Every homeowner has experienced the rising cost of insurance. Mine has doubled, and the coverage has decreased. As an example, a $439,000 home, the median price of a home in River Ridge, may have a 5% named storm deductible of $21,950. Also, many insurers now have a roof loss settlement clause. If your roof is a shingle roof of 20 years, a Katrina replacement, the insurer will only pay 40% of the new roof. If the new roof is $20,000, the insurer will only pay $8,000. Your total out of pocket exposure is $33,950.Why pay $10,000 annually and be responsible for the first $33,950? Who can afford this gap in insured losses?
Another issue that I have is the insurance companies and their advertisements. All major companies advertise their policies on the local media. However, none of them are writing new homeowner policies in our area. This includes: Farmers, State Farm, Allstate and USAA, just to name a few.
I recommend that if companies sell auto insurance and/or advertise in our local media that they must sell homeowners insurance in that community. Insurance companies are not "like a good neighbor."
A possible solution is the establishment of a national federally funded and guaranteed homeowner insurance program. Yes, there is a crisis and due to recent hurricanes, this will increase. Ask any real estate agent or mortgage finance company. Insurance is the major detriment of house sales.
A federal insurance program would spread the risk equally over the United States. Say goodbye to: Farmers, State Farm, Allstate, USAA and insurance commissioners. Unfortunately, this assistance by the federal government will never happen. It would be nice if the federal government did something to promote affordable home ownership and assist the citizens of our great nation.
RANDALL MARTIN
River Ridge