In secure communities where no major brush fires have been reported, Castaic residents are being faced with fire insurance price gouging in the thousands, and a group of disgruntled locals are fighting for justice.
Even with Governor Gavin Newsom approving $1,050 inflation relief checks to be dispersed in October, homeowners in the Cimarron Oaks complex in Castaic are expected to pay an annual $5,000 in fire insurance increases alone.
One of the 91 units of the Cimarron Oaks complex belongs to Jessica Carson and her husband, who purchased their home last year not knowing that the cost of the complex’s fire insurance would threaten their livelihoods.
“Each family is now subject to pay approximately an additional $5,000 per year,” Carson said. “We are in fear that this will only increase next year as we have seen no relief from the state.”
The couple says they were completely blindsided when they purchased their home, and did not realize how big of a monthly payment they would be forced to pay until two months after they moved in, according to Carson.
To the couple’s surprise, the complex would be required to pay upwards of $429,000 per year in fire insurance coverage, even though it was only required to pay $43,000 in coverage the year prior.
“We feel like we’re being forced to leave, and we don’t want that to happen,” Carson said.
Because each unit in the 91-unit complex cannot be insured separately, the entire complex is insured collectively. Since the cost exceeds the maximum value to qualify for state-sponsored fire insurance, the complex is forced to seek coverage from private insurance companies with multi-thousand dollar price tags, according to residents.
“We do not qualify for the FAIR Plan for California’s fire insurance because our coverage is approximately $15 million and the FAIR Plan only covers up to $3M because it does not include condominiums such as ours – mostly only single-family homes,” Carson said.
The two working parents also reached out to more than 30 private insurance companies for a lesser deal, however only two came back with an offer – offers two times the amount the complex already pays, according to Carson.
“Tens of thousands of California homeowners have seen their insurance premiums skyrocket or their policies non-renewed just because they live in a high wildfire risk area,” said Assemblywoman Suzzette Martinez-Valladares, Santa Clarita. “My heart breaks for the Carson family and others like them, many of whom have reached out to me to share their stories. That’s why I introduced AB 2450, a bill to require California’s Department of Insurance to evaluate proposals to reduce insurance premiums and expand coverage in high wildfire risk areas.”
For those who live in Cimarron Oaks, however, high wildfire risk is not necessarily an issue.
The 91-unit complex is located within a compact community between commercial businesses and homes, settled within the intersection of the 5 Freeway and Parker Road in Castaic.
While Santa Clarita is infamous for wildfires along the borders of the valley, and in areas of the dried Santa Clara River, the blaze of a wildfire has rarely, if ever, spread to compact residential communities like the Cimarron Oaks complex.
“We’re both working parents, middle class, and we work hard and we’re being asked to pay this extra money that we don’t know where it’s going to come from,” Carson said.
Due to the soaring fire insurance rates, many residents who cannot afford the extra $5,000 cost a year have looked to sell their homes, but have not been met with the results they had hoped.
According to residents, there have been multiple units sitting on the market for months, and some have significantly decreased their asking price. One particular unit was valued at 400,000 just a year ago, but is sitting on the market for $350,000.
While politicians like Valladares are drafting bills to combat the effects of rising fire insurance costs, Carson is encouraging residents to flood the inboxes of local politicians to ensure the issue is not forgotten.
“These insurance rate hikes may continue year after year and are not sustainable,” Carson said. “This is not just a Cimarron Oaks problem, this is a Castaic problem and a California problem. We are asking neighbors and community members to get involved and write to our elected officials to ask them to prioritize and urgently review this issue.”
To see how to get involved, click here.
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