As lava destroys Hawaii homes, owners ask: Am I covered?

[mystery-ak]

As lava destroys Hawaii homes, owners ask: Am I covered?
by Associated Press
 | May 15, 2018 06:26 PM



HONOLULU — Patricia Deter moved from Oregon to Hawaii to be closer to her two daughters, but the Kilauea volcano burned down her home only a month after she bought it.

Now Deter and others who have recently lost homes to the lava-spewing mountain are on an urgent quest for answers about insurance, desperate to learn whether their coverage will offer any help after molten rock wiped out most of what they owned.

The eruption has destroyed about two dozen homes in the Leilani Estates subdivision on the Big Island.

Authorities on Tuesday reported a new fissure opened in the adjoining Lanipuna Gardens subdivision, bringing the number of cracks in the ground spitting out lava and toxic gas to nearly 20 since the eruption began May 3. Another fissure that opened up last weekend was sending molten rock crawling toward the ocean at about 20 yards (18 meters) per hour.

Few insurance companies will issue policies for homes in Leilani Estates because it is in an area deemed by the U.S. Geological Survey to have a high risk of lava.

more
https://www.washingtonexaminer.com/news/as-kilauea-eruption-destroys-hawaii-homes-owners-ask-am-i-covered-for-lava

[thackney]

Some homeowners forgo policies that include lava coverage because they can cost more than $3,000 per year, said Moa, who has fielded many calls from anxious homeowners.

-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.

Suddenly, that cost of coverage no longer seems too expensive.

[edpc]

Yes, you are covered - with igneous rock!

[musiclady]

Yes, you are covered - with igneous rock!

The obvious answer to their question. 

[Frank Cannon]

As lava destroys Hawaii homes, owners ask: Am I covered?

You get what you pay for dummies. Enjoy that great weather on your island folks.......as you live in a tent because you cheaped out on insurance.

[mystery-ak]

As lava destroys Hawaii homes, owners ask: Am I covered?

You get what you pay for dummies. Enjoy that great weather on your island folks.......as you live in a tent because you cheaped out on insurance.

They said on Fox tonight that the average cost of this type of insurance is about 3k a year

[Sanguine]

Few insurance companies will issue policies for homes in Leilani Estates because it is in an area deemed by the U.S. Geological Survey to have a high risk of lava.

No kidding!  Sounds like a pre-existing condition. 

[240B]

I am sorry to say that most of those guys are screwed. It is the same thing up here in the contiguous mainland with flooding. It seems like no matter what kind of flood insurance you get up here, the insurance companies always seem to have some 'clause' or 'stipulation' that gets them out of paying. Collecting on flood insurance in America is always difficult. I have no doubt it will be the same with lava in Hawaii.

[Fishrrman]

Question:
"As lava destroys Hawaii homes, owners ask: Am I covered?"

Covered? With lava, yes!
(running and hiding)

Addendum:
Oops, that's what I get for posting before reading the replies!

[thackney]

I am sorry to say that most of those guys are screwed. It is the same thing up here in the contiguous mainland with flooding. It seems like no matter what kind of flood insurance you get up here, the insurance companies always seem to have some 'clause' or 'stipulation' that gets them out of paying. Collecting on flood insurance in America is always difficult. I have no doubt it will be the same with lava in Hawaii.

I didn't have trouble last year getting the flood insurance to "pay".  The problem I had was getting them to pay enough.  Negotiations with them were "intense" for over a month.  Too many people get strapped for cash and have to settle early, I believe.  I was in a position to hold out for what the damages were going to be.

[thackney]

They said on Fox tonight that the average cost of this type of insurance is about 3k a year

My flood insurance, on top of my regular insurance, cost more than that.  It is why my property is valued less in the first place. 

If you are willing to invest in a "risky" area, you need to accept the cost and/or the risk.

[mountaineer]

If you are willing to invest in a "risky" area, you need to accept the cost and/or the risk.

Exactly. It appears many of the Hawaii residents were willing to accept all the benefits and none of the risk of living where they did.

[Suppressed]

They said on Fox tonight that the average cost of this type of insurance is about 3k a year

3K a year would be a steal in that area.

[libertybele]

3K a year would be a steal in that area.

But in the end, will the insurance companies pay out?  I'm reflecting on what happened here in FL after several hurricanes hit, many insurance companies didn't pay claims and packed up and moved out of state and won't even write insurance in the state any more.  Things have gotten better than they were as far as insurance and claims as more and more people realized that it was really stupid not to carry flood insurance if you live in FL, even if you are not considered to be living in a flood zone.

I would think that it would be common sense if you live in HI which is at risk for volcanoes erupting, to carry some type of insurance to cover their homes.  I've even read reports of people living in that area of HI, stating that they didn't have any idea of the risk!  Really?  Are they asleep or what?

[InHeavenThereIsNoBeer]

But in the end, will the insurance companies pay out?  I'm reflecting on what happened here in FL after several hurricanes hit, many insurance companies didn't pay claims and packed up and moved out of state and won't even write insurance in the state any more.  Things have gotten better than they were as far as insurance and claims as more and more people realized that it was really stupid not to carry flood insurance if you live in FL, even if you are not considered to be living in a flood zone.

I would think that it would be common sense if you live in HI which is at risk for volcanoes erupting, to carry some type of insurance to cover their homes.  I've even read reports of people living in that area of HI, stating that they didn't have any idea of the risk!  Really?  Are they asleep or what?

When I was evacuating for Irma, I was listening to the radio near Jacksonville and they said it was crazy not to have flood insurance, since it was only like $300/year.  I'm not quite at $300/month, but I'm sure I will be next year.  I'm darn close to just dropping insurance altogether and taking my chances.

[Frank Cannon]

They said on Fox tonight that the average cost of this type of insurance is about 3k a year

Everything has a cost. Wanna live in a paradise that is formed on volcanic activities, find your wallet. Otherwise shut up and sit down.

[Frank Cannon]

Exactly. It appears many of the Hawaii residents were willing to accept all the benefits and none of the risk of living where they did.

What do you expect? It's a genuine welfare state. The place is loaded with free loading deadbeats. Just look at who is running their government and who they vote for.

[libertybele]

When I was evacuating for Irma, I was listening to the radio near Jacksonville and they said it was crazy not to have flood insurance, since it was only like $300/year.  I'm not quite at $300/month, but I'm sure I will be next year.  I'm darn close to just dropping insurance altogether and taking my chances.

If you live in a flood zone, you have 2 options really; move away from the flood zone or pay up the nose for flood insurance.  Why would you risk everything??  Just curious.  Was Irma not a clear warning?

[corbe]

   @Emjay come back to TEXAS, no Lava, and though I don't have Flood Insurance I'm 978 feet above sea level here, 2 blocks from the River, You can swim, right?   

[Sanguine]

   @Emjay come back to TEXAS, no Lava, and though I don't have Flood Insurance I'm 978 feet above sea level here, 2 blocks from the River, You can swim, right?

Don't need to be able to swim.  No rain in the forecast for the rest of May.

[corbe]

Don't need to be able to swim.  No rain in the forecast for the rest of May.

   In case she can't afford the Air Fare, Greyhounds don't run there, we'll all pitch in for Life Jackets and Shark Repellent, I'm sure.

   

[InHeavenThereIsNoBeer]

If you live in a flood zone, you have 2 options really; move away from the flood zone or pay up the nose for flood insurance.  Why would you risk everything??  Just curious.  Was Irma not a clear warning?

There's a third option, don't buy insurance and take the hit if really bad stuff happens (or expect the government to bail me out, that's not how I roll, but it's not uncommon).

Why would I risk everything?  Simple math.  If there's a 50% chance that I lose everything in a given year and it costs me 2% of my home of my home's value, I'm gonna take that bet.   If there's a  2% chance that I lose everything in a given year and it costs me 50% of my home's value, I'm gonna pass.

[Emjay]

   @Emjay come back to TEXAS, no Lava, and though I don't have Flood Insurance I'm 978 feet above sea level here, 2 blocks from the River, You can swim, right?

I would love to come back to Texas but I sold everything to move here with my daughter and son-in-law and I really love it here.

There's danger anywhere but we are in no danger from the eruptions on the Big Island ... not even a stray bit of ash.

Thanks for asking @corbe .

[Emjay]

What do you expect? It's a genuine welfare state. The place is loaded with free loading deadbeats. Just look at who is running their government and who they vote for.

Not really, @Frank Cannon .. it is a state of great contrasts.  We have the rich tourists and a few rich homeowners from the Mainland who have big homes here (Oprah is right down the street and Willie Nelson in in Paia) but they never visit.

A lot of people here are poor because the cost of living is so high, especially the cost of owning or renting a house.  And there aren't that many high paying jobs.  Fortunately my daughter has one of them and my son-in-law has his own business here.

There is no place one can live that is totally safe, but what happened on the Big Island didn't result in many deaths or injuries and, really, not much property loss.  A tornado can do much more harm.

The government here is a disgrace ... Inge is dumb as a post; and they DID falsify Obama's birth certificate...I have no doubt of it.

But it is a gorgeous place with wonderful weather.

[Frank Cannon]

Not really, @Frank Cannon .. it is a state of great contrasts.  We have the rich tourists and a few rich homeowners from the Mainland who have big homes here (Oprah is right down the street and Willie Nelson in in Paia) but they never visit.

A lot of people here are poor because the cost of living is so high, especially the cost of owning or renting a house.  And there aren't that many high paying jobs.  Fortunately my daughter has one of them and my son-in-law has his own business here.

There is no place one can live that is totally safe, but what happened on the Big Island didn't result in many deaths or injuries and, really, not much property loss.  A tornado can do much more harm.

The government here is a disgrace ... Inge is dumb as a post; and they DID falsify Obama's birth certificate...I have no doubt of it.

But it is a gorgeous place with wonderful weather.

So basically you said what I said in a more long form rosy fashion.