Originally Posted by
70sSanO
I doubt that insurance companies are in a position to replace every home in America that has a homeowners policy.
Originally Posted by
Koyote
Nor should they be in that position.
Originally Posted by
70sSanO
There would seem to be an ethical dilemma when, after years of paying premiums, someone’s claim is not covered solely because of the timing of their loss.
I can only think of a few scenarios which would result in the destruction of "every home in America that has a homeowners policy" -- and in each of those scenarios, there is no one left alive to file claims.
Beyond that, no insurance company is capitalized to pay off the maximum claim to each and every policyholder; like most of us, they don't plan for events which have vanishingly low probabilities of occurrence.