In article , Bob F
wrote:

Bob F wrote:
Frank J Warner wrote:
I live in California. I've had earthquake insurance on my house since
the day I bought it in 1989.

My policy renews every year in June. This year, I received notice
that earthquake coverage would no longer be offered by my primary
carrier. Until now, the premium for that coverage was $250. $1000
deductible, full replacement cost plus contents, liability and
medical, and we've kept the amounts current to the replacement value
of the property.

Wow! That's 1/3 of what I pay here in Seattle. And the deductable is
15% of the houses value IIRC.


Instead, my carrier said, I can buy separate earthquake insurance
from an outfit called CEA, or California Earthquake Authority. From
what I gather, CEA is a privately funded publicly managed
organization that fulfills the mandate that insurers in California
must offer earthquake insurance.

The premium jumps to a whopping $631.00, and the deductible jumps to
a whopping $57,000 for a $380,000 home.

That's near to what I've been paying for years.

I just opened my new bill. $802 for earthquake coverage out of $1389 total for a
year.

There you go.

Bottom line is that the insurance companies can't cover catastrophic
losses. It's NOT like your house catches on fire and they have to build
a new chateau for you and yours. That's small change for them (although
your future premiums will skyrocket). They have to rebuild your entire
block, your entire town, your entire region.

It's like a casino. They took the bet. They lost the bet. They should
pay when they lose, even if you end up owning the casino when it's all
over. Now they're hedging their bets because they like that cash
machine.

The CEA is a specific example. $4 billion in assets and they've yet to
pay out a single claim.

Where can I get a job like that?

-Frank

--
Here's some of my work:
http://www.sharpbywarner.com