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Insured damages from Irene appear to be much less than feared, so stocks of insurers and...

Insured damages from Irene appear to be much less than feared, so stocks of insurers and reinsurers (KIE +4.1%) open strongly after underperforming the broader market in the back half of last week. Allstate (ALL +6%), which also was upgraded to Buy at Sandler O'Neill, leads the group. Also: HIG +6.5%, TRV +4.8%, GNW +5.1%, CB +4.1%, PFG +4.9%.
Comments (3)
  • Stoploss
    , contributor
    Comments (1727) | Send Message
     
    Confirmation no one has flood insurance on the north east coast.

     

    Welcome to the wonderful world of being told " no, flooding isn't covered, only wind damage if you happen to have that coverage".
    29 Aug 2011, 10:41 AM Reply Like
  • Tom Armistead
    , contributor
    Comments (5315) | Send Message
     
    I was an insurance agent for many years. Selling a Homeowners policy, I typically sold "all risk", remarking that flood and earthquake are excluded.

     

    Customers love to pretend they forget that when flood strikes. "You never told me." Not only I told them, but everybody knows flood isn't covered. Nobody wants to spend money year after year to get coverage for something that doesn't happen year after year. They get tired of it and let the coverage go.

     

    The government used to do small business loans to victims of flood, requiring that they buy the insurance as a condition to the loan. So I would have to do the work to get the policy, and most of them would promptly drop it. Nobody wants to spend the money.
    29 Aug 2011, 10:50 AM Reply Like
  • Stoploss
    , contributor
    Comments (1727) | Send Message
     
    I speak from experience on that issue. Ike. I didn't flood, but have carried it for 10 years, one never knows.
    29 Aug 2011, 10:55 AM Reply Like
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