Monday, August 6, 2012
Insuring Disasters
People have always chosen to live in potentially dangerous places. Surprisingly, the Jersey shore is one of them; hurricanes, tropical storms, and nor'easters do hit and cause major damage from flooding and high winds. If you owned an insurance company, would you be willing to sell policies to homeowners on the Jersey shore? If not, why not? If so, what would you do to protect your company from a huge loss in case the perfect storm hits the shore?
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If I was an insurance company I would sell policies to homeowners on the Jersey Shore. The biggest reason why I would is because the insurance would be really high priced due to the danger or risk. Disasters don't happen every so often so I would be able to make alot of money before the disaster and make enough money to pay for the damages done after the disaster. Though this is all depending on the price of each policy.
ReplyDeleteIn order to protect my company I would put restrctions on the policy. I would set a max expense on the damage and increase the policy bill after the disaster.
I would not sell policies to homeowners on the Jersey Shore because with most of it having been developed (i.e. Concrete cannot absorb water when it floods) there is no real way to stop long term property damage let alone damage done to the homeowners.
ReplyDeleteIf I owned an insurance company I would sell policies to homeowners on the jersey shore. The reasons why are one I could make modifications to the houses to help them have a less chance of horrible damage. Some of the modifications I could apply are raising the height of the house to reduce chances of flooding easily by taking out the basements of the houses and putting in attics. Another reason why I would sell them is because i could make a lot of money due to it being a very popular area because of the beach and attractions and it being a high risk of living next to the beach during hurricane season. All of those reasons would increases the bill for the home owner satisfying them with a home they like and money in my hands.
ReplyDeleteI would definitely be willing to sell policies to homeowners on the Jersey Shore because although a big storm can come and happen there it is low rate of occurrence of it happening. But I would make the insurance expensive just in case a big storm does happen. To protect my company in case a huge storm does come and wipes out the Jersey Shore I would put rules on my policy that the home owners should follow in case a huge storm does happen and if they don't follow them I would put that the company won't cover that because they did not follow the rules on the policy and from all the money I made from them paying the insurance company I would be able to pay the damages and still make a profit from what they payed.
ReplyDeleteIf I owned an insurance company, I would be willing to sell policies to homeowners in Jersey shore because since there is a high frequency of disasters happening, the money I will be gaining will be pretty good. In the case of a perfect storm, I will have enough money to build up the damages afterwards.
ReplyDeleteIf I owned an insurance company, i would be willing to sell policies to homeowners on the Jersey Shore. The reason as to why I would sell policies to homeowners on the Jersey Shore is because it was there decision to buy the house on the Jersey Shore. I would make a lot of money due to the fact that other insurance companies are not selling policies to homeowners on the Jersey Shore because there is a chance of floods and tropical storms. In addition, in order for me to protect my company from a big loss in case the perfect storm hits the shore, I would price the policies really high, taking in to consideration that there is a chance of a flood or tropical storm happing. It will not be a big loss because the price will be really high and by the time the next storm hits, I would have already made money o fix the house and additionally made a good profit.
ReplyDeleteIf I was an insurance company i would be willing to sell policies to home owners because this is a really high risk area I would make a good amount of money. I would be able to protect myself if a huge storm hit because there would be different policies with different options listed so they would have to choose the one that fits them best.
ReplyDeleteIf I was an insurance company I would definetly sell policies to home owners because there is a risk of disasters. I would price the insurance high because of the high risk of disasters. Also it would be a good way to protect my company because I will be able to pay off the damage cost with the high cost rate of the insurance I am selling.
ReplyDelete(Lucas Perez): If i was a insurance company i would policies to home oewners at the Jersey shore even though i know that most likely their home will be damaged or even lost to a hurricane or floods. i would feel bad about the home owner, but this would be the only way i would make my money. ( my account was not working so i had to use justin's).
ReplyDeleteIf I owned an insurance company, I would not be willing to sell policies to home owners living on the Jersey Shore. When you have your own company, you have to look at both the money you make and the money you spend. I will need to modify house's which costs a lot of money to reduce the chance of flooding. After every storm there is a chance that the modifications may become weaker and I will have to put out more money for repairs. A strong storm can totally wipe out the modifications. That’s more money needed to fully repair houses plus the modifications that were destroyed. The Jersey Shore is highly populated so that’s more checks I have to write to the people living there. At the end of the day there will be a whole lot more money coming out of my pocket than I would want.
ReplyDeleteIf I was an Insurance company I would definitely sell insurance to people in high risk areas such as the Jersey shore. The main reason being it would bring in a lot of money for my company. Another reason being that disasters don’t happen every day, and when they do they are not always severe. Third reason being that if I feel like I'm going to lose money I can cancel the policy.
ReplyDeleteTo prevent my company from losing out I would put rules and restrictions on the policy.
if i was an owner an insurance company I wouldn't sell policies to clients who are living in dangerous place like jersey shore because it can cost my company millions and millions of dollars and danmage repairs.It can also put my company at risk of being bankruptcy which can lead to closer of my company so i wouldn't take that risk.
ReplyDeleteIf I owned a insurance company I would still be willing to sell policies because to homeowners on the Jersey Shorte because even with the risks of loss the profit I make from high priced insurance will compensate for the low risk of the perfect storm.
ReplyDeleteIf I owned a insurance company I would not be willing to sell policies.for the fact that I would be very expensive because then I would have to make changes an modifications to the property to make sure after one storm it wasn't all wiped away.an also with somemany people living down in the jersey shore so all the costs because of the need supply an demand more people more house more workers more money spent.
ReplyDeleteI would sell homeowners on the Jerey shore because although a severe storm could happen it would be a low rate of occurance. I would also make the insurance very high just in case a storm does happen. To protect my company in case a huge storm does come and wipes out the Jersey Shore I would put rules on my policy that the home owners should follow in case a huge storm does occur.
ReplyDelete