentally less than a mile away from us, is one of our best buddies.
This is possible because of the rural location I have chosen to live in.
I see no way of pulling this off in a city.
I will keep checking with you and recommend to my community.
Please keep it up
Because that has a specific meaning, especially with regard to insurance. (And there are a lot of mutual insurance companies out there that are genuinely, 100 percent member-owned.)
But you mention venture capital and a rate of return for your capital partners.
So how is Goodcover what you say it is? Sounds like a for-profit company to me.
Saying you operate as a co-op when you're actually a for-profit is like saying you operate as a non-profit when you're actually a for-profit.
Ultimately, if you have outside investors, you've gotta make them money. If that's true, then suggesting you're operating as a cooperative is misleading at best.
EDIT: I looked at the legal notices section of your site, and this ain't a cooperative in any shape or form.
* "Goodcover takes a fixed fee - currently 20% of premiums."
* "Whether a Dividend can be paid is up to the discretion of Goodcover’s board."
This is absolutely a venture-backed, for-profit company that is describing itself as a "member driven cooperative." I would not be surprised if legal issues arise because of this misrepresentation, because California treats cooperatives as a distinct legal structure. (For instance, it's illegal to have the word "Cooperative" in your business name if you're not incorporated as a co-op.)
Earlier quoted context omitted.
Thanks! Yeah, if the whole industry ended up working the way we do, we'd be thrilled. To your question: Premium: Our model has granular rating for high risk areas (fire is the biggest issue there). And part of that is the defensibility of the specific property for sure. But unfortunately the biggest factors there are all location specific - distance to water, slope, ease of access, distance to burnable area, etc, whi…
> fire is the biggest issue there A few months ago during the socal fires my community was up in flames, as were a lot of other's. The house a mile down from me burned. We were evacuated There is no insurance company willing to insure our area > This is why although it is hard, communities investing in collective defense has the biggest impact on insurance prices. 100%. My neighbors and I self insure. We have built d…
To your question on self insurance - it's a matter of risk and statistics. No insurance is less money up front than coverage, but you retain the risk which may or may not cost a lot. We give a quote everywhere, and we think it accurately represents the risk Goodcover is covering for you, but I concede it is more expensive than it used to be.
Something else to know - CA has a non-renewal moratorium in force for wildfire areas, if anyone is being cancelled or non-renewed in your area please check this out: http://www.insurance.ca.gov/0400-news/0100-press-releases/20...
Earlier quoted context omitted.
> fire is the biggest issue there A few months ago during the socal fires my community was up in flames, as were a lot of other's. The house a mile down from me burned. We were evacuated There is no insurance company willing to insure our area > This is why although it is hard, communities investing in collective defense has the biggest impact on insurance prices. 100%. My neighbors and I self insure. We have built d…
Firstly, I'm sorry to hear about your community, that is rough and hope people are ok. And thank you (and your fire buddies - my cousin is a wildfire-fighter) for all your work to keep your community safe! To your question on self insurance - it's a matter of risk and statistics. No insurance is less money up front than coverage, but you retain the risk which may or may not cost a lot. We give a quote everywhere, and…
Thank you sharing the link as this raises a question I think you are perfect to ask:
What are your thoughts on this regulation?
Would it now, in effect, significantly increase premiums for everyone now that an insurance company cannot drop the high risk customers?
Feel free to email me as the answer might be not something you want to make public.
If you can answer, and I think the answer is yes, how much in hike in premiums would account for this regulation?