Judge won’t dismiss Leilani homeowners’ lawsuit
HILO — A judge denied a motion to dismiss a claim brought against Lloyd’s of London by an elderly Puna couple who allege their insurer acted in bad faith by not approving the claim they made after losing their home during the eruption of Kilauea volcano earlier this year.
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Why a $3,000 premium yearly for homeowners insurance? My home on the other side of the island is probably worth 3 times theirs and I pay 1/3rd of that?
Um, because duh, no other carriers wanted to insure in a Volcano zone?
Exactly, but if Lloyds of London’s policy excluded liability for volcano hazards, why would it cost three times more than a home outside a high risk lava zone? What additional risk was the homeowner paying for? That’s my point.
From Lloyds’ standpoint — maybe the risk of having to pay out or settle if/when something like this happened, and disgruntled policy holders sue them for misleading, deceptive practices. Said partly with tongue-in-cheek sarcasm… but their bean counters surely account for litigation risk in their mathematical models, and they price accordingly.