| Interesting. Contrast that with car insurance, where one is insured
| even for negligence (in fact most injury and damage is caused by
| negligence).
|
You're insured for damage, not negligence. If
an accident is your fault you could be sued by
others or arrested. And states vary in terms of
how you're covered. In MA it was "no-fault" for
awhile. These days I think the way it works is
that your insurance pays but the insurance
company of the person at fault may be sued by
the other company. One can also face insurance
increases for at-fault accidents and can face
fines or arrest for negligent driving. (Though,
unfortunately, it's still legal in MA to diddle one's
cellphone while sailing through a busy intersection.)

There was a case some years ago in Cambridge, MA
where a handyman ran Romex under a carpet. (!). A
chair on the carpet eventually wore through. It started
a fire. People died. The handyman was indicted. I
think he was charged with negligent homicide.

On the flip side, 60 minutes has run a piece twice
about hurricane damage in NJ and how insurance
companies altered engineer's reports to say that
homeowners were making claims on existing damage,
thereby refusing coverage.