Dear Friends,
Somehow wishing you a Happy New Year seems inappropriate this year. But I do wish you strength, and I send my best wishes for all of us to find hope and joy in our friends, family and community.
We’ve all known that for many of us this year would start off with the cloud of dread looming over us in anticipation of next week’s inauguration. I’m not going to focus on things we cannot change, so instead I am going to encourage us all to take small steps to make a difference where each of us can. The tragic fires in Southern California will impact us in Northern California as well, and we need to consider who we can learn from the heart-breaking loss of life, property and community.
Let’s start with a topic I’ve been writing about for more than a year: insurance.
Even before the most recent fires it should have been clear to anyone paying attention that the days of “easy and cheap” insurance policies is a thing of the past. Premiums have doubled for many of us, and in some cases those costs have tripled, while the coverage has been restricted. By now we need to have moved on from shock and denial, to accepting that most of us will be obtaining our coverage for fire risk through the CA FAIR plan, and then obtaining coverage for theft and liability through a separate carrier. No one will be thrilled by coverage through CA FAIR, and it’s too early to know the impact of the recent fires. But an article in the NY Times this week shared that as of last week, FAIR Plan had just $377 million available to pay claims, a number confirmed by the office of California Insurance Commissioner Ricardo Lara. Estimates of loss are currently ranging from a low of $30 BILLION to a mind-blowing $150 BILLION. No one will be surprised that insurance carriers will not likely be encouraged to add policies in California, given the recent and current disasters.
And don’t be surprised if your secondary carrier requires certain new conditions. I hear that many carriers are now requiring you to insure your car with them in order to obtain liability coverage on your home. Most carriers have encouraged that, and offered discounts when multiple types of insurance were obtained with the same firm, but now it may be a requirement. Farmers was one of the first carriers to require whole-house water leak detection systems, and now other carriers have followed suit.
Let us all be inspired by the terrible tragedies in Southern California to take some pro-active steps that could mitigate loss in the event of fire or earthquakes in our area:
- Make sure to have at least one go-bag per person, if not one in your home and one in your car. Several lists have been floating around social media sites in the past week about the most crucial items to include, and I’ve put together a consolidation of those on my website here. I hope you will find it helpful. This is a simple action you can take now, that can make a big difference later.
- Have a large drum of water for emergencies? If yes, refill it now with fresh water. If not, this is a great reminder to order one! There are many styles available for around $100, including this one from Home Depot.
- Think about and talk explicitly with your family members about what are a few key items you would take with you, if you are given adequate notice to evacuate. In some cases, folks in Altadena had a few hours’ notice, and for others it was only a few minutes. You will want to make the tough decisions in advance, when you are not under horrible time constraints and in a state of panic with fear. Decide now which special mementos, jewelry, paintings, books, or instruments you will have room for in your vehicle. If pets are involved, you might be sure you know where the pet carriers are, and familiarize your pets with those carriers, so that your animals do not bolt as you are trying to keep the safe.
- Make a video inventory of your possessions, and keep a video record of the current condition of your house and grounds. Yes, it can be time-consuming, but it could save you many thousands of dollars, as well as hours as well as heartache should you ever need a record of your losses. Plan to spend perhaps one hour at a time, recording on your phone the contents of each room, and then separate videos for special collections, or especially valuable items. Then put together a spread sheet of key items, such as musical instrument collections, jewelry, valuable art, rare books, or extensive collections of silver or other specialty items. Once you have compiled video evidence and written descriptions, be sure to have those both on your laptop or home computer, and also stored in the Cloud.
- Know that I am preaching to myself as well: I have not done as thorough a job as I need to, so by next month, let’s check in and see how many of us have made progress!
- Fire hardening: Firefighters commented in past fires that many homes had been lost from dry debris in gutters starting the flames and moving quickly to engulf a home. Keeping your gutters clean and using leaf guard systems on your gutters is one small step you can take (though it would have made little difference when winds were blowing at such ferocious speeds, as was the case both in Eaton Fire and previously in Lahaina) We recently had trees trimmed away from our roof, and I know all of us, including me, need to rethink our love of trees balanced against the potential fire risk they represent.
Given the state of insurance in our state, I know many people are reluctant to reach out to their carrier for fear of being dropped or triggering an increase in premium. However, if you’ve had significant increases in value, and you haven’t updated your policy lately to reflect the true replacement value of your home and possessions, it may be worth the risk if. If you need a referral for resources in the industry, please reach out.
And then let us all be grateful for our safety, and become further inspired to generosity.
Over 150,000 people have been displaced and many are still in shelters.
- Red Oak recently published a blog post summarizing options for helping with donations for fire victims. Here are a couple of my personal favorites:
- World Central Kitchen has provided meals to those left homeless, as well as to first responders. They do amazing work around the world, and now for this crisis. Please consider a donation to this well-organized and efficient organization: wck.org/relief/california-fires-jan25
- I watched a very moving video about the Pasadena Humane Society, where they said they had taken in 600 animals (up from the 400 that it says on their website). Their response in serving injured and lost animals is unprecedented. If you are a pet owner or lover and have any additional funds to spare, I hope you’ll consider making a donation to pasadenahumane.org.
- The American Red Cross is helping wildfire victims find shelter and food: redcross.org
- They also urge people who can to donate blood, as blood donations have dropped considerably since the fires began, while the need has increased.
I chose not to write much about the real estate market this first month of the year as our market is barely out of seasonal hibernation. A few more properties are appearing this week, and we can expect more to appear each week moving forward. Certainly buyers were hoping that interest rates would be lower than they are (read more about that in the mortgage article below). And sellers are hoping for greater optimism, and strength in the market as the year unfolds. My best guess is that this may be a year when both buyers and sellers may need to make some compromises. Buyers may agree that finding a home that checks a reasonable number of boxes is better than expecting the “perfect home.” And sellers may not be able to obtain the record prices that some saw at the height of the pandemic. It’s impossible to know if further waiting will benefit either side.
Right now, on a gorgeous January day, I am feeling grateful for my home, my garden, and my community. Friends in Altadena are not so fortunate. I wish for all of us that we may continue to count the gifts we have. I share some photos of my current garden, and would love to know that you are enjoying the beauty of our East Bay!
Arlene
