California Mudslides

[VolAgent]

Exclusions exist for a reason. Either due to the nature and the cost of the risk, or the insured's ability to control it.

You can write a policy that will cover everything possible, of course very few people could afford it.

The same reason life policies have underwriting. The more you accept or cover, the more it costs and the more likely you are to receive bad risks.

 

[somarco]

Thanks for those who contributed both answers and additional questions. My basic question, which was for a friend, related to mudslides and are they covered under the "basic" HO policy or not. If not, is such coverage available by rider.

I guess I got an answer.

Or maybe just more of a collection of definitions subject to debate.

 

[VolAgent]

Thanks for those who contributed both answers and additional questions. My basic question, which was for a friend, related to mudslides and are they covered under the "basic" HO policy or not. If not, is such coverage available by rider.

I guess I got an answer.

Or maybe just more of a collection of definitions subject to debate.

Unfortunately neither Dan or Adjusterjack chimed in.

I'm not aware of any such coverage. There may be something California specific, but I guess not.

 

[ReneeSs]

Hello! Here's what I heard back from our underwriter @ Safeco... I am based at CA.

"No coverage for mudslide, only possibly covered under Flood coverage depending on the % of water in it (a mudflow). There is no coverage for hotel/food etc. under the home policy either if evacuated due to the mudslide. Mudslide is covered under EQ if a result of an earthquake."

 

[somarco]

Thanks.

More weasel language. Good grief!

 

[scagnt83]

It seems to be easier to list the few things it covers vs. what it doesnt cover.

Basically, the only "big" risk it covers is your house burning down. But you probably better hope the fire is not due to a flood.

 

[VolAgent]

It seems to be easier to list the few things it covers vs. what it doesnt cover.

Basically, the only "big" risk it covers is your house burning down. But you probably better hope the fire is not due to a flood.

Considering that policies were originally fire policies and State Farm still refers to them as such, that was and in some ways still is the big risk.

However, wind is huge, ever hear of tornadoes and straight line wind? There are a number of other coverages as well.

Also, there are quite a number of homes that magically catch fire after a flood, because fire is covered while flood requires a separate policy. I'm sure more than a few end up in court with charges of fraud or arson.

 

[scagnt83]

Considering that policies were originally fire policies and State Farm still refers to them as such, that was and in some ways still is the big risk.

However, wind is huge, ever hear of tornadoes and straight line wind? There are a number of other coverages as well.

I know it covers more than just the home itself. However, the "big risk" meaning your home is leveled and a complete loss, is fairly limited in what it covers. And depending on your location, it could be even more limited from what I understand.

You and others here certainly know more than a life/annuity agent like me.

But my understanding, generally speaking, the covered big risks are:
- Fire (not caused by a flood/landslide/mudslide/earthquake/sinkhole)
- Tornados (do they exclude in tornado alley? idk)
- Hurricanes (unless you live in a coastal area were it is excluded or way too expensive)
- Wind (unless its from an excluded event)
- Hail Damage
- Volcanic eruptions (lol)

Whats generally excluded is:
- Flood
- Earthquake
- Landslide/Mudslide
- Sinkholes


It should be called "Fire, Wind, & Hail Insurance". Because that and liability is pretty much all it covers.

 

[VolAgent]

Other than landslide, you can protect against all of those. Flood insurance has been offered since the NFIP started decades ago, and this also deals with mudflow but not mudslide. Earthquake insurance can either be added to a policy or bought separately. Many states require that sinkhole coverage be offered.

The real issue isn't that the coverage is not available, it is that people choose to live in a high risk area but don't buy it. If someone wants to live on the beach in Florida, they better realize there is a much higher risk of a hurricane and flooding and buy appropriate coverage.

I find it kind of funny that Bob complains about weasel language. This is the same stuff that use to happen in the health insurance market. Certain risks have a higher likelihood and thus cost more, but people don't want to pay the cost for it. So companies have to exclude it from the base policy and then offer it as an endorsement or separate policy.

 

[Yagents]

Buddy in Denver got a claim denied for hail damage.

Hail storm was so large, it built up on a hilltop fence, which gave way with the weight of the hail, comes crashing down, busts window to basement, and fills basement to the rim. Claim denied as it was considered a flood.

If hail had busted the window first, then the flood, he would have been covered. Inform your local mother nature coordinator to make sure of correct sequence in the future.