Stormy Times for Home Insurance

"They're in the business of selling policies," says Danskin. "One criterion for sales is not to get underbid. There's a tremendous incentive on behalf of the agent not to get underbid."

Danskin says he expects some of the problems homeowners encountered in California to be replayed in Florida with the hurricane damage, though there are some major differences.

In Florida, most people will not suffer complete loss of their homes. Most insurers in the state have a hurricane deductible of 2% to 5% of the insured value. Also, homeowner policies do not cover damage floods.

Flood damage is considered damage that's due to water coming from the ground up, from water surges or flooded streets. Many people, even in Florida, do not purchase separate flood insurance. Homeowners insurance covers water damage due to water entering the home through a damaged area, such as a roof or wall.

Nonetheless, Danskin believes the lessons learned in dealing with insurers during the fires would benefit hurricane victims. He and others are planning to fly to Florida to speak to homeowners: "There's no reason these difficult lessons should be lost. I've got Southwest tickets. I'll show up."

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