![]() Now a new candidate emerges from an unlikely quarter: the insurance industry with its $1.9 trillion in assets. Once synonymous with the utmost fiscal prudence, insurers, the experts in managing risk, are themselves at risk. Though the crisis has been building for a decade, it has gone almost unnoticed until the last few years.ġ988. Following a consumer revolt over soaring prices and redlining, California's voters hurl Proposition 103 at automobile and property insurers, requiring them to roll back rates by 20 percent. Within a year, more than 14,000 bills are brought before the nation's state legislatures to control an industry that is virtually without Federal regulation.ġ989. An actuary's nightmare: Hurricane Hugo, the San Francisco earthquake and other acts of God cost insurers $7.6 billion, the worst year for natural-disaster claims in the United States. About 80 property-casualty and life insurance companies become insolvent. Meanwhile, a Congressional subcommittee, having published its report detailing the rising number of insolvencies among property-casualty insurers, turns to life and health insurers. Many companies in this sector of the industry, which controls 72 percent of insurance assets, are mired in the most troubled areas of the financial markets. These giant investors have committed $278.9 billion to real-estate and mortgage holdings and $50.7 billion to junk bonds. 5, ALARM BELLS SOUNDED IN THE country's insurance capital, Hartford, Conn. That way you won’t be left high and dry when it comes to making a claim.Travelers reported it was adding $650 million to reserves against potential mortgage and real-estate losses and - even more ominous - that it was cutting its quarterly stock dividend by one third, the first dividend cut in the company's history. So, in summary, know what you’re covered for when it comes to water and flood damage. You can read Tower's latest house and contents policy documents on our website or if you're already a customer, log in to My Tower to view your policy document. Make sure you read your policy document so you are aware of the circumstances you are and aren’t covered for.Maintain records of any repairs or replumbing you’ve made over the years. ![]() This is important because your insurer typically won’t cover you if the water damage is caused by a leak that you should reasonably have been aware of. This includes inspecting flexi hoses (hoses that are usually used in dishwashers, washing machines, sinks and taps) for any signs of damage or leaking.
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