Anonymous asked in Business & FinanceInsurance · 1 month ago

Does the (fire and theft) insurance reimburse for the cars and property burnt in Minneapolis ?

Will AIG stocks dip if they need to pay out for the damages in Minneapolis ?

3 Answers

  • fcas80
    Lv 7
    1 month ago

    Yes.  However, depending on the policy, they may not pay for replacement value, only for depreciated value, and there may be a deductible.  Further, without business interruption insurance, the property owner will not be reimbursed for loss of profits.

    After the insurance industry pays these claims, it will want to recover the amount it has paid.  They will increase everyone's premium.  So who ultimately will be paying for this?  You and me.

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  • 1 month ago

    For cars in the U.S., comprehensive insurance covers fire and vandalism, so insurance would pay for cars burned if the cars had comprehensive insurance.  If the cars had only liability insurance or only liability or had only liability and collision insurance, insurance would not pay.

    Insurance would also cover buildings that were properly insured and were burned.

    Occasionally, someone screws up and has "homeowners" insurance for a building in which they don't live, one that is either vacant or rented or occupied by squatters.  Homeowners insurance does not cover a property in which the owner does not live.  Homeowners insurance covers only a home where the owner lives.  For a vacant home or a rental property, a different type type of insurance is needed.

    I don't think AIG stock would drop very much because of Minneapolis fires.  AIG is a gigantic company and Minneapolis is probably a very small part of their businesses.  There have been times in history when rioting and fires occurred all over the country (this is probably exaggerated, but I've read that every city except Indianapolis had riots after Martin Luther King was assassinated) , so the Minneapolis fires are actually a relatively minor event compared to the worst case scenarios for which insurance companies need to be prepared.  I would actually be more concerned about the virus, which has national, and global implications and could affect AIG in much less predictable ways.

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  • 1 month ago

    they might, you never know

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