Board Meeting, October 16, 2024

• October 16, 2024

Minutes for the San Antonio Village Homeowners’ Association Board of Directors
Monthly Meeting on October 16, 2024

The Board meeting was called to order by President Dawn Lucian at 7:00pm. Other Board members present were Diane Kirchner (Vice President), Cindy Capra (Secretary) and Emilie Dressaire (Member at Large). Also present were Daniel Ortiz (Manager) and 17 residents.

1. A motion was made by Dawn Lucian and seconded by Emilie Dressaire to approve the minutes of July 17th, 2024.

2. Paul Cashman, our State Farm Insurance Agent, was present to discuss insurance.
a. Coverage summary was handed out.
b. He has been an agent for 42 years. The insurance industry, particularly in fire, is in complete chaos. Proposition 103 (25 years ago) that made insurance commissioner an elected position has affected the insurance industry today. The position has become political. The commissioner has been keeping with regulatory authority to keep insurance rates down. However, the industry is failing because they are upside down – more losses than premiums.
c. Several other agencies have non-renewed clients and left California.
d. Paul not been able to write any fire or homeowner insurance (no new business) for past year.
e. For existing State Farm business, every apartment building in State of California has been non-renewed. Earthquake coverage is obtained from CEA (California Earthquake Association). Homeowner Associations like ours, non-renewed many. Every association in California fire coverage was non-renewed.
f. Earthquake insurance has been grandfathered – which has stopped now. When our policy renews we will lose earthquake coverage.
g. 34,000 homes have been non-renewed. Lots of homes in the hills locally have been non-renewed. It is because California cannot charge a rate that is appropriate to the exposure due to the regulatory limits imposed. Causes are twofold. Wildfires and inflation (cost of construction) has affected ability to cover.
h. The only way to start writing new insurance again will be if the insurance company breaks even. That is the goal of State Farm.
i. Association has a master policy – solid Gold contract. Earthquake policy is falling off February 15, 2025. Marketplace is probably 2x what we were paying.
j. Non-renewal criteria for insured is primarily because they are close to fire zones.
k. Coverage summaries:
i. Master policy renews 2/15/2025. $72,270,720 is insured payout in event of catastrophic loss to association. Total payout would be $87,327,120 – $425 per square feet (this includes blanket coverage).
ii. Earthquake insurance non renews on 2/15/2025.
iii. $500,000 liability insurance coverage. Commercial umbrella stacks on top of $3 million for bodily injury (someone injured on property).
iv. Annual premium for master policy is $149,068 – includes earthquake premium (63,032) – new insurance amount will be $86,036 without earthquake insurance.
v. Too many claims would be the reason for loss of insurance.
vi. Directors and Officers liability coverage protects the Board against being sued by homeowners.
vii. Auto coverage – has minimum required to have the umbrella policy.
viii. Fidelity Bond – ensures that the association has adequate reserves (necessity).
ix. Certificate of property insurance available if someone is trying to get a loan for their home and need proof that association has coverage.
l. Paul Cashman recommends Individual homeowners purchase loss assessment coverage for earthquake insurance through their homeowner insurance carrier that is provided by CEA (California Earthquake Association).

3. Treasurer’s Report will be delayed until next meeting because Mike Porter was not present.

4. All Board members present agreed that the Board meetings will be moved up to 6pm.

5. Board Position Official Vote: Board agreed that all positions would stay the same but Diane Kirchner would be trained to be Treasurer. Dawn will continue as President, Mike Treasurer, Cindy Secretary, Diane Vice President/Treasurer’s assistant, Emilie Member at Large.

Meeting was adjourned at 7:55pm.