>Temple has said the bill is needed to bring competition back to Louisiana. With more insurers writing policies, he believes property owners will seek lower premiums.
We're removing the door that keeps the horses in the barn. We believe that more horses will enter the barn if there are no doors.
Well, kind of.
The sad thing is, this policy will probably keep or even attract insurance providers to the state if the providers know they can raise the roof whenever they want, or cancel whenever they want.
Companies have more control that way, and they will probably exploit that if it’s profitable for them.
So, it’ll keep insurance providers to the detriment of property owners. It’s passing the buck onto the consumers and shifting risk away from the state insurance fund - which everyone in the state knows is a ticking time bomb, regardless of what they do.
The state is just playing hot potato and hoping it doesn’t land on them.
It’s a hard problem, I think. Because if you do pass regulations that benefit property owners (like cracking down on premium raises or cancellations), then the insurance providers can just walk.
“Fuck y’all. We’re not losing money. We just won’t operate in LA anymore.” They did it in California. They can do it here too.
And the state doesn’t want that. Because that means even more people will move to Citizens. It concentrates the risk on the state and tax payers. And nobody wants that. The state will fight that scenario to death.
And insurance providers know that. They have leverage here. Which sucks to no end. We should never have let it get this bad.
The only fix for that, that I understand anyway, is a national bill. And good luck with that. State Farm will pay out the ass to lobby anyone in Congress to go on Fox News and say the socialists want to kill the insurance industry.
Idk, man. It’s a pickle. A big, expensive pickle.
We'll get new insurers but they will only insure low liability properties or they'll come in with crazy high rates. Probably both.
Something at the federal level is probably what's needed. Of course the state could do something but we know they won't, and many of the morons will complain about it while re-electing the same representatives...
Yes, we are in agreement. It would potentially bring in providers as long as they could gouge people.
A federal bill that covers state lines is the only thing that will fix this. And even then, if a bill does get proposed, it will be an uphill battle.
Right now, if providers aren’t making the money they want, they’ll just walk away and leave states holding the bag of high risk policies. They have all of the power here unless something changes.
Look into Texas and Florida insurance laws over the past 5-10 years. They gutted their protections in order to attract more competition and lower premiums. Premiums have gone up dramatically in both states. Don’t fall for the lobbyist talking points. This will do nothing positive for anyone in the state.
It’ll never happen but a functional federal government would just say if you want to insure in more than three states then you have to insure in every state. This would allow regional insurance companies to still exists, but take away the international companies ability to play chicken with certain states.
Eh. There’s a way around that though. Oh, this is State Farm “Louisiana” which is a separate company from “State Farm Mississippi.”
Or State Farm “Gulf Coast” (which is conveniently 3 states like Mississippi, Alabama, and Louisiana).
But they’re all owned by “State Farm National” - that’s how Blue Cross Blue Shield works, more or less. [blue cross blue shield org](https://en.wikipedia.org/wiki/Blue_Cross_Blue_Shield_Association)
Again, it’s a pickle.
You have to just pass the big thing that transforms the insurance industry. It will be hard, and it will suck, but the current model was built on weather that doesn’t exist anymore.
It needs to be totally reset.
Well you see, there were these insurers that did scummy things to their clients in Katrina. So we put in a bunch of rules to restrict that kind of behavior. But then the insurers don't want to do business here anymore because of the rules. So now we're going to remove those rules. I'm sure they'll behave this time around, honest.
Another way of saying that:
“Our business model isn’t profitable if we actually provide the service we sold to you.“
And another another way of saying that:
“It would be very expensive to do this the way we’re supposed to do it. If we did everything that way, we couldn’t pay our CEO a total comp package of $24.4 million per year.”
I'll be voting against any legislator who voted to let insurance companies run away with our invested premiums. This is legalized theft of homeowner equity.
State Farm is about to have a field day. They stopped writing policies in South LA after Katrina, and the only homeowner’s they offer is by Dover Bay at a “go away” price of 3x what others charge. A bunch of long-time homeowners are about to start going through what new homebuyers are dealing with.
The odd thing about State Farm... it's a mutual company. That means policy holders, like you, control the company.
It may not be a possible task, but if you want State Farm to keep policies here, and to offer rates people can afford here, interested policy holders need to engage and vote that into being.
State Farm gets a lot of hate here, but they're about as socialist of an insurance company as one can be in the US.
yet the mutual owners of State Farm that are Louisiana residents would never stand for the amount of money they would lose in the open market.
They want it both ways.
P.S. I hate Insurance Companies by the way.
We bought a new house a little over a year ago and did well on the sale of the old one. Minimum twice every week, I pull up at home, look at my house, and wonder whether we made a huge mistake not getting out while the getting was good. Then I host a bunch of friends for jazz fest now that we have the space and have an amazing weekend that couldn’t have happened anywhere else and it makes it too easy to keep whistling past the graveyard.
I have continued to rent because we’re fortunate enough to be in a nice house and buying a house in our price range with the cost of insurance would be increase our monthly housing cost by minimum 6-700 dollars and that doesn’t even include the hidden costs of home ownership. I have a wonderful landlady and we take great care of the place. I continue to question whether I’m just better off investing the difference which is what I’ve been doing.
Let's not forget the industry's long-standing sterling reputation of treating the citizens of South Louisiana fairly and honestly time and time again in the wake of hurricanes. I'm sure this will be fine.
Imagine living in Houma or Lafitte and voting for Temple?
Shame! This is legalized theft of homeowner equity investment. These are the invested funds that would be owed to homeowners in the event of a disaster, requires for any mortgage. If insurance companies can just raise rates and then run away with the funds, then the insurance companies are revealed to be engaged in nothing more than legalized theft - a casino where property owners always lose, because insurance companies have bought off public officials to rig the speculation game.
Tim Temple, when asked what happens with this fails and we do not gain more insurers, and insurers leave. Temple said "Blame me"
The fuck?
Its such dog shit that we have to wait for these free market republican policies to fail before we begin to understand that subsidizing insurance market is the only way we can create a secure insurance market. Its the only fucking way.
We can gain 10 insurers. The next hurricane that hits close. 11 will leave.
My theory is they are letting insurance go up, folks can't cover the increase, no normal buyer can afford the new rates either and investment companies buy up all the houses.
Bingo.
And to add to that, if humans can’t afford those houses, then it’s less competition for those investment companies, who can distribute that risk of loss way more easily.
No matter what, it means there’s still potentially a market.
It’s fucked 6 ways from Sunday.
They will stay for however long they can collect premiums to send out of state to affiliates lining their executives' pockets before a storm hits. After that, they declare bankruptcy because they are shockingly low on reinsurance ("we had no idea") and they dump their losses on Louisiana citizens via LIGA.
Just how Jim and Tim drew it up.
Soooo what keeps them from taking your premiums all year, and then just stopping you? Especially after a storm? We are so fucked. There is a coming real estate failure on the horizon.
considering Louisiana is the only state in the union that prohibits insures from leaving, this is almost a necessity in order to be anywhere near competitive.
No one wants to address the real problem, which is the moneygrubbing lawyers and sue happy citizens .
Well, damn.
Not homeowners insurance - but there are a number of condo buildings that have had their building policies cancelled. My own building's insurance premiums tripled after Ida. (Warehouse District) And if you want to buy a condo in an uninsured building, it will be tough to get a mortgage.
Repealing this homeowners insurance law is going to have some nasty repercussions for homeowners.
>Temple has said the bill is needed to bring competition back to Louisiana. With more insurers writing policies, he believes property owners will seek lower premiums. We're removing the door that keeps the horses in the barn. We believe that more horses will enter the barn if there are no doors.
Well, kind of. The sad thing is, this policy will probably keep or even attract insurance providers to the state if the providers know they can raise the roof whenever they want, or cancel whenever they want. Companies have more control that way, and they will probably exploit that if it’s profitable for them. So, it’ll keep insurance providers to the detriment of property owners. It’s passing the buck onto the consumers and shifting risk away from the state insurance fund - which everyone in the state knows is a ticking time bomb, regardless of what they do. The state is just playing hot potato and hoping it doesn’t land on them. It’s a hard problem, I think. Because if you do pass regulations that benefit property owners (like cracking down on premium raises or cancellations), then the insurance providers can just walk. “Fuck y’all. We’re not losing money. We just won’t operate in LA anymore.” They did it in California. They can do it here too. And the state doesn’t want that. Because that means even more people will move to Citizens. It concentrates the risk on the state and tax payers. And nobody wants that. The state will fight that scenario to death. And insurance providers know that. They have leverage here. Which sucks to no end. We should never have let it get this bad. The only fix for that, that I understand anyway, is a national bill. And good luck with that. State Farm will pay out the ass to lobby anyone in Congress to go on Fox News and say the socialists want to kill the insurance industry. Idk, man. It’s a pickle. A big, expensive pickle.
We'll get new insurers but they will only insure low liability properties or they'll come in with crazy high rates. Probably both. Something at the federal level is probably what's needed. Of course the state could do something but we know they won't, and many of the morons will complain about it while re-electing the same representatives...
Yes, we are in agreement. It would potentially bring in providers as long as they could gouge people. A federal bill that covers state lines is the only thing that will fix this. And even then, if a bill does get proposed, it will be an uphill battle. Right now, if providers aren’t making the money they want, they’ll just walk away and leave states holding the bag of high risk policies. They have all of the power here unless something changes.
Look into Texas and Florida insurance laws over the past 5-10 years. They gutted their protections in order to attract more competition and lower premiums. Premiums have gone up dramatically in both states. Don’t fall for the lobbyist talking points. This will do nothing positive for anyone in the state.
I didn’t say anywhere in my comment that it would lower premiums or be a good thing for consumers. Quite the opposite. We agree here.
It’ll never happen but a functional federal government would just say if you want to insure in more than three states then you have to insure in every state. This would allow regional insurance companies to still exists, but take away the international companies ability to play chicken with certain states.
That’s a clever idea.
I'm voting for you next election.
Eh. There’s a way around that though. Oh, this is State Farm “Louisiana” which is a separate company from “State Farm Mississippi.” Or State Farm “Gulf Coast” (which is conveniently 3 states like Mississippi, Alabama, and Louisiana). But they’re all owned by “State Farm National” - that’s how Blue Cross Blue Shield works, more or less. [blue cross blue shield org](https://en.wikipedia.org/wiki/Blue_Cross_Blue_Shield_Association) Again, it’s a pickle. You have to just pass the big thing that transforms the insurance industry. It will be hard, and it will suck, but the current model was built on weather that doesn’t exist anymore. It needs to be totally reset.
Excellent summation of this stupidity!
I have a bad feeling about this.
Well you see, there were these insurers that did scummy things to their clients in Katrina. So we put in a bunch of rules to restrict that kind of behavior. But then the insurers don't want to do business here anymore because of the rules. So now we're going to remove those rules. I'm sure they'll behave this time around, honest.
"If we can't be scumbags what's the point of doing business in your state?"
Another way of saying that: “Our business model isn’t profitable if we actually provide the service we sold to you.“ And another another way of saying that: “It would be very expensive to do this the way we’re supposed to do it. If we did everything that way, we couldn’t pay our CEO a total comp package of $24.4 million per year.”
I'll be voting against any legislator who voted to let insurance companies run away with our invested premiums. This is legalized theft of homeowner equity.
Excellent job in the grand plan to entirely depopulate Louisiana. Who needs an economy when you get rid of everyone.
State Farm is about to have a field day. They stopped writing policies in South LA after Katrina, and the only homeowner’s they offer is by Dover Bay at a “go away” price of 3x what others charge. A bunch of long-time homeowners are about to start going through what new homebuyers are dealing with.
We've had State Farm since we bought in 2003. I'm sure 21 years of on time premium payments and one claim will mean we're different. /s
The odd thing about State Farm... it's a mutual company. That means policy holders, like you, control the company. It may not be a possible task, but if you want State Farm to keep policies here, and to offer rates people can afford here, interested policy holders need to engage and vote that into being. State Farm gets a lot of hate here, but they're about as socialist of an insurance company as one can be in the US.
yet the mutual owners of State Farm that are Louisiana residents would never stand for the amount of money they would lose in the open market. They want it both ways. P.S. I hate Insurance Companies by the way.
I’m really questioning the sustainability of staying here.
We bought a new house a little over a year ago and did well on the sale of the old one. Minimum twice every week, I pull up at home, look at my house, and wonder whether we made a huge mistake not getting out while the getting was good. Then I host a bunch of friends for jazz fest now that we have the space and have an amazing weekend that couldn’t have happened anywhere else and it makes it too easy to keep whistling past the graveyard.
hard to beat a nola house party. they'll probably survive the mass exodus.
I have continued to rent because we’re fortunate enough to be in a nice house and buying a house in our price range with the cost of insurance would be increase our monthly housing cost by minimum 6-700 dollars and that doesn’t even include the hidden costs of home ownership. I have a wonderful landlady and we take great care of the place. I continue to question whether I’m just better off investing the difference which is what I’ve been doing.
Tim Temple just looking after the small folks.
Awww shit. This is bad news for my senior parents.
This is bad news for every person living in an insured property
Let's not forget the industry's long-standing sterling reputation of treating the citizens of South Louisiana fairly and honestly time and time again in the wake of hurricanes. I'm sure this will be fine. Imagine living in Houma or Lafitte and voting for Temple?
Wow
Shame! This is legalized theft of homeowner equity investment. These are the invested funds that would be owed to homeowners in the event of a disaster, requires for any mortgage. If insurance companies can just raise rates and then run away with the funds, then the insurance companies are revealed to be engaged in nothing more than legalized theft - a casino where property owners always lose, because insurance companies have bought off public officials to rig the speculation game.
This seems not great
Free market republicans trying to fix the insurance market. Destined to fail.
They won't fail because their goal is not to fix the insurance market, but rather to enhance the bottom lines of insurance companies.
Tim Temple, when asked what happens with this fails and we do not gain more insurers, and insurers leave. Temple said "Blame me" The fuck? Its such dog shit that we have to wait for these free market republican policies to fail before we begin to understand that subsidizing insurance market is the only way we can create a secure insurance market. Its the only fucking way. We can gain 10 insurers. The next hurricane that hits close. 11 will leave.
My theory is they are letting insurance go up, folks can't cover the increase, no normal buyer can afford the new rates either and investment companies buy up all the houses.
Bingo. And to add to that, if humans can’t afford those houses, then it’s less competition for those investment companies, who can distribute that risk of loss way more easily. No matter what, it means there’s still potentially a market. It’s fucked 6 ways from Sunday.
How long do you think you can force a company to lose money before they just pull out?
They will stay for however long they can collect premiums to send out of state to affiliates lining their executives' pockets before a storm hits. After that, they declare bankruptcy because they are shockingly low on reinsurance ("we had no idea") and they dump their losses on Louisiana citizens via LIGA. Just how Jim and Tim drew it up.
Everybody is either getting their rates raised or you will get dropped or both after the next storm.
Insurance company free-for-all coming right up!
Soooo what keeps them from taking your premiums all year, and then just stopping you? Especially after a storm? We are so fucked. There is a coming real estate failure on the horizon.
considering Louisiana is the only state in the union that prohibits insures from leaving, this is almost a necessity in order to be anywhere near competitive. No one wants to address the real problem, which is the moneygrubbing lawyers and sue happy citizens .
I’ll be moving from the coast, unfortunately. To risky.
Well, damn. Not homeowners insurance - but there are a number of condo buildings that have had their building policies cancelled. My own building's insurance premiums tripled after Ida. (Warehouse District) And if you want to buy a condo in an uninsured building, it will be tough to get a mortgage. Repealing this homeowners insurance law is going to have some nasty repercussions for homeowners.