Major generators are trying to find generators on the open market.
SAN DIEGO – A building in Tierrasanta with more than 300 units is trying to find property insurance for the fire.
Earlier this month, Farmers Insurance suddenly canceled the policy for all homeowners in the Villa Monterey community.
Jon Morrone and his wife live in a private house on Antigua Blvd. for the past nine years.
“If this happens, I think a lot of people will lose their homes,” Morrone said.
The houses at Villa Monterey are connected, meaning they share walls.
As a result, owners pay about $380 a month to the Condominium Owner’s Association (COA), which covers property insurance for the entire building.
“There’s only one policy,” Morrone said.
The village sits on a valley, and it seems that is the reason why Farmers Insurance canceled the insurance for the entire complex, leaving the owner’s association to find a new policy.
Currently, the average cost for a replacement policy can add up to an additional $7,000 per year for each individual.
“It’s really devastating. Many of these families are young people with children or adults on fixed incomes. And if this happens, it will be a financial disaster,” Morrone said.
The Farmers Insurance policy that was canceled covered $127 million in property damage at a cost of $130,000 annually. The policy change put together by an insurer cost only $47 million in damages, and costs more than $2.2 million a year, according to COA documents emailed to owners.
COA Board members are currently considering changing the association’s CC&Rs to “shift the insurance responsibility from the Association… to the individual, ” the document states.
A town information meeting was scheduled for Tuesday, January 31 at 6 pm at the Villa Monterey clubhouse.
CBS 8 reached out to Farmers Insurance for comment, but we have not heard back.
COA board members and Villa Monterey’s property management company, The Prescott Companies, also did not respond to messages from CBS 8.
The cancellation of insurance seems to be related to the risk of fire, according to COA records.
“They’re afraid that if something else happens like what happened in Scripps Ranch in ’03 and ’07 – where whole neighborhoods are lost – it’s going to be a financial crisis for the insurance company. ,” Morrone said.
Earlier this month, Farmers Insurance also canceled its property insurance for the Canyon Park Villas condos in Rancho Penasquitos, according to a published reports in the San Diego Union Tribune.
“I think it will definitely be cheaper to reduce that brush valley than to spend a crazy amount of money for an insurance policy that covers one third of what we need,” said a Morrone.
Of the California Department of Insurance did not respond to a message seeking comment for this report.
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UPDATE: Seniors get help with HOA insurance after CBS 8 news (Jan. 2022).