It’s “Attack the Insurance Companies, The Sequel,” for CNN.
Similar to criticism of insurance companies after Hurricane Katrina, the October 26 “American Morning” launched a similar assault against the business after the California wildfires – except this time, they’re starting early.
“[T]he California wildfires are leveling entire communities, leaving homeowners with nothing,” CNN “American Morning” host Kiran Chetry said. “But, what the fires don’t take, the insurance companies just might. A bad and costly situation for homeowners may have just gotten much worse.”
An estimate from TheStreet.com reported insurance companies stand to lose $1.6 billion from the wildfires – and the number could go much, much higher.
Insurers are now requiring homeowners in certain high-risk areas to take precautions.
“[I]nsurers are also ordering homeowners to clear brush, cut down trees, even install fireproof roofs,” CNN correspondent Chris Lawrence said. “The improvements can cost up to $20,000 with no guarantee their policies won’t be canceled.”
But they’re doing so for the wrong reason according to Lawrence – the profit motive.
“Managing that risk can be profitable,” Lawrence said. “State Farm and Allstate (NYSE:ALL) each made $5 billion in profit last year.”
The CNN segment also quoted a pro-regulation “consumer rights advocate.”
Remarks from Candysse Miller of the Insurance Information Network were buried three minutes into the “American Morning” segment.
Miller said, “it begs the question, are we [California homebuilders] building in safe areas,” when there are wildfires in the same places every 20 years.
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Building in "Safe Areas"?
October 26, 2007 - 18:26 ET by heldmywWhat the heck is a 'safe area'? I'm sure Chicagoans were pretty secure in their beds before the Great Fire, San Franciscans, ditto times what? 12? 22? 50? Earthquakes. I was in SF for 'the latest big one', and lived in Hollywood during Big Bear AND Northridge.
We all felt "safe"... within limits.
Floods in the midwest, blizzards, avalanche, coal spoil mountains sliding in on villages, dams bursting, tornado, hurricane, tsunami...
The list goes on. Anyone who says "this is a SAFE area" hasn't looked around. For instance, check the resurgent bear or wolf populations!
You do your best, take proper precautions, avoid stupid mistakes (I consider a log cabin in brush country "stupid"), and BUY INSURANCE.
That this is 'big' and insurance underwriters may require conditions to qualify for their protection is not even news.
It's ordinary capitalism and common sense.
The msm couldn't get Bush
October 26, 2007 - 18:27 ET by bigtimerThe msm couldn't get Bush on this....they have tried every angle.
So now the big attack has been on the insurance companies...started on the networks yesterday...
Why don't they try to dig into the arsonists they have caught....might be something to keep them busy.
Ooops...forgot, not in the leftist agenda, after-all arsonist aren't really in their picture.
Bigtimer, read what you
October 26, 2007 - 20:58 ET by MikeBBigtimer, read what you wrote here. "...after all, arsonists aren't really in their picture." You know good and well the Libmedia won't put any Democrat Party voting bloc in a bad light. Felons are one of those Democrat blocs. Ergo, criminals of any sort, including arsonists are not going to be blamed for any catastrophe that they (the media) can place the blame elsewhere (Bush, Blackwater, Halliburton, global warming, etc.). Hillary will need every vote and every dollar she can get, whether those votes and dollars are from legitimate sources or not.
"A communist is someone who reads Marx. An anti-communist is someone who understands Marx." Ronald Reagan
MikeB... How right you
October 26, 2007 - 21:08 ET by bigtimerMikeB...
How right you are.
I also well remember the list of felons the dem's were trying to get ballots cast for them for in Florida....they haven't stopped doing so, they do it anyway...one way or the other...in a lot of states.
We also can't forget the nursing homes scams the leftist pull.
Illegal aliens voters too...big time.
If the repub's would fight back during the elections, mean it when they say they follow through with lawsuits/convictions whatever the term and such...this would of stopped to some extent long ago...but noooo they always back away.
How typically communist
October 26, 2007 - 18:39 ET by c5thenPeople insure their homes with companies that have specific coverage for a specific premium. Just like insurance companies will exclude flood damage if you live in a flood plain or a known flood-prone area. They probably do the same for fire damage in areas that are prone to brush-fires like 50% of So. California.
And...typically spun in the other direction from TheStreet.com....insurance companies DO NOT stand to lose $1.6 billion, they stand to have to pay out $1.6 billion in claims which will reduce their profits, but not eliminate them, as is evidenced from the end of the story where State Farm and Allstate were said to EACH make over $5 billion in profits last year.
The day that "politician" became a career choice is the day we started losing the Republic. Let's get it back! Fred08.com
Comrade Chetry
October 26, 2007 - 18:50 ET by Lame CherryApparently this story is about soul payback for comrade Chetry in pitting the evil insurance companies against those poor multi millionaire green wacko liberals whose homes are burning up because they built them in a fire plain just like those ignorants in New Orleans built in a flood plain.
Insurance companies are not in the business to pay off claims. They are in it to make money for investors. Very stupid and gullible people invest trillions of dollars a year thinking they can do without God by paying some company to guard against their stupidity and events which happen in life.
The only horrid part in this is insurance companies have to be daddy and mommy to a bunch of stupid adults and a bunch of stupid politicians in California in now ordering them to do what common sense dictates in clearing brush.
Real proud there Californians? Comrade Chetry is Oprah comforting you in your stupidity and you are so stupid you can not even save your homes from a fricking bush!
*HIC IACET ARTORIVS REX QVONDAM REXQVE FVTVRVS
Don't be so quick
October 26, 2007 - 19:03 ET by okiehawk44May God bless you if you can avoid all risk that you assume is covered by your insurance policy(s) -- we lived through a number of hurricanes down here and believe me when i say that not only did the insurance companies make out like bandits -- they now have run up premiums so high many folks are trying to fly without any or at most minimal protection -- companies will drop you even if you never made a claim and this throws you into some deep water my friend -- Californians are next! Maybe you are too after that -- maybe the dingo will eat your baby!
Okiehawk, if you really
October 26, 2007 - 21:08 ET by MikeBOkiehawk, if you really believe that property insurers have made out like bandits in your state, go to the state insurance commission and ask to see the paperwork showing insurance profit/loss in your state. In the ten year period 1984 to 1994, I know for a fact that property insurers in the State of Oklahoma did not make an insurance profit one time. All of their profit came from investment of premiums, and after a certain positive investment ROI the insurance companies are required by law to use that money to reduce or hold rates. As for your contention that insurance companies "run up the premiums" you need to educate yourself on the mechanism of rate increases. There is not a state in the union where an insurance company can arbitrarily raise premium rates. In every case, no matter what type of insurance you are talking about (P&C, Life, Health, etc.) the insurance companies have to have the approval of the state in increase rates. You really should educate yourself about a subject before you opine so on it.
"A communist is someone who reads Marx. An anti-communist is someone who understands Marx." Ronald Reagan
insurance companies
October 26, 2007 - 21:09 ET by bigpapaare there to make a profit... why do you think they sell life insurance??? They are betting you will live long enough to make a profit before you die... do the math..
And if they want to make policy provisions.... so be it..
you don't have to live there and you don't have to take risks,, but if you do shouldn't you pay the price????
Why should may tax dollars go to LA or CA???? or FL???
Insurers are now requiring homeowners in certain high-risk areas
October 26, 2007 - 22:47 ET by PamGee, where do they get off?(snark) As a homeowner in an area where the potential for fire is high, wouldn't it make sense to take these steps? How is that $20,000 spent any different from me making improvements on my property? That $20,000 spent is considered home safety and can increase your property value/ sales value. It can also decrease your insurance costs.
Wait a minute ...
October 28, 2007 - 16:11 ET by Edward LeeSo, my insurance company is going to force me to clear the brush out around my house so they don't have to pay out because my house won't burn down then? Those greedy bastards! How dare they tell me to mitigate my fire risk! I pay good money so I can let my house burn down.
Wait a minute, what does 6 foot deep underbrush resulting from decades of aggressive fire prevention, and a lack of clearing and controlled burns have to do with fire? I thought is was Global Warming and, therefore (since he didn't sign Kyoto), George W. Bush that caused the fire. Is it possible that the rapid oxidation of excessive celluousic matter has something to do with fires getting out of controll? No way! I better go check my old college chemistry book.
insurance companies
October 27, 2007 - 20:00 ET by botgmust remain solvant and that's the bottom line. There were some areas here in SD County that burned which were considered safe from wildfires. Most of the areas that burned the people knew there was risk. Also who is to blame if they are underinsured? I was very fortunate. It's the same as building on a 20 year flood plain. The companies will pay what they are required to pay per the policy selected (and paid for) by the homeowner.
"The more I study science, the more I believe in God." Einstein
Precisely, B.
October 27, 2007 - 20:06 ET by BlondeWhich is why I carry both Flood & Windstorm.
I don't like it....but I do it.
David Gregory, do you know which damn network you lie for? ~ Uncle Jimbo, @Blackfive
exactly B
October 27, 2007 - 20:12 ET by botgand i can expect to pay more next year. I know that state law requires a fire sprinker system installed in all new pre-fab homes (one option i've looked at)
"The more I study science, the more I believe in God." Einstein