< Back

From : Lila Hayes
Sent : Wednesday, April 13, 2005
Subject : OFRG weekly update

 

Meeting Reminder

Our next meeting will be Sunday, April 24 where we will have James Shepard of McGraw-Hill Construction services speaking about their bidding services.
 
Lila Hayes
Old Fire Recovery Group
www.oldfirerecoverygroup.org
909-266-1459 vm/fax
 
---
Index
 1. OFRG's SB2 support letter
 2. More on Survivor Property Taxes
 3. SB477 update
 
On the web
 1. Voluntary Organizations Active in Disaster
 2. Citizen Corps
 
In The News
 1. Fire victims remind lawmakers of insurance nightmares, April 6, 2005, (San Diego Union Tribune)
 2. Assessor vs. Taxes, March 20, 2005 (Riverside Press Enterprise)
 3. Team certified to help disasters' four-legged victims, April 7, 2005, (Riverside Press Enterprise)
 4. Road repair bill paves way to help fight forest fires, April 6, 2005, (Riverside Press Enterprise)
 5. Crisis planning offered to churches, January 27, 2005,  (Riverside Press Enterprise)
 6. Inland charity groups to fix crisis snags, January 15, 2005,  (Riverside Press Enterprise)
 
---
1. OFRG's SB2 support letter
---

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.

--

Senate Banking, Finance & Insurance Committee

Fax 916-327-2186

State Capitol, Rm. 2032

st1:place>Sacramento, CA 95814

 

When the ashes of the 2003 California Wildfires settled, my mother had lost her home.  It was the home she had lived in since she graduated high school and married my father, and the house my three brothers and I grew up in.

 

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

---
2. More on Survivor Property Taxes
---
After seeing the email I sent out last week [see also news article below for further explanation], Nicole Case (a fellow fire survivor) called the assessors office because she noticed she didn't get a tax bill this year after she moved into her house late last year. This is what she said: 
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.
See also the end of the next article for a short update on Mr. Williamson's meeting in Sacramento.
 
Last month Amelia also talked to Kevin when she was inquiring about property taxes when you decide to move and buy a new house instead of rebuilding.  Kevin referred to the following for property taxes after a disaster:
 
The following sections can be found in the California Revenue & Taxation Code:
I did write a short letter supporting the tax assessor in his quest to get an answer on this issue as follows:

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

---
3. SB477 update
---
As you might've heard, several people were going up to Sacramento yesterday, April 12, to testify in front of the State Government Organization (GO) committee.  Less than 24 hours before the hearing we were notified that the hearing would be rescheduled .  Most of the scheduled attendees (including me) were notified in time to reschedule our reservations for the new date of April 26. 
 
At least two people, however, had already arrived by the time the announcement was made, but they were still able to individually visit senator's offices who are on the GO committee.  Kristen Pritchard of Rebuild San Bernardino County was one of the people who was up there already and this is what she said:
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...
Dave Stuart (of Rebuilding Mountain Hearts and Lives) was also up there and he too visited Senator's offices and sensed no opposition.  He was also able to go to the hearing with San Bernardino Property Tax Assessor.  From what I heard from Dave (nothing in writing from Dave or Mr. Williamson's office yet) at least one or two people on the committee changed their minds IN OUR FAVOR.  As far as I can tell, a final decision is yet to be made.  I will keep you posted as I get the news!
 
---
On The Web
---

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

---
In The News
---
1. Fire victims remind lawmakers of insurance nightmares
By Michael Gardner, San Diego Union Tribune
COPLEY NEWS SERVICE
April 6, 2005

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.

[more HERE]
http://www.signonsandiego.com/news/state/20050406-1936-cnsinsure.html
 
-
2. Assessor vs. Taxes
By Cassie MacDuff
March 20, 2005
 
 
San Bernardino County's maverick tax assessor, Don Williamson, is going to bat for taxpayers again, this time for people who lost their home in the October 2003 wildfires.
 
Williamson believes the state should not apply the Prop 13 inflation index to 1026 homes that burned down in the Grand Prix and Old Fires.
 
Structures lost in governor-declared disasters are taken off the tax rolls until they're rebuilt.  As long as the rebuilt home is "substantially equivalent" to the one lost, it's pre-fire assessment is restored, including the 2-percent-a-year, Prop 13 inflation increase.
 
[more HERE]
http://www.pe.com/columns/cassiemacduff/stories/PE_News_Local_R_cass0320.f4ce.html
 
-
3. Team certified to help disasters' four-legged victims
Thursday, April 7, 2005
By PAIGE AUSTIN / The Press-Enterprise

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

-
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

-
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

-
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
By SHARON McNARY / The Press-Enterprise

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

------------------------------------------------------------------------------
For removal or subscription to the OFRG Weekly Update, please email info@oldfirerecoverygroup.org
 
Old Fire Recovery Group
www.oldfirerecoverygroup.org
909-266-1459 vm/fax