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Community Assisting Recovery, Inc.

“Survivors Helping Survivors” • 888-216-8264 • carehelp.org

 

Index:

This Week’s Meeting Schedule:

Insurance/Recovery Tip: ...A Fixed Price Rebuilding Contract

CARe Update: ...................Save the date!

Sempra/SCE Update:.........What to look for in an Attorney Fee Agreement

Disaster Recovery: ............Companies, underinsured homeowners still in dispute over settlements stemming from 2007 wildfires  

Insurance Industry: ...........Fixing The NFIP - The Most Inefficient Insurer In The World

Disaster Prepared: ............SDG&E's shut-off strategy on hold

Disaster News: ……........... Full Coverage of the Sesnon and Marek fires in LA area

Quote of the week: .......… Ann Dixon, Greenburg KS Resident

Help CARe provide assistance to disaster survivors and continue our free services.

Click HERE to donate.

 

 

 

This Week’s Meeting Schedule:

Date

Time

Topic

Location

Sat, Oct 25

10:00 am

Tactics for working on your personal property inventory

Fallbrook Community Baptist Church - 731 S Stagecoach Ln, Fallbrook CA       -            MAP

 

Insurance/Recovery Tip:

A Fixed Price Rebuilding Contract
After our loss in the 2003 fires, Lori Delgado with Escrow Funding Services came to our fire recovery meetings to speak about working with contractors. One piece of advice that stuck with me was signing a fixed price contract as opposed to a time and material or other such open ended contract.

What this means is that you determine the price of your house BEFORE you start building. If it takes more to build the exact house agreed upon, then the contractor has to eat the cost. If it costs less then he gets to keep the money. One caveat is that if you go about setting up this kind of contract, your budget could be completely blown with change orders so be sure you have an architect go through your plans carefully to be sure the details are all there to complete the house with as few surprises as possible.

There are two general places where the contractor can cheap out on you. The first thing is the quality of the “bones” of your house or the construction materials. If you want a house with high quality construction it MUST be laid out in your plans.

The second place they can cut costs is with the finishes. Way too many people I talk to aren’t even asked about these things until they’re about to be installed! For example your contractor might’ve bid your kitchen based on cheap cabinets with laminate tops. If you want high quality wood cabinets with granite, you might be in for a rude $50,000 awakening.

Both of these types of details need to be hammered out IN WRITING before you start construction. The set of plans we created [link for reference only, the codes have changed significantly] for the modest 1400sf house included pages of drawings many of which were not required by the building department. We also had a 15 page document that detailed everything else in the house we could think of. (I must admit, though, that even this is not inclusive. We still had to pick out the doorbell and electrical fixtures among other things).

This came in EXTREMELY handy when problems arose. For example, on our electrical plans we requested the breaker box to be inside of the garage. The electrician put the box on the exterior of the house. He had to rewire the entire house at his own expense. One thing we messed up on was the interior paint. On the schedule we put PT-1 on every wall. When it came down to it, they wanted to charge an additional $7,000 to paint each room a different color (we painted it ourselves to save money).

This amount of planning was done BEFORE we even had contractors bid on the house. No, most architects or draftsmen with not do this much work for you at their basic rate. On the other hand, the up front expense will probably pay for itself in dispute resolution and change orders down the line.

This is one case where planning ahead really pays off. I highly recommend taking the time to plan your construction project IN DETAIL and get a FIXED PRICE CONTRACT before you jump in.

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CARe Update:

Save the date!
A “Thank You” reception is being planned for George and Patricia for Wednesday, November 19 at 6:30pm. We would love to see you there!

We could also use a little help with the preparations. Please call me if you can squeeze in some time to help!

Lila 619-300-1154.

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Sempra/SCE Update:

What to look for in an Attorney Fee Agreement
An attorney contingency fee agreement (the attorney takes a percentage of your award) can be very confusing. Read the fee agreement carefully as it may have many hidden costs. Be careful.

CAUTION IF the attorney fees are based on GROSS instead of NET of your settlement money. Fees based on GROSS will always cost you more in attorney fees.

  • GROSS means you are also paying attorney fees on the costs (expert and witness fees, valuation reports, photocopy, etc.)
  • GROSS means the attorney has no incentive to keep costs down. The attorney gets their percentage on every dollar they spend. The more they spend, the more attorney fees they get.
  • You ONLY want a attorney fee agreement based on the NET award!
  • Fees on NET mean you get more money! See EXAMPLE below.

CAUTION IF the attorney asks you for “up front” money in exchange for a fee percentage reduction.

  • Asking you for money to litigate your claim could mean the attorney is underfunded or does not have enough confidence in winning your case to use his/her money for your costs.
  • Be sure the law firm has the money and qualified staff to finance and withstand multi-multimillion dollar litigation.
  • An underfunded attorney can give up a lot of your money to get a quick settlement.
  • Expert costs can be very high in “valuation” cases like this case against Sempra and SDG&E.

CAUTION IF the attorney says he will reduce his percentage but then gives you a long attorney fee agreement with confusing clauses that could actually inflate your final legal expenses.

  • Attorney fee agreements should be concise and easy to understand.

CAUTION IF the attorney is charging an excessive hourly rate for him/her self and paralegal.

Be sure to:

1. Review and understand any attorney fee agreement before signing it.

2. Check that fees are based on NET not GROSS fees on your award money.

3. Check on line:

·         Does your attorney and law firm have lots of their own money to fund these very costly cases?

·         Does your attorney have the necessary successful background and experience to go against SDG&E and its gigantic Los Angeles firm, Quinn Emanuel?

·         Have you checked www.quinnemanuel.com to see why you need the biggest and best law firm to protect you from them?

·         What experience did the law firm have BEFORE the fires?

TIP: Fees are always negotiable even after an attorney fee agreement has been signed.

To download a printable version of this, please click:
http://www.carehelp.org/downloads/SDGELegalCaution.pdf

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Disaster Recovery News:                   

Companies, underinsured homeowners still in dispute over settlements stemming from 2007 wildfires
October 12, 2008

They spent a recent Saturday creating detailed lists of the contents of their houses – everything from dishes and bed linens to socks and unopened tubes of toothpaste. When memories failed, they turned to each other's lists to jar their recollections.

[more at: http://www.signonsandiego.com/uniontrib/20081012/news_lz1b12coverag.html ]

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Insurance Industry News:                  

Fixing The NFIP - The Most Inefficient Insurer In The World
October 17, 2008

Congress agreed with Representative Barney Frank's (D-Mass.) assessment of the National Flood Insurance Program (NFIP) and on September 29, 2008, passed a bill extending the Program through March 6, 2009. The extension was made "necessary" to allow congress time to iron out differences of opinion about the program including: the addition of wind coverage (see "Why Flood Policy Should Not Include Wind Coverage"); and whether or not to forgive NFIP's $18 billion debt.

[more at: http://www.mynewmarkets.com/article_view.php?id=94730 ]

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Disaster Prepared:

SDG&E's shut-off strategy on hold
October 18, 2008

SAN DIEGO – San Diego Gas & Electric Co. said yesterday that it will back down from its controversial plan to shut off power to rural customers during dry, windy conditions if state regulators object.

http://www.signonsandiego.com/news/metro/20081018-9999-1m18power.html

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Disaster News:

Full Coverage of the Sesnon and Marek fires in LA area
http://www.latimes.com/news/local/traffic/la-me-wildfires-sg,0,1995157.storygallery

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Quote of the Week:                   

"Well, we're living in a construction site.... It might not be done, but at least we're gonna be getting in and making it feel like home.... To be able to come back and have some semblance of comfort and normalcy in our lives. It feels like a puzzle that's starting to come together.

 Ann Dixon, Greenburg KS Resident, Episode 3; Greensburg:
http://planetgreen.discovery.com/tv/greensburg/greensburg-6-22-9.html

 

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Community Assisting Recovery, Inc.

19360 Rinaldi Street, PMB 220, Northridge CA 91326
www.carehelp.org
888-216-8264