Coverage conundrum

Headnote

Insurance issues raised by Harrisburg wall collapse

It wasn't Howard Henry's fault.

He didn't cause the retaining wall of a neighboring property to come crashing down onto his Cameron Street business, Howard Tire and Auto, last May.

He didn't do anything to create confusion about who is responsible for that century-old wall, a battle still being fought as three different entities deny ownership.

He isn't the reason the debris remains undisturbed while other people fight about who will clean it and who will pay, while his business remains closed.

But Henry has inadvertently learned some tough lessons about insurance coverage in the wake of the mess.

Henry recently said the damage to his own building alone is nearing $3 million, and says that his insurance covers only about half that amount, which was about what Henry said he was able to afford.

Even with more insurance, it's unlikely Henry would be in a position to clean up the remaining debris and stabilize the property above his, a project he said he's heard could cost between $10 million and $21 million - dependent, of course, on someone claiming responsibility for the wall and what happened to it.

Still, an insurance industry expert said one of the tragedies of situations such as Henry's stems from business owners who do not have adequate insurance - or the right types of coverage - when disaster strikes.

"A lot of times, people take chances, as humans tend to do," said Loretta Worters, vice president of communications for the New York City-based Insurance Information Institute, a nonprofit founded to increase public understanding of how insurance works.

"They think, 'It isn't going to happen to me,'" she said.

It's important not just to have adequate coverage, Worters said, but to know what a policy covers -...