From the Record:
Insurance claims likely to be denied
Otterstedt Insurance Agency in Englewood Cliffs helped about 100 homeowners file insurance claims Monday, but most of them will likely be denied.
Most of the claims were from people with flooded basements, and the bad news for many of those policyholders is that standard homeowner’s policies will rarely cover such flood damage, said Lydia Bashwiner, Otterstedt’s claims manager.
A typical homeowner’s policy will pay for damage from a tree that blew onto the house, and it will cover broken glass from a storm-tossed lawn chair. But a drowned furnace and water heater in the basement require a policy from the federal government’s flood insurance program.
And homeowners with damage to finished basements probably will not be covered either by their standard homeowner’s policies or their federal flood insurance, Bashwiner said.
…
The number of properties in New Jersey with federal flood insurance has risen about 7 percent in the past year to more than 215,000, said Rachael Moore, director of the Insurance Council of New Jersey, a trade association that represents 26 property and casualty insurers.
Bailout.
They did not understand that their insurance will
cover water damage from a broken pipe but not from a storm. Why should the homeowner be responsible for this damage?
The lesson here is clear – if you see the water risin’……you’d be better off setting your house on fire.
You’d have a greater chance of collecting on that insurance policy you’ve been paying for all these years.
watch http://www.paperdinero.com/BNN.aspx?id=145
Another Hour with Nouriel Rubini!
Another excellent hour with Professor Roubini on Bloomberg. Shortened running time as all commercial breaks have been removed.
Originally aired on: 4/14/2007 on Bloomberg
Running Time: 10 minutes 41 seconds
Heebner: “Home Prices Decline at Least 20%”
The always colorful Ken Heebner, portfolio manager for the Boston-based CGM Realty Fund, talks at length about his outlook for the nations housing markets. Heebner see the greatest home price decline since the Great Depression coming with at least a 20% decline.
Originally aired on: 4/13/2007 on Bloomberg
Running Time: 12 minutes 1 seconds