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What happens during a wildfire evacuation?
(lemmy.ca)
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this post was submitted on 05 Oct 2023
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Asklemmy
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I think the most likely outcome is that they will remove coverage for wildfires, which would likely have to be purchased separately like flood insurance works today. You are correct that if it is covered by the terms of the insurance they pretty much have to pay out at that point, as it is a contractual obligation.
I wonder how much money it would cost them to fight the subset of customers who took them to court over refused payouts?
Like if they refuse to pay out 10 x $500,000 payouts, as long as the legal fees and fines they’d pay to avoid prison costs then less than $5m, they’re making profit on a policy of “deny every claim”.