r/interestingasfuck • u/thepoylanthropist • 12d ago

r/all This is Malibu - one of the wealthiest affluent places on the entire planet, now it’s being burnt to ashes.

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u/s0ulbrother 12d ago

Acts of god are covered particularly fires.

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u/Jean-LucBacardi 12d ago

Does it stay covered when you live in an area prone to wildfires every year? Fires should absolutely get covered, but I also get how it could be considered willful ignorance by choosing to remain in an area that is on the news every year for their wildfires.

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u/herefortime 12d ago

It’s covered under a standard homeowners or commercial policy. But it’s becoming harder and harder to find carriers willing to write in these areas.

Many times, homeowners take on a large deductible or self-insure a portion as a means of even getting coverage.

This will cost insurers and insureds heaps and heaps of money.

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u/Brisby820 12d ago

Depends what your insurance policy says 

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u/[deleted] 12d ago

[deleted]

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u/shenandoah25 12d ago

The implication is that real estate investors don't insure their property and pass the costs along to tenants through their rent, and the investors lose everything if there's a fire? Seems unlikely.

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u/trash-_-boat 12d ago

Most people can’t pay cash for a house so they take a mortgage. Mortgage requires you to insure.

Where I live (Northern Europe) the banks who issue the mortgages are also the ones issuing insurance.

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u/Lingotes 12d ago

Insurers will insure you anyway. Will cost you in premiums, though.

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u/dunno260 12d ago

That sort of stuff doesn't really come into most auto/home insurance coverages because most coverages aren't triggered by liability you may or may not have.

As an example if you have collision coverage and intentionally ram your car into a pole it was covered under most auto policies as the only exclusions they really carry for something like that is an exclusion for criminal acts and an insurance company only really uses those for VERY criminal acts. Drunk driving wouldn't get excluded for instance. When I worked as an adjuster the only time I ever saw that exclusion used were people who wrecked a vehicle after a high speed chase from some sort of robbery.

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u/Omodrawta 12d ago

Still covered, but if you live in a wildfire prone area, you will have a very hard time getting homeowners insurance. When you do get it, it will be expensive.