Yeah, I know, prestige and all, but that’s not the real reason.
Now I am going to concede that laws vary from state to state, but in general, this is why.
If they go bankrupt, they get to protect their home, and sell it afterward, thus taking their nest egg and starting anew.
So all the Elites that just got torched out in Los Angeles may have some hope, right? Maybe not. You have learned that many lost their fire insurance a few months back. But if they have the bucks, that can re-insure by going all the way to Lloyd’s of London, the ultimate insurer. Or they can go to a big bank and buy an expensive derivative to cover them, so they will be OK in the long run, one might think.
But not so fast. All Fire Insurance policies are exempt from paying for losses from ”Riots, Insurgency or War”. So in Los Angeles this week, my guess is that the remaining insurers will claim the loss was due to “Riots, Insurgency and War”. Now the homeowner must legally disprove all three of those claims and prove the cause was truly an “Act of Nature”.
Now that's going to take some good acting in court, don’t you agree?
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