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Until a massive quake wipes out an entire region, at which point, the insurance carriers declare bankruptcy because they won't be able to pay off all the polici
by sizzzzlerz 8y ago
Until a massive quake wipes out an entire region, at which point, the insurance carriers declare bankruptcy because they won't be able to pay off all the policies. And that is already factoring in the exorbitant premiums being paid and high deductibles on the policies.
With tens of thousands of claims, home owners will get pennies on the dollar if they get anything at all.
- maxerickson 8y agoDo you have insider knowledge or are you just expressing cynicism?
- blang 8y agoTypically insurance companies buy insurance against this, it's called reinsurance. https://en.wikipedia.org/wiki/Reinsurance https://en.wikipedia.org/wiki/Reinsurance