What Is Volcano Insurance
Obviously, those who live near active volcanoes are able to recover some of the damages of an eruption with their homeowners or renters insurance. Recently, however, the airline industry has been looking into the possibility of obtaining volcano insurance, especially after some of the recent airport delays due to volcanic activity. Natural disasters are becoming more the norm than the exception, and the insurance industry is stepping up with solutions to otherwise devastating events.
Homeowner and Renter Volcano Insurance
Currently, homeowners and renters who are near volcanoes are able to get volcano insurance which covers their property in the event of a volcanic eruption. Not only homes, but cars may be covered as well. The initial blast of the volcano, as well as the airborne shockwaves, dust, ash and lava flow is normally covered. Fire and explosion that occurs as the result of the volcano is also covered. What are not covered are earthquakes and floods, which need additional policies in addition to volcano insurance.
Airline Volcano Insurance
The airline industry loses billions of dollars a year having to cancel and delay flights due to volcanic activity, primarily in Europe. Currently, volcano insurance for airlines only covers actual damage done to the plane. The insurance industry has yet to offer any type of recovery for losses of revenue due to these natural occurrences. Itís not a small claim, in most instances. Volcanic activity normally occurs in spots that have a high tourist rate, so the more volcanic activity, the less the airlines make.
Where Volcano Insurance is needed most
In 2010, Icelandís volcanic activity caused shutdowns of flights in the UK, Netherlands, Ireland, Belgium, Germany, and France. The most dangerous volcanoes in Europe are Vesuvius, Campi Fergrei, and Etna, in Italy; Agua De Pau, Furnas, and Sete Cidades in the Azores; and Hekla in Iceland. These are also areas of high tourist activity, not to mention the damage which is possible to those who own property in the area. Of course, any number of volcanoes could become active at any time.
Volcano Insurance needed for Travelers
Most travelers are disappointed to discover that while the price of their airline tickets are reimbursed when there is volcanic activity, many other expenses are not. The cost of hotels, rental cars, and the like are not. The reason is that insurance companies normally classify volcanoes as adverse weather conditions instead of natural disasters; limiting the amount they will pay out. It is wise for the insured to read the fine print on their policy to find out what will and will not be covered should they be stranded.
Insurers are under pressure to provide more coverage for individuals, airlines and other businesses. Whether that happens remains to be seen. Certainly, if much more money is lost by travelers and airlines, the tourist industry could be in for some serious trouble. Volcano insurance is needed that at least defrays some of the costs incurred when there is threat of a volcano. There is no response yet from the insurance industry as to the possibility.