Dr Bull, JOE discussed on Clark Howard Show
Where they're either into market share or they're into profit margin and and the industry will will just somehow move with this semi herd mentality where they're into increasing profits or they're into they're trying to steal share from each other but there's a third factor these natural disasters and storms that are up ending the assumptions by actuaries about what kind of losses insurers may see and insurers also depend on. The financial industry's ratings of insurers strength so insurers have to maintain certain levels of financial strength financial security and those are being tested by the number of of natural disasters and storms that. We're facing and so the greatest vulnerability starts on the coasts But then there are other areas of the country that have seen increasing instances of destruction from severe storms. And for whatever reason there there are people who don't believe in climate change but whether you believe in climate liat change or not there has definitely been a change in the frequency of severe storms. And as I heard somebody say I didn't know I live to two hundred because I've had to one hundred year storms floods or whatever the expression. Did you ever see that Joe. It was like they had to one hundred year events in two years and so there is it is something that is a trend. That's not our friend. So how this affects you as a homeowner is if you live on the coast. You're going to see a reduction and the quality of the homeowners insurance is available so you meaning that the coverage limits potentially being shrunk with potentially higher deductibles and you have to be very careful all in cautious with that if you have a mortgage on your property because your mortgage may have limitations on the deductible Dr Bull you're allowed to carry on your homeowner's insurance and that may force a.