The Possible Collapse of the U.S. Home Insurance System 

There is a court system.

@@kreek22Having to sue the insurance company is also a problem with an uncertain outcome? Insurances should be government managed non profit system, like Medicare.

@@DiO-fy5ex If it's government managed, it will be mismanaged. It will also be communist. Move to Cuba.

It's more due to fraud here in Florida than anything else. I work in the industry and see fraudulent claims daily.

Curious what the other ‘signs’ were!

this is actually a lie. The insurance industry is pulling back because they are not making as much money as they would like. It has nothing to do with climate change.

@@carolynbrzezinski5779 Multi-generational households (economic stress). Dangerous wet bulb temperatures (already happening) Food price increases (that signal is muddied by covid and corporate price gouging) Coral bleaching Fuel prices International conflict Trade protectionism The point was to avoid being blindsided by a failing environment and economy and maintain a reasonably comfortable lifestyle as long as possible.

All of today's issues are at least 20yrs old

you mean climate change is and in the future will destroy your way of living in the future

Political greed, especially in the form of importing new voters for the communist party.

Greed isn’t causing the floods and tornadoes and hurricanes that are breaking insurance. Climate change is causing them.

Corporate America isn’t giving money to insurance companies to hide the effects of climate, ffs. This is on par with the moon landing being fake.

That’s what WILL collapse the residential insurance market: word spreading that they won’t cover your losses -even after 20 yrs of faithfully paying premiums. People will simply stop paying on something that isn’t worth it.

the policies are written by lawyers.. so that lawyers have to decode them.. so lawyers make all the money from them.. it's a cycle they have created to keep the money. I worked in insurance.. it's a scam.

After the big fires a few years ago here in Australia, the experience across the affected areas was that listed corporations will find or invent any excuse they can to avoid paying out. The only insurers that pay out reliably are the mutuals, because their only shareholders are their policyholders.

Start your own investment portfolio that is specific to your home's coverage. Subcategories can include: HVAC, water heater, washing machine, dryer, replacement, water heater, window(s), exterior door(s), minor/major flooding, etc. Look at the manufacturing dates and start a sub acct. for that item. Go forward with other sub accts. A little at a time. Stop 'financing Chinese university students' and start financing yourselves.

Third world countries are notorious for fraud. Hurricane Andrew, which hit America's most famous third world city was the harbinger of these fraud problems. The fraud was more shocking to the (mostly Wasp run) insurance companies than even the massive destruction.

That would only matter if the corporations driving the economy cared about anything beyond their next quarterly financial statements. But I’ve got some bad news for you

How is climate change profitable for the wealthy and asset owners when it destroys assets (real estate for example) and investments (as the cost of mitigation, which doesn’t produce anything, soars). The ability of people to misread anything in terms of their ideology boggles my mind. The rich will be hit far harder than the poor. We will all become poor, then most will die. The ones who survive are those who have subsistence skills

@@juliahello6673🫤How did the rich get richer with the lock down? The ocean is not rising... from glacier melt flowing into ocean? Well we need fresh water so boom problem solved. No drought, no rise... supply the world so disease go down etc. temp go up? Well where does everyone vacation? Yes the beach the heat so we must enjoy it. AZ is getting influx every year .. they have 3 months not unusual hit 120f... In Denver not far away we don't have a single night stays above 56... even middle summer temp Will drop to mid 50's. Avg July our hottest month is 84 and that's for 5 min.. we are avg temp North America.. MANY COLDER.. so we need to heat up 60 degree to be higher than desirable AZ. They say 3 c/7f we will die .. what a load of Crap. They are just about ready to start the food shortage . It is 100% intentional. They burned all the chicken and just made the ranchers out here kill their cattle . The farmers in Norway protested last year when they took their land n killed cattle. Stop being foolish we need all of us ..

Well, yeah. 90% won’t survive….the same 90% that never benefitted from climate destruction. Isn’t capitalism great?

Inflation is not prices directly going up. Inflation is the money supply inflating which then causes more money to chase goods that in turn causes the price of goods that have a fixed supply to go up. Fiat monetary systems (where government can inflate the money supply by issuing unlimited bonds that banks use as collateral to create dollars--in other words deficit spending) eventually cause people to lose faith in the value of fiat money. Then there is deflation as debt defaults destroy money since 90% of money was created out of thin air by banks when debts are created. When debts can't be paid and debtors default, that debt which was an asset for the creditor and allowed the creditor to spend into the economy disappears. As it becomes more and more apparent to society that much of the debt underlying our monetary system will not be paid, society will turn to hard assets to try to preserve their wealth. People also turn to assets that work best as money because they are durable, scarce, easy to trade, etc. Traditionally that was gold, but because gold was so difficult to transport and prove pure, governments and banks centralized it and corrupted its usefulness as people's freedom money separate from government control. Approximately 15 years ago there came a technological invention that turned out to have perfect monetary properties: perfect mathematical scarcity, decentralized beyond the control of government, easy to transport. Yep, you guessed it...

Good question!

You're absolutely right

Because people like you have no clue..

They want to privatize the profits when they sell the homes at exorbitant prices but socialize the costs when an inevitable hurricane hits Miami and does more than $1.3 trillion in damage.

Well part of the reason is that pretty much everywhere in the US is disaster-prone. Something like 1/3 of people live in wildfire zones for example (though the vast majority of them don't even realize it), add in floods, hurricanes, heat domes, earthquakes, and severe convective storms (tornadoes, large hail, damaging wind gusts), and you get most of the rest. I watched this play out where I live. I personally live in the the intermix. There is a very high chance my house will be exposed to wildfire, so it's built to have a good chance to survive. Non-combustible materials, cleared fuel breaks, un-vented assemblies, tempered windows, etc. Our county has a certification system for fire safety, which keeps my insurance rates low as long as I maintain my property to these standards (in multiple fires, the certified homes have had an extremely high survival rate). Below me in the wealthier suburbs people were supposed to be "safe". As such, they were not required to build or maintain properties in a fire safe manner because "it couldn't happen here". They were miles from the mountains, separated from wild areas by freeways, shopping centers, etc. You can see where this is going. I watched 1000 homes burn in an afternoon from my deck. In contrast to the certified homes in the intermix zone where I live, which mostly survive fires, the "safe" suburban homes were lost at a nearly 100% rate. The only survivors were a handful of structures that happened to be built (possibly unintentionally) with fire-safe materials. This isn't even a unique story. It's happened repeatedly across the country from Tennessee to Hawaii. Safe areas do not exist, and pretending they do is what sets up disasters over and over and over. We need to build structures to survive rather than fantasize that there's a safe area you can move to. Yes, there are some places where homes simply can't be practically built to survive common disasters (say below about 10ft of elevation on the Gulf or Atlantic coasts) but the vast majority of current losses could be practically prevented by hardening structures at reasonable cost.

Nothing to do w a climate change .. hail hits open space area year after year .. a subdivision gets built there . The climate damage is getting higher every year. 🤔odd ya last year no damage hail Is getting worse every year. You don't say. I grew up here and nvr saw hail like that. You lived here yep. In the horse pasture? Just stop So dumb. Homes in wood burn down . Home on clif fall down ..

agreed. all the billions we pay for insurance could go to a general pot and would be better used than to pay executives in the insurance industry.

Not on a replacement basis, though.

@@ppetal1 yes

You got it👍👍

You have to change insurers to get the best rate. It’s best to change every third year. Insurance companies don’t care about how years you’ve been a customer.

@@rheuss1 I have attempted to do as you suggest for years. I live in California. I have a good driving record. I am 70 years old. I been with Allstate 40 years. I have 4 cars and a home insured. They bundle my rate. When I went to progressive, they were higher. When I went to Farmers, they were higher. When I went to state farm, they were twice as much. When i went to the general, they didn't write in California. I'm a veteran. I went to USAA. Twice the cost. So much for shopping around.

Concrete & Metal Roof Constructed Houses will offer NO protection from sinkholes, nor flooding. And you can NOT get Flood Insurance, without first having Homeowners Insurance. But Homeowners Insurance is indeed a HUGE rip-off !!! Homeowners Insurance is EXTORTION !!!!

Homes can certainly be built to withstand higher forces, but it costs more money. There was a home built on Mexico Beach in Florida that withstood a serious hurricane a few years ago. They designed it for 250 mph winds, and it worked. I think the cost per square foot was about double. Good investment if you have the money!

@@solarwind907 I agree. Babcock Ranch has homes in South Florida that survived the last hurricane with almost no damage, but they cost $400,000 to $1,200,000. A company called Deltec homes can also build hurricane proof homes but they cost $1,000,000. So, hurricane proof homes are too expensive for most people as you pointed out.

See CalEarth

Sbl, agree, homes need to be built, stronger and insurance companies exist to make money for insurance companies. However, please google. Greensburg EF five tornado. It threw cars hundreds of yards. Tore off fire hydrants. If you watch a video of that storm, you will see plenty of Concrete in Steel thrown around. Watching those videos makes me glad I have a basement. Good luck to you,

As you imply, I think, we set ourselves up by building unnecessarily large and opulent buildings without much consideration as to how they might be, again, unnecessarily, at risk.

I think its racist to say dead trees might cause fires Well.in california it is to say that

The owner pays the insurance and includes it in the rent. You will still pay the insurance even if you rent.

You know why beach houses used to be shacks? Because no one would insure them. Then they decided to spread the risk among the rest of us. America is all about private equity and wealth and shared cost and risk.

@@gregoryabbot420, 💯💯💯

@@gregoryabbot420 🤔 idk about where you live but down on the beach here that's what is mostly there, small houses on tall stilts. They're newer, & higher because what was there is now gone. These aren't even homes, per se, they're more like weekend spots. The homes closer to the beach but further inland are still higher & newer but nothing fancy. There isn't anything down there except a couple of new LNG plants, fishing & shrimping, & the muddy Gulf of Mexico. Florida is a different story all together from Louisiana when it comes to the coast, no one comes for our beaches - old man river doesn't keep them pristine. The closest "nice" beach to me is crystal beach near Galveston. It's still the same muddy Gulf, but the rich folk out of Houston (well, the suburbs) have had nice houses there because it's close by & Kemah & Galveston are good get aways.

I mean...as someone going through an insurance situation...why shouldn't my repairs be at the standard such that I get things to the level they were before the disaster? It's not about being a grifter...the amount of money I have paid into insurance over decades is not a small amount. This is what it's for. I don't want my home, which is my largest financial investment, to become devalued by replacing things that are of lower quality or standard. That makes absolutely zero sense. Because of inflation, yes, things of the same quality now cost more. That's not a me problem...it's not me asking for more than I deserve. It's me asking to keep the value of my home and it's appointments to the level they were at pre disaster. It's not a gravy train. Do you work for an insurance company?

Cui bono? Mostly the communists, since this will allow them another power grab. They'll will simply make the insurance industry a state run sector if they have the chance.

That’s actually a good idea. I live in a sunny and windy area and the roofers are making a fortune fixing the damage caused by solar panels blowing loose.

@@lindapindabelinda3570 If you get your solar installed by a licensed, bonded and insured contractor , they won’t blow away in a storm. Sounds like you need to hire a NABCEP certified professional. By the way, installing solar in a sunny area, greatly lowers the quality of greenhouse gases, you are emitting into the atmosphere. Since greenhouse gases are causing, catastrophic climate, change and more extreme weather, installing solar is part of the solution. Properly installed photovoltaic systems are actually a good and intelligent way to spend your money.

I live in very sunny northern California, I have solar pv panels on my roof, and I still have home insurance. Where are you that your provider dropped you? Seems odd.

@@taobot8 Nevada

@@needmorecowbell6895 and they explicitly told you it was because of your solar panels?

Two years! How did you manage the stress and anxiety?

@@samalford3289 Just didn't think about it. I went 12 years in Chicago without car insurance because I couldn't afford it. So you have to take on risk.

You are sadly misinformed. Flordia insurance companies have spun a sad tune but in truth they caused the litigation. Using nonlicensed adjusters, using third parity contractors for estimates, controlling and owning mitigation companies who do not dry structure correctly. Bad faith again, again. Carriers deserve to get sued. They write policies, collect money, and don't pay on policy incursions. Carriers in florida get a sweet deal and are helped by the governor and commissioner office. Think that new time frame of compliance maters ??? Lmfao Crystal ball...Carriers will issue a reservation of rights on every claim, recapture the timeclock to their discretion. The state bends over for the carriers, last commissioner now works as a lobbyists for the southern group, America's leading lobbyists! Florida politics is why, Rick scott took carrier money, DeSantis takes it and they give carrier friendly deals, screw the people !

@@jamescooper7024Yep, I know people in Florida and you are 100% right on all points when it comes to property insurance in Florida and how cozy the current crop of politicians are with the companies. I heard about some very valuable personal perks the governor has been getting on top of campaign financing. Now, if you were talking about auto insurance in Florida, I would have responded differently. I’m very dubious about the personal injury industry in Florida, which advertises 24-7 on TV, radio, and billboards. Sure people need to be compensated when they get hurt in an accident, but friends have encountered people who are clearly scamming the auto insurance companies and the companies pay out anyway because it costs less than going to court. Very different dynamic.

@@craven5328 Thanks!

I think this article is basically climate change propaganda because there is no mention of inflation or lawsuits driving costs. If you want to make a climate change argument, put in the effort to discuss how much the climate change is to blame compared to other factors such as litigiousness and government spending causing inflation.

That’s because the amount is different for every person. The algorithms that insurance carriers use are extremely complicated and are performed solely by software and AI.

It was time someone pointed this out. I have watched this for years in North Carolina and now in Florida. State legislators pretend it doesn’t exist.

Not in Fla, but there has been a kind of industry built around this. There are roofers who go around drawing up damage reports in such a way as to use supposed storm damage as a way to get insurance companies to pay for routine roof replacement. In the past couple of years, even before rates soared, the companies responded by making roof claims pro-rated. In other words if you have a 20 year old that needs replacement due to storm damage, they cover the depreciated cost, not the new cost.

@@kenofken9458 I work in the industry and see this crap all the time.. Then again, I'm a forensic engineer and only get called out to homes where there is either an actual structural problem, or there is a suspected bogus claim so I only have a certain perspective of the entire industry. But yes, there are many roofing companies/PA's out there that are super fraudulent or claiming things that are definitely not storm-related.. Or putting the use of a crane to install a roof on a one-story house. Some of it is ridiculous.

12% of homeowners are uninsured. Sometimes it makes sense, especially if you pay too much for insurance and you've got financial liquidity.

There were over twenty four BILLION dollar weather disasters in the US last year. It’s Climate Change.

Aha. An intelligent comment. Rare around here.

They already have such a program in place, but the risky areas are still over subsidized by lower than realistic government authorized rates. People in lower risk areas can get the current government limited amount of coverage for a much lower price but many deny that they would ever need coverage. More than 20% of floods happen in areas not labeled as risky enough for flood insurance to be mandated for home loans. Denial is not a river in Egypt.

Politically, government insurance will not price discriminate enough against risky locations and will become a means to subsidize beachfront property, etc.

Rampant Leftism has driven up car insurance in Washingtonton State. Fixed.

You are 💯 correct. And the “anti-regulation” Republicans are the ones that let insurance companies get away with murder.

That sucks. If insurers refuse to insure you should get all your premiums you’ve ever paid them back then. Fucking insurers.

The reality deniers should take note. This is not about climate change. It's about profit and control.

@@Spacemonkeymojo Thanks for sympathy, if only we lived in world where that could happen. But, this is America and it's totally legal.

I’m sorry to hear about your insurance problems. I truly wish you well.

They went down from 2008 until around 2011.

No

They are doing their job. People just don't like being told that their house is on worthless land and should have never been built.

The US has had a national flood insurance program since the 1960s.

I’m in Oregon and I can’t get homeowners insurance. It’s not just Florida.

@@bonniechase8245Where?

www.google.com/search?q=are+hurricanes+becoming+more+powerful+and+frequent+in+the+USA&oq=are+hurricanes+becoming+more+powerful+and+frequent+in+the+USA&gs_lcrp=EgZjaHJvbWUyBggAEEUYOdIBCjMxMjQ5ajBqMTWoAgmwAgE&sourceid=chrome&ie=UTF-8

Florida accounts for only 9 percent of the country’s home insurance claims but 79 percent of its home insurance lawsuits, many of them fraudulent. Latin America brings you this gift, but not gratis.

thats why they are leaving the places that are least profitable...

Short sighted - I assume you have home insurance. This may happen to you too.

I don’t understand your comment. If you have a mortgage, you are contractually bound to have homeowners insurance. Which is the majority of the United States. In our community, they are dropping left and right. All our neighbors are very worried or have already been canceled. The sad thing is that the elderly and working class who built this community now are being priced out. Because it seems our only option is something called the California fair act. Which is actually, an exorbitantly priced insurance plan that should be called the California unfair act. Lol but just another reason that California are fleeing. But it’s not. Everyone is being touched by these new phenomenon.

Number of events multiplied by severity of events multiplied by cost of materials and labor. That’s what insurance has to cover. All of those numbers are going up, way up.