Today on CNN, I saw a piece about a couple in Louisiana who had lost their home. They were in their early 70s and 60’s; to old to begin anew. Did the insurance company pay them to replace their home? No, they were told by the insurance company that they did not have the right kind of insurance to cover floods. The couple had been with this company for over 20 years, and had thought that they were covered.I think this is suspect, because when ever I go into get car insurance, I am forced to listen to the spiel about getting more of this kind of coverage, or that kind of coverage. They make sure to sell me every conceivable kind they can think of, and its not something only one company does’ they ALL do this. So, to think that this poor couple was lax in some manner in what coverage they obtained, well… it just smells of things that make one sick to their stomach.
To top it off, the insurance industry says they will have 60 billion dollars in profits this year! So, I sat down and did some math, and here is what I found: if the insurance companies took that profit, and divided it between the 60,000 folks still with out aid on their policies, each person could get a $100,000 house built, and the insurance industry would still walk away with a huge profit of, if I am correct in my arithmetic, billions.
I have emailed CNN for a transcript of the report that was run on this today, and hope to hear from them soon. When I have the exact numbers, I will add to this post.