Insurance woes loom for wildfire victims - Oct. 23, 2007

Insurance woes loom for wildfire victims - Oct. 23, 2007:
The above link is from CNN.com.

While the fires still are burning in Southern California, the next topic on the horizon is what effect this will have on the insurance industry. Articles already are beginning to appear that talk about the problems insured's may face in the wake of the fires and whether this will affect premiums and future coverage availability.

Of particular note for Alacrity is the possibility that some of the homeowner's may be underinsured and thus, there may be situations where not all of the damages are covered. As the CNN article states:

"One of the biggest controversies erupted in 2003, when fires ravaged San Diego and San Bernardino counties. Consumers found themselves underinsured because their policy limits were not raised to reflect their home values, said Heller. That meant homeowners had to pay the difference. 'I think there is a question as to whether insurance companies learned from 2003 and have made sure that policyholders have enough coverage,' said Heller."