insurance increase one only has ….

insurance increase one only has to look at the GRF property replacement premium increase from 2023 to 2024. The fires destroyed properties that were insured by the insurance companies. Property replacement insurance covered those losses. The GRF property replacement premium only went up $40,000 or 14% and that was justifiably due to the value of the properties having gone up by 11%.

So why then did the umbrella and excess liability premium go up by $1.1 million? It all had to do with lawsuits. The general liability policies provide coverage up to $2 million in claims. The umbrella and excess liability provides coverage above $2 million up to $40 million. According to the December 2023 summary provided by the insurance broker in relation to the umbrella and excess liability insurance, “liability claims from $2.5 million to over $5.8 million in just over 18 months has led to a large increase in premium.” That increase in claims came about from three instances where people were hit by vehicles on Leisure World streets.

GRF was not at fault in any of those instances but it had the deepest pockets. The insurance company only cares if they are at risk of a settlement and when it started to look like settlements might exceed $2 million, they took no chances and raised the premium.

The real reason for the insurance premium jump had to do with residents being hit and suing GRF because of it.

Interested in learning more about GRF? Read past news stories, columns and more at www.LWweekly.com.