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Latest Business News

Wildfire Spots Spook Insurance Companies

Sunday, May 20, 2007 7:30:04 PM
By GILLIAN FLACCUS

Steps to a burned down house are all that remain in a housing development in Barnegat, N.J., Wednesday, May 16, 2007. As of Wednesday morning, a forest fire had burned about 13,500 acres, almost 20 square miles, of brush and pine forest in southern New Jersey, said Maris Gabliks, chief of the New Jersey Forest Fire Service. The flames forced the evacuation of about 2,500 homes in the area with 50 homes either damaged or destroyed. (AP Photo/Mike Derer)SANTA ANA, Calif. (AP) - Spooked by devastating wildfire seasons, the nation's top insurers are inspecting homes in high-risk areas throughout the West and threatening to cancel coverage if owners don't clear brush or take other precautions.

The inspections have angered homeowners and watchdog groups that accuse the companies of trying to cut risk at the expense of customers, even while industry profits soar. The complaints echo concerns raised after Hurricane Katrina, when many insurance companies increased rates or dropped policies along the Gulf Coast.

"It certainly isn't fair for these insurers to be dumping these last-minute requirements on homeowners," said Carmen Balber of The Foundation for Taxpayer & Consumer Rights.


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