As Citizens Insurance tries to shed 100,000 policies, a local resident says he received a quote for a 430 percent rate increase, which would have gone into effect if he failed to opt out.
Our “offer” from Slide insurance was high enough that when I calculated the future value of the stream of payments for 18 years, assuming 10% increase each year (not the 250% increase of the “offer”) and a 7% interest rate, the value of those payments is higher than the coverage amount. They seem to be underwriting like every single house they insure will be a total loss every 20 years.
But the house is built in 1940, so has stood for 83 years, and the one I moved from is over 100 years old now and still in good shape with no insurance claims. Every house in Tampa isn’t knocked down every 20 years.
I do think Citizens is undercharging, mainly because the state lets the for profit insurance agencies cherry pick properties so they get the ones left out. But Slide is a scam, those rates are not at all reasonable, anyone who had enough money to cover the same coverage amount would be way better off self insuring with a restricted cash account.
Our “offer” from Slide insurance was high enough that when I calculated the future value of the stream of payments for 18 years, assuming 10% increase each year (not the 250% increase of the “offer”) and a 7% interest rate, the value of those payments is higher than the coverage amount. They seem to be underwriting like every single house they insure will be a total loss every 20 years.
But the house is built in 1940, so has stood for 83 years, and the one I moved from is over 100 years old now and still in good shape with no insurance claims. Every house in Tampa isn’t knocked down every 20 years.
I do think Citizens is undercharging, mainly because the state lets the for profit insurance agencies cherry pick properties so they get the ones left out. But Slide is a scam, those rates are not at all reasonable, anyone who had enough money to cover the same coverage amount would be way better off self insuring with a restricted cash account.