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That would be option 1 - I could easily see insurance companies saying that insuring a shingle roof costs 2-3x what insuring a metal roof costs, but then it's a
by mechagodzilla 3y ago
That would be option 1 - I could easily see insurance companies saying that insuring a shingle roof costs 2-3x what insuring a metal roof costs, but then it's a question of who pays to replace an existing shingle roof with a much more expensive metal roof? The existing structure is insured for its replacement costs, not an expensive upgrade in the case it's damaged, but clearly current prices don't actually accurately reflect current risks.
- alistairSH 3y agoShould be "easy" for the insurer to say "you get one more shingle replacement, then we dump you." At that point, the customer either buys a metal roof or moves. Market functioning correctly, no?
- hotpotamus 3y agoThis is one thing I've never really understood about the market for insurance. Wouldn't the customer's best answer be, "OK, thanks for the new roof, I understand that you're dropping me, so I'll just switch to your competitor"? And then wouldn't it be in the interest of the insurers to maintain a shared list of "bad" (unprofitable) customers and freeze them out? Which is already a bit of what credit scores are for?
- alistairSH 3y agoInsurance companies handle this today by either refusing polices on uninsured homes, or pricing those policies much higher. "Your previous insurer dropped you, there must have been a reason." And, yeah, when applying for a policy, the questionnaire should include "have you filed a claim for X, Y, Z in the last 2 years?" Auto insurance does this already.
- Spooky23 3y agoThey already do. If you think that Google’s data collection practices are intrusive, you have no idea how much these folks know about you. Insurance companies have a privileged legal position to do all sorts of stuff.