REINSURANCE

If this seems confusing don't feel as though you are misinterpreting the facts.

Insurance carriers do buy insurance to protect against extreme exposures that they insure. This coverage is called REINSURANCE and these investors charge a sizeable premium to cover high risks such as hurricanes along the Gulf Coast during peak season. After Hurricane Katrina, reinsurance has become more difficult to find, we should all expect our base homeowner premium to be affected in the Gulf Coast area if the meteorologist are only semi-accurate on this years hurricane predictions.

Word to the wise, be careful about changing carriers in the midst of high exposure seasons.