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MS Wind Pool Insurance

Old 06-09-2007, 06:54 AM
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Default MS Wind Pool Insurance

OMG! I just got a quote from the MS Wind Pool for wind and hail insurance. I started building my home July 18,2006 after Katrina when prices were still elevated. I am 1.1 miles from the Gulf and I did not flood. My 2127sq foot home that could have been built for around 150k-175k before the storm has now jumped up to 243K.
For 267,000 for the home and 207,000 for content:
USAA $2117.89 year
Flood $317 year
MS Wind and Hail $6808!!!!!!
I have lived here my whole life. Who can afford to live here anymore!
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Old 06-09-2007, 10:13 AM
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Default RE: MS Wind Pool Insurance

I am afraid that is what we are looking at hear on the east coast.
We have and house on Isle of Palms (out of Charleston SC) and State Farm notified us this past winter that as of March 08
they would not renew HO insurance in coastal areas. I am told that SC is setting up a Wind Pool also and it makes me very nervous.

Our house is a vacation home that we rent to cover all expenses so we can enjoy it a few times each year and I am afraid that we will have to
go up so much on the rental rates that we will loose a lot of our yearly renters. Most of ours rent the same weeks each year and we try and keep th cost down as much as possilbe.

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Old 06-10-2007, 02:33 AM
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Default Re: MS Wind Pool Insurance

moto try raising your deductibles with USAA to get that portion down... same with the wind pool though not sure if they even offer deductible choices.
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Old 06-10-2007, 08:11 AM
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Default Re: MS Wind Pool Insurance

Most of the insurance companies now do not offer options on wind damage deductables. I know ours is 5% of the insured value when it is a declared tropical storm or hurricane
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Old 06-10-2007, 02:00 PM
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Default Re: MS Wind Pool Insurance

hum.... USAA offers from 1% to 5% your choice.
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Old 06-24-2007, 06:04 AM
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Default Re: MS Wind Pool Insurance

sorry, double post
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Old 06-24-2007, 06:07 AM
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Default Re: MS Wind Pool Insurance

Update.....
I just couldn't afford to insure my home properly. I lowered my coverage to $230k, the amount borrowed, not the amount actually put into the home or the actual value of the home or the amount it would cost to rebuild it after another storm. Dropped content to only $50K. I raised the deductible to $2500. Still cost me $5500 for the year. Now I can understand (not agree) with raising the cost of "wind and hail" due to living in an area susceptible to hurricanes, but what makes my home more susceptible to fire or theft than someone living anywhere else in the US? Something has got to change. An extra $500 a month tacked onto your mortgage hurts! That's boat gas money...... don't get me started on the price of fuel!!!
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Old 06-24-2007, 07:19 AM
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Default Re: MS Wind Pool Insurance



Hi Moto,

I am a little south of you at the moment but I have lived in various places around the globe. But one thing with Insurance Companies seems constant. Deep down in the fine print will be a clause relating to "averaging". May come under a different name but the result is the same.

You insure a $200000(replacement cost) house/boat/building for say $150000. Storm/hurricane/tornado rips through & it is deemed to be totally written off. So you are planning on a $150K payout. Bad news. Your insurance company MAY apply the "averaging" rule. Your true replacement cost is $200K. You are insured for $150K. So in their eyes you are really insured for only 75% of the replacement cost. So they may only pay out 75% of your policy value - $112500. If they are really hardball, they may decline to pay you anything, cancel your cover & refund your premium less administrative costs.They can also "average" a damage only claim & reduce your payout.


Be wary about under insuring a major asset. Get a recognised valuer to come up with a replacement value & base your policy on that figure. It will be cheaper in the long run. BTW, I have NO affiliation with any insurance provider. But I have seen what "averaging" can do.
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Old 06-24-2007, 08:23 AM
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MOTO... i say again, RAISE your deductible and the rate will come down. I am currently insuring 275,000 structure, 200,000 contents, with wind and hail, fire and theft, and with a 5% deductible my rate is just over $1,000 per year. I dont believe they can mandate the deductible and should offer you a range of percentages up to 5% which i the insurance commission limit. FWIW, I can spit on the gulf of mexico. My quoted rate was close to yours ..UNTIL i took the deductible route. I am essentially self insuring for any and all small losses, but considering the 4,000 per year savings, the deductible will cover itself in 3 years. Be creative, think outside the box, DONT insure you home for less than it is worth, thats just crazy.
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Old 06-24-2007, 11:06 AM
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Default Re: MS Wind Pool Insurance

BlueMarlin - 6/24/2007 8:23 AM

MOTO... i say again, RAISE your deductible and the rate will come down. I am currently insuring 275,000 structure, 200,000 contents, with wind and hail, fire and theft, and with a 5% deductible my rate is just over $1,000 per year. I dont believe they can mandate the deductible and should offer you a range of percentages up to 5% which i the insurance commission limit. FWIW, I can spit on the gulf of mexico. My quoted rate was close to yours ..UNTIL i took the deductible route. I am essentially self insuring for any and all small losses, but considering the 4,000 per year savings, the deductible will cover itself in 3 years. Be creative, think outside the box, DONT insure you home for less than it is worth, thats just crazy.
What he says.^^^^^^^^

Religiously deposit the savings into some type of interest bearing account, were you can access it when you need it(with minimal or no penalty), and press on with life.

State Farm quoted a price for our Florida home well over 10 times what we were paying in Illinois. The Florida home is alot smaller(2000sf)
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Old 06-24-2007, 01:39 PM
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Heck i went ahead and just put 10 grand in a fund just for "repairs" .... be creative, there are ways, take the small end risk off the insurance company by raising your deductible and the company will respond by lowering your rates, maybe much more than you think.
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Old 06-27-2007, 08:16 AM
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Default Re: MS Wind Pool Insurance

I feel your pain. My insurance company dropped my wind coverage 3 weeks before Katrina. Being hurricane season, I wasn't able to get any wind coverage at the time. I escaped to North MS as Katrina hit land wondering which country I was going to exile to after declaring bankruptcy. Well, turns out I was one of the lucky ones with only 3 shingles missing. Entered the wind pool ASAP obviously. As of March 2008, my wind pool rates (no choice for deductible changes) have quadrupled from $1200/year to $4700/year. The hard thing for me to bear is I had no claims for Katrina but still got shafted. I now pay $1800/year with a $2500 deductible for fire/theft/liability + the $4700/year for wind pool. Needless to say, I'm outa here as soon as I can get other arrangements worked out. Sad because I've lived here all my life and to leave with a bad taste in my mouth really does not do the area justice. It's a great place to live, but politics, lawyers and insurance seem to have their way with the real issues that drive people away. oh well, life goes on.......
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Old 06-27-2007, 08:33 AM
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motocrs826 - 6/9/2007 6:54 AM

OMG! I just got a quote from the MS Wind Pool for wind and hail insurance. I started building my home July 18,2006 after Katrina when prices were still elevated. I am 1.1 miles from the Gulf and I did not flood. My 2127sq foot home that could have been built for around 150k-175k before the storm has now jumped up to 243K.
For 267,000 for the home and 207,000 for content:
USAA $2117.89 year
Flood $317 year
MS Wind and Hail $6808!!!!!!
I have lived here my whole life. Who can afford to live here anymore!
I feel your pain re: Insurance Companies.

Here in RI, my policies were canceled because "I lacked Hurricane windows, hurricane shutters, and my proximity to the water". The last part I can understand because two of the properties are waterfront.

The kicker is, I was dropped by Nationwide, who picked up my next door neighbor, who was dropped by Allstate, who in turn was going to pick me up WTF!!! Does that make any sense to anybody?

I call my agent - who handles all my personal and business policies to inquire about this and in between bites of his calzone he mumbles something along the lines of "Nothing I can do about it".

I made exactly one phone call and found coverage at although increased rates, still somewhat reasonable as compared to other carriers - thank you AMICA!!!

Then, my agent can not understand why I am kicking him to the curb for all my policies and suddenly wants to meet. Yeah, we will meet you fat fuk and I will stick a nail gun up your azz and pull the trigger until nails shoot out your nostrils.

All this because the insurance companies claim that "RI is due for a major hurricane because they have not had one in a long time" - BRILLIANT logic if I have ever seen it!!!!

A lot of waterfront and near coastal homes up for sale because people who were paying 2-4K in insurance are now faced with premiums of 9-15K.

The insurance industry is worse than wise guys!!!!!
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Old 06-27-2007, 02:45 PM
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"The insurance industry is worse than wise guys!!!!!"

There are quite a number of insurance companies listed on the stock exchange. If they really are making money like the wise guys do, just invest in some of that stock and wait for the millions in dividend checks to be sent to your house along with checks to all of the other stock holders.
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Old 06-27-2007, 03:08 PM
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SeaJay - 6/27/2007 2:45 PM

"The insurance industry is worse than wise guys!!!!!"

There are quite a number of insurance companies listed on the stock exchange. If they really are making money like the wise guys do, just invest in some of that stock and wait for the millions in dividend checks to be sent to your house along with checks to all of the other stock holders.
Just proves that the wise guys are smarter - they know better than to waste money by being publicly traded.

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Old 06-27-2007, 03:13 PM
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Round one to RI builder Fuk ins companies, hell yeah that what they do to the customer first.
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Old 06-27-2007, 07:19 PM
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Another option. Capitalize your own insurance company, don't go public, and make all those millions yourself.
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Old 06-27-2007, 07:56 PM
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Basically, you are seeing only the beginnings. It may work out for the people in New England, as some regulators/lawmakers may finally realize how stupid the "they are overdue since they haven't had one for a long time" logic is. It's been a long time because they are never going to have very many, period.

But for those of us from about Charleston (SC) around to the Gulf Coast of Texas, I think we have had it. Especially Florida from about Augustine, over to about New Orleans, if you look at the frequency curves, and the hurricane cycle we are now in the fairly early stages of, there is NO way it is not going to get worse. Sure, "politics, lawyers and insurance" suck, but the main problem isn't them.

It's the weather, people, and the fraud and greed of so many after the storms doesn't help either. Rates will just go up and up. I have some income property in Key West which is now basically uninsured, except for iability in case someone gets hurt, and the house I live in is insured for about two-thirds of its actual value (and yes, I know about the eighty percent rule), with huge deductibles, and the premium is still unreal. And if there are any more storms (which I think there will be) it will just go up.

Who else is going to bail us out? Farmers in Iowa 'cause they get hail and tornadoes? Dream on. Andrew cost more than ALL the tornadoes ever suffered in the U.S. put together in terms of insurance outlays. There is simply no chance of a majority in Congress to help us (can you blame them?) and in Florida we already have a state windstorm insurance company and that's the one with the killer rates. Federal flood insurance is good and cheap (look at moto's original quote for it....$317) but there will never be a federal wind program like it, and it's not even sure the flood program will be able to continue. It's getting expensive.

Sorry for the pessimism, but I see no way out.
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Old 06-28-2007, 01:48 AM
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50 percent of the american population lives within 2 hours of a coast. The sky is falling the sky is falling....blah blah.... yep we are smack in the middle of an UP cycle and last year we didnt have not one hurricane in the gulf... low yes..... a trend...doubtful.... but its the weather folks.....NO BODY knows for sure whats gonna happen next. Stop worrying and get on with enjoying life.
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Old 06-28-2007, 05:39 AM
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BlueMarlin - 6/28/2007 1:48 AM

Stop worrying and get on with enjoying life.
That is very good advice.....unfortunately, it is not in the media's best interest to allow that to happen, which is why you can't turn on our local new channel without hearing the "K" word a hundred times an hour. It really doesn't make sense. We all survived the worst scenario when it comes to hurricanes, so we know we'll survive the next one, yet the threat of a storm still consumes people.....kinda sad if you ask me.
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