I can't see how insurance companies wouldn't simply exclude fire-damage from fire-prone areas in their policies. It would be crazy not to, given the risk of lar

I can't see how insurance companies wouldn't simply exclude fire-damage from fire-prone areas in their policies. It would be crazy not to, given the risk of large numbers of simultaneous claims. I would even speculate that insurance companies have teams of specialized actuaries who model fire risk all over the place and use that to shape the policies they offer. To not do that would be either foolish or nefarious (in the case of an insurance company with no plan other than to declare bankruptcy in the event of a catastrophic fire).