You Know Who You Are: Residents in
Texas,
North Carolina,
Louisiana, and
Florida can expect to pay higher property insurance premiums in the coming months. OK you geography buffs out there, what do these states have in common?
Obviously, there is a lot of debate in these states about the inland (poorer) homeowners having to pay higher premiums because of the coastal (richer) risk, and while I tend to be on the side of the little guy whenever possible, I have to side with the coastal residents on this one. A major tenant (perhaps
the major tenant) of insurance is the concept of shared risk. The best way to accomplish that in a property insurance setting is to do so across an entire state, in my humble opinion.
Each insurer has to tailor its policies to meet individual state requirements, so state legislatures have a huge say in how things work. This is an unwieldy process for the big national insurers, but the alternative of a federally regulated insurance program is distasteful to most of us (unless you live on a coast). If you are unhappy with how your homeowners insurance rate is calculated, talk to your state legislator. He has more say in that rate than even your insurance agent.
Thanks for your readership!
A. J. Farley owns Farley Home Services, a personal property inventory service. Visit us at EverySingleItem.com for more information.
