Montana Insurance

Owners of homes in Michigan has always in some surprising news lately from their insurance companies - their premiums are seen as fighting for their business.

This is not the case for homeowners along the coast of Texas as far north as Cape Cod - their premiums are rising, if they are lucky, their politics.

Call the Katrina effect. Given that the nation’s home insurers prepare for an expected influx of powerful hurricanes over the next ten years, more or less, they try to promote new customers at the heart of America, where hurricanes rarely if ever surface Race for the loss of revenue from tens of thousands of customers are the mission on the coasts.

Prices have started to file in the Middle west and west, and insurance experts say they expect the trend to spread in most of the interior. Allstate, for example, in Michigan, prices an average of 16.5 per cent during the last six months and in Montana has lowered from 14.8 per cent.

But in places like Long Island and Cape Cod and the coast of south-east of the country, insurers are doubling prices for some customers and the rejection of the new policy to sell or renovate the old one. More recently, State Farm, the largest home insurance for an average increase of 71 percent for Home Insurance in Florida.

Insurers were higher prices and cutting coverage for housing back in Florida and the Gulf in years. But now, they started the same measures in coastal areas, which have not experienced a devastating storm in decades.

“Insurers can not bet on the entire firm assurances coastal areas,” said Robert P. Hartwig, chief economist for the insurance industry Information Institute, a trade group in New York. They are set out for the rest of the country as an opportunity for profitability. ”

The changes, most countries flat rate in the insurance business for decades. For the first time, the insurer is also creating a dual system of areas, with property owners along the coast to fight against any cost, while the interior of the country to choose the cheapest among tenders competing. The insurers’ measures are annoying to consumers supporters, who say, reductions and price increases are unnecessary. “They are exaggerated,” said J. Robert Hunter, insurance director of the Consumer Federation of America. The risk seems suddenly more on insurers, Mr. Hunter said, partly because they began to base its calculations on forecasts short-term rather than long-distance time model.

“She should play a stabilizing role, but this has not happened,” said Hunter. “They put short-term profit before humans. It is because of hurricanes. But some people do not have a hurricane for years and they dumped. This is not true. ”

Until recently, it would not come for insurers to look inside the country for profits, because the financial losses at The Home Insurance everywhere. Indeed, Home Insurance used to be sold as a puller, offers customers for more lucrative auto insurance. But after a sharp increase in requests fraudulent auto insurance tight in the red, insurers decided the revision of two lines of coverage.

Thus, in recent years, insurers at home, has increased prices and lower benefits across the country.

Claims fell in many places Jeff Rieder, President of Ward Group, a national insurance companies in Cincinnati, as some customers choose the policy of a higher deductible to offset the price increase is due. In addition, he said, some homeowners decided not to file applications for routine damage, worried that his policy can not be extended.

Now, where insurers make money, but everywhere in the region of the hurricane. Automobile insurance is also good. Thus, strong is the homeland of insurance operations, that insurers ended 2004 with a profit, even after $ 15 billion in damages hurricane. Losses resulting from Hurricane Katrina and other storms in 2005 was almost double, $ 28 billion, and after as before, experts say insurance business should be to make a profit. Mr. Hartwig of information Institute of Insurance said about half of the hurricane have been replaced by the loss of reinsurance that insurers bought to protect themselves.