Has anyone had homeowners insurance cancelled?

[kiwigtx]

Lloyds of London was once the biggest international Insurers......they were the ones who paid out on a series of disasters that nearly sank the company - Exxon Valdis, Piper Alpha and Zeebrugge Ferry disasters.

The "Names" likely included many uber-wealthy people who got a bit ticked off with all the payouts..... Rockefellers and the like.

 

[kiwigtx]

Lloyds of London was once the biggest international Insurers......they were the ones who paid out on a series of disasters that nearly sank the company - Exxon Valdis, Piper Alpha and Zeebrugge Ferry disasters.

The "Names" likely included many uber-wealthy people who got a bit ticked off with all the payouts..... Rockefellers and the like.

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I remember those very well (lived through the TV updates) as well as creating memes and jokes (before memes were a thing) about our Supervisor when I started at Marks & Spencers. His name was Nick..... or more fully Nicholas Dai Zorba Patiniosis. Half Welsh and half Greek.

My co-worker Rob, a Freddie Mercury dead-ringer and I used to make up these fax sheets and do fake job applications in Nick's name. We put down Nick's previous jobs as - Bow-door operator on the Zeebrugge Ferry, Fire-watch Supervisor on Piper Alpha, Navigation Captain on-board Exxon Valdis, and Chief Fry-cook at a small Chip Shop in Swansea (Wales) that burnt to the ground.

 

[68BabyBlue]

it's a huge Pyramid scheme for sure

When I took the in house counsel job, the CFO told me we paid for every accident. All the insurance did was level out the cost of the really big ones, and with what they charged us, they made a profit whether we did or not. We ran $100K deductibles, and often burned through them. The first layer of coverage was $5 million per event. My last year on the job, we burned through a significant amount of that and got cancelled.

Self insurance is a better alternative, but it takes huge sums to safely play that game. Not surprising that one of Warren Buffet's favorite holdings was Geico Insurance.

 

[Jeff Peterson]

Just do what "Ceech and Chong" did, cover your yard with a fake pool!

 

[AR67GTX]

They could be more solvent than they portray.....the directors just keep sucking out the profits to pay out to the "Names" - the people who actually bankroll the Insurance Companies at the top of the tree.

Having this discussion yesterday at a retirees luncheon. One of the guys said he questioned an insurance executive why rates were going up even for companies that did not have large exposure on the coasts or records for heavy damage payouts nationwide. He said the guy told him they don’t operate solely on their own money, they buy insurance, called reinsurance to cover their risks. So basically they are buying insurance for their insurance. Some of these are Lloyds, Berkshire, etc. So even if your insurance company is having a pretty good claims experience, if their reinsurer is having a bad year globally, they are passing the hurt on down to even the solvent and cautious insurers.