true insurance story.
i live in a townhouse community with 184 units. property insurance for the grounds and exteriors of all the townhouses are paid for by the hoa (from our fees
, of course). the hoa paid an insurance company $50,000 per year for many years, and had no claims.
then in 2004 (the year of the hurricanes) we were hit by three small hurricanes within two months of each other. we suffered some damage, mostly to some roofs, and were given $300,000 to make repairs
the following year our insurance premium was doubled, to $100,000. the year after that our premium was raised to $150,000. the next year our premium was raised to $200,000. so, within three years the insurance company had recovered every dollar they had given us.
they then graciously reduced our premium to $150,000 - only three times what it had been in 2004. the next year it was again reduced to $100,000 - twice our 2004 premium - where it has remained ever since.
there are those, usually insurance brokers, who like to tell us that insurance companies 'spread the risk'. but in fact, at least in our case, all they did was lend us some money
for a few years, and are now being repaid at rates that even a loan shark couldn't get....