Another Round of Rate Increases . . .

You Know Who You Are: Residents in Texas, North Carolina, Louisiana, and Florida can expect to pay higher property insurance premiums in the coming months. OK you geography buffs out there, what do these states have in common?

Obviously, there is a lot of debate in these states about the inland (poorer) homeowners having to pay higher premiums because of the coastal (richer) risk, and while I tend to be on the side of the little guy whenever possible, I have to side with the coastal residents on this one. A major tenant (perhaps the major tenant) of insurance is the concept of shared risk. The best way to accomplish that in a property insurance setting is to do so across an entire state, in my humble opinion.

Each insurer has to tailor its policies to meet individual state requirements, so state legislatures have a huge say in how things work. This is an unwieldy process for the big national insurers, but the alternative of a federally regulated insurance program is distasteful to most of us (unless you live on a coast). If you are unhappy with how your homeowners insurance rate is calculated, talk to your state legislator. He has more say in that rate than even your insurance agent.

Thanks for your readership!

A. J. Farley owns Farley Home Services, a personal property inventory service. Visit us at EverySingleItem.com for more information.

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Hurricanes, Bulls and Bears. What a Day!

Good Insurance News? No Way! Texas officials reviewing claims data from the two recent hurricanes says that a surprisingly small number of justifiable complaints were filed, less than one quarter of one percent! Way to go, Texas insurance industry! Claims Journal has the story.

"There will always be complaints arising from any storm damage. When you are dealing with a lot of money in a catastrophic situation, it can be difficult for all of the parties to be completely satisfied with the claim settlement," said [Texas Insurance Council Chair Dorothy] Langley. "But these low numbers on complaints coming from both Ike and Dolly are remarkable considering the volume and severity of the claims. It shows the industry has worked hard and been successful in putting their policyholders back on their feet in difficult circumstances."

It's refreshing to see some good insurance news for a change. The industry needs all the help it can get these days.

"Deaccessioning" Debate Rages On: Deaccessioning occurs when a public art gallery or museum sells off its own pieces in an effort to raise capital, either to acquire new works, or to restore or maintain other pieces, and a debate rages both in Europe and here about how vigorously museums should engage in this practice and to what ends. Regulation has been difficult to enact and even more difficult to enforce. London's Telegraph has the story of the latest round of discussion.

The [British] Museums Association has attempted to restrict “deaccessioning” with some ethical guidelines, based on stages of consultation and a preference for loans or exchange over sale. But although restrictions are legally imposed by the terms of charitable bequests, the law is far from watertight and conscience is the ultimate policeman of the process.

This practice is far more prevalent in America. For instance, recently the New York Historical society sold one of its paintings, a William Holbrook Beard work entitled The Bulls and the Bears in the Market, in order to pay for an air conditioning upgrade. The New York legislature (see this New York Times piece) is attempting to regulate this practice, but major museums are fighting for the ability to use their own judgement, particularly in this era of tight budgets.

Farley Home Services provides the home and small business inventory documentation that insurance carriers require to handle claims. Please visit us on the web at EverySingleItem.com for details, and thanks for reading today!

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