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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (40303)	10/27/2003 8:48:23 PM
From: Ramsey Su	Respond to of 74559

assuming everyone is adequately insured, everything is covered, including temporary housing. The lenders typically dictate adequacy of insurance. In San Diego, with property value so high, insured amounts typically exceed replacement cost. Of course, with so many homes destroyed, there may always be the few who owned their property free and clear, and may be too cheap or too lazy to adequately insure their risk. Taking the emotions out and the ones who lost their lives, most would end up with something equal to or better than before. What is going to happen next is most likely another round of insurance rate hikes, and cancellations. Any house with a stick of vegetation with 800 feet is going to be subject to scrutiny. I do not understand the insurance industry well but this is kind of the way that it was explained to me. If the insurance companies have to set aside a larger reserve due to claims, then they can either put in more cash, or if they do not have the money, they must reduce the policies in force. Needless to say, they all want to keep the policies with no risk and never had a claim. We shall soon see if that would have an impact on the real estate markets.