Will Lava Flow Bring Insurance Theft Claims?

Originally published by Denise Sze .

The last few weeks the world has turned its attention to the Puna lava flow on the big island of Hawai’i. Two weeks ago I visited this subject as the ‘a’a (creeping) lava neared the town of Pahoa and the questions of whether the damages would be covered under a fire claim or an earth movement policy began to emerge. This week, the lava has reached Pahoa and residents are ordered to evacuate. As of October 27, 2014, the lava has reached within 100 feet of the first home of Pahoa in its path towards the ocean. The photos of the devastation are dramatic and since there has been a moratorium on raising policy limits or even purchasing earth movement policies for at least a month, the citizens of Pahoa will find that their insurance policies have severe limitations on recovery. Although many homes will burn due to the excessive heat that ensues before lava actually reaches it, the alarming new claim hitting the news is that for those who have already evacuated, claims of…

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