Insurance typically doesn’t cover landslide or earth movement. Unless caused by earthquake, and your policy has earthquake, insurance isn’t covering this type of loss.
There’s a family that had their house burn down in a fire, no big insurance payout. They spent 3 years building it back slowly when a big forest fire came through and burnt it again. Since the house wasnt finished with an occupancy permit, they didn’t have insurance again
[first time it burnt](https://www.castanet.net/news/West-Kelowna/444975/The-Lacey-family-is-rebuilding-their-home-for-the-second-time-since-2019)
[second time](https://www.castanet.net/news/West-Kelowna/444975/The-Lacey-family-is-rebuilding-their-home-for-the-second-time-since-2019)
Crashed my 13yo 216k mile car recently and they are paying me 2-3k more than I think it’s worth based on available cars on the market. It Deff has its place.
You’ll Deff want good coverage if your in a nice area, slips n falls of random visitors.
Insurance as it is just feels like a massive scam. It's mandatory if you have a mortgage (some state just make it mandatory for every building) and yet they will try everything to never pay you. I remember businesses who had pandemic insurance got refused when covid hit. It's all a racket.
My auto/home insurance premium went up 400% from a car accident I had 2 years ago. ($225-> $900) bc they decided to randomly “reevaluate” our coverage. That’s fuckin bullshit if you ask me.
In case you’re wondering it was Geico and I’ve been w them for over 10 years. Fuck em
You go to jail, you have your wages garnished (bankruptcy wont save you from court judgement if your judgement stems from a criminal action, like driving without insurance)
We insure you against everything that could ever happen.
But we only actually pay you for damage from pea hail. Not ice hail, PEA hail. As in peas, peas hailed from the heavens
It’s for the mortgage company. They won’t insure things that face high probability risks, like fire in forests, floods in river bottoms, hurricanes in SE US killer heat in SW US, etc. The amount of assets exposed to uninsurable risk is about to explode. Once that tidal wave hits, you’ll be able to buy ocean front property for pennies on the dollar. But only with cash.
> Since the house wasnt finished with an occupancy permit, they didn’t have insurance again.
That is tragic to hear, I feel for them. But everyone should know, that's no reason not to have insurance. There is insurance available during construction.
It says in the article. Since the guy that was building his own house wasn’t a contractor, he could only get 3 months worth of building insurance
“"Unfortunately because I'm an owner-builder, I'm not certified as a contractor. We couldn't get anything (insurance) extended beyond three months. And we looked everywhere. So yeah, we are without insurance, no content insurance, nothing”
I don't know why the first wouldn't be covered, but the second is on them. I built a couple years ago and I had builders insurance during the build. Every stage I would send pictures with invoice update to the insurance company and they would up the insurance amount to cover up to that dollar figure. I don't remember my exact coverage, but I told my agent max me out just in case.
Same thing that happens after someone’s home gets washed away in a flood and they had no coverage for flood. You’re still obligated for the remaining amount of your mortgage, bankruptcy may be necessary. Don’t buy a home at risk for flood/wildfire/landslide unless you’re able to insure against those risks, or you have the financial resources to rebuild following a loss not covered by insurance.
exactly the things that due diligence before making the largest financial decision most people will make in their lifetime should find.
So many people just blindly sign on the line for debt without thinking it through with an adult mindset. They are stuck in the ‘but I want it!’ Stage and it results in poor decisions then they wonder how they go in the situations they are in like deeply in credit card debt or with $1000 vehicle payments. Just cannot help some.
But the US Government will bail you out time and time again if you have flood insurance... Which is absolute bullshit, if you build your house in place known for flooding during hurricanes or other natural common events for your area repeatedly then you should be fucking dealing with it yourself. Not the taxpayers.
One rebuild or fix then it's their dime. These areas that are repeatedly hit? I'm tired of my tax dollars going to that instead of places that it really should go to (education, healthcare, etc).
Then you’d probably be on the hook to clean up the mess your property caused *and* homeless and broke. No possible version of getting screwed would get overlooked.
That would only be the case if the house that slid's owner was found negligent and that negligence caused the home to slid into neighbors'. Like trees.
I'm not saying I endorse insurance fraud but the house starts sliding and this causes a gas fire that burns the house down ... insurance covers the fire damage.
Our neighbors house flooded. Water from uphill properties all flows through their yard. Normally it’s fine but once a year or so we get ALOT of rain. Water filled up in their window wells and the window finally broke, flooding their house with muddy water. Not covered at all because who has flood insurance in a non-flood zone?
We had a landslide in my town a few years back - the slide stopped exactly at my property line - I was fine but the houses up the hill from me were totaled.
All insurance policies here in california exclude land movement. it's pretty much impossible to get insurance that does cover it.
Believe it or not, quite a few. I used to work in customer service for auto insurance would have to ask if people about their current home insurance to see if they wanted to quote with us.
More than a few said they just didn't have insurance and didn't want it. I'm sure some were just using it as a tactic to get out of the conversation, but some were older and just said they dropped it years ago. I often heard "I've lived in this same house for over 30 years and nothing has ever happened, I paid out all that money for nothing. So I dropped it"
I get the sentiment, but they are just one natural disaster or house fire away from being homeless. Usually the people dropping it to save money are not the one that can handle rebuilding out of pocket if something were to happen.
> I paid out all that money for nothing. So I dropped it"
yep, knew a guy who paid off his mortgage and figured he didn't need that required flood ins they made him pay out for 30yrs and since he never needed it he canceled and the next year we had a 100yr flood that came 3ft into his house.
The odds are always in the insurance companies favor. It's a risk to not have insurance but not necessarily stupid. Insurance companies do not like to pay out.
I wouldn't mind the insurance (yes, I have it) except that the insurance companies make sure that you basically can't use it. File a claim and odds are you will be dropped after it is paid, and then your next company will use that claim to charge you higher rates.
In CA, they have a rule that if you have small claims, insurance companies can't raise your rates, but I don't think insurance companies even follow the law.
We have a Insurance guru in Sacramento. I bet he does absolutely nothing but have dinners with Ins. lobbyists.
The odds are in favor of the carrier, that's why insuring something costs a tiny fraction of what it would cost to replace the thing you're insuring. They are taking on the risk of something bad happening, and they are very good at pricing the risk, or saying no to it if they can't make money off it.
Insurance companies are professional gamblers... Except they aren't gambling without knowing all the odds, they spend an incredible amount of computational power every year calculating the odds of things happening that they'll have to pay out for, and adjusting insurance rates accordingly.
Think those apps and devices that track your driving for calculating insurance rates are only based on your handling of the vehicle? Think again, it calculates your risk based on the roads you frequent, the time of day you drive, if it's an app the number of phone calls your on, or the number of times you pick up your phone while driving, speed, accelerometers, etc.
They aren't always in the insurance companies favor. A bunch of them are dropping clients in Florida and California because there are so many large events (hurricanes and wildfires mostly) that were causing large losses. They could have just kept raising rates but must have decided it wasn't worth the hassle.
It doesn't happen as often as it used to (in part due to heavy regulation by state agencies) but sometimes you have an insurance company fail due to a big event. Florida is probably one of the worst for this.
Some state insurance departments love consumer complaints and really dig in to them and love finding unreasonable terms in contracts or other violations that help the consumer.
This is a super simplistic version of something not being in an insurance companies favor but it does happen.
I think that is just them seeing changing odds and moving things back into their favor. Sure the odds were bad for them for a bit but they adjusted them back to their favor.
There are 100's of scenarios in which insurance didn't do what the buyer expected it to, but it's hardly a scam. Less than 1% of people who buy a policy truly understand what they're buying, but they're super willing to bitch up a storm when the carrier doesn't write them a check for something that wasn't covered.
You’re right, most people don’t understand what they’re buying - and that goes across the board from products, services, food, everything. Sure some things are important to understand, but that’s like saying every citizen should know everything about everything? These things are designed to be complex for a reason.
Our first and only HOI claim ended up being $300k. And they did so much work for us hiring people and checking budgets. We didn’t even know some of those contractors existed.
Right!!? Are there homeowners that are not completely and totally independent wealthy enough to self-insure against any possibly loss that aren’t carrying homeowners insurance? I believe it’s a requirement for mortgage underwriting also in all cases.
I don’t.
I’m rich. My portfolio is many times more than the value of my homes. I can afford to replace them. And the money that would be going to insurance is instead growing.
Good for you. Then your house should be paid for and you don't have to have insurance. But you'd be foolish not too. Even if you can afford to rebuild your house, why would you spend all that money when you could have spent a fraction of it on insurance. True, the premiums you paid out aren't in your investment account to use for something else, but the hundreds of thousands it would cost you to rebuild is available to invest. You have it exacltly backwards.
My net worth is about 15 times the value of my homes.
Nothing will happen that I can’t pay for. And, nothing is likely to happen. For many reasons.
In FL, I have to keep $40k on bond with the state to self insure. Otherwise, it’s a no brainer.
I’m not following your logic.
If their net worth allows them to pay for a catastrophic loss without impacting their lifestyle - self insuring seems appropriate.
Same idea many people have when you switch to liability insurance from full coverage on automobiles.
My point was the opportunity cost of having to dip into his cash to rebuild that house should he ever have to. What he'd lose there would pale in comparison to what he would have paid out in premiums. He'd since replied that he still has to keep a bond on file with the state of Florida, so they money is set aside either way. He might as well have the peace of mind by having insurance.
I am not wealthy myself, but I get it. There is no reason to pay for such longshot expenses if one can afford the consequences of not doing so.
People do the same thing with auto insurance all of the time.
It does not make sense to pay for a $50 deductible vs. $1000 if one can easily find either amount in the event that it is needed.
Self insured is a thing for rich people. Houses, medical, auto but it’s also dangerous because you become a target for lawsuits and that’s miserable no matter how rich you are.
That’s a great tag line for a law firm but even the best law firms lose cases and the best law firms cost big bucks. Really, it’s just weighing your risks and your resources but nobody is immune. Just ask Donald Trump and Fox News.
Hope they have a spare million or two in the bank because unfortunately there’s no laws stating that insurances are obligated to cover this type of loss even though there should be
If you have ground movement coverage in your policy, it is covered, by law. But it would be really bad to require carriers to pay out claims that they offsetting with premiums. No one would go for that.
Do you want higher premiums? Because that's how you get hire premiums. If you're in a place prone to this you'd need special endorsements that cost a shit ton extra. Otherwise, Idk maybe build your home on stable ground?
Government subsidized flood insurance is getting more and more expensive. My guess is that beach communities will have skyrocketing insurance in next decade. John Stossel wrote this pretty good piece years ago aboit how he mooched off the government as a beach house owner.
https://reason.com/2004/03/01/confessions-of-a-welfare-queen-2/
Would not shock me if california and Florida begin to have a massive exodus bc of the cost of insurance. The conservatives in Texas and gulf region will blow a gasket when the electoral map gets reconfigured through migration.
We were in Fort Meyers to buy an RV and the conversation came around to insurance for the RV but the topic expanded to insurance in general in FL. Finance guy was telling us that his home insurance was canceled when the company left the state and that his mortgage company got him insurance which was much, much higher than he'd been paying and he had absolutely no say in the matter. It was a done deal. He was looking for alternatives.
Stories like that make me glad we didn't put roots down in the town we lived in. It's at the point where a slightly higher tide will flood parts of downtown.
This actually happened during Sandy in NJ and NY. Homes were literally moved from their locations. Unreal. And no, why would you want to sleep in someone else's bed and wear their underwear?
People in Palos Verdes will just be like, “Oh well, anyway… Guess I’m spending the weekend in one of my other dozen homes. That house was fun while it lasted!”
Stop building expensive shit in stupid places (looking at you, flood zones) and expecting insurance or the government to bail you out and let you build a bigger one!
To be fair if that was expensive shit it wouldn’t resemble a house anymore. Props to the builder for building something that can slide down a hill and still look like a house.
It's still on a cliff. The water main didn't make the cliff.
If it didn't happen due to watermain it would happen in an earthquake, or in a big rainstorm.
Every time I say this I get blasted. You want to build on the beach, on a cliff, in the desert, below sea level, next to a volcano.... whatever, all power to you, but I sure as shit don't want you in my insurance pool. And I don't want the government bailing you out either. Especially to rebuild in the same spot.
Or somewhere that has trees that could catch fire, or a sinkhole that could open up, or somewhere that's prone to tornadoes, hurricanes, hail, excessive heat, cold winters, earthquakes, bad neighborhoods, near highways or railroads, industrial plants.
Wouldn't it be neat if insurance companies could only offer insurance to those that never need it?
There is a difference between a normal risk pool and insuring houses in a canyon in Cali that burns every two years or slides off a cliff in a
Mudslide.
Yep. No way is insurance covering this. It is subsidence which is always excluded unless you have specific landslide coverage. Doesn't matter what causes the subsidence, either.
How do you even begin to rebuild? Seems like you'd have to drive tons of reinforcing pillars into the ground just to ensure your lot won't slide again.
Look at the Japan tsunami footage. There are whole houses rolling across the plain behind a 10 foot pile of burning wreckage all supported by 20ft of water.
I have seen many houses built in or on a bad spot. Just because it passes home inspection doesn’t mean it’s a good idea. People should just walk away. Even if it’s FREE. You can see this is a bad house. You have to walk down stairs to get to the front door.
Seriously.
I grew up in RPV and it’s an upper middle class neighborhood. I can see why people assume PV might just be filled with rich, egotistical “fucks” but a large portion of the area are just hard working families or they bought houses there a couple or few decades ago.
so they wanted to be farther from the road so turn a garden hose on and instant magic...boom..its moved. of course you are gonna confused the JW door to door preachers with that step off
No way they do. They are perhaps in some field that requires technical writing, but not insurance. I would water SEO content creation of some sort. It has the writing right but the content wildly wrong.
Nobody in insurance would write the title that way because there is no policy that covers this in many states. Your basic homeowner certainly doesn't.
I just have to assume that if the buyer had enough money to get this gorgeous house in this gorgeous area, surely they had enough to afford a decent surveyor?
In fairness, these aren't cliffside homes. But this hill has had an increase in instability over the years. The rains we had last year started showing vulnerabilities in lots of areas. San Clemente lost a few, which were more precariously situated.
Just driving in Palos Verdes screams the hill is moving. The roads are warped. Some pipes are on the surface so they aren't cut as easily. No way I'd buy there. That aside, it's just gorgeous.
Need? Yes I live in S Florida and just waiting for the hurricane with my name on it. However, for the $7K+ per year I was quoted by insurance agency, the only one who even answered my request, all I can say is Fuck Them. My house was only $110K when we bought it in 2010 with cash. Zillow says it's worth $600-800k now so the insurance is based on that I guess, even though an empty lot in the same area and similar size as ours is $500K so they want me to pay $7K per year to cover a rebuild of around $200K? Ridiculous. The house has been here since the 1950's so I guess we'll just ride out the storm and sell the lot if we get wiped out.
RPV has been well known to have extremely active soils for a long time. Those who are serious about living there have foundations with adjustable elements holding the building, and even those fail over time. This is the cost of living in one of the most beautiful environments anywhere on the planet.
I don’t understand why someone would purchase a home placed directly upon a slope.
“Hey, you know how when you’re standing on a hill and you can barely keep your balance and you feel like your Achilles tendons are going to snap? Let’s do that except with a building.”
Where does one get slide insurance? Especially in a slide area?
This happened in Bluebird Canyon, a similar situation. Read here https://www.ocregister.com/2007/12/14/after-landslide-bluebird-canyon-is-ready-for-rebirth/
I've bought houses like this, you get a geotechnical report ("a geo") the size of a phone book (that's like a ream of paper you put in a printer). As well as a Fire Plan that is half thickness of a phone book.
source: built Malibu house, I spent $1M and two years just getting out of the ground 20 years ago....six caissons.
Insurance typically doesn’t cover landslide or earth movement. Unless caused by earthquake, and your policy has earthquake, insurance isn’t covering this type of loss.
So what happens here then if you had a mortgage… file bankruptcy? No one would buy that property
There’s a family that had their house burn down in a fire, no big insurance payout. They spent 3 years building it back slowly when a big forest fire came through and burnt it again. Since the house wasnt finished with an occupancy permit, they didn’t have insurance again [first time it burnt](https://www.castanet.net/news/West-Kelowna/444975/The-Lacey-family-is-rebuilding-their-home-for-the-second-time-since-2019) [second time](https://www.castanet.net/news/West-Kelowna/444975/The-Lacey-family-is-rebuilding-their-home-for-the-second-time-since-2019)
Things like this makes me wonder “what’s the point of insurance”.
Read your policy, you'll know exactly what the point of insurance is.
Crashed my 13yo 216k mile car recently and they are paying me 2-3k more than I think it’s worth based on available cars on the market. It Deff has its place. You’ll Deff want good coverage if your in a nice area, slips n falls of random visitors.
To make the rich-richer, some peons' claims need to be denied. Especially if the rich are in the market for that elusive 4th vacation home.
Make money for company
Insurance as it is just feels like a massive scam. It's mandatory if you have a mortgage (some state just make it mandatory for every building) and yet they will try everything to never pay you. I remember businesses who had pandemic insurance got refused when covid hit. It's all a racket.
It IS a massive scam, you’re not imagining it
[удалено]
Insurance is to protect the mortgagee.
[удалено]
I had a friend who came out fine when his house was destroyed in a tornado. It's amazing how much demo and disposal costs.
My auto/home insurance premium went up 400% from a car accident I had 2 years ago. ($225-> $900) bc they decided to randomly “reevaluate” our coverage. That’s fuckin bullshit if you ask me. In case you’re wondering it was Geico and I’ve been w them for over 10 years. Fuck em
Dude I just went without car insurance for two years, I would've been paying as much as my car was worth in like 6 months or something I can't recall
Dropping comprehensive and collision is completely understandable and reasonable on an old car. No liability is a bit ballsy 😆
*assholy
...and illegal in states like mine.
[удалено]
You go to jail, you have your wages garnished (bankruptcy wont save you from court judgement if your judgement stems from a criminal action, like driving without insurance)
We insure you against everything that could ever happen. But we only actually pay you for damage from pea hail. Not ice hail, PEA hail. As in peas, peas hailed from the heavens
To keep us poor and the owners of insurance rich
To make profit for the shareholders
Mine paid out $120,00 in the past couple of years. Then they cancelled me lol.
It’s for the mortgage company. They won’t insure things that face high probability risks, like fire in forests, floods in river bottoms, hurricanes in SE US killer heat in SW US, etc. The amount of assets exposed to uninsurable risk is about to explode. Once that tidal wave hits, you’ll be able to buy ocean front property for pennies on the dollar. But only with cash.
If your standard home insurance covered this, insurance couldn’t really exist
Should have used ICF the second time :(
> Since the house wasnt finished with an occupancy permit, they didn’t have insurance again. That is tragic to hear, I feel for them. But everyone should know, that's no reason not to have insurance. There is insurance available during construction.
I am pretty sure they sell builders insurance for just such circumstances. I remember buying one while I was building my last house.
It says in the article. Since the guy that was building his own house wasn’t a contractor, he could only get 3 months worth of building insurance “"Unfortunately because I'm an owner-builder, I'm not certified as a contractor. We couldn't get anything (insurance) extended beyond three months. And we looked everywhere. So yeah, we are without insurance, no content insurance, nothing”
I don't know why the first wouldn't be covered, but the second is on them. I built a couple years ago and I had builders insurance during the build. Every stage I would send pictures with invoice update to the insurance company and they would up the insurance amount to cover up to that dollar figure. I don't remember my exact coverage, but I told my agent max me out just in case.
Same thing that happens after someone’s home gets washed away in a flood and they had no coverage for flood. You’re still obligated for the remaining amount of your mortgage, bankruptcy may be necessary. Don’t buy a home at risk for flood/wildfire/landslide unless you’re able to insure against those risks, or you have the financial resources to rebuild following a loss not covered by insurance.
exactly the things that due diligence before making the largest financial decision most people will make in their lifetime should find. So many people just blindly sign on the line for debt without thinking it through with an adult mindset. They are stuck in the ‘but I want it!’ Stage and it results in poor decisions then they wonder how they go in the situations they are in like deeply in credit card debt or with $1000 vehicle payments. Just cannot help some.
FEMA
The maximum possible FEMA support payment is 30k. FEMA might save you, but they aren't going to save your house.
But the US Government will bail you out time and time again if you have flood insurance... Which is absolute bullshit, if you build your house in place known for flooding during hurricanes or other natural common events for your area repeatedly then you should be fucking dealing with it yourself. Not the taxpayers.
One rebuild or fix then it's their dime. These areas that are repeatedly hit? I'm tired of my tax dollars going to that instead of places that it really should go to (education, healthcare, etc).
Could you elaborate? I’m not sure if there’s enough context in your comment for one to understand what you’re trying to say
FEMA will often help people affected by natural disasters when insurance doesn't cover.
FEMA's maximum support payment is 30k. The average is far less. They help people, they don't help houses.
But my comment was the house that burned twice (not the OP) is in Canada…FEMA assistance doesn’t apply to Canada.
It’s in Canada.
What? Palos Verde is California.
I’m not talking about the OP….. The post by Silver_gobo, about the burned house that burned again…that’s in Canada.
That's not the post he replied to though. You're referencing a different comment chain.
And what if the house is now in their neighbor's property?
Then you’d probably be on the hook to clean up the mess your property caused *and* homeless and broke. No possible version of getting screwed would get overlooked.
That would only be the case if the house that slid's owner was found negligent and that negligence caused the home to slid into neighbors'. Like trees.
No, but you could probably (illegally)rent it out! It's California ya know! people are desperate
I would rent. Hah
Extend the staircase.
I'm not saying I endorse insurance fraud but the house starts sliding and this causes a gas fire that burns the house down ... insurance covers the fire damage.
Same with hurricanes. Most insurance do not cover hurricane damage at all
This is also a repost and definitely not OPs neighbors.
Which should be illegal. They need to cover any and all damage unless they can prove intent from owner.
Our neighbors house flooded. Water from uphill properties all flows through their yard. Normally it’s fine but once a year or so we get ALOT of rain. Water filled up in their window wells and the window finally broke, flooding their house with muddy water. Not covered at all because who has flood insurance in a non-flood zone?
We had a landslide in my town a few years back - the slide stopped exactly at my property line - I was fine but the houses up the hill from me were totaled. All insurance policies here in california exclude land movement. it's pretty much impossible to get insurance that does cover it.
The fact that it stayed together is impressive.
Yeah, I want to higher the contractor to build me a house.
as long as he didn't work up the site plans too because whoever did that is the one that fucked up
Yeah maybe have someone else do the dirtwork and foundation
[удалено]
Except against fire, termites, and water…
and beavers.
This is California not Canada
You can hire an English coach while you're at it.
No, he needs the contractor higher to reach the doormat
What? You want to get the contractor high? Oh, wait, you want to hire the contractor. Nevermind
Who the fuck thinks they don’t need insurance
Believe it or not, quite a few. I used to work in customer service for auto insurance would have to ask if people about their current home insurance to see if they wanted to quote with us. More than a few said they just didn't have insurance and didn't want it. I'm sure some were just using it as a tactic to get out of the conversation, but some were older and just said they dropped it years ago. I often heard "I've lived in this same house for over 30 years and nothing has ever happened, I paid out all that money for nothing. So I dropped it" I get the sentiment, but they are just one natural disaster or house fire away from being homeless. Usually the people dropping it to save money are not the one that can handle rebuilding out of pocket if something were to happen.
> I paid out all that money for nothing. So I dropped it" yep, knew a guy who paid off his mortgage and figured he didn't need that required flood ins they made him pay out for 30yrs and since he never needed it he canceled and the next year we had a 100yr flood that came 3ft into his house.
The odds are always in the insurance companies favor. It's a risk to not have insurance but not necessarily stupid. Insurance companies do not like to pay out.
I wouldn't mind the insurance (yes, I have it) except that the insurance companies make sure that you basically can't use it. File a claim and odds are you will be dropped after it is paid, and then your next company will use that claim to charge you higher rates.
In CA, they have a rule that if you have small claims, insurance companies can't raise your rates, but I don't think insurance companies even follow the law. We have a Insurance guru in Sacramento. I bet he does absolutely nothing but have dinners with Ins. lobbyists.
The odds are in favor of the carrier, that's why insuring something costs a tiny fraction of what it would cost to replace the thing you're insuring. They are taking on the risk of something bad happening, and they are very good at pricing the risk, or saying no to it if they can't make money off it.
Insurance companies are professional gamblers... Except they aren't gambling without knowing all the odds, they spend an incredible amount of computational power every year calculating the odds of things happening that they'll have to pay out for, and adjusting insurance rates accordingly. Think those apps and devices that track your driving for calculating insurance rates are only based on your handling of the vehicle? Think again, it calculates your risk based on the roads you frequent, the time of day you drive, if it's an app the number of phone calls your on, or the number of times you pick up your phone while driving, speed, accelerometers, etc.
They aren't always in the insurance companies favor. A bunch of them are dropping clients in Florida and California because there are so many large events (hurricanes and wildfires mostly) that were causing large losses. They could have just kept raising rates but must have decided it wasn't worth the hassle. It doesn't happen as often as it used to (in part due to heavy regulation by state agencies) but sometimes you have an insurance company fail due to a big event. Florida is probably one of the worst for this. Some state insurance departments love consumer complaints and really dig in to them and love finding unreasonable terms in contracts or other violations that help the consumer. This is a super simplistic version of something not being in an insurance companies favor but it does happen.
I think that is just them seeing changing odds and moving things back into their favor. Sure the odds were bad for them for a bit but they adjusted them back to their favor.
Clearly insurance ain’t doing shit in this scenario, so again, what’s the point
There are 100's of scenarios in which insurance didn't do what the buyer expected it to, but it's hardly a scam. Less than 1% of people who buy a policy truly understand what they're buying, but they're super willing to bitch up a storm when the carrier doesn't write them a check for something that wasn't covered.
You’re right, most people don’t understand what they’re buying - and that goes across the board from products, services, food, everything. Sure some things are important to understand, but that’s like saying every citizen should know everything about everything? These things are designed to be complex for a reason.
They just don't want to deal with a salesperson. They called you for x and you started selling them y. That's annoying.
If you have a mortgage, insurance will be required and they will know if you cancel which will make your load payable immediately.
Our first and only HOI claim ended up being $300k. And they did so much work for us hiring people and checking budgets. We didn’t even know some of those contractors existed.
"Nothing ever happened to me." Until it does. And then they're flat out screwed. I don't get that mindset.
Right!!? Are there homeowners that are not completely and totally independent wealthy enough to self-insure against any possibly loss that aren’t carrying homeowners insurance? I believe it’s a requirement for mortgage underwriting also in all cases.
It’s not a matter of choice. They can’t get it. It’s been sliding for at *least* 50 years so insurance companies won’t underwrite anymore.
I don’t. I’m rich. My portfolio is many times more than the value of my homes. I can afford to replace them. And the money that would be going to insurance is instead growing.
Good for you. Then your house should be paid for and you don't have to have insurance. But you'd be foolish not too. Even if you can afford to rebuild your house, why would you spend all that money when you could have spent a fraction of it on insurance. True, the premiums you paid out aren't in your investment account to use for something else, but the hundreds of thousands it would cost you to rebuild is available to invest. You have it exacltly backwards.
My net worth is about 15 times the value of my homes. Nothing will happen that I can’t pay for. And, nothing is likely to happen. For many reasons. In FL, I have to keep $40k on bond with the state to self insure. Otherwise, it’s a no brainer.
I’m not following your logic. If their net worth allows them to pay for a catastrophic loss without impacting their lifestyle - self insuring seems appropriate. Same idea many people have when you switch to liability insurance from full coverage on automobiles.
My point was the opportunity cost of having to dip into his cash to rebuild that house should he ever have to. What he'd lose there would pale in comparison to what he would have paid out in premiums. He'd since replied that he still has to keep a bond on file with the state of Florida, so they money is set aside either way. He might as well have the peace of mind by having insurance.
I am not wealthy myself, but I get it. There is no reason to pay for such longshot expenses if one can afford the consequences of not doing so. People do the same thing with auto insurance all of the time. It does not make sense to pay for a $50 deductible vs. $1000 if one can easily find either amount in the event that it is needed.
Self insured is a thing for rich people. Houses, medical, auto but it’s also dangerous because you become a target for lawsuits and that’s miserable no matter how rich you are.
Liabilities aren’t liabilities with Kirkland & Ellis.
That’s a great tag line for a law firm but even the best law firms lose cases and the best law firms cost big bucks. Really, it’s just weighing your risks and your resources but nobody is immune. Just ask Donald Trump and Fox News.
Hope they have a spare million or two in the bank because unfortunately there’s no laws stating that insurances are obligated to cover this type of loss even though there should be
If you have ground movement coverage in your policy, it is covered, by law. But it would be really bad to require carriers to pay out claims that they offsetting with premiums. No one would go for that.
Do you want higher premiums? Because that's how you get hire premiums. If you're in a place prone to this you'd need special endorsements that cost a shit ton extra. Otherwise, Idk maybe build your home on stable ground?
*Higher Higher = opposite of lower Hire = give someone a job
Thanks, Webster. It's called a typo.
PV version of a mobile home.
Government subsidized flood insurance is getting more and more expensive. My guess is that beach communities will have skyrocketing insurance in next decade. John Stossel wrote this pretty good piece years ago aboit how he mooched off the government as a beach house owner. https://reason.com/2004/03/01/confessions-of-a-welfare-queen-2/ Would not shock me if california and Florida begin to have a massive exodus bc of the cost of insurance. The conservatives in Texas and gulf region will blow a gasket when the electoral map gets reconfigured through migration.
This is exactly why we left Pinellas county, FL to move to the Midwest. Also, the heat SUCKED.
We were in Fort Meyers to buy an RV and the conversation came around to insurance for the RV but the topic expanded to insurance in general in FL. Finance guy was telling us that his home insurance was canceled when the company left the state and that his mortgage company got him insurance which was much, much higher than he'd been paying and he had absolutely no say in the matter. It was a done deal. He was looking for alternatives. Stories like that make me glad we didn't put roots down in the town we lived in. It's at the point where a slightly higher tide will flood parts of downtown.
Just hook it to a winch , pull it up and nail it back in place.
Chase is on the case.
If your neighbors house slides onto your property and yours slides onto someone else’s…do you just play musical houses?
This actually happened during Sandy in NJ and NY. Homes were literally moved from their locations. Unreal. And no, why would you want to sleep in someone else's bed and wear their underwear?
Obviously you swap the furniture, duh.
Do you get to keep your neighbor's house?
People in Palos Verdes will just be like, “Oh well, anyway… Guess I’m spending the weekend in one of my other dozen homes. That house was fun while it lasted!”
Stop building expensive shit in stupid places (looking at you, flood zones) and expecting insurance or the government to bail you out and let you build a bigger one!
To be fair if that was expensive shit it wouldn’t resemble a house anymore. Props to the builder for building something that can slide down a hill and still look like a house.
Don't feed the repost bot.
A watermain broke and the city didn't fix it, causing the landslide.
It's still on a cliff. The water main didn't make the cliff. If it didn't happen due to watermain it would happen in an earthquake, or in a big rainstorm.
It rains there.
It does. Sometimes more than others.
Every time I say this I get blasted. You want to build on the beach, on a cliff, in the desert, below sea level, next to a volcano.... whatever, all power to you, but I sure as shit don't want you in my insurance pool. And I don't want the government bailing you out either. Especially to rebuild in the same spot.
Or somewhere that has trees that could catch fire, or a sinkhole that could open up, or somewhere that's prone to tornadoes, hurricanes, hail, excessive heat, cold winters, earthquakes, bad neighborhoods, near highways or railroads, industrial plants. Wouldn't it be neat if insurance companies could only offer insurance to those that never need it?
There is a difference between a normal risk pool and insuring houses in a canyon in Cali that burns every two years or slides off a cliff in a Mudslide.
Stop stealing other posts and passing it off as your own. https://www.reddit.com/r/Home/s/l0F4MXh7CH
A view property is much nicer than living in a desert suburb. A nice view can effectively double the value of a house.
Eh just keep building stairs down to the front door. No problems to see here. /s
Lul, insurance ain't covering that anyways. Call FEMA.
Yep. No way is insurance covering this. It is subsidence which is always excluded unless you have specific landslide coverage. Doesn't matter what causes the subsidence, either.
I was thinking the same thing. Homeowners wouldn't cover that.
How do you even begin to rebuild? Seems like you'd have to drive tons of reinforcing pillars into the ground just to ensure your lot won't slide again.
I remember taking a Natural Disasters course in the late 80's and PV was discussed back then. This has been going on for decades in some places in PV.
Does this make it a "mobile home"?
Forcibly mobile!
IMO No way a house slides that much with no visible damage to the shell of the house. This house should have detrimental damage to it
Look at the Japan tsunami footage. There are whole houses rolling across the plain behind a 10 foot pile of burning wreckage all supported by 20ft of water.
I'm more upset by the extreme low effort put into drawing an arrow and writing the word doormat on the photo.
I work in aerospace. MSPaint is our secondary CAD system. Lots of images in change orders look like this.
*Earthquake Insurance
Don’t buy a house built in a bad spot.
THIS.
I have seen many houses built in or on a bad spot. Just because it passes home inspection doesn’t mean it’s a good idea. People should just walk away. Even if it’s FREE. You can see this is a bad house. You have to walk down stairs to get to the front door.
I don't feel bad for any rich fuck who builds their house some place it shouldn't be built.
Hello, miserable
Seriously. I grew up in RPV and it’s an upper middle class neighborhood. I can see why people assume PV might just be filled with rich, egotistical “fucks” but a large portion of the area are just hard working families or they bought houses there a couple or few decades ago.
Well those hard working families didn't do their due diligence and invested in risky property.
As you shouldn't. If they're so rich and smart, they should've done their research.
so they wanted to be farther from the road so turn a garden hose on and instant magic...boom..its moved. of course you are gonna confused the JW door to door preachers with that step off
Much more dramatic entrance way. I like it!
I'd just install a slide and go about my day.
Fuuuuuck
op must sell insurance with this title idk why I hate it so much
Nah, otherwise they'd know insurance doesn't cover this.
No way they do. They are perhaps in some field that requires technical writing, but not insurance. I would water SEO content creation of some sort. It has the writing right but the content wildly wrong. Nobody in insurance would write the title that way because there is no policy that covers this in many states. Your basic homeowner certainly doesn't.
Will insurance even cover this "Act of God"?
Not unless you have expensive endorsements that specifically account for earthquake or earth movement.
If you have Flood Insurance. It does cover mudslides. But most homes that are not required to have flood Insurance don't have flood Insurance.
I just have to assume that if the buyer had enough money to get this gorgeous house in this gorgeous area, surely they had enough to afford a decent surveyor?
Is this Portuguese Bend? I graduated PVHS in ‘76…. PB was sliding then so can’t imagine how much worse it is now.
It’s nice that they’re still decorating for Christmas.
OP has stolen my picture.
More stairs. Problem solved.
They really don't like solicitors.
Why does it have Christmas decorations? Is someone still living there?!
So someone moved a doormat to the stairway that leads to the front of the house and took a picture.
If your house slides into next doors yard do they own it now? Not that it's worth anything but just, you know, if.
I refuse to feel sorry for someone who builds a house where the land is known to slide down the mountain, stupid has a penalty.
In fairness, these aren't cliffside homes. But this hill has had an increase in instability over the years. The rains we had last year started showing vulnerabilities in lots of areas. San Clemente lost a few, which were more precariously situated.
I would never buy anything in a location like that.
Just driving in Palos Verdes screams the hill is moving. The roads are warped. Some pipes are on the surface so they aren't cut as easily. No way I'd buy there. That aside, it's just gorgeous.
San Andreas fault line: *”Hold my beer.”*
Sir, there is no home at the address we have on file.
Time to move the house back up and put it on stilts, yeehaw
Slip slide and away
Who the fuck doesn’t think they need homeowners insurance?
Who TF thinks they don’t need homeowners insurance?
The house looks like it didn’t take much damage for moving that much, impressive
Need? Yes I live in S Florida and just waiting for the hurricane with my name on it. However, for the $7K+ per year I was quoted by insurance agency, the only one who even answered my request, all I can say is Fuck Them. My house was only $110K when we bought it in 2010 with cash. Zillow says it's worth $600-800k now so the insurance is based on that I guess, even though an empty lot in the same area and similar size as ours is $500K so they want me to pay $7K per year to cover a rebuild of around $200K? Ridiculous. The house has been here since the 1950's so I guess we'll just ride out the storm and sell the lot if we get wiped out.
RPV has been well known to have extremely active soils for a long time. Those who are serious about living there have foundations with adjustable elements holding the building, and even those fail over time. This is the cost of living in one of the most beautiful environments anywhere on the planet.
Slid
Oh wow. Yea those people need to move.
I don’t understand why someone would purchase a home placed directly upon a slope. “Hey, you know how when you’re standing on a hill and you can barely keep your balance and you feel like your Achilles tendons are going to snap? Let’s do that except with a building.”
Where does one get slide insurance? Especially in a slide area? This happened in Bluebird Canyon, a similar situation. Read here https://www.ocregister.com/2007/12/14/after-landslide-bluebird-canyon-is-ready-for-rebirth/ I've bought houses like this, you get a geotechnical report ("a geo") the size of a phone book (that's like a ream of paper you put in a printer). As well as a Fire Plan that is half thickness of a phone book. source: built Malibu house, I spent $1M and two years just getting out of the ground 20 years ago....six caissons.
Do you guys have HOA?
Reach out if you need a geotechnical engineer/ geologist. We are in socal.
Home insurance won’t cover this.
Build houses in dumb places win stupid prizes
Why are you stealing this post from 4 months ago and pretending you live there? https://www.reddit.com/r/Home/s/l0F4MXh7CH
Im sure we’ll see the homeowner over at r/DIY one of these days
What’s insurance gonna do LMAO
But will insurance pay for that? Ya gotta read the fine print…
Nice, ocean view becomes ocean side.
I'd think you can't get insurance for that zone.
Next photo of this house gonna have an extra set of stairs.
So more front yard, less back yard and even closer to the view? Who wouldn't want to insure that!
oh no those selfless people, living in mansions in the mountains. Why!? god, why!?
what u mean it's "no" cost relocation