Along with millions of other homeowners I received our home insurance
bill this month. Now I have never been a big fan of insurance companies
but the size of the continuous yearly increase made me almost choke on my porridge.
On top of an approximate thirty-five percent increase over a three year period this friendl
national company advised me since I did not fill in a new little phony self appraisal form
they would not be insuring at present value but at depreciated value - but of course at the
same cost to me.
Now there is an offer I couldnt refuse! Pay an additional 12% over last year and get 80% less coverage.
I REALLY DO NOT LIKE BEING BULLIED. IN FACT I WILL NOT BE BULLIED!!
I'm not sure if they want the value to be greater or less - in any event I feel rather sure in saying they probably wouldn't pay more regardless of what squiggles I put on there silly form.
BUT ONE CAN'T GET AWAY WITH IGNORING SUCH AN UPSTANDING COMPANY!
Now I am what is called a Senior Citizen - and I don't like being dictated too - even if the letter writer is an attractive young woman from the nice little city of Chilliwack BC. The fact of the matter is - I am really peed off!
I realize the insurance business is rather convoluted confusing business to the average
layman, but one thing I do realize is that reinsurance (or maybe as it may be called now- Credit Default Swaps [CDS] ) is a large part of what drives the cost of home insurance the world over.
So before I decide which company to insure with I decided to do a little research.
The first thing one notices is that virtually all the MAJOR companies even including such as bcaa charge virtually the identical rates - it appears to me this is because of the reinsurance world.
In that world One name that always comes up is American International Group or as it is better known AIG.
Yes you are right this is the company that recently was given - thats right
I think that means - one hundred and eighty billion - yes BILLION SO IT can stay afloat. And why are they having a hard time staying afloat - it is because they were, in effect, running a gigantic ponzi scheme - a very convoluted and humongous one, but definitely a scheme any little crook would be proud of.
This group operates worldwide and has I believe has been one of the largest if not THE largest re insurer in the world. It looks like they have now restuctured into severaL NEW ENTITIES and partnered with BMO in Canada in some form.
I gather AIG has sold or transferred some of its reinsurance business's lately. As I look into this business the more shady it appears. Words and phrases from the US government report such as; scam - unconscionable, rip-off- dillusion and deception -
played the dirivative game with AIG -
appear repeatedly in the official report.
The Congressional Oversight Panel (COP) chaired by Elizabeth Warren produced a devistating and comprehensive Account.
Anyway to make a nausious story short - changed brokers and now have a new policy with a
small company for LESS than half the old charge.
It really is too bad the federal govt (through its agent CMHC) when charging the homeowner the percentage fee for a high raio mortgage to protect the BANKS AND MORTGAGE COMPANIES doesn't give the homeownrer the same consideration and provide reasonable home insurance in the same way.
Seems to make sense to me.
Which from experience probably means it wont happen.