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Mother Nature

Like the rest of the country, LA has been hard hit by climate change in the last year. First floods. Then fires. Now mudslides. More and more it seems that Mother Nature is demanding that we pay attention to her. We have only to look at our beautiful canyons, home to some of the most expensive and desirable real estate in the city – canyons that, let us not forget, were created by seismic activity – and it’s clear that it’s only a matter of when, not if, a major earthquake will strike that will change a lot of lives.

So as we head into 2018, maybe it’s a good idea for us to take a moment and just ponder where we live, and what we would do if a natural disaster struck that would force us to decide whether to rebuild or move to a different location.

On a practical level, that means knowing what kind of protections we have. For example, what kind of homeowners insurance policy do you have? Do you have a replacement cost value policy? Or do you have an actual cash value policy? It’s extremely important that you understand the difference. Also be aware that as a mortgage holder, any settlement will first go to the lien holder, the bank, and to you, the homeowner, second. So if the settlement does not cover the mortgage, you may be forced to replace your home and not move.

Food for thought.