ARMs Lose Worst Case Scenario Status

Fire Causes Soon To Be Blamed For Insurance Company Claims Denial

Wed, 10/24/2007 - 10:01am — Ruth

Anyone who's already made the comparison of California wildfires to the Katrina disaster, probably also has had a little suspicion that more disaster will follow.

The insurance claims rejections after Katrina took the grounds that the policies didn't cover floods, and named anything they possibly could just flood damage. No, there wasn't a flood, but it fit the companies' needs so they invented one.

What will be the grounds for denying claims after the wildfires? I suspect some grounds will be arson. Who's insured for arson? And if your house was about to be repossessed, as so many California homes are, I suspect your fire damage might well be viewed as suspicious.

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