Property Valuation
In Hawaii, what is the effect of a lava zone 1 or 2 designation on property insurance?
AA. Insurance is required to be provided at standard rates
BB. Property insurance may be unavailable or extremely expensive from private insurers✓ Correct
CC. Federal flood insurance covers lava damage
DD. The state provides free insurance for high-risk zones
Explanation
Properties in high-risk lava zones may find private property insurance difficult or impossible to obtain, or premiums may be very high, significantly affecting property marketability and value.
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