This month, it’s been slightly disconcerting to see stories about Rep. Michele Bachman and a New York rabbi agree the earthquake that hit the East Coast was the work of the Old Testament God. The rabbi claimed God was upset that New York had legalized same sex marriage. Bachman said God was warning Washington politicians to cut back on spending. Frankly, the idea a candidate for the President of our great nation believes she has a hotline to God should ensure mental health treatment is available to all those who have so far voted for her. The rabbi can presumably count on his flock for continued support. This year has seen a remarkable number of natural disasters and attributing them to divine intervention is unhelpful.

That said, one of the consequences of all this disaster has been a rise in the premium rates for insuring property. Private insurers have already shown themselves unwilling to continue insuring against flooding, leaving it to the federal and state programs. With the increase in the number and severity of hurricanes and tornadoes, rates have also begun to rise in the states most at risk. As weather events grow more extreme, the ground has now started to show signs of damage. Geology used to be one of these sciences no one was interested in. Now experts are in demand to explain why long periods of drought followed by intense periods of heavy rain can cause mudslides. The science of the sinkhole is also developing rapidly in states like Florida. For those of you who live on solid ground without the risk of earthquakes or the less dramatic collapses, it may seem unlikely the ground can literally just disappear into a hole. Yet, in the space of an hour, a patch of ground can subside or open into a fissure. Houses built on this ground can be wrecked without the possibility of rebuilding.

It’s a standard term of mortgages that the owners carry a valid policy of insurance on the property. The lenders want reassurance the security for the loan is protected from all the usual forms of damage. Until a few years ago, this was not such a burden but, first the withdrawal of flood protection, and now the limitation of wind damage, is making life increasingly difficult for the home owner. Mortgage lenders are not the most forgiving of people. If owners fail to put a valid home insurance policy in place, the lenders buy cover at whatever rate they can find and add the premium, plus an administrative fee plus interest to the capital of the loan. This has produced some spectacular growth in the amount alleged to be owed on some mortgages. Take the cost of sinkhole insurance in Florida as an example of the problem. Private insurers don’t want to insure so Florida created the state-backed Citizens Property Insurance Corp. Until this year, it could not increase the premium by more than 10% a year. Now we see some counties where the risk of subsidence is the highest being asking to pay more than 2000% increases. Not surprisingly, those holding home insurance policies have said they can no longer afford the rates. Over time, this will force the mortgage lenders to repossess for default – not the most desirable of outcomes.