Earthquake Coverage Cancelled

www.king5.com...

So why after all this time is this insurance carrier dropping all earthquake
insurance coverages? I can't prove it, but wanna' bet they had their own
private study done and the numbers came up against them? I guess we
will have to see if other insurance companies follow along. hmmmmm

This will effect a lot of things in the economy, including new houses being
built and sales of older homes that are already lived in. Who is going to
buy a house or enter a community where the insurance people have
decided it's too big of a risk to insure?

I'm not blaming the insurance people. Not at all. It's common sense
NOT TO BUILD in certain places .. like New Orleans ...

But I just wonder why now? This is their explaination -

Kreidler said Hurricane Katrina has the insurance industry
re-thinking its exposure to mass disasters. And when they start
pulling away from those risks, they start evaluating other risks as
well, including tsunami's and earthquakes.

But there are potential risks everywhere .. so why Seattle and why now??





[edit on 6/2/2006 by FlyersFan]

I think those insurers have consulted their crystal balls and have seen many catastrophes on the horizon.

I wonder if broken levees are still covered? I hope so, for the sake of those people.
Perhaps they belong to ATS and we are responsible

Tidal waves, huh???

Well, we're seeing signs of trouble in Florida too. Some insurers are using any excuse in the book to say no to new or renewal policies.

I know of one instance where a house was sold, but the deal got heald up because the insurance companies wouldn't insure it since the air conditioner was older than 10 years. I heard no one is insuring log cabins or manufactured homes at all down here anymore and there are a slew of other things that can cause one to lose a policy now.

I wouldn't insure an ant hill in that region right now, and I think Allstate is making the right decision.

The Juan De Fuca plate is slowly crawling under the North America plate and it's only a matter of time before a megathrust quake damages or destroys almost every home in the area.
Allstate has obligations to the shareholders to make a profit and the potential for a great loss in Washington State is good reason to pull out. I would love to live on southern Vancouver Island near my family, but I choose not to because of the very real danger of a massive quake..........



I'm sure they'll pull out of Oregon and northern California next.

So basically at this point if insurance is pulling out you are in deep doo doo?

Thanks for the heads up.

I'm not sure what to think of this position by insurers.
After last hurricane season, I decided folks who live there maybe shouldn't expect insurers to cover domiciles in harm's way, say at or below sea level and with xx miles of the coast.

What else can be done? If they don't drop the coverage for hurricanes and earthquakes, the insurance system might go bust?

OTOH, if the insurers don't cover these natural disasters, which will be next? Fire insurance in certain areas? Flood insurance along the Mississippi flood plain?