Friday, March 16, 2007

Why do people think we are Stupid?!?

It's just absolutely amazing to me that people must think we are stupid. Here are two things in particular that I've just come across.

My last post had to do with the Florida property tax issue. This morning I received an email from a realtor in Miami that must be a supporter of Marco Rubio, the House Speaker. Let me just give you a brief history here. He is proposing that we eliminate the property tax on primary residences & reduce the property tax on other properties by 20%. To offset this revenue loss he is wishing to increase the state sales tax by 2.5%. Ok, so here's what their website states, "Lower taxes and lower tax rates on apartment buildings and other businesses will reduce rents and keep rental housing affordable." Who is kidding whom here? Let's say you have a landlord who is receiving X dollars for rent on a unit & the property tax on that unit is reduced. Do you think that this landlord will reduce the rent below the X dollars that are getting now? But yet, there they have it in writing trying to persuade you to their point of view. They will get some people to believe them & I guess that this is enough - that is what they are after.

OK, enough of that one. Here's another I encountered the other day from an insurance agent. I decided to shop around because the insurance on my primary residence just went up way too high and too fast. Again, a brief history, I decided to change agents a couple of years back. The main reason for this is that I needed an Umbrella Policy to better protect my interests & myself. Two years ago, I paid $860 yearly insurance on my primary residence, which was higher than I'd previously paid, but was willing to do so. Last year, this increased to $1030 & this year my renewal came in at $1453. I had one claim back in '08 & the home is just over 10 years old.

So now to the story, I was shopping around and speaking to an agent. She said to me that our rates would not be this high right now if insurers were charging the correct amount all along. She further stated that our insurance rates in Florida have been much too low for too long. OK, so here's my issue with these statements. Insurers have actuaries work for them. These mathematicians create formulas that the insurers use in rating risk. Risk is the underlying factor in insurance. Things are cyclical - whether we are talking about the weather, life, real estate - it really all is very cyclical. So, getting back to insurers, do you think that they are not going to charge us enough to cover their risk? Seriously, now. This is what this woman was telling me.

The insurers ran this garbage back after Andrew in '92 and again after all of the '04 hurricanes. Granted, '04 was an anomaly, but how many years did we go without any severe storms that cost the insurance companies. If you look at their books, you will note that they are still making a profit.

Anyway, enough of my ranting! I just really ticks me off when people think we are stupid. It's fine to get your point across, but be realistic. Don't make it out that we are stupid! That is just such a lack of respect & that is something that I will not deal with. We all deserve respect!

Thanks again for listening to my meanderings.

Until next time - Marc It Sold!

No comments: