Insurance Companies Are Getting Ready To Cause Home Owners Breach Of Contract On Their Mortgages

reply to post by UMayBRite!


I agree with that.

The insurance companies should divide up the disaster areas and split up that cost between those groups.

So, for example, if you live in tornado alley, you are going to lumped into a group that is prone to tornados. If you live in a fire prone area you would be grouped into a separate group. If you are in a flood area you would be lumped into that group. So on and so forth.

Originally posted by alfa1

So if I understand this correctly, the insurance company you are currently with no longer has a product that suits your particular needs?

That's my read on the original, and the OP may have done several a favor by letting them know the implications. Sounds like it's time for a new insurance company. I personally check bad faith claim listings before choosing (www.badfaithinsurance.org...).

In Ohio I can see this happening, We keep getting floods out of nowhere. 2 1/2 weeks ago the great flood of 2006 practically came back, flooded many basements. Even after the state supposedly expanded Rainwater capacity.

I'm glad I moved out of my old neighborhood, I hear they are now having sewage backing up into peoples basements over there. What happened was they built a crap load of new housing developments around here and the sewer lines cannot handle it. The old pipes from the 50's-70's only had to be 6" wide by law, but the new pipes have to be 12" today, but sewage only flows one way, so the 12" pipes flow down to a 6" pipe, then to the main. and you can see where this goes bad very fast. They claim they don't have to money to fix it, because the pipes go under railroad tracks, and it would cost millions to get Norfolk Suthern to shut that track down for a bit.

Originally posted by ShadellacZumbrum
reply to post by UMayBRite!

 

I agree with that.

The insurance companies should divide up the disaster areas and split up that cost between those groups.

So, for example, if you live in tornado alley, you are going to lumped into a group that is prone to tornados. If you live in a fire prone area you would be grouped into a separate group. If you are in a flood area you would be lumped into that group. So on and so forth.

It's a good idea, but it would never work. In order to recoup the premium taken in over the claims paid no one who lived in those areas would ever be able to afford insurance. You would probably see premiums that are more expensive on a yearly basis than what the person is paying to buy the house.
Flood insurance kind of works that way but it is purely controlled and paid out by and through the federal government and not in the hands of the insurance companies as far as rates.

Oddly enough me and my parents had a conversation about this the other day. My family still lives in Alabama, and Georgia. My parents and my sister (although she no longer has a house and is living with my parents now) both received a letter a lot like that. They both have State Farm. It seems my Aunt in Georgia also received a similar letter and she has Geico if I heard right. Her son had to call his insurance to check, and they are doing the same - though I don't remember his carrier.

Um, where have you been living? Under a rock? When I owned a townhouse in Decatur there was a required deductible amount. Much like my car.

Originally posted by DIDtm

Originally posted by ShadellacZumbrum
reply to post by DIDtm

 

Pay attenttion to the articles that are being posted by Julie Washington. Maybe they will bring you up to speed.

edit on 4-8-2013 by ShadellacZumbrum because: (no reason given)

That's funny.

There is nothing she posted that pertains to what you are stating.

1. An insurance policy is a binding contract. Nothing can be changed to it while it is in force. Unless agreed upon by both the insured and insurer.
Google....contract of adhesion. this will better help you understand how the courts favor insureds over insurers.

2. The difference in premium between a 500 and a 1000 dollar deductible is not anywhere near 432 (or whatever amount you stated. And if SF is doing that in your state, seek other quotes.


3. Show me one mortgage that specifically states that a homeowners insurance must have a 500$ deductible. You do realize that there are options (in a lot of cases) for a 250 or a 0 deductible. There are also higher deductibles, that are generally used for high dollar homes. Or for those of who may wish to self retain a large chunk.


we go through extensive training. And have to take continuing education. Although I don't everything, no one possibly could, what your stating would cost insurance companies way too much money to try to pull off.The insured would win every time incourt , fighting this.


I'm on a tablet or I would give you links to laws regarding this. and I will tomorrow when I'm front of a computer.

reply to post by kdyam


After thinking about that, I am curious ...

When the government pays a billion dollars or more to an area that has been destroyed by a natural disaster do the insurance companies calculate that figure into the mix?

Or do they just add that area to their risk assessment?

reply to post by Wisescarab


Thanks for responding with that info.

I find it interesting that this is Not getting much media attention at all. This really is a HUGE deal especially since it is a "Country Wide" issue and affects Everyone.

That is happening so quietly seems somewhat sneaky.

How many people do you suppose are going to find themselves in huge trouble with their banks because of a breach of contract issue that could be easily avoided?