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why would you pay 110% up front to demolish? It seems like they are intentionally incentivizing the worst outcome. Or is there some reason they wanted these pe
by anm89 4y ago
why would you pay 110% up front to demolish? It seems like they are intentionally incentivizing the worst outcome.
Or is there some reason they wanted these people to demolish their homes? I mean if they were trying to avoid claims on these homes, it seems like those claims would only pay out 100% right? so now they are opting in to paying more than their worse case scenario?
- dagw 4y ago*it seems like those claims would only pay out 100% right? 100% of the value of the house perhaps. But they probably also cover things like any other loss of valuables in the house plus the cost of shelter temporary and relocation costs. Plus if someone dies or is seriously injured in the disaster they might also have to pay out for that. In addition there are costs that the local and national government will have to take when dealing with someones house being destroyed, and they might be willing to pay the insurance companies a bit to take that risk off their table.
- anm89 4y agoYeah , I'd imagine extra liability related to a death is probably a pretty good explanation. Government theory is interesting as well. Thanks for the input.