2 years ago ·
by John Koetz ·
SANTA ROSA, Calif. – Construction crews have already put up the frame on Cheri Sharp’s new house, but she still questions whether rebuilding was the right choice after California’s most destructive wildfire took her old home in wine country nearly a year ago.
She has had to dip into retirement savings to cover a $300,000 shortfall in her homeowner’s insurance coverage.
“We just kind of thought we were taken care of,” Sharp, 54, said about her insurance policy. “If I had to do it over again, I’d probably change my mind and move.”
The wind-whipped wildfire that tore through Northern California in October 2017, killing 22 people and destroying more than 5,500 structures, left many people in Sharp’s position: underinsured and having to scramble for money to build a new home on their property.
Santa Rosa was the hardest-hit city, with entire neighborhoods burned to ashes. But as of late August, only nine of nearly 2,700 single-family homes lost here had been rebuilt, according to figures from the city’s permitting office. Another 520 or so were under construction.
Many homeowners say they’re locked in negotiations with insurance companies for additional money to cover the cost of building a home at the edge of the San Francisco Bay Area, where a technology boom has sent home prices skyrocketing. That, coupled with competition among neighbors for construction crews and materials, has left many homeowners hundreds of thousands of dollars in the red.
For Santa Rosa native Alex Apons, 34, the insurance shortfall on his home in the tidy Coffey Park neighborhood was $200,000. He and his wife wanted to stay because they had a baby on the way and both have deep family roots in the area. They used every insurance dollar they received to pay off the mortgage of their 4-year-old home that burned. There was nothing left for a down payment on construction.
“We had to drain our bank account,” said Apons, now father to a 5-month-old boy, Etienne. “After everything is built, we’re looking at a monthly payment on that loan that’s $1,000 more than what our mortgage was before.”
Other fire victims are still torn by indecision that has kept them from committing to a rebuild — do they stay and bear the costs or start over elsewhere?
“The idea of leaving California is very hard, but on the other hand, I don’t know if I can recover from all the trauma of it without removing myself from all the stimuli,” said Katherine Gaynor, 67, also a former Coffey Park resident.
Besides the Santa Rosa blaze, several other major wildfires the same month took out thousands of homes elsewhere in Sonoma County and in neighboring Napa County. As of April, nearly two-thirds of those fire victims wanted to rebuild, but most had yet to settle insurance claims for their property and belongings, according to a survey by United Policyholders, a San Francisco-based nonprofit that helps people understand their insurance policies. Two-thirds of respondents reported being underinsured by an average of $317,000.
Insurance industry experts warn that many Californians whose homes have been destroyed in this year’s wildfires also will discover their policies won’t cover the cost of a new home, leading to similar rebuilding delays. So far in 2018, wildfires have scorched about 1,000 square miles in parts of Shasta, Trinity, Mendocino, Lake, Colusa and Glenn. More than 1,200 homes have been destroyed, and nine people have died.
Insurance companies value homes using factors including their size, purchase price and the price of homes around them. Few homeowners update their policies annually to keep up with inflation, labor and material costs and home upgrades that increase the home’s value. Insurance companies want to keep premiums low to compete with rivals and attract customers.
When Apons’ wife, Heather, called their insurance company this month to request a new homeowners’ insurance quote, the agent provided a figure that would pay them $340,000 less than the current price tag to reconstruct their house. The agent said better coverage would raise their premium considerably, she recalled.
“I’m like, ‘I don’t care. I don’t ever want to be underinsured again,'” she said.
After massive fires across Southern California over the past decade, the state Department of Insurance found that insurance companies often understated replacement costs to potential customers and omitted or misrepresented fees for permitting, architects, labor and zoning, California Insurance Commissioner Dave Jones said.
A false sense of security is common among the insured because most rely on insurance companies for details, said Amy Bach, executive director of United Policyholders, an advocacy group for insurance consumers.
“If anything, people suspect they’re over-insured,” she said.
Bach said out-of-town insurance adjusters often fail to properly value homes in the San Francisco area. In Sonoma County, property values increase about 10 percent every year, according to Pacific Union Real Estate, a leading real estate group in the region.
Jim Whittle, chief counsel for trade group the American Insurance Association, said it’s up to consumers to make sure they have enough insurance. After mass catastrophes, “there’s almost always going to be situations where people don’t have quite what they wanted or expected,” Whittle said.
Sharp and her husband, Paul, held hands on a recent morning as they surveyed construction of their new home on the Santa Rosa property where they raised their kids, held backyard parties and enjoyed the sunset. They know their use of retirement savings to fund the project will make it harder to live comfortably and travel as they age.
Said Cheri Sharp: “Our life from here on out is very different going into our retirement years.”
© 2018 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
2 years ago ·
by John Koetz ·
It’s almost that time of year when children look forward to trick-or-treating, dressing up in costumes, decorating and obtaining more candy than they can possibly eat. As fun as it is, Halloween is also a deceptively dangerous night, and preparations for a safe and enjoyable celebration should begin long before Halloween night.
SELECTING A COSTUME
Select a costume that doesn’t risk slips, trips or falls. Costumes should not drag on the ground.
Wear comfortable shoes for walking. As tempting as it may be to wear shoes themed with the costume – high heels for Cinderella come to mind – they can be unsafe for youngsters to navigate.
Choose a bright costume that motorists can see.
3 years ago ·
by John Koetz ·
By John W. Koetz, CIC, CPCU
The new craze is rental scooters. Have you seen them yet? There are two companies, Bird and Lime, with scooters sitting on the sidewalks of larger cities and wait till you also see the crazy way some people drive them. So what happens if you rent a scooter and run into a pedestrian while driving it? Or even worse, you cause an accident by riding in the street forcing a car to swerve to avoid you and they hit a pedestrian.
Where will you find liability coverage when you get sued for $1,000,000
for causing someone’s injuries while driving a rental scooter?
Your car insurance will not cover you! – Most personal auto policies exclude “Any motorized vehicle having fewer than four wheels, except for a motorcycle …”
Your homeowner insurance will not cover you! – Most homeowner policies exclude “motor vehicles” which are defined as self-propelled land vehicles, arising out of the use of the motor vehicle rented to an insured. However, they cover “’Motor vehicles’ designed for recreational use off public roads …” The rental folks state you must drive the scooters on the street so most companies would exclude this.
Your personal umbrella insurance may not cover you! – Every personal umbrella policy can be a little different so be sure to check with your carrier. But in general, umbrellas follow the home and auto policies they are meant to provide excess coverage for. Many do “drop down” and provide primary coverage for certain situations. However, the ones we have reviewed exclude coverage for “Recreational motor vehicles” (this includes scooters) unless they are specifically listed on the umbrella policy.
LIME and BIRD will not cover you! – So you say, “I’m sure these big companies will protect me if something goes wrong.” WRONG! Both Lime and Bird Rental Agreements (yes they have a detailed rental contract you agree to when you sign up online) have waivers that say they are NOT responsible for ANYTHING that happens while you are driving their scooters.
To make matters worse, they also make you responsible for any claims made against them including paying for their attorney fees! (see end of article for language)
So what should you do when you’re tired of walking or just curious and want to rent a scooter?
Call UBER or Lyft! At least these companies provide some liability protection. OR think twice about what could happen and DON’T RENT THE SCOOTER! Yes they are fun, but so is enjoying the money in your bank accounts that will stay there because you didn’t take a 10 minute joy ride that cost you your life savings. Sorry to be a party pooper… More to come on scooters.
(John Koetz is an independent insurance agent with the W.E. Davis Insurance Agency located in Columbus, Ohio and lives in the Short North, a popular tourist destination in downtown Columbus.)
3 years ago ·
by Matt Adams ·
Comments Off on Home Safety Checklist
The “Safe Home” Checklist
How many of these common safety hazards can be found around your house? The National Safety Council provides the following tips. They recommend house cleaning as an excellent time to conduct a home safety check. Some safety hazards to look for in your home…
- Provide good lighting at the stove, sink and countertop work areas, especially where food is chopped.
- Use a step stool or utility ladder for reaching high shelves and cupboards; not chairs or other unsafe makeshifts.
- Have a special rack or tray for storing sharp knives.
- Keep all household cleaners, disinfectants and insecticides out of children’s reach.
- Spills should be wiped up as soon as they happen or as soon as you notice them.
- Use self-polishing or non-skid wax on floors. If regular wax is used, be sure to buff it thoroughly.
- Place non-skid mats, abrasive strips or textured surfaces in tubs and showers to prevent slipping on slick surfaces.
- Medicines should be clearly labeled and placed where children cannot reach them.
- Dispose of outdated medicine. Many chemicals change with age and the medicine may become harmful.
- Put night lights in bathrooms.
- Keep breakable bottles of shampoo, oils, lotions and creams where they will not be knocked over and shattered.
Basement or Utility Room
- Tag all gas and water lines for easy identification during an emergency.
- Label all fuses and circuit breakers to show which outlets and fixtures they protect.
- Washers and dryers should be electrically grounded. Be careful: damp or wet floors can lead to electrical shock.
- Use non-combustible pads or metal ironing boards.
- Keep all cleaning fluids, drain openers, bleaches, ammonia and similar items locked up and out of children’s reach.
- Keep passageways clear. Basements are notorious for becoming cluttered.
- Position light switches in accessible areas. Accidents can happen when people stumble through the dark.
Fire & Electrical
- Avoid “octopus” electrical cords. Have an electrician install more electrical outlets if needed.
- All appliances should have UL (Underwriters Laboratory) or AGA (American Gas Association) labels.
- Cover electrical outlets 9 you have toddlers.
- Test smoke detectors monthly and replace batteries annually.
- Inspect fire extinguishers and recharge them if necessary.
- Practice the family’s fire escape route.
- All fireplaces should have a fireproof screen in front.
Inspecting your home and creating a hazard free environment will reduce the chances of having an accident and give you peace of mind. Take time to ensure the health and safety of your family and your home.
This information is provided by The W.E. Davis Insurance Agency and The Ohio Casualty Group of Insurance Companies to help make your home the safest it can be.