The first incarnation of Commissioner Chaney mentioning wind pool rates and pre Katrina pricing levels was at the Chamber luncheon last month when (I thought) I heard him tell the crowd that by June of 2009 we’d be back close to pre Katrina levels for wind pool pricing. Somehow I missed this yesterday:
Coast insurance premiums will reach “nearly pre-Katrina levels by June,” Mississippi Insurance Commissioner Mike Chaney says in a news release about the state wind pool.
The paying public didn’t miss it as our Insurance Commissioner’s Tuesday Press Release was soundly ridiculed by Sun Herald readers:
They are closer to pre-Katrina levels except that they are 75% more expensive. C’mon. Do the Math: 1,189 over 679. What a joke!
thought you had to at least have some math ability to get a job as commissioner… apparently not – $1189 = $679. It doesn’t take a rocket scientist to know that those 2 numbers are not even close…
Just once I would like to hear the truth from a politician. If they can’t do the math, they should get someone who can to explain it to them. If I had a house payment I couldn’t afford my house because of the insurance. Affortable housing isn’t the ptroblem. Insurance is the problem.
This is a bunch of bureaucratic baloney.
And to think those were some of the nicer remarks.
Today Anita Lee has a follow up story that tells the tale. Like so many things in insurance one has to wade waste deep through the BS and propaganda to understand the reality of the situation. For those who write the check to pay the wind pool premium the Commissioner’s press release comes across as insulting. Staying in Lala land will not help Commissioner Chaney from a PR standpoint IMHO.
Coast readers of the Sun Herald want to know who Insurance Commissioner Mike Chaney thinks he’s fooling when he says that state wind pool premiums will approach pre-Katrina levels in June.
“They are closer to pre-Katrina levels except that they are 75 percent more expensive,” one reader commented at sunherald.com. “C’mon. Do the math… What a joke!”
A news release that Chaney sent via e-mail quoted a rate of $679 for $100,000 of coverage on a masonry dwelling in August 2005, compared to $1,189 for the same coverage once wind pool rates drop in June. The average decrease will be 11 percent, after a statewide increase in 2006 of 90 percent for residential customers.
Chaney defended his math Tuesday afternoon. He said $100,000 in wind pool coverage for a Fortified Home would be only $97 higher than pre-Katrina rates, $776. A Fortified Home must meet tougher construction standards.
Problem is, only one has been completed in South Mississippi. Three to five others are under construction.