CajunMama wrote:so you will not protect your property and when rates go up i will have to pay for your repairs? I board up for any hurricane no matter what the category and knowing i try to protect my property i can sleep with a clear conscious.
I used to think the same way... But I can assure you it's not
my losses that are impacting our rates. It's things like $10,000 pool enclosures in Miami/Dade counties and high-dollar and opulent waterfront property all across the Atlantic and Gulf that's taking its toll.
Comparatively speaking, my losses are insignificant when compared to those who
choose to build at the water's edge and then end up with claims totaling tens if not hundreds of thousands of dollars each. Then, we can add on to that the loss of their yachts that they failed to move to protected waters and the amount increases significantly. Those costs are what's going to impact our future rates. Rest assured, if Katrina had hit a more affluent area than the LA/MS coastline, the losses in dollars would have easily doubled what they are for this storm. And, if Rita had gone into Houston as predicted, the same applies there. As a comparison, you could buy
ten (or more!!) houses in the Lower 9th Ward for what it would cost to replace
one waterfront home elsewhere. Generally, the same applies to to property further inland like mine. My house here
may be worth ~$100,000. But, this same house in the more
affluent areas of the Gulf and Atlantic coasts would set you back about 250-300K. Put it on the beach, and it's approaching the millions!!
While the rich folks who build their finery on the beach are certainly paying higher premiums, you can bet they recoup that money ten-fold when their mansions are destroyed. And who's paying for that? Well, we are. My <20K loss would be equal to one pool enclosure + the palm trees that surround one patio!!
My conscious took a back seat on August 29 when it became apparent that I was screwed. State Farm was very sympathetic, but the check revealed the reality. Unfortunately, I now view such things with much more disdain than I did in the past...