On 12/1/2018 10:22 AM, john hudson wrote:
Simple ............ no insurance, no payouts from any source, period !
That's how it would be if you were in charge. As it is, you aren't, and FEMA and other US government aid to those
affected by "natural" disasters remains a murky, mysterious, and generally political swamp. (Quite literally, in the
case of New Orleans.)
I live along that Eastern edge of the Ring of Fire, and do not have earthquake
insurance. My reasoning may seem unusual.
Such insurance here is very expensive.
Deductibles are high, greater than the replacement value of contents.
I live in a rather, uh, funky house in what has become over the years a rather
expensive neighborhood.
The value of my property is roughly the same with or without this particular house on it. More than one person has
suggested that, should I choose to sell, it would be a "tear down"*.
The house two doors up is a better design, better built, than mine (and on a less attractive lot), thus was only subject
to a $ 3/4 Million rebuild and entirely new facade when the owner died and it was sold to someone who fixed it up and
flipped it.
I get regular calls and letters from folks who would like to buy this slowly
self-composting artifact.
Ergo, insuring land that isn't affected in value by an earthquake and a structure worth next to nothing in the market is
a poor economic decision.
Otherwise, moral hazard just got a massive shot in the arm !
You have politicians who know what that means, let alone care? Not here.
Skeptical Eye Moose
* Tear downs are almost always "remodels", with a few bits of the original structure retained, for easier permitting. It
also may result in lower property taxes, under our bizarre, but wonderful for me, Prop 13?
--
What if the Hokey Pokey *IS* what it's all about?
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