Hurricane Insurance Doesn’t Cover Flooding. Wtf (Today’s Sustainable Stories 9/7/2018)
Today’s stories cover the screwed up, unclear world of disaster insurance and how consumer hostile the industry is.
As disasters get worse due to climate change and societal growth, the industry is likely to become more unfriendly towards consumers as claims increase. We need to speak up and demand changes and accountability from the industry, so we can protect our fellow citizens and inform them of how dangerous certain areas are becoming.
Let’s go dive into it.
Story #1: Homeowners told hurricane insurance won’t cover flooding from Lane
By: John Burnett
What’s it about (in one sentence)?
In the aftermath of Hurricane Lane hitting Hawaii, residents are being told their hurricane rider in their homeowner insurance doesn’t cover flood damages, meaning many of them are won’t be able to file claims to rebuild their houses.

Why it’s important?
How can homeowners have “hurricane insurance” yet not be covered from flood damages from hurricanes?
It’s due to a confusing system where flood insurance is covered by a separate program (the National Flood Insurance Program) that homeowners insurance, which covers wind damages from hurricanes. You need to purchase flood insurance from the separate National Flood Insurance Program to be covered for water damage, which many residents didn’t.
Virginia Aragon-Barnes, her husband and their two children live in a Kaumana City home. Describing herself as a “responsible homeowner” who boards up windows and does what’s directed by authorities during a hurricane, she too said the family’s home insurer, State Farm, told them their losses would not be covered by the hurricane rider on their policy.
“It was a hurricane, right? … So I thought we’re covered,” she said.
So why don’t more people by flood insurance? Well, the way we assess flood risk is out of date, as flood zones (which determine the price of flood insurance) don’t include areas that are now at higher risk due to more intense storms from climate change.
Also, bankers and brokers will also make the house seem more safe so residents don’t think they have to purchase the insurance (which I believe should honestly be illegal at this point considering how many people seem to fall trap to this.)
“When I bought my home, the bank told me don’t worry about flood insurance because my home isn’t in a flood zone. So that is why I didn’t get flood insurance. I never knew, but I was told a couple of days ago as soon as the rain hits the ground it’s considered flooding.” — Mark Spain, a county firefighter
Story #2: Legislature enacts home insurance reforms without relief for 2017 wildfire victims
By: Bill Swindell
What’s it about (in one sentence)?
California just passed resolutions to help consumers during the 2018 wildfire season, but industry lobbyists were able to kill the part of the bill that would provide aid for 6,200 homeowners whose houses were burned down in the 2017 season.
Why it’s important?
While this legislation takes efforts to protect future damages, it doesn’t attempt to help those who were devastated by last years fires.
Industry lobbies shouldn’t be able to dictate which victims of wildfires should be compensated after the fact: they should understand the real risk of a business, one that will only get worse as climate change and environmental degradation increases in the coming years.
Until we actually hold the insurance companies accountable, they won’t feel the need to adjust their business models. That needs to change.
Story #3: Hawaiian homeowners caught in limbo when insurers meet Kilauea
What’s it about (in one sentence)?
As the Kilauea volcano continues to erupt, homeowners are finding out that their homeowners insurance isn’t going to cover hazards like lava and toxic air/smoke, meaning they won’t be able to rebuild their lives until the volcano stops erupting, which could take years.
Why it’s important?
These families were told that they didn’t have to worry about eruptions because “everyone knows that fires burn houses during an eruption”. Fires are covered by typical homeowners insurance, so as long as the Home burns down, owners can make claims on their houses.
But that’s not what happened with many residents.
Many homes weren’t burned down but were deemed unlivable due to toxic air and lava block offs due to the ongoing eruptions, forcing owners to leave.
“You drive by and it’s like, ‘Wow, picture home.’ The grass is growing, everything is fine. Until you look closer and there’s dead chickens, cats, dogs, because the sulfur is so thick and so low it’s just deadly.” — Mr. Kline: a first responder for Team Rubicon
What residents weren’t told is homes that don’t burn down from fires but do experience those other volcano hazards, likely isn’t covered by their insurance, leaving many folks in limbo.
“People are being discouraged by their adjusters. They give up. So they keep paying their mortgage even if they can’t live in their house anymore when there’s smoke, when there’s hydrochloric acid, when there’s fiberglass in the air.” — Molly Ward: a Hawaii- based lawyer who specializes in insurance law.
The bottom line:
We need insurance programs that are open and accountable to new movers, as well as programs that provide assistance to those who were misled about their risk due to the focus on trying to sell homes without accurately expressing the increasing risk of living in those areas.
