From
: Lila Hayes
Sent : Wednesday, April 13, 2005
Subject : OFRG weekly update
Meeting Reminder
Insurance reform via legislation is very difficult. As reported by the San Diego Union Tribune, SB2 is stalled in committee. I sent the following letter to the Banking, Finance & Insurance committee to let them know a bit more about our experiences.
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Senate Banking, Finance & Insurance Committee
Fax 916-327-2186
State Capitol, Rm. 2032
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The first couple of weeks we were truly stunned. We were approached by so many people with stories of doom and gloom about the insurance settlement process. Up to that point everything seemed to be going just fine and we hoped to continue in that vain. Unfortunately it didn’t end up that way. To make it more bearable, we ended up banding together with many other survivors under the name “Old Fire Recovery Group” and started to learn more and more about the insurance process.
After a year of working with survivors, my opinion is that homeowners insurance probably works fine for partial losses, but does not take into account the special circumstances surrounding a total loss… especially in a disaster situation. Many changes should be made or offered by insurance companies and I do not understand why they do not embrace making these changes available to their customers.
For example, I completely understand why an inventory of lost items would be required if someone broke into the house and stole selected items, but if the house and everything in it was lost due to a fire, wouldn’t it just be easier to pay limits? If not, is it because they save money by manipulating the homeowner into accepting a lower amount? Also, if there was a partial loss due to a kitchen fire that was put out shortly after it broke out, it would be reasonable to expect the homeowner to be back into the house within a year. However, in a total loss, it is practically impossible to get back into a house within a year… especially when there are many other people in the same situation as in a natural disaster. Of course some will make it back in a year, but most won’t.
It also seems like there is some sort of issue with determining replacement cost. There were so many people we came in contact with who had the same underinsurance issue across so many different agents and carriers, that it doesn’t seem reasonable that it is a coincidence. I’m not sure what the problem is, but something should be done about it and maybe standardized replacement cost programming and agent/broker education is the key.
Because insurance companies do not seem willing to offer a “total loss” option to their clients, I hope that this situation can be clarified for future disaster survivors. Please consider the legislation proposed by Senator Speier as SB2.
Sincerely,
Lila
Hayes
Coordinator
Old Fire Recovery Group
I spoke with Kevin Trax, an Appraiser for the Tax Assessor. His direct line is 909-387-6711. He asked me to check back with him sometime in July if the Tax Bill has not been issued by then. He indicated that the Assessor's fight with the State could result in a 6-month to several years delay is issuing a bill.
Section 170 (titled Disaster Relief) refers to the reconstruction of properties
Thank you for how active you have been when dealing with your constituency after the 2003 California Firestorm. I was distressed to learn that between the time the homeowners lost their home and the time they rebuild their home, their property tax value [of the improvement] continues to increase despite the fact that there is no longer a home on the lot.
To me, this makes no sense. Since there is no house on the lot, how can it continue to increase? 2% of zero is zero last time I studied arithmetic. We support you 100% in trying to find clarification in this issue.
Sincerely,
Lila Hayes
Coordinator
Old Fire Recovery Group
I met with Paul [VanDyke] and he gave me the names and room numbers of 3 Senators who would be voting on this bill, so I went to each of their offices and spoke with their staff about the need to support SB 477 – I received no indication of opposition...
1. Learn more about Voluntary Organizations Active in Disaster at www.nvoad.org
2. To become part of the nation's Citizen Corps, visit www.citizencorps.gov
SACRAMENTO – As Scripps Ranch residents resolutely rebuild their lives and homes, legislation spawned by their sometimes nightmarish dealings with insurers is off to a shaky start in the Capitol.
A key Senate panel Wednesday stalled for two weeks action on Sen. Jackie Speier's measure to broaden modest insurance industry reforms adopted last year in the wake of the deadly 2003 Southern California firestorms.
NORCO - Some on Norco's Animal Rescue Team have spent decades slogging through mud, floods and fires to bring horses, goats and even buffalo to safety, but the next time they are called to charge into a disaster area, they'll do it as certified rescue agents.
[more HERE]
http://www.pe.com/localnews/corona/stories/PE_News_Local_C_canimal07.593fd.html
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4. Road repair bill paves way to help fight forest
fires
11:41 PM PDT on Wednesday, April 6, 2005
By BEN GOAD / The
Press-Enterprise
A U.S. Senate committee on Wednesday approved an amendment to a federal spending bill that would allot $34.3 million for repairs to Southern California forest roads decimated by the past winter's relentless rain and snowstorms.
[more HERE]
http://www.pe.com/breakingnews/local/stories/PE_News_Local_D_forest07.582d2.html
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5. Crisis planning offered to churches
SUMMIT: Congregations can learn how to prepare for a disaster
and work with relief groups.
11:38 PM PST on Thursday,
January 27, 2005
By
BETTYE WELLS MILLER / The Press-Enterprise
When catastrophic wildfires gobbled up hillsides and homes in October 2003, many local churches rushed to help.
But those churches found it difficult to provide food, clothing and shelter to residents who lost homes or were evacuated because they had little or no previous connection to local disaster-relief groups, recalled Pastor Felix Jones III of All People Unity Baptist Church in Redlands.
[more HERE]
http://www.pe.com/localnews/sanbernardino/stories/PE_News_Local_clergy28.a13a6.html
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6. Inland charity groups to fix crisis snags
DISASTER: They will meet to fill gaps in services, reduce
delays and prevent duplication.
10:44 PM PST on Saturday,
January 15, 2005
Come dinnertime at a giant Red Cross shelter, fire evacuees grumbled at the long, slow-moving food lines.
"They were trying to feed people in one or two lines," said Don Hargis, an official of a Baptist disaster relief group active during the October 2003 wildfires. "That made people mad."
[more HERE]
http://www.pe.com/localnews/inland/stories/PE_News_Local_vols16.586e1.html