Insurance uncertainty

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Insurance uncertainty continues for the Ridge

As much of the focus this year has been on the Covid-19 While 2019 was a comparatively mild wildfire season in pandemic, we are still facing significant challenges California, the $25 billion in losses caused from 2017-2018 fires in the pricing and availability of property insurance led to a significant increase in reinsurance costs. Reinsurance in all California wildfire zones. Whether it is homeowners, is a repository for well-known insurance companies to renters, residential rentals, commercial property or business offload some of the risks of a major catastrophe. Historically, owner protection you are seeking, the quantity of insurance reinsurance companies did not underwrite heavily for wildfire companies available and quality of coverage being offered are catastrophe, focusing instead on hurricanes, earthquakes and markedly varied. While some changes have occurred by order tornados. Now wildfire is highly scrutinized in underwriting of the California Department of Insurance, Ridge residents and the cost of this reinsurance--which is not regulated-- has remain plagued with the underlying woes of losing coverage and increasing rates. ____________ INSURANCE continues on next page

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increased significantly. This cost is the primary reason given by many companies for non-renewal of existing customers. The California Fair Access to Insurance Requirements (“FAIR”) Plan is an insurance pool established to assure the availability of basic property insurance to people who own insurable property in the State of California and who, beyond their control, have been unable to obtain insurance in the voluntary insurance market. The California FAIR Plan has added 22,000 homeowners in a recent 12-month period. Additionally, they have changed the underwriting guidelines to allow for a maximum limit of $3 million in total coverage written under the Dwelling Property Policy. Commercial property insurance is now available up to $3 million for the structure and $1.5 million for all other coverages. The coverage provided by the FAIR Plan is basic fire coverage only and should be supplemented with a “Difference in Conditions” policy covering losses for items such as water damage, theft and liability. To those still in the claim process from the Camp Fire, Commissioner Lara released this notice on April 3, 2020: In addition, the Department has received complaints from consumers and local and state officials that certain residential property insurance companies are insisting that insureds (who suffered losses in the November 2018 wildfires) must continue to repair and rebuild their homes during the COVID-19 crisis to obtain full replacement cost and Additional Living Expense (ALE) benefits. This Notice reminds all insurance companies that new laws that went into effect before the November 2018 wildfires mandate that insurers provide no less than 36 months, plus additional 6 month extensions for “good cause,” for insureds to collect full replacement cost and ALE for delays in the reconstruction process that are the result of circumstances beyond the control of the insured. Under the referenced chaptered legislation, circumstances beyond the control of the insured include, but are not limited to, unavoidable construction permit delays, lack of necessary construction materials, and lack of available contractors to perform the necessary work. Commissioner Lara and the California Department of Insurance have determined that the current COVID-19 pandemic is a circumstance beyond the control of the insured, thereby constituting “good cause” under the applicable laws. As an insurance professional, I have never witnessed this much uncertainty in the industry. Undoubtably we will continue to face challenges obtaining affordable property insurance in wildfire hazard areas. I remain optimistic that a positive outcome is on the horizon. My suggestion to those searching for property insurance: Start looking as early as possible and utilize both direct writing and independent insurance agencies to gain access to as many insurance options as possible.

Kimball Shirey CIC Heritage Insurance Agency Commercial Insurance Advisor, Certified Insurance Counselor (530) 894-3276 www.heritage-agency.com

Monte Christo Communities, in partnership with Casa Park Homes, returns 39 homes to Paradise Mobile Estates

In early May 2020, the first manufactured homes arrived for the first reopening of a mobile home park in Paradise, CA. Like most of Paradise, all of the homes in this community were destroyed by the devastating 2018 Camp Fire. Now, homes and families are returning, and by years’ end, there will be 39 brand-new manufactured homes available for purchase to meet the needs of so many hoping to return home. Initially built in the 1960s, Paradise Mobile Estates was significantly renovated with upgraded utility infrastructure, new roads, and new homes by this same team from 2010- 2014. Quickly, Paradise Mobile Estates had become a place that 39 families affectionately called home. However, in 2018, Paradise Mobile Estates became one of many communities destroyed by the catastrophic Camp Fire. In a short 24 hours, the 39 families of this quaint community were left without a home. Over the next 18 months, thanks to the hard-working team and excellent collaboration of Monte Christo Communities, Casa Park Homes, the City of Paradise, and California’s Housing & Community Development, Paradise Mobile Estates is able to open its doors to welcome it’s families home. “I am so proud of our team and working so diligently to reopen this great community. It’s not easy to be the first community to reopen, and it does come with risk, but this City needs businesses and housing providers to be strong in faith and lead, and we’re just so excited to be a part of that.” Paradise Mobile Estates is now one of the first multifamily properties to provide housing in the area. Paradise Mobile Estates is now offering affordable homes to those families eager to return to The Ridge. Monte Christo Communities, in partnership with Casa Park Homes, is proud to be a part of this important milestone in making #ParadiseStrong.

Paradise Mobile Estates 1354 Elliott Road, Paradise, CA 95969

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