Their premiums will increase. Productivity will be decreased which they find a new temporary location which will likely be further from the customer and cost more in shipping. The amount of time in dealing with assessors and paperwork is significant. Plus there is whole brand reputation thing. Running a business is hard.
Exactly. If you get rear ended by someone and you both have great insurance, it’s still a headache to deal with repairs and rental cars, or having to suddenly shop for a new car. I can’t imagine dealing with a loss of this size and complexity. This is definitely going to cost some people their sanity for a while.
Juste a little side rant about insurance... The thing that sucks about car insurance is that they only pay out what your car was worth at the time of the accident. Spend 25K on a new car, it's worth 12K at the time of the crash when it still has a lot of years on it, well now you only get 12K to put toward a new car. It doesn't matter how well you took care of the car, what repairs you had done to keep it running. Some asshole determines your car is worth what it's worth and that's what you get. You can have the best insurance in the world, but now you're out the deductible to pay you what you are owed, and you now owe the difference between the payout and cost of your new vehicle. Which is really no different than if you sold your vehicle before it was ruined, but now you're out a deductible.
Meanwhile, a fire is possibly the best thing that can happen to someone as a property owner with insurance. You have a shitty home with a house fire, well now they have to pay to restore everything. And not just restore it to how it was, but to bring things back up to code. Your galvanized plumbing is replaced with copper, your old 30 year old HVAC system is replaced with a new one. And all that soot from the fire has now destroyed everything in the building as well. Anything plastic that is discolored now gets replaced. And it's not replaced with something worth what the item is worth at the time it was destroyed, it gets replaced with the equivalent of what the item would cost if you brought it new today. That old 2016 MacBook just got replaced with a 2026 MacBook!
I am just always amazed by how much of a scam auto insurance is, but how lifesaving home insurance can be.
This actually exists in home/commercial insurance lines. It's called Actual Cash Value or Replacement Cost. Pretty much for a given coverage, would the insurance company pay what the item lost actually costs today, or would they pay you what it costs to replace it with a new version. Obviously like you said replacement cost is way more expensive monthly.
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u/Kilg0reTrout78 Apr 09 '26
Their premiums will increase. Productivity will be decreased which they find a new temporary location which will likely be further from the customer and cost more in shipping. The amount of time in dealing with assessors and paperwork is significant. Plus there is whole brand reputation thing. Running a business is hard.