Lenders fail to pay fair plan fire insurance policies – CBS Sacramento

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GRIZZLY PLATS (CBS13) – Military dad and his wife who lost their home to the Caldor fire learned they were uninsured and their lender failed to pay their fire insurance bill .

Other fire victims came forward after our investigation, saying the couple learned they were not covered by insurance. Each case involves confusion around FAIR Plan fire insurance and home refinancing.

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Trevor Hammond was in Afghanistan when the Caldor fire destroyed their home in Grizzly Flats. His wife Hannan and their three children, all under the age of 12, were evacuated, but they lost everything.

The couple initially paid for fire insurance and home insurance through their monthly mortgage, but when they refinanced, the fire insurance was not transferred to the new loan and remained unpaid.

The family is staying with their parents.

“Being at my parents’ house, once the shock is over, all the feelings start to show up,” Hannah Hammonds said.

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“There are a lot of emotions at the same time.” Trevor Hammonds said. “I’m angry one minute, complacent the next.”

Consumer lawyer Amy Bach is with insured nonprofit United.

“This scenario is unfortunately going to become more common,” Bach said.

With so many insurance companies choosing to no longer insure people against fire, Bach worries that lenders will be confused when they have two bills to pay: one for last resort fire insurance called the FAIR plan, and a separate policy for owners.

The same happened to the Green family, which we also talked about. After losing their home to the Caldor fire, their request was denied. It turns out that after refinancing, their new lender paid their home insurance, but not the FAIR plan bill.

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After our participation, the lender intervened saying that the family was now fully covered.


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