Unforeseen Consequences in Recovery from Landslides

This article in the weekend edition of the Wall St. Journal highlights some of the unforeseen consequences of the recent landslide in Oso.  Actually, these consequences are not unique to that location.  See: Mudslide Victims in Washington State Grapple With Debt Burden; Some Residents’ Lack of Insurance Leaves Potentially Millions in Unpaid Mortgages, Auto Loans. The lead in paragraphs follow:

Washington state officials estimate nearly $10 million of property damage from the blanket of earth and rock triggered by last month’s Snohomish County mudslide. Still up in the air is what will be done with potentially millions in unpaid mortgages, auto loans and other outstanding debt owed by residents of the slide area.

Those with standard property insurance against fire or theft wouldn’t have been covered against damages from the mudslide, which has caused 30 known deaths. For some, that could mean losses of hundreds…

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