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What's your view of way over the missed premiums? 10x, 100x? (Assuming 1/100 chance over 20 years - which is very high) $75 over 20 years is $1500 So they are
by rythie 16y ago
What's your view of way over the missed premiums? 10x, 100x? (Assuming 1/100 chance over 20 years - which is very high)
$75 over 20 years is $1500
So they are looking at committing $15,000 or even $150,000 if their house burns down. Now, bare in mind this person wouldn't even pay $75 so how are you going to get even $15k off them let alone $150k
- nodata 16y agoWell since this pricing scheme doesn't already exist, it's up to the fire-fighters to create it. The price can be wrong, it doesn't matter, the point is that the price gives the fire-fighters the opportunity to save the house without compromising their principles. After they save the house, they can then worry about whether the price was a fair one or not, and publicise this. People would then realise what a good deal the premiums are.