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Goodwin defends insurance hike for coastal areas

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North Carolina's new insurance commissioner is defending the so-called 'Beach Plan.’ The plan would dramatically raise insurance rates for homeowners who live in coastal counties. Commissioner Wayne Goodwin said today legislative efforts to freeze the rate increases risks making policies less available, and less competitive for all residents. There's a lawsuit in process opposing the increase.

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homeowners insurance

i called my insurance company this morning allstate on carolina beach rd to see what my rates would be going up to and the agent i spoke with said the rates will not be going up that the plan to hike the rates was abandoned after all. you may want to check your sources to verify this.

Didn't take long

It didn't take long for the insurance companies to find another stooge to help rip off consumers. Commissioner Wayne Goodwin needs to find another job. It's obvious this one is above his head.

gee

Thanks for defending us Goodwin. Lets stimulate the insurance companies wallets.

Das, he's not here to defend us.

His job is to do what's best for ALL parties when it comes to the adminstration and sale of insurance within the state. You are smart enough to understand that insurance providers are not here simply to be a convenience for us. Many are publically traded corporations that exist to increase shareholder value. The simple fact is that cash reserves are at an all time low and need to be replenished. Rates are rising across the entire nation, and statistically, we are at a higher risk than the rest of the state. The same thing is happening out West - people who live in areas prone to wildfires are paying higher premiums and getting hit with higher deductibles. The LAST thing we need is major insurance companies pulling out of North Carolina, and if they can't make money here, that's exactly what they'll do. In reference to something posted by someone else, natural disasters and accidents don't respect the economy. Just because you're having problems "paying the bank" doesn't mean that cash reserves can remain so low. If we get hit with a major storm this year, you might find that your insurance company is havinga hard time paying YOU if these rate hikes are denied. If the legislature scraps the Beach Plan, the pain will simply be shifted to everyone across the entire state, because the cash reserves must increase.

Insurance Rates

I'm sure you'll correct me if I'm wrong, but I believe we aren't just talking about the wind & storm policy here. This increase affects your regular homeowners' insurance as well. Why should that increase more for us? I haven't researched this topic that much so I could be completely wrong. I get your reasoning regarding the storms, but wind damage isn't covered under conventional homeowners' insurance policies. So why the giant increase there?

Just so everyone knows, wind

Just so everyone knows, wind damage is one of the 16 named perils in the NC homeowner's insurance policy. The only way it is not included is if you specifically exclude it in writing. Read your policies, know what is and is not covered before making statements that send many into a panic.

All of the variables you mention...

...change from company to company, and even by when the policy was written within the same company. For example, I got whacked with a higher deductible, but still have wind coverage. You might find it worthwhile to shop around to see if you can get exactly what you need.

Thanks, Common

I knew I would be asking the right person! Like I said, I haven't researched this as fully as I should considering I have homeowners' insurance, live in the area & will be affected by any increase. Think I'll take that advice & speak with my agent.

Common...

COME ON....the insurance companies MAKE LOADS of money in cycles. Some years suck, some years don't. THEY decided to get in the insurance business and take the risks. Preparing for a "Katrina" like disaster that just WILL NEVER HAPPEN HERE is RAPING the consumers in this state. NOTHING LIKE KATRINA WILL EVER HAPPEN HERE...MAINLY because we don't live under water. Damages..YES...but they have ALREADY gotten a HUGE increase for the damages part...PLUS now get this hurricane deductible thing which is tantamount to RAPE as well. There have been PLENTY of hurricanes and tropical storms that have hit INLAND as far in as the mountains that have done MOUNDS more damage than the coast experiences. My rates shouldn't go up simply because I live in NHC...I live away from the beach...His job IS to protect the consumers in the state...and he isn't doing that by singling out certain areas.

Nothing like Katrina?

Let's hope not, but think back to Fran and Floyd. They were average hurricanes. What do you think will happen when we get hit by a Category V storm? The problem is that coastal communities are dense-packing million-dollar McMansions, so that even an average storm becomes a financial super-storm. The formulas to compute required income for two-hundred houses don't work when you're insuring two-thousand, even when the risk is identical. There are two reasons why cash reserves are dangerously low: * The current economy, specifically regarding low or no income from short-term paper and devaluation of fixed income holdings * Too many years of mega-payouts in the past decade. Care to guess what the Western fires and Midwest floods cost in 2008? Now you may not like the fact that you're covering their losses, but the fact is that unless the pots get refilled, there simply isn't going to be cash to pay you when you need it the most. I'm no fan of the Beach Plan just because I'm just as cheap as all of you complaining, but like I said, do away with the plan and the costs simply get passed on to every homeowner in the state. Sure, Hugo trashed Charlotte and Fran hit Raleigh hard, but the fact is that for every storm they get, the coastal communities probably see a dozen or more.

Is

HE REALLY this dumb?

YEP HE IS

That Dumb..What do you expect he graduated from Richmond County Senior High..Only thing they can tell you about is how well their football team is. Yea we all need our Home insurance to go up why we are struggling just to pay the banks! Kick-Back anyone oh I mean Bailout!!!