Hail damage and insurance dispute

[1UNI2ISU]

While I get the business metrics of it, I also couldn't care less. I pay a premium monthly to be covered and I expect that coverage to be at an acceptable level when needed. I've said for years that insurance is basically a license to steal.

Oh I get it. I've done this for a long time (I'm not a State Farm Agent, fwiw).

There's about to be a real reckoning in the insurance industry and it's going to lead to all of us paying a lot more for a lot less. Claim frequency and severity are skyrocketing and we've already got carriers pulling out of the state. The next 5 years are going to be ugly. 5 years ago I had 8 carriers I COULD write with and 5 that I really trusted. As of July 1, I'm down to 3 that I can write with and, while I trust all 3, they're a lot tighter than they were before.

The industry did it to itself in a way. You can't go around giving people new full roofs for 20% damage for decades and then change your mind on that when times get tough after you've conditioned people that that's how it works.

 

[wxman1]

Oh I get it. I've done this for a long time (I'm not a State Farm Agent, fwiw).

There's about to be a real reckoning in the insurance industry and it's going to lead to all of us paying a lot more for a lot less. Claim frequency and severity are skyrocketing and we've already got carriers pulling out of the state. The next 5 years are going to be ugly. 5 years ago I had 8 carriers I COULD write with and 5 that I really trusted. As of July 1, I'm down to 3 that I can write with and, while I trust all 3, they're a lot tighter than they were before.

The industry did it to itself in a way. You can't go around giving people new full roofs for 20% damage for decades and then change your mind on that when times get tough after you've conditioned people that that's how it works.

Sounds like aviation insurance. I think we are down to two or three underwriters and they have been getting hammered with losses especially due to rising hull coverages on the very hot market.

 

[Cycsk]

There is very little chance that my new roof will last for 30 years without getting hail damage again. Makes me wonder if some day we will be leasing our roofs or paying for them on an annual subscription basis rather than actually buying new roofs.

 

[Jnecker4cy]

Insurance in Iowa is going to be crazy going forward. Roofs are the major reason for issues. Don't be suprised if roofs go ACV soon.

 

[1UNI2ISU]

The answer is metal. 20% higher cost up front but they last 50 years and they're damn near indestructible.

 

[cytor]

Roofs will go ACV soon. I'm a licensed agent in 9 states and I'm seeing these rates jump in every state. State farm is the largest carrier in the USA and they lost 14 billion in 2022. Rates are definitely going to jump. Full disclosure, I'm Not a State Farm agent.

 

[1UNI2ISU]

Roofs will go ACV soon. I'm a licensed agent in 9 states and I'm seeing these rates jump in every state. State farm is the largest carrier in the USA and they lost 14 billion in 2022. Rates are definitely going to jump. Full disclosure, I'm Not a State Farm agent.

I've had three of my carrier reps tell me to expect homeowner's rates to at least double in the next five years. Every company is bleeding.

 

[CycloneDaddy]

I've had three of my carrier reps tell me to expect homeowner's rates to at least double in the next five years. Every company is bleeding.

Seems like the Executive Leaders should take a 50% pay cut then.

 

[1UNI2ISU]

Seems like the Executive Leaders should take a 50% pay cut then.

I'm not sure how that addresses claim frequency and severity but, sure, that's fine.

Say State Farm cuts $50M in executive salary. They still lost $13,950,000,000 last year.

Again, not a State Farm agent but they've got the most easily accessible numbers.

 

[BCClone]

I'm not sure how that addresses claim frequency and severity but, sure, that's fine.

Say State Farm cuts $50M in executive salary. They still lost $13,999,950,000,000 last year.

Again, not a State Farm agent but they've got the most easily accessible numbers.

They lost 14 trillion? Wow!!

 

[1UNI2ISU]

They lost 14 trillion? Wow!!

Damnit. Edited.

 

[Cycsk]

Farmers Insurance has been great for us. A contractor who is a CF poster came by, inspected my roof, and took care of almost all the interactions with the insurance company. Just about all I had to do was file the claim. They did good work in just a few weeks after the claim. Frankly, I can hardly believe how easy it was.

 

[Drew0311]

Just be happy you all don’t live in Florida. The homeowners situation down there for insurance is becoming nonexistent. Even the Florida company owned by the government is cancelling a million policies. That’s the company that you go to where nobody else will write it. The auto has basically doubled and tripled . Lots of companies are getting out even on auto insurance. Iowa is still relatively cheap compared to others.

 

[Jnecker4cy]

Just be happy you all don’t live in Florida. The homeowners situation down there for insurance is becoming nonexistent. Even the Florida company owned by the government is cancelling a million policies. That’s the company that you go to where nobody else will write it. The auto has basically doubled and tripled . Lots of companies are getting out even on auto insurance. Iowa is still relatively cheap compared to others.

Not to long ago Iowa was one of the cheapest states to buy insurance, now wind, hail and rain have put them squarely in the middle for rates. The days of $700 to $800 a year home policies are over...

 

[Drew0311]

Not to long ago Iowa was one of the cheapest states to buy insurance, now wind, hail and rain have put them squarely in the middle for rates. The days of $700 to $800 a year home policies are over...

Iowa still is one of the lowest. But yeah no more 7-800 dollar rates for sure.

 

[cytor]

True that. The 2 most expensive states I'm licensed in are Minnesota and Texas. Both high hail damage states. Iowa is still cheap by comparison.