Homeowners Insurance "What If's?"

When I bought my first home I remember reading through the homeowners insurance policy carefully (young newbie). I was glad to see the many types of coverage available for my house. That good feeling of knowing that if something unforeseen happened the homeowners insurance would help and probably completely compensate for whatever damage occurred. As so many others, I felt that life offered enough challenges and this insurance was a good thing. Yes, the insurance premiums seemed very high to me then, but I assured myself the policy was a definite necessity.

Oh! The lovely home my friend had in the Bay area near San Francisco in the late 80's! I was very happy for them. Suddenly, without warning, during the World Series game in October of 1989 the worst earthquake during my lifetime shocked the world as its wrath spread ruin everywhere near its epicenter. A tiny spot in the mountains very close to San Francisco, California was the quake's starting point. In mid February of 1990 the homeowner's policy came and there was a bold notation of a change in coverage for all homeowners. I was curious what could possibly be happening? As I read further I found out: the policy would no longer cover damage caused as a result of an earthquake. Excuse me? Please note - my premiums went up that year but I had less insurance coverage. Figure that one out!

When I look way back to that first home I realize that the insurance premiums paid then seem like a pittance now. I remember getting the new policy on the house we are in now in late January of 2002. There was an emboldened enclosure explaining that there was new information each homeowner needed to know. The insurance would definitely not cover anything that occurred to the home that might be construed to have anything to do with terrorism. Oh! My premiums did not go down I noticed, but my coverage did. So, is there a pattern forming here?

When Katrina hit New Orleans my friend in Baton Rouge kept me up to speed on the situation in that area of the country. Even though Baton Rouge had huge losses themselves they still took in people from New Orleans by the droves. We all know how horrible it was. The new challenge facing homeowners in Louisiana and Mississippi or anywhere hurricanes might be prone to hit land is now upon us. Why don't you try to get homeowners insurance that will cover your New Orleans home from hurricane damage? Just try! No way, not anymore.

I cannot get my mind around what must be the feelings and fears of the half million people evacuated from their homes in and around the San Diego area so far. Terror does not even come close to what I would feel and no one knows what the future holds for these folks. I guess I can safely (and sadly) assume one thing. If and when they are able to have another home they might see a change showing less coverage in their homeowners policy. Yes, I think there is a pattern here. I hope I am wrong