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Consumer Complaint

Getting Illusory Property Insurance in Wildfire Area

Companies Involved: 
Foremost Insurance Company
Issue Area: 

My home is located in Crestline, CA and is now a secondary home for me due to the recession. I moved to No. CA and can't sell the property as it is upside down by approximately $100,000. I have been paying on the mortgage since I can't get any loan modification/debt forgiveness unless it is in default (Wells Fargo Bank). I have always had problems getting property insurance in Crestline as all the insurers, except for Farmers and State Farm, stopped writing business in the SB mountain areas. Because it is secondary, Farmers will not write the coverage and only Foremost wrote a policy for the house, but refused to issue actual replacement value. The Foremost policy will only pay market value less deductible and depreciation. The house was built in 1924 which means this policy as written will cover little if anything in the event of a catastrophe. I am not alone with this problem. All CA property owners in wildfire areas are faced with the same issue, despite efforts to maintain and protect the properties. It smacks of redlining and fraud (being permitted to write policies that won't pay out - illusory benefits).