Good article. I believe that the cost of re-contruction or replacement of a home has exceeded everyday inflation in the past few years. While not an advocate for insurance companies they do need a profit above operational costs in addition to reserves needed for catastrophic events. I do not know what critera is required for an insurance company to do business in MS but the commissioner needs to keep the market competetive in order to keep homeowners costs at a minimum.
It's complicated. Insurance companies are businesses that have to turn a profit, but if they make unfair profits at the expense of people who can't afford the cost, or who can't even get a mortgage without outrageously priced insurance, where is this headed? All bets are off with climate change causing more and more damages and claims. At a certain point insurance will be untenable for everyone. My insurance company recently changed their coverage to only pay for the depreciated value of a roof, which basically means if the roof gets blown off in a storm, they won't pay for the cost of replacement. What use is a building without a roof? What use is insurance that doesn't cover something that basic? We're entering a profoundly difficult period.
Good article. I believe that the cost of re-contruction or replacement of a home has exceeded everyday inflation in the past few years. While not an advocate for insurance companies they do need a profit above operational costs in addition to reserves needed for catastrophic events. I do not know what critera is required for an insurance company to do business in MS but the commissioner needs to keep the market competetive in order to keep homeowners costs at a minimum.
Great organized thinking on two unrelated topics on the surface-brain drain and insurance!
True. Interesting take on why this matters.
It's complicated. Insurance companies are businesses that have to turn a profit, but if they make unfair profits at the expense of people who can't afford the cost, or who can't even get a mortgage without outrageously priced insurance, where is this headed? All bets are off with climate change causing more and more damages and claims. At a certain point insurance will be untenable for everyone. My insurance company recently changed their coverage to only pay for the depreciated value of a roof, which basically means if the roof gets blown off in a storm, they won't pay for the cost of replacement. What use is a building without a roof? What use is insurance that doesn't cover something that basic? We're entering a profoundly difficult period.