|The rise in natural disaster-related damage has many insurers reassessing their exposures, raising rates, and reducing coverage. In some cases, insurers have shifted greater financial burdens to home owners and even refused to pay claims. Michael Barry of the Insurance Information Institute (III) says, “Last year (2011) was an extraordinary year for natural disasters. Insurers have taken a step back to assess whether or not they can absorb severe losses.” Some insurers have pulled out of weather-challenged states, which means they will not write new home owners’ insurance policies or renew contracts with current policyholders.
Meanwhile, other insurers are not abandoning states, but dropping coverage for individual homes and customers who are prone to filing claims. President, Dr. Robert Hartwig says… “If you tell an insurance company that they can’t raise rates despite nine hurricanes in two years, obviously insurers are going to have to reduce exposure.” Source: U.S. Insurers Rethink Coverage After Weather Disaster Payouts, Reuters (04/10/12)
Commentary: SOMETHING IS WRONG WITH THIS!!!We pay huge $$$ every month for protection, and when an accident or disaster occurs, insurers wonder if they have to/want to/can/ or will continue to pay a claim. What did you do with all my money? Vacations? Bonuses? I say, more of us need to self insure, and let the insurance companies go bankrupt paying their operating expenses.