Changing the rules to require that insurers commit to renewals for the duration of the mortgage might make it more doable
But of course will only lead insurance companies to raising premiums 50% per year until it forces the buyers out of the house, then the insurance company can get rid of the “problem”.
Insurance is in the business of collecting premiums, NOT providing any kind of coverage whatsoever.
Flood insurance in particular isn’t run by business in the US; it’s underwritten by the federal government, and has been operating at a loss for quite a while. The example in this story is somebody who while they signed up for it, experienced damage before the policy went into effect (there’s a 30-day waiting period to start)
Homeowners insurance tends to actually pay out when you have individual uncorrelated failures (eg: house burns down due to electrical system failure) which is what’s it’s designed for. Having that around makes buying something as expensive as a house practical.
But of course will only lead insurance companies to raising premiums 50% per year until it forces the buyers out of the house, then the insurance company can get rid of the “problem”.
Insurance is in the business of collecting premiums, NOT providing any kind of coverage whatsoever.
Flood insurance in particular isn’t run by business in the US; it’s underwritten by the federal government, and has been operating at a loss for quite a while. The example in this story is somebody who while they signed up for it, experienced damage before the policy went into effect (there’s a 30-day waiting period to start)
Homeowners insurance tends to actually pay out when you have individual uncorrelated failures (eg: house burns down due to electrical system failure) which is what’s it’s designed for. Having that around makes buying something as expensive as a house practical.