There are times in life if something doesn’t make sense, or dollars and cents, it’s our duty to question why.
On November 29th we received this email from our insurance agent.
PLEASE PROVIDE THE FOLLOWING:
1. Paid invoices confirming the roof, plumbing, heating, and elec trical systems have been updated. If invoices are unavailable, you may also submit city permits showing replacement work was completed or a current home inspection report completed by a licensed contractor that includes the approximate age and type of each system along with the current system condition.
2. Photos of all exterior sides and yard, including the roof (from ground) and any other structures, photos of all electrical panels, pho tos of the water heater and under your kitchen and all bathroom sinks.
Failure to respond will result in non-renewal. Reply to this request by 12/22/2023. If you have any questions, feel free to give our office a call.
We bought our home in the Old Farm tract, three blocks west of Fountain Val ley High School, in April, 2003. It was built in 1965 and is 2,784 Square feet of living space on two levels. The interior has been remodeled extensively howev er, some components although function ing well, have not been upgraded or replaced with the exception of the 200 amp electrical panel, and the water heater, five years ago.
The email and the letter that followed is one that other Fountain Valley residents have received. It is of no consequence to the insurance company that all systems are operational or that we have never filed a claim in the twenty-six years, we have been homeowners in Fountain Valley.
Our current coverage is paid through April. In response to this email request, we hired a licensed contractor for $400 to provide the requested inspection report and submitted it to our insurance agent a few days prior to the December deadline.
The furnace and air-conditioning units are approximately twenty years old, but fully operational. The concrete tile roof does not leak and should be good for at least 10 more years.
On December 29th we received a letter canceling our homeowner’s insurance effective April 3, 2024 when the current policy expires, for not having the required upgrades.
We paid off our home in 2020. We are not required to have homeowners insurance however, like most other residents our home is our largest investment asset and it would be foolish not to have it insured.
My husband and I are fortunate in that we are financially able to undertake the renovations. How will some of our neighbors on fixed income comply? Will they lose their insurance coverage? Will they be forced to pay higher rates to be insured? Yes. Is it fair? Is it equitable?
We’re at a crossroads in time when the old-school values of righteousness, honesty and fairness is at stake. Individuals and industries alike are at odds about what is legitimate?
The insurance industry has paid out billions in claims. Many have closed shop in California, others are raising rates and canceling policies. The overall effect on homeowners remains to be seen.