In Bankruptcy, Blog

The wildfires in Colorado, which started last week, have already damaged hundreds of homes, leaving families displaced and without their possessions. MSNBC says that 346 residencies on about 35 streets were scorched in the Waldo Canyon fire alone. For some of these people, losing their home was like losing everything. For anyone who doesn’t have home insurance, all that was left after the blaze was whatever money was in their bank accounts.

This lack of insurance can lead to financial devastation, because these fire victims won’t end up with any restitution to purchase a new home. Even those who do have insurance will probably end up with financial struggles as they work to recover all of the items that they lost. Imagine starting over; you end up in the same situation as you were before you were married and owned any household items. Yet this time, you start in that position with children who depend on you.

You should always opt for catastrophe insurance, especially if you live in a location that could possibly be ravaged by a natural disaster like a wildfire or a flood. While there is a possibility that some of these uninsured victims will be able to survive with the help of taxpayers, others may be in a tough spot. They are now living on the charity of others, and the state will need to choose whether or not they are going to waive some insurance claims. If you lose everything in a wildfire without insurance, you may have to accumulate massive amounts of creditor debt in order to survive. This could leave to a bankruptcy in the future. Once again, it is always wise to be safe, rather than sorry. Take care of the properties that you own by purchasing insurances.