Neighbors of Hawaii’s erupting Kilauea volcano no doubt went scrambling for their homeowner or renter’s insurance policies to see if they were covered from all the fire brimstone besetting them, but likely found no mention of lava creeping into their homes.
Until Thursday it wasn’t something most people give much thought to, but when Kilauea unleashed videos of lava shooting into the air, prompting mandatory evacuations of nearby residential areas, many armchair volcanologists probably reviewed their own insurance policies.
There’s no such thing as volcano-specific insurance, according to Jerry Bump, chief deputy insurance commissioner at the Hawaii Department of Commerce and Consumer Affairs, because it’s such an infrequent event that the option isn’t available, CNN reported.
That’s not to say homeowners on the Big Island aren’t covered – it just depends on what policy they have and whether it covers all risks.
"People who live in designated USGS lava zoned areas, trying to get coverage would be difficult," Bump told CNN. "From an insurer's perspective, it's what we call anti-selection – the risk is just too high. The people who are buying [houses there] realize they live in a risk area."
Allstate insurance agent Marc Dixon, who represents nine households in lava danger zones on the Big Island, echoed that sentiment, telling Hawaii News Now that most people wouldn’t have coverage specifically relating to volcanic eruption.
However, he added, damages may be covered if a house were to burn down because of the lava flow.
Dixon suggested that families contact their insurance agents directly to ensure they are adequately covered for emergency situations and natural disasters.
"You really want to talk about your insurance coverage before something happens because once it happens you can't make any changes to adjust for what just happened," he told Hawaii News Now.
More than two dozen homes have been destroyed by lava erupting from the volcano and over 1,7000 people have fled their homes, USA Today reported.
Lava has flowed across almost 400,000 square feet and experts are not sure when the volcanic activity will stop.
The Hawaii Insurance Division has recommended those who don’t have adequate insurance to move all valuable items to a safe storage facility.
Those who have homeowner's insurance were advised to contact their insurers to review their policies. Some damages may be covered under certain policies as a fire peril if a home is damaged as a result of the heat from a lava flow causing fire.
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