Natural gas drilling can lead to problems with homeowners insurance as well as mortgages and title insurance
Posted August 9, 2011
Insurance & Financial Advisor is a large publication. Someone just sent me a copy of an August, 2011 article entitled: "Insurers, agents must dig into Marcellus Shale drilling issues."
I've blogged before about how nearby drilling can affect mortgage and title insurance. Now neighbors to drilling are faced with a new issue. This article states that there are many risks that may not be covered under an insurance policy for homeowners, business owners, or farms, such as water damage, collapse, pollution, and earth movement, and there can be increased risks such as crop damage, nuisance lawsuits, and injuries.
The article discusses that an insurer can cancel a policy if there is an increase in risk after the policy was issued. It quotes Claire Pantaloni of Insurance Agents & Brokers, a trade association, as stating that "Some carriers have started cancelling policies for increasing hazard."