It rained and stormed a bit yesterday.
After speaking with my insurance company, I am told the following:
- This is considered an “Act of G-d” (clearly, the OT version of same)
- Since the damage is almost all on my neighbor’s property (their fence, their swing set, their garage), it’s not covered under my policy.
- Since my policy doesn’t cover “land,” that big mud puddle that used to have a tree in it is also not covered.
- Since it’s an AoG, there is no point in filing a “liability claim” to cover damage to my neighbor’s property.
We’re inclined to believe that my neighbor’s insurance company will agree with this assessment.
I suspect many homeowners are about to find out that their insurance policy does not do all that they thought it would. Can a truly rational market exist in the face of persistent informational asymmetries?