I'm no actuarial, but I feel like there is (or should be) a difference between a house that's lost due to flood vs. a house that's lost due to fire. A flood indicates that your home lies in a...
This is basically the same problem as flood insurance in Florida, yeah? People buy houses built in fire/flood zones, and then want insurance to pay out when their houses burn down/wash away.
I'm no actuarial, but I feel like there is (or should be) a difference between a house that's lost due to flood vs. a house that's lost due to fire. A flood indicates that your home lies in a flood-prone area; i.e., it's likely to flood again. However, fires burn fuel. A big fire consumes most of the fuel, making it less likely that a big fire will occur in the near future.
I'm no actuarial, but I feel like there is (or should be) a difference between a house that's lost due to flood vs. a house that's lost due to fire. A flood indicates that your home lies in a flood-prone area; i.e., it's likely to flood again. However, fires burn fuel. A big fire consumes most of the fuel, making it less likely that a big fire will occur in the near future.