Quote:
Originally Posted by GLOW
(Post 6930403)
I think i passed on it. i believe for the time being the rule is if your home is destroyed during an earthquake by a method that's already covered by your insurance, eg. propane pipe bursts causing a fire or water pipe bursts causing water damage, then you're covered through fire or water damage.
talk to your broker to verify though.
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Although that may be true, you're just giving Insurance Companies ammunition to deny your claim. They can argue that the real cause of the loss is Earthquake and the fire or water damage that ensues is just a resulting effect of it.
Not saying who will win or lose, but most especially in a catastrophic occurence where everyone experiences simultaneous insurance claims of that magnitude, you may very well have an insurance company that will look for every way to deny your claim to control their expense. Quote:
Originally Posted by Greenstoner
(Post 6930341)
i always think is it neccessary to have earthquake insurance?
when a big one hits, the insurance company is going bankrupt before they can pay you .. you recieve nothing
| I think insurance companies have insurance companies themselves. I think it's a mandate that they pay a fee to whatever financial body so that in the event that an insurance company goes belly up and cannot meet its financial obligations to it's claimees, that financial body will step in its place.
I'm not 100% sure but I think it goes something like that. | 