Archive for the ‘Insurance’ Category

Record Breaking Flooding and No Insurance Coverage?

Flooding and no insurance coverage is about to become much more common in the Mississippi Gulf Coast. State Farm announced that it will not be renewing homeowners policies to those living within 1,000 feet of the beach and those between 1,000 and 2,500 feet will not be getting wind coverage renewed. Mike Chaney, the Mississippi Insurance Commissioner, is confident that people will be able to get coverage and states that rates may even decrease.

However, I am wondering, will it really decrease the rates. And will everyone be able to get covered? The real question is whether any other insurance companies will follow suit. If they do, basic economics tells us that the rates will go up. The less companies offering insurance to homeowners in that area, the less supply. People are unlikely to move at any significant number away from the area so demand will not substantially change. This will drive up the price. Also, if less companies are offering the insurance, the more risk they are taking on to pay out, so naturally the price would increase that homeowners pay for insurance. The fear of flooding without insurance coverage is well deserved for homeowners after Katrina, and with the recent developments up north in the Midwest.

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Rocky Mountain News Misses the Point – Again

A seemingly innocuous proposed bill has recently come under attack by our very own Rocky Mountain News. Senate Bill 248 is a bill that will exponentially help consumers and the medical community. It’s aimed at education and informed choice in the realm of medical malpractice insurance. SB 248 allows for a hearing in front of the Colorado insurance commission, upon request, only when an insurance carrier with a 65% or greater market share requests a global rate increase of 5% or more. What does this mean? It means that the larger medical malpractice insurers in the state would be required to actually inform its insureds if it decides to increase rates by 5% or more. This is a good thing because these measures, if implemented, would promote transparency and the free flow of information sharing. It ensures that doctors are informed when COPIC wants to increase rates of 5% or more and ensures that the increase is fair and reasonable given changing conditions. SB 248 protects doctors from unilateral rate increases not in line with the needs of Colorado’s medical community.
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Is Your Home Insurance Coverage Adequate?

The recent natural disaster to hit Colorado came as a complete shock to the residents of Holly, Colorado. Seeing images of the vast path of destruction the tornado left behind serves as a reminder that adequate home insurance coverage is necessary to begin to rebuild. Is your home insurance adequate? Here are some basic tips and links to help you determine whether you and your family are protected.
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