Professional Documents
Culture Documents
of illegally dumping raw sewage. A3 to kick off MLB season this week. C1
John Bolton
Painful insurance reality
Trump’s
advisers
primed
for clash
ANALYSIS » New team,
including Bolton, wants
global leaders to blink first
By DAVID E. SANGER
AND GARDINER HARRIS
NEW YORK TIMES
K
pushed around by adversaries Nix answered the questions
who need to understand that posed by his carrier, USAA, itty Loberg said she could
“America First” means they in an online form used to only devote minimal
have a brief window to negotiate determine the proper amount blocks of time to remem-
a deal, or force may follow. of coverage for his three-bed- ber all the personal items she
Now, the members of Trump’s room, three-bathroom house on lost when the October wildfires
newly constituted team are Willowgreen Place. The home, destroyed her Redwood Valley
about to face multiple, simulta- which he bought in 2013 for home.
neous tests of their past procla- $554,000, was valued at around SHOOTING HOOPS: Joshua Nix watches his son, Cody, shoot a basket outside “When your body is still in a
mations and sometimes conflict- $800,000, but the digital calcula- the family’s new home in Santa Rosa. shocked state in trying to deal
ing instincts. North Korea and tor showed that he needed only with the reality (of rebuilding)
Iran pose the most immediate $293,000 for structure coverage. cover me on a total loss.” and everything with that ... It
challenge, with Trump setting Nix decided to round it up, He would soon find out the hurts,” said Loberg. “Your mind
Rebuild
H
2018 • SECTION
MARCH 25,
SUNDAY,
negotiation deadlines that are purchasing a $300,000 policy painful truth: His insurance starts screaming at you and says,
only months away. that would go into effect on policy would not replace the AY ‘No, I just don’t want to do this.’”
Over the longer term, they Oct. 3. home he lost. Rebuilding NORTH B Here and there, Loberg
must straighten out the strate- “I answered the questions his home would cost around would compile a list of items
gic incoherence surrounding honestly,” said Nix, a 38-year- $325,000 more than his insur- lost inside her house, barn and
Trump’s approach to Russia and old husband with two young ance policy covered — and shed on her 1-acre property in
China, defining the meaning of children. With eight years of that doesn’t even include the Mendocino County.
the administration’s policy dec- active duty service in the U.S. cost of paying off the $425,000 And then she caught a break.
laration earlier this year that Coast Guard, Nix chose USAA mortgage Nix still owed on his SPECIAL SECTION: Her insurer, CSAA Insurance
“great power competition — not because it catered to service gutted home. Rebuild North Bay looks Group, stopped asking for a
terrorism — is now the primary personnel. “I believed it was a at the progress of the
product that would sufficiently TURN TO INSURANCE » PAGE A14 fire recovery effort / H1 TURN TO INVENTORY » PAGE A14
TURN TO CLASH » PAGE A2
Business E1 Crossword T6 Lotto A2 Obituaries B4 TOUGH TIMES FOR DAIRIES: Farmers across SANTA ROSA ©2018
Classified E5 Forum B11 Movies D6 Smith A3 North Bay who’ve shifted to certified organic High 59, Low 35 The Press
Democrat
Community B10 LeBaron T1 Nevius C1 TV T7 operations struggling as milk prices sink / E1 THE WEATHER, C8
A14 THE PRESS DEMOCRAT • SUNDAY, MARCH 25, 2018
“Most people will find themselves underinsured. Those are some breathtaking numbers.”
AMY BACH, executive director of United Policyholders, a San Francisco-based consumer group
INSURANCE
CONTINUED FROM A1
Nix is not alone. The
firestorm, which destroyed more
than 5,500 homes in the North
Bay, revealed one of the stark
realities of insurance: many
homeowners don’t have enough
coverage to replace their homes
following a disaster.
Consumers are blaming
insurance companies, saying
they were misled to believe they
had adequate coverage. Insur-
ance companies contend that
consumers are responsible for
deciding how much insurance
to buy, noting that price is a
driving factor when many home-
owners make their decisions.
Despite the ubiquitous TV
commercials where insurance
companies tout they are “on
your side” and are “like a good
neighbor,” many local residents
feel their insurers are more of
an adversary than an ally.
Almost 70 percent of local fire
victims believe they do not have
enough insurance to replace or
rebuild their homes, according
to a survey by United Policy-
holders, a San Francisco-based
consumer group.
“Nobody is looking out for
your best interest,” Nix tearfully
recounted in an interview. He ALVIN JORNADA / THE PRESS DEMOCRAT
has decided to sell his lot to a FATHER AND SON TIME: Joshua Nix, left, helps his son, Cody, 6, take in some batting practice after dinner at the family’s home in Santa Rosa. Nix realizes that his family
builder for $265,000 in a deal was fortunate to have to bought another house near Piner High School two days after the Tubbs fire, which burned down their home in the Larkfield area.
scheduled to close on Monday.
“They sold me a half a policy,” difficult to solve than other policyholders have hired public burdensome or takes too long. owners qualify for such cover-
he said of USAA. obstacles to rebuilding. While adjusters, who negotiate with Displaced homeowners have age, and only a small subset of
In a statement, USAA dis- government officials took action insurers for a fee. few options. Some will try to insurers even offer it.
agreed with Nix’s version of to speed up debris removal and “The insurance companies pay for rebuilding by scraping Policymakers became aware
events. streamline permitting, they do are lowballing,” said Eric together claims from other parts of the problem following the
“We disagree with the way not have the same power to force Keith, chief operating officer at of their insurance policy — most 1991 Oakland Hills fire — the
Mr. Nix has described how his insurers to provide more relief. Sonoma County Builders, who notably reimbursement for costliest American wildfire until
coverage was established,” the As of March 12, insurers have is ready to rebuild 10 homes in losses of personal property, such the North Bay blazes broke the
company said in a statement. paid out $4.6 billion in residen- the Fountaingrove area. Four as furniture, appliances and record last year — but many
“We provide our members tial claims in Sonoma County, of those clients are still waiting clothing. Those funds could be homeowners were not aware un-
an estimate of the minimum or two-thirds of the $6.9 billion to hear back from their insur- combined with personal savings til they were personally affected.
amount of coverage they should in insured losses left by the ance adjusters after presenting or a low-interest Small Business “In case after case, California
obtain to rebuild. Members may destruction of 4,821 homes, ac- detailed pricing information on Administration loan to rebuild. residents whose homes had been
choose to insure for an amount cording to the state Department their claims. “I could be starting Others may be forced to band damaged or destroyed explained
greater or less than the estimate of Insurance. on their house if not for that,” together with their neighbors why they had believed their
provided by USAA. We cannot The way insurers review and Keith said of the delay. to negotiate a package deal with homeowners insurance would en-
give additional coverage to those approve fire claims is playing Insurance carriers use software builders and lenders, which can able them to rebuild their dwell-
who chose to purchase less.” an integral role in the speed of programs to calculate the cost lower the price of rebuilding. ings. Once they presented their
Nix and others have been rebuilding. of rebuilding, but they haven’t Then there are those who just claim to their insurance compa-
left scrambling with insurance Contractors will not start a adjusted their models to reflect may simply eat the cost of the ny, though, these homeowners
shortfalls that can range from construction job until they are sharp increases in the cost of gap — if they can afford it. discovered that their coverage fell
as little as tens of thousands of sure there is enough money labor and materials after the All of those individual deci- well short of what they needed
dollars to more than $1 million, to complete the project. Thus, October wildfires, Keith said. As a sions will have a collective effect — sometimes by hundreds of
according to Amy Bach, exec- many are waiting for policyhold- result, they have lower estimates on the local economy. thousands of dollars — to rebuild
utive director of United Policy- ers to negotiate settlements with of what it costs to build a home “That’s the big policy conun- their homes,” the California Su-
holders. The problem is evident their carriers. today in Sonoma County, he said. drum for policymakers in Sono- preme Court stated in a January
in every neighborhood ravaged Many policyholders discover The actual cost of framing ma County,” said Robert Eyler, 2017 decision that provided state
by fire across the North Bay, al- they are underinsured when and roofing is about double the director of the Center for Region- Insurance Commissioner Dave
though the biggest shortfalls are contractors deliver ballpark esti- amount offered by insurance al Economic Analysis at Sonoma Jones more authority to regulate
centered in Fountaingrove and mates on the cost of rebuilding, companies, Keith said. To help State University, who has studied the industry.
other upscale neighborhoods. which can range from as low as some customers negotiate with the cost of rebuilding. “If people It is a lesson that more Cali-
“Most people will find them- $280 per square foot for a group their insurer, Keith has reworked start walking away en masse, fornians are learning on a more
selves underinsured,” Bach said. build in Coffey Park to as high as the carrier-provided estimates to what kind of public policy issue regular basis as wildfires have
“Those are some breathtaking $600 per square foot in Fountain- show the true cost for rebuilding. does that create?” become more destructive in
numbers.” grove, said Keith Woods, chief The end result? Many fire The problem of underin- the Golden State since the turn
The ramifications of the executive officer of the North victims will find themselves surance has been around for of the century, exacerbated by
large gap between insured and Coast Builders Exchange. without sufficient funds and will decades, making it especially drought and increased build-
uninsured losses will be sig- Even those who opt to go end up ultimately selling their frustrating for recent fire vic- ing near forested areas. They
nificant. If homeowners don’t forward can face delays. Fire lots, like Nix. tims. include such costly blazes as the
have enough money to rebuild, victims must get detailed, line- “That’s the easy button right In the past, insurers offered 2003 Cedar and 2007 Witch wild-
financial pressures could force by-line estimates for rebuilding, there,” Keith said of selling policies that guaranteed your fires in San Diego County; the
many to leave the North Bay and which can spark further wran- lots. He envisions more fire home would be rebuilt if it was 2003 Old fire in San Bernardino
delay efforts to rebuild. gling with insurance carriers victims choosing that option if destroyed in a fire. But today,
The problem is proving more and trigger more setbacks. Some the claims process becomes too only a limited number of home- TURN TO INSURANCE » PAGE A15
INVENTORY 10 LARGEST
PROPERTY INSURERS
to pay out at least 80 percent of
personal property claims without
itemization in the aftermath of a
lish the home was fully furnished,
Chubb releases the full written
policy limit on the personal
100 percent payouts for personal
property losses without having
to file any itemization, while oth-
CONTINUED FROM A1 Listed below in alphabetical declared state of emergency. Mc- property coverage to the client,” ers were told to inventory their
Guire’s bill, SB 897, would be ap- Samansky said in an email. specific losses.
detailed list in January. Instead,
order are the 10 largest residential
plied retroactively to July 1. “This One Allstate policyholder As part of its subsequent
it allowed Loberg to submit a
property insurers in Sonoma,
is going to be one hell of a fight,” told The Press Democrat that outreach, CSAA gave out the
summary of her property losses
Mendocino, Lake, Napa and Sola-
McGuire said of advancing his bill he received a 100 percent payout cellphone numbers of its top
from 65 different categories to
no counties. The results are based
against the insurance lobby. two weeks after Jones’ request. claims officials to more than
simplify and speed up the claims
on 2016 premiums earned.
The Press Democrat surveyed The company did not respond to 650 customers so they could
process. ■ Allstate Insurance Group the 10 largest insurance compa- repeated requests for comment. contact them directly if they
CSAA is one of almost 50 in- ■ Chubb Group nies in the North Bay and their Four insurers were paying at had any concerns about their
surers pressured by state Insur- ■ CSAA policyholders to determine how least 75 percent of a fire vic- claims, said spokeswoman Sue
ance Commissioner Dave Jones much money they were receiv- tims’ personal property claim Saito. Loberg said she called one
in December to pay North Bay ■ Farmers Insurance Group ing for personal property claims without an itemized list. State official when she had some prob-
fire victims up to 100 percent of ■ Liberty Insurance Group without itemizing their losses. Farm, The Hartford and USAA lems over payment of debris
their personal property cover- ■ Nationwide Group The 10 insurers cover 89 percent all confirmed they were paying cleanup, which he resolved to
age limits without a detailed of the homes insured in Sonoma claims at that percentage. USAA her satisfaction.
inventory. ■ State Farm Group County, according to the state has been paying that level for The Travelers did not detail
Jones required insurers to ■ The Hartford Insurance Group Department of Insurance. catastrophes since 2011, said the company’s policy on person-
show state regulators how they ■ The Travelers Insurance Group Only one carrier, Farmers In- spokesman Roger Wildermuth. al property payouts.
intended to help fire victims get surance Group, confirmed direct- Nationwide policyholders Some Travelers policyholders
bigger insurance payouts with
■ USAA Group
ly that it is paying out 100 percent told The Press Democrat they said they were especially disap-
less paperwork and stress. He Source: California Department of to its customers without itemiza- received a 75 percent payout, pointed when they discovered
Insurance
publicly listed the names of in- tion. “This one-time decision was though the company did not the company would only pay out
surers that paid out more — and arrived at after taking account of provide any specific percentages 50 percent without itemization
less — than 50 percent of their with their insurance carrier. the unique conditions surround- when contacted. — the lowest rate of the top 10.
coverage limits without docu- “I think the momentum has ing the California wildfires and Many of those customers have Janet Hendrickson wrote to
mentation, enabling fire victims been building on this issue since their aftermath,” said Farmers lobbied their carriers to pay Travelers CEO Alan Schnitzer
to gauge how their company was the last major catastrophe,” spokesman Luis Shagun in a 100 percent of their personal in January to plead her case
treating customers in the wake Bach said. “On this one (issue), I statement. property claims without item- after her home was destroyed in
of the disaster. think this is really strong.” Liberty Mutual/SAFECO ization. Tubbs fire.
Loberg credits such pressure Twenty-two percent of fire would not disclose an overall State Farm spokesman Sevag “Putting together these lists
for helping her ultimately get ev- victims said they received percentage on reimbursement; Sarkissian noted that consumers and then having each item
ery penny out of her policy cov- 100 percent of their personal however, in many cases it paid who want more coverage for per- depreciated is not only time
ering personal property without property claims without being out 100 percent without an sonal property can always buy it consuming but even worse,
listing every single item she lost, required by their carrier to sub- inventory based on in-depth con- from their insurer. The company agonizing leading to feelings of
though she still had to submit mit a complete home inventory, versations between fire victims bases its prices on how much it great despair,” she wrote.
estimates of her losses broken according a survey conducted by and its claims adjusters, said anticipates actually paying in Hendrickson said she was
down into broad categories. United Policyholders. spokesman Glenn Greenberg. personal property claims, not told by a Travelers official that
“I think it was a good thing Under pressure from policy- Likewise, Chubb did not on how much it would cost the the company offered bigger
he did,” she said of Jones. “It holders and Jones, 39 carriers provide an exact percentage, company to automatically pay payouts for personal property
provided some support to help have publicly pledged to pay at but said its requirements for an out 100 percent of the value of losses than its competitors, even
on everything else.” least 50 percent of a fire victims’ inventory of personal property its customers’ policies. though some of its rivals were
Jones’ action — along with pol- personal property claim without losses were flexible. The com- “If rates were to be based on paying out claims at a higher
icyholders banding together to an itemized list. Many have pany requires customers to policy limits instead of actual threshold without requiring
pressure top industry executives agreed to pay even more, but verbally provide an overview of losses they would be significant- documentation. She eventually
— has had a significant results, Jones said he could not release the personal property lost in the ly higher for all of our custom- turned in an inventory list.
said Amy Bach, executive direc- specific payout policies because fire. An adjuster later conducts ers,” Sarkissian said in an email. “My response was Travelers
tor of the United Policyholders, their reports to regulators were an on-site inspection, said CSAA clarified its documen- determined the amount for
a San Francisco-based consumer not covered under the California spokesman Eric Samansky. tation requirements in January inventory not me. I paid for that
advocacy group. Her group has Public Records Act. “These two methods are used when customers began trading amount and as such that is what
assisted fire victims with advice State Sen. Mike McGuire, to confirm the existence of a fully stories about the way they had I should receive,” Hendrickson
on how to lobby and negotiate D-Healdsburg, wants insurers furnished home. Where we estab- been treated. Some received said in an email.
THE PRESS DEMOCRAT • SUNDAY, MARCH 25, 2018 A15
join us�
12th ANNUAL
G A L L-S TA R S
EVENIN W IT H T H E
get co n n ec te d � PPORT
A GALA EVENT TO SU
U R D AY, A P R IL 2 1 , 2 0 18
SAT
NORTH BAY
FOCUS ON INSURANCE
F
ive months ago, wildfires irrevocably transformed our communities in ways we could
witness, but perhaps not immediately grasp. For thousands of homeowners, the di-
saster raised a wrenching question: Rebuild or relocate for good?
Insurance coverage has proved a pivotal factor in that answer. With labor and
material costs soaring, homeowners are finding their payouts fall far short of what it would
take to rebuild. That gap also is shaping what becomes of burned neighborhoods, where
more for sale signs went up in March than new foundations and walls. Here, we collect the
stories that this month shaped our scarred region.
INSIDE
FIRST HOME REPLACEMENT RESIDENTS JOIN TOGETHER READY TO RETURN, FAMILIES COPE
BEGINS IN FOUNTAINGROVE TO REBUILD IN LARKFIELD-WIKIUP WITH INSURANCE WOES
Questions linger about the neighborhood’s A Southern California builder arranges Property owners are finding that their
water system, parts of which have been to construct nearly 80 homes in Mark West policies may not cover the full value
contaminated with benzene. Estates with first move-ins by this fall. of homes and possessions.
Page H4 Page H6 Page H10
PARTICIPATING SPONSORS
H10 THE PRESS DEMOCRAT • SUNDAY, MARCH 25, 2018
INSURANCE STRUGGLE » Fire victims discover they may not be covered for full rebuild cost
F
and they had received the full
or Lauren and John amount of their contents poli-
Thompson, catastrophe cies with no questions asked.”
barged in last year as it It turns out a lot of other fire
did for thousands of others that victims covered by State Farm
night: with the smell of smoke. felt the same way — at least
The thick scent roused the 144 of them, in fact. The group,
Wikiup homeowners from their including the Thompsons, sent
sleep, and they ran out to the an open letter to State Farm
street to investigate. All seemed CEO Michael Tipsord and the
normal, except for the strong firm’s board of directors urging
wind and the sharp tang of immediate and full payouts
burning wood that it carried. on property coverage without
“So we went back inside and delay, noting such action “would
went on Facebook, and all the be relieving to so many of us
messages we were seeing were with one of our many burdens,
pretty frightening,” said Lauren while creating positive public
Thompson. “We went outside relations and good will.”
again, and this time we could California Insurance Com-
see this deep orange glow from missioner Dave Jones in Jan-
the direction of Petrified Forest uary urged insurers to waive
Road. It was incredibly omi- the inventory requirement,
nous.” requesting they provide up to
While they stood transfixed, 100 percent of personal prop-
a car sped up the street. The erty coverage for fire survivors
driver yelled that a fire was ALVIN JORNADA / THE PRESS DEMOCRAT without having to compile the
coming over the hill, and that Lauren and John Thompson examine original blueprints of their Mark West Estates home that burned down detailed list of lost belongings.
everyone had to evacuate. The during the Tubbs fire. It’s unclear if the Thompsons’ State Farm insurance policies will cover their full loss. A State Farm representative
Thompsons needed no further said that while the company was
prompting. They packed a bag not waiving “any contract pro-
with essentials, roused their two kids, make sure they got to school on time, age for cleanup costs, and we went with visions,” policy holders can receive and
jumped in their own vehicle, and left. and that they were picked up on time. FEMA to do that job. But we probably keep an advance on up to three-quar-
By then all the streets in and out of the That really helped us keep our priori- won’t get that bill for a couple of years, ters of their contents policy without the
Wikiup area were clogged, and some ties straight.” and it’s not at all clear that $60,000 will inventory.
buildings at Cardinal Newman High Also anchoring the couple was their cover it, so we’ll have to put that money “For those customers seeking addi-
School were aflame. determination to rebuild. They never aside. I lost a week of work during the tional amounts beyond the 75 percent,
“There was so much traffic that it had any real doubt on that score. They fires, and my husband is an internal State Farm is available to support them
took an hour and a half to get from our loved the Wikiup area, and they figured investigator with the state Department in completing the contents inventory
house to Highway 101,” Lauren Thom- they were sufficiently insured. of Corrections. We’re working people, process,” said Sevag A. Sarkissian,
son said. “But even though we knew it “I called my insurance agent at State we’re not independently wealthy. We a company spokesman. “Customers
was a serious wildfire, we didn’t think Farm, and basically just said, ‘What do have two kids, and the bills keep coming do not have to wait until their entire
we’d lose our home, let alone our entire we do?” Lauren Thompson said. “They in. We don’t have a lot of options.” inventory is completed to submit to
neighborhood. We just thought there read us our coverage, and it came to So when State Farm told the Thomp- their claim. We encourage submitting
was no way everything could burn.” $750,000. Our home had been appraised sons that the company could only inventories by rooms to make it easier
The next day, the Thompsons learned at $715,000, so we figured we were OK.” cover 75 percent of the contents policy for our customers to compile. We also
that it was all gone: their home, all the They weren’t. Being in the real estate without an itemized list, she became, as recommend grouping items of similar
houses on their street, the entire neigh- business, Thompson already knew she put it with considerable understate- quality/price/age.”
borhood. there was a housing shortage in Santa ment, “extremely upset.” The burden Thompson is feeling somewhat more
“In one sense, we were lucky,” said Rosa, and that labor and materials were of meticulously itemizing each and sanguine these days because she and
Lauren Thomson, a marketing director at a premium as a consequence. But every piece of household property was her husband recently received a check
for a real estate firm. “We were able when she and her husband started pen- more than difficult — it was practically from State Farm for $784,000 for con-
to find a rental home in Windsor just ciling out numbers for reconstruction impossible, and she strongly suspected struction costs. But they still need the
a couple of exits north on the freeway costs, she discovered the situation was State Farm knew that. payment from their contents policy, and
from Wikiup. But for the first couple of worse than she had thought. “You spend hundreds of hours deal- it remains unclear how much money
weeks, I found myself getting incredibly “For the house we had — four bed- ing with the aftermath of a catastrophe they’ll receive, and when they’ll receive
frustrated, angry, even. This wasn’t my room, 2,900 square feet — it was going like this, and then you’re told you have it.
home. This wasn’t my store where I to cost between $850,000 to $900,000 to to do more and more needless work just “In any contact with them, you just
shop for groceries. We felt disconnect- rebuild,” Thompson said. to get the full amount of money owed feel this pressure to settle, and at the
ed.” The Thompsons felt they could still to you. It’s too much,” Thompson said. lowest possible cost,” said Thompson.
The couple’s kids, however, served go ahead, but they’d have to use all or “We were already upset with an initial “It’s unrelenting. We’re negotiating
to center them, bring them back to a most of the money from their contents lowball offer of $630,000 for construc- in good faith. We’ve always paid our
tolerable emotional baseline. coverage — the ancillary policy cover- tion costs, and then delays by adjusters premiums. People who lost their homes
“We had to make sure things felt ing household goods — to do it. that they attributed to the holidays, here are suffering PTSD. This just adds
normal for them, that they were com- “And even then it could be tight,” so this just put us over the edge. We more and stress to a situation that has
fortable,” Thompson said. “We had to said Thompson. “We had $60,000 cover- became even angrier when we talked already put us all at the limit.”
J
“Second, I would never be homeless few years, they had three children. The “We were in a hotel for 38 days
eunee Craw-Molinaro’s childhood like that again. I would work hard to family lived modestly: no cellphones, no before we found a place to rent,” said
was tough, particularly during her put myself through college and make a cable TV, one car. They were able to save Craw-Molinaro. “I found myself in the
high school years. Raised by a single great life for myself.” enough money for a down payment on one place I swore I’d never go back to —
mom, she was the oldest of four Craw, as she was known before she a Rohnert Park condominium. They re- living in a hotel with my family, with no
children. The family lived with her was married, had an ally in the pursuit modeled it with a minimum of cash and permanent home.”
mother’s boyfriend. There were inces- of those goals: her boyfriend, Lance a lot of sweat equity, sold it, and finally Still, Craw-Molinaro and her hus-
sant arguments between the two adults, Molinaro. They had met her junior were able to fulfill their lifelong dream: band were not passive in the face of
and during Craw-Molinaro’s senior year in high school, and were wholly their own house. It was in a leafy, tran- catastrophe.
year, her mother took the kids and committed to each other. After gradu- quil neighborhood of Coffey Park. “We allowed ourselves one day to
moved out of the house. ation, Craw moved to New York to live “It was our forever home,” Craw-Mo- grieve,” said Craw-Molinaro, “and the
“She had decided she’d had enough, with her father, saving money while linaro said. next day I got on the phone to my in-
but we had no place to go,” said Molinaro went to college. They main- They lived in it for four years, until surance broker to file a claim. We were
Craw-Molinaro. tained close contact, and she moved the night of Oct. 8, 2017 — the night determined to rebuild.”
“We stayed with friends. Often (the back to California within a year to pur- both their house and their dreams That began the second phase of the
children) were split up, and we even sue her own education. They married went up in flames. What followed was a family’s ordeal. Though her broker was
spent a couple of nights in our car. We when Craw was 20 and Molinaro was narrative that became only too familiar solicitous and helpful, their subsequent
ended up in a hotel we couldn’t afford.” 21. in Sonoma County: initial panic, hours dealings with their insurance com-
Craw-Molinaro came away from that “We both worked full-time jobs while of uncertainty spent driving aimlessly pany, Safeco, felt almost Kafkaesque.
experience with two resolutions. we went to school,” she said. “After through the darkness and smoke, grief
“First, I would never let a man treat college, we started our family.” on the discovery that their home was TURN TO DISPUTES » PAGE H11
THEY STRENGTHEN
OUR LOCAL ECONOMY
Each dollar you spend at independent businesses
returns three times more money to our local
Midstate Construction Has Over 83 Years economy than one spent at a chain (almost 50
Building Quality Construction. times more than buying from an online mega-
Midstate Construction will focus our efforts and manpower to rebuild
retailer) — a benefit we all can bank on.
our community in multi-family residential, hospitality, winery, office
and retail. Our company culture and commitment has been one of
supporting our employees, our clients and our neighboring areas.
COVERAGE CHECKUP » Why you should read the fine print in your policy
I
Keeping policies up to date is equally to ask for it. may or may not cover damage from
magine ordering a full-course crucial, as many disaster victims are Replacement cost policies usually mudslides after the fire.
dinner at your favorite restaurant. now learning. have a maximum dollar amount they’ll Most people tend to undervalue what
You’re having a pleasant time. Then While nothing can prepare people pay out, and that can mean you’ll come it would actually cost to replace their
your waitperson brings the meal, and for the tragedy of events like wildfires, up short if costs rise. For example, new personal belongings, experts at the
plops it all straight onto the table in or fully restore their personal losses, county building codes can add unex- department of insurance say. Because
front of you without a plate. You might insurance can be an important and pected expense. The price of building homeowners and rental insurance
be surprised. Everyone expects a plate essential aid to recovery. Both groups materials and labor also can soar when policies include a limit, there can be a
to come with the meal, even though provide extensive help and guidance be- there’s sudden, huge demand after a substantial gap in coverage when peo-
there’s nothing on the menu to say it fore, during and after disasters. Here’s disaster, like in Sonoma County today. ple try to replace essential household
does. the main things they say consumers Consider an extended replacement cost items at today’s prices.
We’re generally safe assuming those need to know. policy: these can add 20 to 50 percent It’s also nearly impossible in the emo-
important little extras, like silverware, additional protection to cover such un- tional aftermath of a disaster to try and
cups and napkins, will automatically be Make sure you’ve got foreseen increases. And shop around, create an inventory of every lost item
included, even if we haven’t specifically the correct insurance coverage because the amount of extended from memory for the insurance claim.
ordered and paid for them. Buying a policy based on the price coverage you get varies from company Some insurance companies now offer
Insurance for homeowners and you paid for your home –– or even to company. assistance with preparing inventories
renters, on the other hand, doesn’t work its market value –– may not provide ahead of time.
that way. If the coverage is not actually enough money to replace it if it’s dam- Renters aren’t covered by And since nearly everyone carries a
written into your policy, you won’t be aged or destroyed. The cost of rebuild- their landlord’s policies smartphone, at the very least homeown-
getting it. ing your home may be much higher Renters need their own protection, ers should make a video record of their
And the wrong time to learn what’s today than the purchase price. because the landlord is not responsible belongings throughout the house and
missing is after you’ve been served. The average cost to rebuild a home, for the loss of tenants’ contents. Some room to room, opening closet doors and
That’s the message from insurance usually stated as dollars per square apartments now require tenants to cupboards, drawers and so on.
experts working to help residents deal foot, is something a reputable local carry insurance, and experts say it’s Keep in mind that expensive items like
with insurance claims after the recent builder can help estimate. It pays to stay sensible to consider buying a policy for jewelry, artwork, wine collections and
wildfires. current on that cost, and make sure personal contents, since it’s relatively other valuables may not be covered in
According to Nancy Kincaid, press it’s reflected in the coverage you buy, inexpensive. The market is competitive, standard policies. Individual items can
secretary for the California Department because it can change over time. (For so it also pays to shop around. Rental be separately insured, and policy holders
of Insurance, studies suggest as many current estimates on rebuilding costs policies today also offer options such can buy coverage with higher limits.
as 60 percent of the state’s homeowners in Sonoma County see story on insur- as coverage for living expenses in the
are underinsured and don’t know it ance on p. A1). event of a catastrophe. Get help, ask questions, review
because they haven’t read or updated Keep in mind that the costs of your policy, update coverage
their policy. upgrades like granite countertops and The best price isn’t necessarily Ruiz and Kincaid both recommend
For example, she said, many peo- custom cabinetry will not be included always the best deal consumers sit down with their agents
ple were surprised to learn that cars in the average cost per square foot –– Insurance polices are not all created as soon as possible, request a full copy
destroyed by fire in their garage weren’t it’s just for an average home. Janet Ruiz equal. What they cover, and what they of their policies and learn what’s in
covered by their homeowners insur- notes that two homes next door to each don’t, can depend on the company them. Ask questions and seek addition-
ance policies. You need comprehensive other may be very different to replace. and what you ask for. Premiums and al assistance if needed. Both groups
auto insurance for that, and many peo- An additional consideration is that limits can vary widely. For help finding provide consumer assistance online, by
ple drop that coverage for older cars. typical homeowners policies cover the competitive rates, the CDI provides phone and even in person.
The California Department of dwelling and other structures on the comparisons online of over 90 percent Ruiz also notes that filing and
Insurance (CDI), the state’s largest property separately, and the amount of of California’s homeowners and renters settling claims is a negotiation, and
consumer protection agency, oversees coverage for other structures is usually insurance market offerings or through consumers should be prepared to
more than 1,300 insurance companies, capped at around 10 percent of the the CDI Hotline at 800-927-HELP (4657). engage in that process. Consumer
handles insurance complaints and dwelling limit. What perils does the policy cover? information, agencies like CDI and
provides consumer information and That means detached garages, man Back when Benjamin Franklin intro- consumer insurance advocacy groups
hotlines. caves, she-sheds, granny units and duced the first home insurance cover- are also available to provide guidance
Janet Ruiz, the California Repre- barns may not be covered at their re- age in America, the policy just covered and assistance.
sentative for a nationwide insurance placement value unless you’ve obtained fires, and you could buy fire service Since no one can predict the future,
industry group, the Insurance Informa- extra coverage. –– private firefighters who would come everyone makes the same recommenda-
tion Institute, says that consumers don’t Most homeowners policies include and put the fire out. tion: it’s better to be prepared now than
often fully appreciate that insurance some standard coverage for landscap- Today, fire protection is a public try to deal with surprises after the event.
policies are contracts. While it’s under- ing –– an amount per tree or shrub, for service, and insurance policies are
standable people may not want to spend example –– but don’t expect it to cover available that include coverage for Stephen Nett is a Bodega Bay-based
the time to read them carefully, it’s your koi pond, extensive patios or exotic calamities such as floods, earthquakes writer and speaker. Contact him at
well worth the effort to discover what plants. and other risks –– but only if you ask snett@californiasparks.com.
MORE HELP: The Insurance Information Institute, iii.org • The California Department of Insurance, insurance.ca.gov
707-544-9200
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