By Mary-Justine Lanyon
With all the questions about homeowners insurance, the Lake Arrowhead Communities Republican Women invited insurance agent Shelli Wimmer to address this critical issue.
Wimmer shared that she has been writing insurance on the mountain since 2011 when she inherited a Farmers agency in Rimforest from another agent. “That was at the cusp of when things started to change,” she said.
The following year, 2012, the last of the admitted writers started writing insurance on the mountain. “Within two months, there was no more homeowners insurance,” she said.
What is an admitted company? “These are all the big boys,” Wimmer said. They are licensed in the state of California and are required by law to be able to pay every claim filed by all their clients.
Nonadmitted companies, she added, are from out of state. The insured signs a form saying that, in the event of a catastrophic loss, the company may not be able to cover a claim if they don’t have enough money.
Farmers and Pacific Specialty then came up with a policy that said they would not write the fire portion of a homeowners policy, Wimmer said. This policy would pick up what the California Fair Plan does not cover.
The Fair Plan is an association of all carriers “who no longer want to write fire insurance in the state of California,” Wimmer said. It was set up, she added, in 1964 as “a policy of last resort for people involved in businesses and in residential areas after the Watts riots. No insurers would go in there.” All the admitted carriers involved would share the risk of catastrophic loss.
There are a number of factors that go into determining your premium: the fire line score, protection class, fire resource assessment program. “They all work in the background and make your premium what it is,” Wimmer said.
She noted that in 2015 her Farmers policy went from $1,300 a year to $6,100 a year because her fire line score changed. “There is no way to challenge that. There is no transparency. The numbers are produced by something called the Insurance Services Office. They don’t give a lot of information as to who they are.”
The protection class, she noted, has to do with your local fire department. Those numbers were affected on the mountain, Wimmer said, when the Crest Forest Fire Department closed over the issue of an ambulance tax and San Bernardino County Fire took over. “Now there isn’t the same equipment in the station there used to be – a lot is down at Norton. These numbers affect your premium.”
The Fair Plan is not yet a state insurance plan, Wimmer said. “We are stuck with it. It has gone from a policy of last resort to a policy of the only resort.”
Homeowners should have what’s referred to as a wrap-around policy to complement the Fair Plan. This DIC – difference in conditions endorsement – “picks up coverages that the Fair Plan doesn’t cover.” For those who suffered damage during the blizzard, it would be the DIC that would cover it.
“There was no coverage from the Fair Plan during the blizzard. If you didn’t have the DIC, you were pretty done. A lot of people have no idea what these policies do for them.”
As an agent, Wimmer said, she makes sure people do understand their policies. “I educate them on what their policies cover – even people who aren’t my customers. This has become a lifelong mission.”
And now, she noted, major carriers are leaving the state in droves; some are not even writing DICs. “There are no reinsurers who want to back these companies because of the massive amount of claims and the constant danger of wildfire.”
Saying she was going to be blunt, Wimmer said that “they don’t want you living where you are. I continue to fight this battle, mostly for the mountain because this is still my home (Wimmer now lives on the Central Coast). So many people are still suffering after the blizzard – they can’t get a roofer, can’t get their claim filed.”
In the long term, Wimmer said, “what the insurance commissioner wants to do is turn the Fair Plan into standard HO3 state government insurance. I have heard that out of his mouth. I have thought for years this is where it’s going.”
Wimmer said she had tried to rally people in 2016 but didn’t get much support. She urges homeowners to write and call the Department of Insurance with their concerns: not being renewed, having their premium tripled.
Andrea Valdes
At a meeting of the Inland Empire Fire Safe Alliance on July 12, Andrea Valdes of the California Department of Insurance’s Community Relations and Outreach Branch, also urged consumers to contact them.
“We regulate all lines of insurance,” Valdes said. “Homeowners, auto, life. We regulate the insurance companies, agents and brokers. Everything we do is to protect people from insurance fraud. If your claim is denied or your company doesn’t get back to you, contact us.”
Valdes told the Alliance about their Safer from Wildfires program, which includes measures business owners and homeowners can take to help with their insurance and protect the entire community.
“We urge homeowners to harden their homes,” Valdes said. “Protect your structure. Protect the immediate surroundings. What about the person next door with lots of brush? We need the whole community to act.”
Safer from Wildfires
Noting that a risk score is assigned to a home or business, Valdes said that “if you know the risk, you can take action to reduce that risk.” She added that new regulations require insurance companies to give you those scores and the factors that went into creating them.
Both Valdes and Wimmer acknowledged that these issues are not peculiar to the mountain or California as a whole. “Insurers are pulling out of other states as well,” Valdes said. “No place in the U.S. is safe from disaster.” Wimmer pointed to tornados in the Midwest and hurricanes in Florida.
“You are in a very special place, not only in my heart but on the planet,” Wimmer said. “I want to see it preserved. It’s time for people to understand what’s going on.
“My job isn’t to scare you but to educate you,” she added. “But I hope you get scared into action.”
Happy to see Shelli is doing well. She did so much for her mountain insurance customers over the years. She certainly will be missed by many. All the time we spent getting tipsy is much best memory. Shelli will never be replaced as the Lake Gregory Yacht Club in house insurance guru. Best Luck -My Friend
Hopefully you see this post Shelli- all the bar folks at the Stockade have wondered where you have been. It like you lost a family member when a regular moves away. Best wishes from your friends at the bar.
So happy that you are okay. We miss you at the Stockade and did not know you moved. Your knowledge of mountain insurance will be missed but it has all changed since you left. Unfortunately we all lost the coverage you got us. But I am told that is the price of living in these mountains. We lost our roof during in the March snow storm only to be told we were not covered. Then within days our deck connected to our second floor collapsed only to have our claim denied because several planks were rotted. But after a night at the Stockade it is all good. Hopefully life treats you well my friend.
Maggie here: hi Shelli we spent many Friday nights together at the Lake Gregory Yacht Club cocktail parties. You were the commodore at that time and the life of the party. I had no idea my drinking buddy lef the mountain. I miss our social hours together but not our new insurance. Do you know the Yacht Club building collapsed in the winter and the insurance was not there. The building can not be salvaged. I do not blame anybody and wish you only happiness with your new life.
The yacht club has fire insurance but not insurance for the snow storms. The six member/owners of the property were not aware that the building was not safe for the mountains with a flat roof and walls made of cardboard. Thank God nobody was inside when that cardboard box collapsed. Shelli did you have that building safety inspected when you were the commodore and in house insurance expert? Enjoy your new home.
Art H. just reminded me of the Friday night cocktail parties at the yacht club. You were the commodore and the life of the party. Surprisingly we were able to work the next morning. You provided invaluable insurance guidance to all the members and the yacht club itself. Thanks for everything andtake care🎉
Does anyone know how the Lake Gregory Yacht Club had no insurance coverage for the collapsed roof with it’s current and past commodores experience in the insurance industry? Maybe it is just me but it seems strange.
Maggie: it is not strange that the yacht club building was not insured. It was all about saving money on insurance premiums. Businesses like Goodwins are rebuilding because they did not try to save money. The yacht club was frugal and now their building is in rubble.
If you were the commodore of the Lake Gregory Yacht Club and a licensed insurance agent Shelli why did you let the yacht club operate without proper insurance? Today is the sixth month since the building collapsed and the yacht club has done nothing. There is a foul smell there. The mountain undesirables are comfortable there. We live there and have to live with this nightmare. There seems to be no end in sight. A group of us have contacted the county with- ‘we will get back to you.” No wonder people are now leaving.
Shelli was the commodore and in-house insurance lady of the yacht club. How could this expert not be aware of the poor building construction topped by a flat roof? Who would let that club operate without the needed storm insurance? Now all that matters is the cleanup.
Shelli has not been the commodore of the yacht club for several years. The fact that the building was not structurally sound for the mountains was not her fault. She is not one of the six owners of the collapsed club house. Perhaps they need to answer for not carrying the needed insurance and the slow walk cleanup. Let Shelli forget this chapter-please.
The Lake Gregory Yacht Club property has just closed escrow for $175,000. Thank God! The new owner will be responsible and take care of this six month nightmare.
I can not believe that the yacht club actually sold their collapsed property. The new owner can only be a improvement over what we have been forced to endure for so long. Thank You! Thank You!
Hurricane Hilary is putting its finishing touches on the collapsed Lake Gregory Yacht Club building. Maybe the awful smell will go away. The neighborhood hopes the new owner can cleanup the yacht club building before winter. We are now moving but Adios LGYC!
Hillary swamped the collapsed yacht club building with the open roof. Can you imagine the smell? The County needs to order an immediate cleanup or people will get sick. The building should have been covered six months ago. The six yacht club member/owners should be liable for any of us getting sick from that awful smell.
Thank goodness the yacht club property has a new owner. The past months shows how bad they were for the neighborhood. The hurricane has ravaged the collapsed building.
Miss Hiyena: go by the collapsed yacht club and you will smell the foul air. It stinks now more than ever. Shelly was the past commodore of the yacht club and the in house insurance professional. This should not have happened. Why has this cleanup not started?
Hiyena- there is no cleanup because none of the owners have to live with the stink. They are on their yachts while the neighborhood is gasping at the smell. We are moving on the 31st but I will never forgive the Lake Gregory Yacht Club for what they put us through. There is no excuse for them waiting six months and counting to cleanup the collapsed building.
The yacht club property has been sold to the transit system. Now the yacht club is gone the transit authority will do the needed cleanup. It took six months but finally we have a responsible owner. Thank You Thank You
Hiyanna you have no idea what the yacht club did to our neighborhood by ignoring numerous pleas to cleanup their mess for half a year. Shelli is gone, the yacht club is gone and their collection of broken boats scattered throughout the lot are now gone. Good Bye
For the last 10 years the yacht club lot turned into a graveyard of broken boats. Are there any sailors under 80 in Crestline?
Shelli we all miss you at the Stockade. The insurance you gave was so valuable. You were an asset to the mountain. Stay Well
You bet we miss Shelli at the Stockade. It is amazing that we were able to work the next morning.. Miss Ya
I see that you moved to a farm in the Central Coast. You always wanted to be around farm animals. Best wishes from your friends at the Stockade bar.
Shellie, thank you for speaking to Lake Arrowhead Communities Republican Women. We miss you and greatly appreciate your keeping us informed. Thank you for continuing to be our insurance agent.
Shelli has been very vocal on these issues for the past few years; wish we had paid closer attention. It’s critical this become a community effort to change the status quo.