Delaware Business Insurance Update from CNC Insurance Associates' Inc. " More Homes in the Way of Forrest Fires", 10-15-13

The development of wilderness areas in the western part of the US has increased the amount of residential homes in areas of high forrest fire potential. The 62% increase in homes built where wild fires tend to develop, has put thousands of homeowners at risk. The main reason for this growth is the availability of insurance in these areas. So the industry that is paying millions of dollars for home destruction due to fire is actually one of the main reasons homes are being built in high risk areas. This is the same reason why homes continued to be built along the coasts in hurricane prone areas.
So why does the insurance industry make policies available in areas where the chance of destruction is great?.  Quite frankly, it is called risk taking (with a twist).  Insurance companies use actuaries to help them take risks. Most of the time these actuaries are pretty good and the insurance companies make money. However sometimes destruction does occur and they lose millions. With plenty of insurance companies competing for the same business, growth of properties in areas of high risk will continue to happen. Unfortunately the catastrophic claims will continue to occur also. Until next time be careful out there and know your risks.
G. Kevin Nemith , President CNC Insurance Associates Inc.
Serving DE, PA, NJ, MD and VA.
www.cncinsurance.com
www.bizinsurancetv.org

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