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Originally posted by madmax
That still doesn't answer the question. A standard homeowner's policy covers liability, accident and fire. Why should a fraternity pay a high risk premium that is over and above the standard premium if none of the high risk activities are going to be covered? It would be like buying flood insurance because you live in a flood plane but the insurance doesn't cover floods.
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While the homeowner's policy does cover those, if the fire starts as a result of the homeowner manufacturing meth in their home or doing something illegal - the insurance company isn't going to pay a dime.
Chances are the reason their (fraternities) insurance is higher is because there is a greater risk for something to happen, but if something happens that's illegal and is excluded on the policy like serving minors, whatever, then they aren't going to cover it. It's all going to depend on what the insurance company has choosen to exclude in their coverage. This probably isn't giving a really good answer though, is it?
AGDee, as for the flood insurance thing, I don't do flood insurance. But I'm pretty sure the reason that you wouldn't have anything other than coverage for those items is because you are aware that you live in a flood plane and as a result - a flood is almost inevitable and therefore a risk you solely assume for choosing to live there. That's just a guess though. And yes insurance is a crazy thing.