Guest Farmer’s Agent Vito Paoletta III discusses homeowner’s insurance and the current state of the insurance market. He also addresses how to find a realtor and whether home warranties are worth the investment.
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Speaker 1 (00:00):
You're listening to KFI AM six forty on demand.
Speaker 2 (00:04):
Excellent show on the Justin Worsham Show today Easter Sunday.
Happen to catch a few minutes of it. Great topic,
so informative. Keep this show alive, so beneficial, so many
good things to learn, great radio voice, really easy to
listen to. He's very entertaining. Time goes by on a snap.
Learn so much. Keep the show KFI. Great job, Thank
(00:26):
you so much.
Speaker 3 (00:27):
I figured I might as well take that opportunity to
let somebody brag on me since it's my last day.
I don't know if this makes me a narcissist, but listen,
you only got to deal with this narcissist for less
than an hour and then we'll see how it goes
from there. So with me in studio from Farmers Insurance
is my friends veto Payeletta the third.
Speaker 4 (00:44):
You've been in insurance basically.
Speaker 3 (00:46):
Your entire life because you took over your dad's business, right, Vito, Well.
Speaker 4 (00:49):
That's right.
Speaker 5 (00:49):
It's still a family business. My dad started our agency
in nineteen seventy nine. I was a kid, so it's
in my blood. Yeah, like it's there. So it's now
run with my my stepmom, my dad's wife. Uh huh,
her agency. But I'm still there.
Speaker 3 (01:04):
That's awesome. I love that, love everything about it. So
what we want to talk about. You made a joke
on an Instagram post, and so you had some questions
trying that you were making fun of how sexy insurance is,
even though obviously it's not the sexiest thing to talk about.
But they honestly were good questions. And what I wanted
to have you on the show before you even made
that comment that was the plan is so a lot
(01:25):
of times what we're seeing. In fact, I've heard it
from My mom has called me because she's like, my
mortgage payment keeps going up. We had a caller reach
it out earlier in one of the shows, saying that
the hadues keep going up, and I told my mom
and I'm venturing against the hadu's are going up because
insurance is going up.
Speaker 4 (01:41):
Is that right?
Speaker 3 (01:41):
Like insurance keeps getting more and more expensive, especially homeowners.
Speaker 4 (01:44):
That's right.
Speaker 5 (01:45):
Everything has been going up, the auto policy, the homeowner policy,
the ho waye those premium has been going up, everybody's premium.
Speaker 4 (01:52):
Do you know why, Is there a reason why?
Speaker 5 (01:54):
Or well, yeah, basically for the last decade, maybe fifteen years,
we haven't been seeing very big rate increases. It's they've
been restricting on what we can raise these rates to.
Speaker 3 (02:07):
So the Insurance Commissioner, which is appointed by the governor,
right that office, that bureaucracy regulates what an insurance provider
can increase their premiums by.
Speaker 4 (02:17):
Is that fair to say that is correct?
Speaker 5 (02:19):
Oh?
Speaker 3 (02:19):
So they've been kind of squashing it down for so long,
making it harder for insurance companies to stay profitable. And
then that which is probably why a lot of insurance
companies pulled out of California because they felt like there
was a danger coming. They didn't, obviously, I don't think
predicted they knew exactly the week that we would have
those fires in southern California. But they're like, this is
a dangerous place to do business because we ensure people
(02:41):
and if we can't stay profitable and then pay out claims,
then we're in trouble.
Speaker 5 (02:44):
Yeah, that's right. I mean you heard State Farm pulled
out entirely.
Speaker 4 (02:49):
They wanted to.
Speaker 5 (02:50):
They dropped seventy two thousand policies in California, thirty thousand
of them were homes because they saw it coming. They
know there's going to be a lot of losses here. Yeah,
they were losing money in the business, so they had
to get out.
Speaker 3 (03:02):
And then did when all that started happening, did that
kind of put the Insurance Commission Office like put their
backs against the wall and they had to start allowing
these rate increases. Well that's right. Now they're talking. Now,
now they're talking. Now they're talking. Do you know like
what the new caps are or is it just kind
of like just please ensure these people and it's you know,
I'm sure it's not the Wawah West. I'm sure they're
not allowing you to have free rein.
Speaker 5 (03:22):
But no, it's not like that. But they're definitely allowing
these rating increasures to go through. Now, Okay, now we're
seeing because you're seeing big rat increasures on all these policies.
Speaker 3 (03:30):
So when people are seeing their insurance jump up, what
they need to understand is that you probably were barely
even given cost of living increases. As far as the
cap right to keep up, it's a lot like rent
control in my opinion, where it's like you can only
raise rent this much. It doesn't matter how expensive plywood
or labor becomes. This is all you could raise your
rent to stay profitable, and they kind of did that
(03:51):
to the insurance agency. So you guys, it's not your like,
you're not the insurance industry isn't gouging the people.
Speaker 4 (03:57):
It's just trying to catch up to stay in the black. Yeah,
this is exactly right.
Speaker 5 (04:01):
And it goes all the way back to Prop one
oh three, and that goes back to I don't know,
like in the eighty eighty eight.
Speaker 4 (04:07):
I think what's Prop one O three. I don't know.
Speaker 5 (04:09):
Prop one O three is was the people voted on it.
They wanted to be able to control those rates, those
insurance rates from from because at that time auto rates
were kind of jumping up. So they said, hold on
a minute, this was too much. People can't afford it,
and they regulated that. So that was a vote that
went to the ballot. It wasn't something that was just
put out by legislation. It was a ballot. Was a
(04:29):
proposition that got voted in the California.
Speaker 3 (04:31):
People of California voted in to put a cap on
what insurance could increase. That's right, un limited it. Yeah,
and so now that wasn't catching up with inflation. Yeah,
that makes sense. That makes so much sense. Anything else
about rate increases and stuff like that before I move
on to ask you another question, I mean.
Speaker 4 (04:48):
Just to expect them.
Speaker 5 (04:49):
It's still it's still moving up right now, everybody's paying
you know, fifty percent or one hundred percent more than
what they were used to.
Speaker 3 (04:57):
Is there a way for me to know if I
like that I'm be gouged like or being caught like chargemud?
I guess the only what it should be is you
should rely on open a free market economy and you
should just price shop.
Speaker 5 (05:08):
There you go, somebody. I mean, the way they had
it set up, it's more like socialism. They're controlling it. Yeah,
let it be a free market, then rache will come down.
You'll see it.
Speaker 3 (05:17):
But me as a consumer, right, Like, if I keep
getting these rate increases and I want to find out
am I getting gouged or is this just the now
going rate for my auto policy?
Speaker 4 (05:26):
I have to call other providers, right, And.
Speaker 3 (05:29):
Then I'm imagining that I need to make sure that
I'm getting equal coverage, right, that somebody's not giving me
a discount because I'm getting less coverage.
Speaker 5 (05:36):
Well, that's right, I mean, you want to shop the
market right, see what's out there, but it's not really
a great time to shop in all products. Yeah, I
wouldn't move your home policy right now if you have
a good homeowner policy, even if you just got a
five hundred dollars rate increase.
Speaker 4 (05:49):
Or really oh yeah, you would just ride it out,
you know.
Speaker 5 (05:53):
I would look at other areas to save money on it,
maybe increase your deductible or just adjust your coverages. But
don't switch your insurance right now? Why why not switch?
It's gonna be it might be difficult. There are every
houn home that we write, they're going to inspect. It's
my job to inspect it first. And you may have
you know, some chip paint or an older roof or
(06:15):
something that that now the insurance come to say no, sorry,
we don't want it, or or I might even say
that no, I can't write you.
Speaker 4 (06:22):
And is it a thing where you can like?
Speaker 3 (06:25):
Is it like getting a job or you can't like
you you have to find new insurance before you get
to get rid of the old one. Or are you
saying that don't switch because that transition may not be clean?
Speaker 5 (06:34):
Oh yeah, both ways. Definitely don't just don't just drop
it and have anything yeah. And even when I write
a new pose for somebody and they're taking them away
from another carrier, I tell them, don't don't cancel this
until you get our policy in your hand, like it's
a it's a there's different between calling you, like calling
a VETO and saying, hey, what's my policy going to
look like?
Speaker 3 (06:55):
And then actually having the policy, and a lot can
happen in that little those two dots.
Speaker 5 (06:59):
That's right, you get an issued policy that they're that
the new insurance company is on the hook before you
say goodbye to your old one.
Speaker 4 (07:05):
You're the best.
Speaker 1 (07:06):
You're listening to KFI AM six forty on demand.
Speaker 3 (07:10):
Justin Worsham with you talking Southern California real estate till
four o'clock today, and with me in studio is my
friend Vito pay a letter the third from Farmer's Insurance.
We're talking insurance, and I wanted to talk to you
about earthquake insurance. As a realtor, I get lots of
questions about earthquake insurance and Veto. What I'm gonna tell
you is what I tell my clients feel free to
(07:31):
tell me if I'm giving them poor advice, is that
I always tell them as your realtor, you are supposed
to I'm supposed to tell you to get earthquake insurance
just so you have the most protection. And then I
pretend to take off my realtor hat and I say,
I go, now here's the thing. What I do as
a person is I look at the earthquake insurance and
I look at how much it costs and what it covers.
Because my understanding is is you pay an annual premium
(07:54):
and then there's usually some kind of like the deductible
that is somewhere around thirty to forty thousand dollars.
Speaker 4 (07:58):
But that's probably based on the value of your home.
Am I right? So far it's based on the coverage amount.
Speaker 3 (08:03):
Yeah, coverage amount, Okay, so it's no different than your car.
So I could pay more in a premium and not
have a forty thousand dollars deductible. I could have a
five thousand dollar deductible. Maybe that's right. You can reduce
your deduct I could reduce the deductible. And what I've
done personally is that I've done the math and say, well,
if the premium is pretty low, that probably says to
me that the insurance company says you're at a very
(08:24):
low risk right of needing to have an earthquake policy.
And so what I got my house, which was a
long time ago when I was very much broke when
I bought my house, and I was like, if this
house dies, I'm not going to have thirty eight thousand
dollars anyway, So I'll just walk away and figure it
out from there. So that's my take on it. Now
you correct me where I'm wrong. No, that makes sense,
(08:46):
And a lot of people look at it that way too.
It's like, if I have no skin in the game,
it's okay, I can walk away. I have no equity there,
walk away from it.
Speaker 5 (08:53):
But most homes you know in burbanks that they're putting,
even if they're just put the minimum down payment, but
a few years later now they've got a ton of equity.
Speaker 4 (09:03):
Yeah, they're not willing to walk away from that.
Speaker 3 (09:05):
And you know, so, yeah, because you would lose that
equity and and and you I mean even like in
the ninety four quakes, right, your family was in insurance then, right,
So like that was from what I hear. I wasn't
in southern California when those happened, But so it was
that like a huge impact?
Speaker 4 (09:21):
Was it? Was it crazy?
Speaker 3 (09:22):
Were there are a lot of people who didn't have
earthquake insurance at that time and they were kind of hosed.
Speaker 5 (09:27):
Yeah, same thing like with the fires now people some
people were covered for those earthquakes back then and some
people didn't have coverage. So yeah, they you know, they
went to FEMA and I got a loan or they
got a little bit of money from VIMA to.
Speaker 3 (09:40):
Be able to try to get their house right. But
why wouldn't you want to get an earthquake policy. I mean,
if you don't have an earthquake policy, then you have
one hundred percent deductible.
Speaker 4 (09:48):
It's all you's that's see.
Speaker 3 (09:50):
This is why I want you to correct me where
I'm wrong, because that's I think when I quoted what
I bought my house, I'm out, ooh, I'm twelve years
ago announced since I bought my house, and I think
it was like I think it was twelve hundred bucks
for the year is what it was going to cost
me for an earthquake policy. Then now that's probably gone
up in twelve years what maybe closer to two grand.
But I that's all speculation. Earthquake rage, haven't changed that much.
Speaker 4 (10:10):
Oh really? Yeah, because look, when was the last time
they paid a claim? Here?
Speaker 5 (10:14):
We haven't had any bigger earthquakes, Okay, I mean we're
gonna have one. We don't know when or exactly where,
what if we do? You should be prepared. Even if
you take a policy with a higher deductible, at least
you know, if you have a twenty percent deductible, at
least you got eighty percent covered. If you don't have
earthquake policy. Again, it's one hundred percent deductible, it's all.
Speaker 3 (10:34):
You, it's all you. I got to fix everything. Your
fire policy is not going to come in. No, maybe
you'll get a couple grand from FEMA or you get
a loan from them. Before we move on to condos,
let's talk about that because I think it's something that
a lot of people don't know, like here in southern California,
maybe all of California. You know better than me, Like
I don't think flood insurance is standard with your homeowners
in policy, right, No?
Speaker 5 (10:57):
So yeah, there's two things that aren't covered on your
reg their homeowner policy. One is earthquake what we just
talked about. You get a separate policy for that.
Speaker 4 (11:05):
Uh, huh.
Speaker 5 (11:05):
Same thing with flood. And when I mean flood, I
mean flood from like rising water. But the mud is
coming down the fleet, right yeah, and it's in your
neighbor's house and yours is next.
Speaker 4 (11:15):
That's a flood.
Speaker 5 (11:16):
If you get a burst pipe in your wall of
flood your kitchen, flood your bath, that's covered.
Speaker 4 (11:20):
Okay.
Speaker 3 (11:21):
So if it's some kind of manufacturer like a system
defect or not even a defect, it just breaks and
that causes damage, then that's covered by your standard homeowner's policy.
But if suddenly we get a torrential downpour like what
a mudslide, the mudslide would probably qualify as like floods flood,
the fire happens, and then you got a big rain
that comes out like what happened here, then that would
(11:42):
not be covered.
Speaker 4 (11:42):
That's right.
Speaker 5 (11:44):
You heard that little buzz about the range that had
recently and all the burnt out areas that the mud
was going to come down.
Speaker 4 (11:49):
Yeah, that's flood insurance.
Speaker 3 (11:50):
You know what's funny as I remember it, so, Vito
and I were in a networking group together. I mean
I known him for years since I got into real estate,
because we met through our reeltor association. But I remember
you actually saying you sent it out a reminder, saying, hey,
just a reminder because if the mudslide happens, that's not
covered in your insurance unless you have flood insurance, So
be aware of that.
Speaker 4 (12:09):
So if you're in an area that's.
Speaker 3 (12:10):
A high risk for fires, or near or below hills
of a high risk for fires, then you probably want
to make sure if you're worried about it, getting some
kind of flood insurance added to your policy.
Speaker 4 (12:19):
It sounds like.
Speaker 5 (12:20):
That's true, and I write very little flood insurance in
this area. The only time I write it is when
when your escro company's telling you, hey you must have
it or interest in the flood map area, you get
to have it your lender.
Speaker 4 (12:31):
I guess.
Speaker 3 (12:32):
One of the other questions that I had was talking
about condo policies, and we were talking during the break
that you're saying that those are really hard right now.
Speaker 5 (12:39):
Help explain that for me, Well, there's just a smaller
market for them right now. A lot of carriers aren't
writing condos. And when I say condom, meaning your traditional
HO six policy that covers like a homeowner policy, but
for a condo unit, and.
Speaker 3 (12:53):
That would be like a condo would a town home
where you have shared walls right right, and it would
also be like what everybody who expect a condo if
you don't know what that means, it's like an apartment
that you own. You own the inside structure, but a
group of you, a group of homeowners, have the old complex. Right,
So you'll have a policy for your HOA, your homeowners
association that covers the construction. If the whole development burned down,
(13:17):
god forbid, the HIA has a policy that would rebuild
that whole building for you, and then your policy inside
your unit. I like to use the word paint to paint, right,
that covers whatever needs to happen in the inside of
your unit.
Speaker 4 (13:29):
Is that right? That's right?
Speaker 5 (13:30):
Yeah, So that when the HIA rebuilds the building with
your policy, now, they're going to leave you with an
empty unit. They're not going to be paint on the walls,
They're not even going to have the light switches or
the flooring down, just gonna be plywood, no cabinets, nothing,
that's all you. That's what you're insuring for all the
inside build out that you have to do.
Speaker 3 (13:49):
Do you know why there's just such a small market
for condo insurance and why insurance providers don't want to
write policy.
Speaker 4 (13:55):
It's to risk your policy.
Speaker 5 (13:57):
There's not a lot of you know, you we're not
ensuring for a big, big number either.
Speaker 4 (14:01):
Yeah, but it's your risk of your apolicy.
Speaker 5 (14:03):
There could be any you know, claims happen in the
condos more frequently than in homes.
Speaker 3 (14:07):
So when I hear you say you're not ensuring for
a big number, what you're saying is that there's a
difference between say, replacement costs and a policy that you
would get to cover say a one point five million
dollar home. But in this case, most of the time
we're talking about a six to seven hundred thousand dollars home, right,
So that difference in costs would also impact the difference
in coverage that would be required.
Speaker 5 (14:25):
Right, Well, it's just because we're not building out the
entire building. I'm only building a kitchen and a bathroom.
God at Florine, So maybe it's going to cost me
a one hundred and fifty grand to finish out the
interior of that unit versuon building a house that's going
to cost six hundred and fifty grand to build it
from the foundation up.
Speaker 3 (14:42):
So that's why it would also cost more for a
single family home. And the other thing that I think
you pointed out we were talking about this during the break,
you said that it's a condo's more likely to where
the h away covers the plumbing getting to your unit.
And if say the neighbor above you has a leak
in their toilet or their bathroom sync and it damages
your unit, well now you're either filing and claim using
(15:05):
your coverage, but your insurance is probably gonna want to
go over your go after your neighbor's insurance because they're like,
it's your fault, and there's a lot of fighting that
can happen with that, which gets expensive if it goes
if it gets legal.
Speaker 4 (15:15):
Right, that's why you buy a unit on the top
floor always.
Speaker 3 (15:19):
But am I right that that's part of why insurance
providers struggle to buy.
Speaker 4 (15:23):
Yeah, it gets it's a high risk with very little
reward for.
Speaker 5 (15:25):
Them, yep, And it can get real tricky as to
who's gonna end up paying all that.
Speaker 3 (15:29):
All Right, next movie we come back, I want to
talk about umbrella policies because anybody when you buy a
house and you have a home. Then the next thing
they always tell you that you need an umbrella policy.
But to be honest, I still don't necessarily know why.
I think I know why, but Vito's gonna explain that
when come back.
Speaker 1 (15:43):
You're listening to KFI AM six forty on demand.
Speaker 3 (15:47):
Justin Worsham with you talking Southern California real estate. I
got veto Pale out of the third from Farmers Insurance
and we're talking insurance. So we've talked about earthquake insurance
and homeowner's insurance condo policies. And this has always been
a question that I've just never thought to ask whenever
I'm renewing anything, is umbrella policies. Because when you buy
(16:07):
a home, you usually already come with your auto insurance policy,
which is required by a lot. And I asked you
this during the break, and I want to touch on
that actually first is that homeowners insurance is not required
by law. The real reason why I think most people
get it without knowing why they have to get it
is because their lender requires.
Speaker 4 (16:23):
That they have insurance.
Speaker 3 (16:24):
Right that is correct, And then when you pay off
your mortgage loan, you could foolishly decide to no longer
have homeowners insurance, but then again you'd go back to
your one hundred percent deductible.
Speaker 5 (16:35):
That's right, Yeah, that's great. So we like people have
mortgages on their on their property that it forces them
to have the coverage. So what's that umbrella policy?
Speaker 3 (16:46):
Like, in my mind, it's the thing that covers anything
between your auto and your homeowners is that?
Speaker 4 (16:51):
And they're like, umbrella is that? Or is that? Well,
it's up above that. Okay.
Speaker 5 (16:55):
So if you have your your liability limit on your
home and on your auto, right, so somebody gets hurt
at your property, you have a million dollar liability limit, okay,
but you may have assets for five million in assets, right,
you have other properties, you have other income, so if
you get sued, they can go beyond your million. Now
it's going to come out of you unless you have
(17:17):
an umbrella. Umbrella's extra liability.
Speaker 6 (17:20):
Oh.
Speaker 4 (17:21):
I always thought it was like to bridge the gap.
Speaker 3 (17:23):
For like, if a tree that was in your yard
fell on your car, that your auto policy wouldn't necessarily
cover it, and your home mowe might not cover it.
That's why you have an umbrella. But this whole time,
I'm completely wrong about all of that.
Speaker 4 (17:36):
Yeah, that's not it doesn't cover that.
Speaker 3 (17:38):
It's just so it's extending the liability because now, in
theory you have a home, so you could also have
more assets.
Speaker 5 (17:44):
Yes, but covering your ashet level. We're we're protecting your finances, right,
So we don't want anybody to tap into your finances.
If you have to pay a big claim for somebody,
God forbid, somebody gets killed on your property, somebody drowns
in your pool, the farmer or the insurance carry is
going to pay their policy limit. And if it goes
beyond that, if they're an attorney issuing you for more
(18:05):
than that, your umbrella comes in at that point.
Speaker 3 (18:09):
So has there ever been a situation where you have
not recommended somebody get an umbrella policy.
Speaker 5 (18:14):
Yeah, you're a starving student, you don't. You don't have
two nickels to rub together in your pocket. You know,
you also don't have assets. You don't have any assets.
You're a renter, you don't.
Speaker 3 (18:24):
You don't need to have an umbrella an umbrella policy yet. Okay,
but but you start making money or you have some ashts.
I'm sure you have clients that have well over a
million dollars in assets. Yeah, well, their primary liability is
only going to cover them to maximum.
Speaker 4 (18:40):
Of a million. Okay, you're going to.
Speaker 3 (18:42):
Have and some of them only go to half a minute,
and an auto policy would only Really, that only applies
in auto incidents. It's not like it comes in and
jumps in just because your car was parked in your
driveway at the time something happened.
Speaker 5 (18:56):
Right, No, same way, the same way with the cars.
If you end up hitting somebody in a car, and
god forbid, you kill two or three people in a
bad car.
Speaker 4 (19:02):
Accident, and you're living on your auto policy.
Speaker 5 (19:05):
And you only have the you know, you're limited to
half a million on your auto policy, but they want more.
Speaker 4 (19:11):
It's going to go on to your umbrella.
Speaker 3 (19:13):
The other thing I want to talk to you about
was just a little bit about the fires, and because
I get a lot of questions about like how like
how are insurance companies going to handle us? How is
it like are we already seeing I know because I've
heard from people that insurance companies have kicked in for
the people who lost their homes, have had like had
hotels for like two or three months. And I think
they also were getting some money from FEMA as well.
(19:36):
How like, what's the timeline do you think before we
start seeing them construction starts happening to rebuild these areas
or is that way above your scope?
Speaker 5 (19:43):
Well, the construction of the areas isn't really an insurance question, Yeah,
because because insurance companies have paid out already billions on
these fires recently, okay billions, but a lot of it
is for that additional living expense, you know that they
had to go live somewhere else for a while. The
money to read build is still coming in for that.
Speaker 3 (20:02):
And do you know does it work like like if
my car gets totaled, they just assess the value of
my car and they cut me a check and then
I use that to go get another car. My car
goes away? Does But I imagine for a house that
if you're getting a reconstruction that the insurance company is
involved in, like wanting to get updates and photos of
what the contractor's done so that they're not overpaying. They
(20:22):
don't want to pay for pay fifty percent of what
they're going to pay when only twenty five percent of
the work has been completed.
Speaker 5 (20:27):
Yeah, they'll control distributing that money as as it's needed.
Speaker 4 (20:30):
For that job.
Speaker 5 (20:31):
Okay, you know, I mean some policies will some policies
will give you a big check and then now it's
to you to go negotiate.
Speaker 3 (20:37):
Were there any big takeaways that we learned about the
insurance agent, like industry or anything about like a person
like me who didn't understand why I had umbrella coverage
until now. Is there anything that I that we learned like, oh,
we should do this better from the fires.
Speaker 5 (20:51):
Well, you've got to listen to the insurance companies when
they're talking about, hey, this area is high risk. Why
is it high risk? Well, it's go so even the
forestry department, why aren't they thinning out these trees? You're
adding the fuel the insurance I mean, see that, and
that's why they're pulling out.
Speaker 3 (21:10):
So you got to pay attention to those canaries in
the coal mine. Yes, this and the insurance companies are like, hey,
this is dangerous. That's not the time to limit your coverage.
That's the time to probably make sure that your coverage
is updated, like check in with your person to make
sure you have the right amount of coverage to replace
your home.
Speaker 4 (21:25):
Well, that's true, that's true too.
Speaker 5 (21:27):
A lot of these people that during these fires were
underinsured because they haven't updated their policies in years. These
policies have to be looked at. Your dwelling coverage is
an important number there. Is it insured accurately? If you're
under insured, they're not going to just step up and
pay you the extra. You got to make sure you
have that policy covering the full replacement amount in today's
(21:49):
replacement value.
Speaker 3 (21:50):
You've helped my clients who have lived in some of
these areas where the California Fair Plan was the best
fire insurance plan that they had. My mom has a
California Fair Plan at her home up in the Mounts in
northern California. Do you know of any like are you
pro or against the California Plan? Is there anything that
people need to watch out for with the California Plan
Fair Plan?
Speaker 4 (22:09):
Well, the California.
Speaker 5 (22:10):
Fairplan isn't the best ever. You know, it's it's the
last resort. It's when we no one else wants to rain.
Speaker 3 (22:17):
And you have liability coverage only on your car because
you can't you can't afford to replace your car, like
when you're broke, Like that's your that's your that's the
cheapest option.
Speaker 5 (22:25):
Is that the kind of the idea. Well, it's a
little different than that. But your California Fairplan is going
to come in when nobody else wants to write it.
There's always going to be a you know, the California
Fairplan can come in and write it, but they're still
going to look at it. You can't give them something
that's covered in brush or that's already you know, on fire.
Speaker 4 (22:43):
Whatever they're they're going to underwrite it.
Speaker 5 (22:45):
Yeah, but that's our last resort if no one else
is everyone else is saying no, California Fair Plan will
take it.
Speaker 4 (22:51):
The ironic thing is is.
Speaker 5 (22:53):
If Fair Plan needs runs out of money, it ended
up it ends up coming from the insurance companies that said, no,
we can't write you. Oh, I didn't know that all
the carriers in California are contributing into the California Fair Plan.
Speaker 3 (23:06):
So it's just like if I go pull permits to
add onto my house, they make me pay a small
fee to the school district, and that's a way that
they can get money injected into the school system here locally.
What they did with the California Fair Plan is if
you're going to write policies in California, a small chunk
of that money is going to go back to the
state of California, so we can fund this California Fair
Plan if.
Speaker 4 (23:26):
They need it.
Speaker 5 (23:27):
They need it only if they need it, because they
have their own fund. It's a California Fair Plan. Is
a private company, it's not a government thing. It's a
private carrier. But they are backed by all the other
carriers in California. All the carriers in California have to
agree to contribute to the California Fair Plan if they
want to write business in California.
Speaker 3 (23:47):
Fascinating Anything else you think people should know about insurance
in general, any other tips or takes on anything you know.
Speaker 5 (23:55):
I'm a big believer in don't pay me extra money
for a lower deductible when you're probably not going to
use your insurance. Everybody complains about their insurance premiums, but
I'm still seeing people with a two hundred and fifty
or a five hundred dollars deductible. Well, take a thousand
or fifteen hundred or even a five thousand deductible because
when was the last time you.
Speaker 4 (24:15):
Had a claim? Oh?
Speaker 5 (24:16):
I never have a claim. Well, then don't pay me
extra money for a lower deductible when you're not even
going to use.
Speaker 3 (24:22):
The insurance, like get a way you could self insured,
not completely. But what I'm saying is is that let's
say you save one hundred dollars a month to have
a thousand dollars deductible, pay yourself that extra one hundred
dollars for ten months, and now you've got your deductible
just chilling in a savings account.
Speaker 4 (24:35):
So you've got that insurance. Thank you.
Speaker 5 (24:37):
That's what I tell people. And then if you don't
have a claim, you win. Once you pay it to
the insurance company, it's gone.
Speaker 3 (24:43):
And this is why I like for people to have
a Veto and by that I mean an insurance agent.
Is that you know, I've had policies in the past
where they it's just a it's a random person you
call an eight hundred number. But what I like about
having a person like Veto is that, just like me
being your agent, I want to provide good service to
you so you will be so happy that you will
refer me to other people to also be their realtor.
Speaker 4 (25:06):
And I believe that Veto feels the same way.
Speaker 3 (25:08):
He wants to do what's right for his customers right
and then you get somebody who's helping you to manage
your insurance policies and making sure that things are up
to date. Do you do like follow ups and like
check ins with current clients on their policies or no.
Speaker 4 (25:19):
That's right.
Speaker 5 (25:20):
You know we're in it for the long run. Yeah,
we gain a new customer, it's all about the service
with them. We want to keep them on the books
year after year after year because we get paid to
commission year after year after year, and we want to
ensure them continually. It's easier than getting a new piece
of business if you can get people to renew with you.
Speaker 3 (25:37):
If people have questions or they want to talk to
you about their insurance coverage, how can they reach you?
Speaker 4 (25:42):
Sure?
Speaker 5 (25:43):
My easiest way is just call my eight hundred line.
It's eight seven seven ask veto VI t OS. I
even have a jingle for it. Oh, I want to
hear it? Can we hear it?
Speaker 4 (25:52):
Yeah?
Speaker 5 (25:52):
It goes like this eight seven seven aesk V t
O singing with me justin Evan seven ask V I.
Speaker 4 (26:03):
T O, Thanks VI, You're the best. I appreciate you.
Speaker 1 (26:06):
You're listening to KFI AM six forty on demand.
Speaker 3 (26:10):
Justin Worsham closing out my audition. They gave me every
Sunday this month to do a southern California real estate show,
and now that is coming to an end. If a
lot of folks have actually reached out to me privately
on social media, So if you want to send a
message because you have a question, hit me up on Instagram.
Speaker 4 (26:27):
I'm at home with Justin.
Speaker 3 (26:29):
The Other thing you could do is give me a
Google and find my website. Send me an email that way,
it's justin. You just type j USTI and wor and
then it will finish it out for you.
Speaker 4 (26:40):
Worsham.
Speaker 3 (26:40):
It's like a redneck, says Worsham dishes and feel free
to shoot me an email. My number is not hard
to find if you have a question. I did a
consultation with a guy who was curious about flipping just
a couple of days ago and heard me on the show.
So shout out to Casey and yeah, but before I
end this and we go start talking to Chris Merril
about what he's got coming up in his fantastic show.
(27:01):
Another question I got via social media was about home warranties,
and in fact, even Michelle Cube, who was the she's
the one who created a show. In my mind, she
had the idea for doing this show. She had a
question about this, And a lot of people come to
me and they want to know, is a home warranty
worth it? So let me first backtrack a little bit
and tell you what a home warranty is. So in
almost every case that I've seen across the board, when
(27:24):
you buy a home, the seller usually pays, depending on
the size of the home, somewhere around the minimum I've
seen is around six hundred and fifty dollars. The most
I've seen is two thousand, but that was on a
very very large home, So on average, I would say
it's six to nine hundred dollars. And what that home
warranty does is it provides a little bit of, for
lack of a better way of putting it, insurance on
(27:45):
the systems of the home. The seller has the burden
of liability in California for the transactions. So what that
means is is that the seller is usually liable carries
more liability because the buyer can come back and say, hey,
you knew that this dishwasher was no good when you
sold me the house, Like I just helped a client
who on their previous transaction, they felt like there was
(28:07):
mold underneath the cabinets in the kitchen, in the kitchen sink,
and they had a guy come They're real to recommend
an inspector, and they said something. They said, no, no,
everything's fine, and nothing was mentioned in the seller's disclosures.
And then when they moved in, they went to set
something underneath the sink, like where you'd put your dish detergent,
and it kind of was soft to the touch, and
they realized they put just a vinyl plank and when
(28:28):
they pulled it up, covered in mold, just covered in mold,
and they were trying to sue the cellar. And so
I don't know that that would necessarily be a situation
where a home warranty would apply. But what I'm really
trying to do is give you the example of a liability.
So that means that the seller was liable for not
disclosing that information, and the buyer could show that they
were trying to hide it because they had covered what
(28:48):
was happening. So like an example of a whole warranty
claim that's come up for me is that I had
a client who called They've been living in a house
like eight months and the water heater just stopped working.
So they called the whole warranty company, and the whole
warranty company said, you got to call the manufacturer. And
this is why I think home warranties can help you,
but you have to do it right. So I, as
a realtor, have home warranty reps. So these are sales
(29:11):
reps and their job is the network with people like
me to get business from me. So they want to
make sure that I am taken care of. I want
to make sure my clients are taken care of. The
people that you traditionally call that dispatch the home warranty claim.
Their job is to try to not fulfill that claim.
They do not want to pay out on that claim.
So usually what happens is your best bet is to
(29:34):
contact your realtor and then have them push the rep
who can push something through. So in this case, the
claim number that they called said, well, you got to
call the manufacturer for the home war for the hot
water heater, and then they called me.
Speaker 4 (29:47):
I called my rep.
Speaker 3 (29:48):
Within three days, they had the hot water heater repaired
and they paid I think seventy five dollars was their
deductible or I don't know what the right term is.
It's like their service fee that they called just to
have something looked at. So other examples that have come up.
My clients bought a house and a few months after
they moved in, they noticed that the wall in their
closet was a little soft to the touch, so there
was some water that was coming through the shower head.
(30:09):
So what the home warranty covered was the repair of
the plumbing leak. But what they don't cover is the
sheet rock repair. So what I did, out of kindness,
I covered that for my clients. I paid my guy
to come in and fix that for them because I
wanted it to be right. But they were able to
use the home warranty coverage. Now some questions come up
as in regards to HVAC like heating and cooling and stuff.
And because sometimes you know, your air conditioner never dies
(30:31):
on December twenty first, it always dies on July seventh,
right when it's just hot as eighties in southern California,
or September right that's when it's like, oh now hot,
my air conditioning is gone. And then you have to
that's at a time where all these technicians that the
home warranty company would call, they're very busy too, so
sometimes it's very rare. What you could do is, if
(30:52):
it's an emergency, especially, you call and you file the claim,
but you tell them I have to call my own person,
and then they will usually reimburse you, maybe not the
full cost, but for some some of the cost.
Speaker 4 (31:02):
I've had that come up too.
Speaker 3 (31:04):
So all of this to say, the big question I
get is is a hole warranty worth it? And to me, yes,
it can be. But you have to contact your realtor
and let your realtor contact the rep to see if
it could go through, and you have to be willing
to be patient to wait.
Speaker 4 (31:18):
For them to do the repair in the time that
it takes.
Speaker 3 (31:21):
So what I always tell clients is do the cost
benefit analysis of that, like is it worth waiting or
is it better just for you to pay the five
hundred bucks and have it fixed real quick? That I
can't obviously decide for you. The last thing I want
to say about home warranties is there are a lot
of people. In fact, Vita was telling me this during
the break. He's one of them. So you get a
one year or thirteen month policy, depending on the benefits
that the hole warranty provider gives. You usually get a
(31:43):
one year policy and you could renew that policy. In fact,
now you could just give it a Google or give
me a call and I could connect you with one
of my reps. You can get a home warranty on
your home right now, and they they're usually again about
six to nine hundred bucks, and then that you can
have that warranty. And I know people that just get
them every single year because they feel like eventually their
air conditioning is going to die and that they maybe
(32:05):
they get it replaced. I think they're probably going to
want to fix it before they replace it.
Speaker 4 (32:09):
But that's just me. So I hope that was helpful. Again.
Speaker 3 (32:12):
Reach out to me at home with Justin on Instagram,
get my name at Google j Usti n w R
and it'll finish you for you. Send me an email
if you have questions. But right now I want to
talk to Chris Merril. What you got coming up on
your show? My friend, forget about me. I wanted to
talk about you about home warranty text. Oh okay, you
brought that up.
Speaker 6 (32:26):
Yeah, is there a good home warranty versus a bad
home warranty. I've had home warranty in the past where
it was like, uh, something would go wrong or it
would break, and they go, well, we're just gonna I mean,
it was like duct tape and old screws they were
using to fix things. Like, at what point does the
home warranty actually replace my stuff?
Speaker 3 (32:44):
I've not seen any situation in my experience where they
replace like a whole system. And then as far as
good versus bad, it really I think in Mike's because
I bought a house before I was a realtor and
I use my home warranty and they just told me
no every time I called them. I called them like
five times and they just told me no. And I
talked to the rep. When I became a realtor. She
was like soliciting me for business and she was like,
(33:05):
you got to call me, and for years they did that.
Speaker 4 (33:08):
So you have to go through the.
Speaker 3 (33:09):
Rep, I think in order to have any success whatsoever,
So stay in touch. But and as far as like
good versus bad, they all have about the same coverage.
There's these little bonuses Like one of the companies I've used,
they offer a service where they re key the home
after you buy it. Like, that's a service that another
provider that I use doesn't have, and they change those
(33:30):
kinds of things.
Speaker 4 (33:30):
But almost across the board.
Speaker 3 (33:32):
They will cover appliances, they will cover system failures, they
will cover roof failures, and they will.
Speaker 4 (33:36):
Cover HVAC failures. But that's about all they do.
Speaker 6 (33:40):
See, that's important stuff, I think, So I get how
do I get it done?
Speaker 4 (33:44):
Because that's what I run into too, So that's interesting.
Speaker 3 (33:46):
And now if you your warrant, he probably has expired
in your house, Chris, So my advice would be that
you find a rep, find a sales rep to get
a new home warranty if that's what you want, and
then stay in touch with that sales rep because they'll
take care of you like I, as your realtor would
kind of a thing. So you're a good guy, I try.
What are you talking about today, though, miked.
Speaker 6 (34:01):
Hey, we got the mud slides, but we're reopening parts
of pH But some people have had their house burned down,
but they still get to pay taxes on that.
Speaker 4 (34:09):
That's a big deal.
Speaker 6 (34:10):
And the state of California just passed a new milestone,
so We've got that coming up today, and of course
we'll hit to the LA law, the lawmakers, the law breakers,
the times that there ought to be a law, all
on the program today and on our talkback we'll discuss
this is some people are considering the advantages or disadvantages
of spanking.
Speaker 4 (34:28):
Did you know spanking is on its ups? Really more
people spanking now?
Speaker 6 (34:33):
So were you spanked as a kid and did you
spank yours? That's going to be our see that's interesting,
it is.
Speaker 3 (34:38):
That's great, Thanks Chris.
Speaker 4 (34:40):
So that's going to be on our talk back toive.
Speaker 3 (34:42):
All Right, guys, I really want to say I'm going
to be selfish here for a second. I want to
give a big shout out to Michelle Cube and Oscar
for giving me this opportunity this month. Also for Gary
Shannon let me do those parenting segments. I really think
that without them, I would not be here. And I
really thank all you guys for taking the time to
listen and send it your questions. This was this was
a childhood dream come true. So if this is the
(35:03):
last I get to do this, I'm cool with it.
Bucket List item checked as far as I'm concerned, and
the only regret is I. I just wish my dad
could have seen this because this would have been a
really cool thing. So thank you guys for listening. KFI
AM six forty on demand
You're listening to KFI AM six forty on demand.
Speaker 2 (00:04):
Excellent show on the Justin Worsham Show today Easter Sunday.
Happen to catch a few minutes of it. Great topic,
so informative. Keep this show alive, so beneficial, so many
good things to learn, great radio voice, really easy to
listen to. He's very entertaining. Time goes by on a snap.
Learn so much. Keep the show KFI. Great job, Thank
(00:26):
you so much.
Speaker 3 (00:27):
I figured I might as well take that opportunity to
let somebody brag on me since it's my last day.
I don't know if this makes me a narcissist, but listen,
you only got to deal with this narcissist for less
than an hour and then we'll see how it goes
from there. So with me in studio from Farmers Insurance
is my friends veto Payeletta the third.
Speaker 4 (00:44):
You've been in insurance basically.
Speaker 3 (00:46):
Your entire life because you took over your dad's business, right, Vito, Well.
Speaker 4 (00:49):
That's right.
Speaker 5 (00:49):
It's still a family business. My dad started our agency
in nineteen seventy nine. I was a kid, so it's
in my blood. Yeah, like it's there. So it's now
run with my my stepmom, my dad's wife. Uh huh,
her agency. But I'm still there.
Speaker 3 (01:04):
That's awesome. I love that, love everything about it. So
what we want to talk about. You made a joke
on an Instagram post, and so you had some questions
trying that you were making fun of how sexy insurance is,
even though obviously it's not the sexiest thing to talk about.
But they honestly were good questions. And what I wanted
to have you on the show before you even made
that comment that was the plan is so a lot
(01:25):
of times what we're seeing. In fact, I've heard it
from My mom has called me because she's like, my
mortgage payment keeps going up. We had a caller reach
it out earlier in one of the shows, saying that
the hadues keep going up, and I told my mom
and I'm venturing against the hadu's are going up because
insurance is going up.
Speaker 4 (01:41):
Is that right?
Speaker 3 (01:41):
Like insurance keeps getting more and more expensive, especially homeowners.
Speaker 4 (01:44):
That's right.
Speaker 5 (01:45):
Everything has been going up, the auto policy, the homeowner policy,
the ho waye those premium has been going up, everybody's premium.
Speaker 4 (01:52):
Do you know why, Is there a reason why?
Speaker 5 (01:54):
Or well, yeah, basically for the last decade, maybe fifteen years,
we haven't been seeing very big rate increases. It's they've
been restricting on what we can raise these rates to.
Speaker 3 (02:07):
So the Insurance Commissioner, which is appointed by the governor,
right that office, that bureaucracy regulates what an insurance provider
can increase their premiums by.
Speaker 4 (02:17):
Is that fair to say that is correct?
Speaker 5 (02:19):
Oh?
Speaker 3 (02:19):
So they've been kind of squashing it down for so long,
making it harder for insurance companies to stay profitable. And
then that which is probably why a lot of insurance
companies pulled out of California because they felt like there
was a danger coming. They didn't, obviously, I don't think
predicted they knew exactly the week that we would have
those fires in southern California. But they're like, this is
a dangerous place to do business because we ensure people
(02:41):
and if we can't stay profitable and then pay out claims,
then we're in trouble.
Speaker 5 (02:44):
Yeah, that's right. I mean you heard State Farm pulled
out entirely.
Speaker 4 (02:49):
They wanted to.
Speaker 5 (02:50):
They dropped seventy two thousand policies in California, thirty thousand
of them were homes because they saw it coming. They
know there's going to be a lot of losses here. Yeah,
they were losing money in the business, so they had
to get out.
Speaker 3 (03:02):
And then did when all that started happening, did that
kind of put the Insurance Commission Office like put their
backs against the wall and they had to start allowing
these rate increases. Well that's right. Now they're talking. Now,
now they're talking. Now they're talking. Do you know like
what the new caps are or is it just kind
of like just please ensure these people and it's you know,
I'm sure it's not the Wawah West. I'm sure they're
not allowing you to have free rein.
Speaker 5 (03:22):
But no, it's not like that. But they're definitely allowing
these rating increasures to go through. Now, Okay, now we're
seeing because you're seeing big rat increasures on all these policies.
Speaker 3 (03:30):
So when people are seeing their insurance jump up, what
they need to understand is that you probably were barely
even given cost of living increases. As far as the
cap right to keep up, it's a lot like rent
control in my opinion, where it's like you can only
raise rent this much. It doesn't matter how expensive plywood
or labor becomes. This is all you could raise your
rent to stay profitable, and they kind of did that
(03:51):
to the insurance agency. So you guys, it's not your like,
you're not the insurance industry isn't gouging the people.
Speaker 4 (03:57):
It's just trying to catch up to stay in the black. Yeah,
this is exactly right.
Speaker 5 (04:01):
And it goes all the way back to Prop one
oh three, and that goes back to I don't know,
like in the eighty eighty eight.
Speaker 4 (04:07):
I think what's Prop one O three. I don't know.
Speaker 5 (04:09):
Prop one O three is was the people voted on it.
They wanted to be able to control those rates, those
insurance rates from from because at that time auto rates
were kind of jumping up. So they said, hold on
a minute, this was too much. People can't afford it,
and they regulated that. So that was a vote that
went to the ballot. It wasn't something that was just
put out by legislation. It was a ballot. Was a
(04:29):
proposition that got voted in the California.
Speaker 3 (04:31):
People of California voted in to put a cap on
what insurance could increase. That's right, un limited it. Yeah,
and so now that wasn't catching up with inflation. Yeah,
that makes sense. That makes so much sense. Anything else
about rate increases and stuff like that before I move
on to ask you another question, I mean.
Speaker 4 (04:48):
Just to expect them.
Speaker 5 (04:49):
It's still it's still moving up right now, everybody's paying
you know, fifty percent or one hundred percent more than
what they were used to.
Speaker 3 (04:57):
Is there a way for me to know if I
like that I'm be gouged like or being caught like chargemud?
I guess the only what it should be is you
should rely on open a free market economy and you
should just price shop.
Speaker 5 (05:08):
There you go, somebody. I mean, the way they had
it set up, it's more like socialism. They're controlling it. Yeah,
let it be a free market, then rache will come down.
You'll see it.
Speaker 3 (05:17):
But me as a consumer, right, Like, if I keep
getting these rate increases and I want to find out
am I getting gouged or is this just the now
going rate for my auto policy?
Speaker 4 (05:26):
I have to call other providers, right, And.
Speaker 3 (05:29):
Then I'm imagining that I need to make sure that
I'm getting equal coverage, right, that somebody's not giving me
a discount because I'm getting less coverage.
Speaker 5 (05:36):
Well, that's right, I mean, you want to shop the
market right, see what's out there, but it's not really
a great time to shop in all products. Yeah, I
wouldn't move your home policy right now if you have
a good homeowner policy, even if you just got a
five hundred dollars rate increase.
Speaker 4 (05:49):
Or really oh yeah, you would just ride it out,
you know.
Speaker 5 (05:53):
I would look at other areas to save money on it,
maybe increase your deductible or just adjust your coverages. But
don't switch your insurance right now? Why why not switch?
It's gonna be it might be difficult. There are every
houn home that we write, they're going to inspect. It's
my job to inspect it first. And you may have
you know, some chip paint or an older roof or
(06:15):
something that that now the insurance come to say no, sorry,
we don't want it, or or I might even say
that no, I can't write you.
Speaker 4 (06:22):
And is it a thing where you can like?
Speaker 3 (06:25):
Is it like getting a job or you can't like
you you have to find new insurance before you get
to get rid of the old one. Or are you
saying that don't switch because that transition may not be clean?
Speaker 5 (06:34):
Oh yeah, both ways. Definitely don't just don't just drop
it and have anything yeah. And even when I write
a new pose for somebody and they're taking them away
from another carrier, I tell them, don't don't cancel this
until you get our policy in your hand, like it's
a it's a there's different between calling you, like calling
a VETO and saying, hey, what's my policy going to
look like?
Speaker 3 (06:55):
And then actually having the policy, and a lot can
happen in that little those two dots.
Speaker 5 (06:59):
That's right, you get an issued policy that they're that
the new insurance company is on the hook before you
say goodbye to your old one.
Speaker 4 (07:05):
You're the best.
Speaker 1 (07:06):
You're listening to KFI AM six forty on demand.
Speaker 3 (07:10):
Justin Worsham with you talking Southern California real estate till
four o'clock today, and with me in studio is my
friend Vito pay a letter the third from Farmer's Insurance.
We're talking insurance, and I wanted to talk to you
about earthquake insurance. As a realtor, I get lots of
questions about earthquake insurance and Veto. What I'm gonna tell
you is what I tell my clients feel free to
(07:31):
tell me if I'm giving them poor advice, is that
I always tell them as your realtor, you are supposed
to I'm supposed to tell you to get earthquake insurance
just so you have the most protection. And then I
pretend to take off my realtor hat and I say,
I go, now here's the thing. What I do as
a person is I look at the earthquake insurance and
I look at how much it costs and what it covers.
Because my understanding is is you pay an annual premium
(07:54):
and then there's usually some kind of like the deductible
that is somewhere around thirty to forty thousand dollars.
Speaker 4 (07:58):
But that's probably based on the value of your home.
Am I right? So far it's based on the coverage amount.
Speaker 3 (08:03):
Yeah, coverage amount, Okay, so it's no different than your car.
So I could pay more in a premium and not
have a forty thousand dollars deductible. I could have a
five thousand dollar deductible. Maybe that's right. You can reduce
your deduct I could reduce the deductible. And what I've
done personally is that I've done the math and say, well,
if the premium is pretty low, that probably says to
me that the insurance company says you're at a very
(08:24):
low risk right of needing to have an earthquake policy.
And so what I got my house, which was a
long time ago when I was very much broke when
I bought my house, and I was like, if this
house dies, I'm not going to have thirty eight thousand
dollars anyway, So I'll just walk away and figure it
out from there. So that's my take on it. Now
you correct me where I'm wrong. No, that makes sense,
(08:46):
And a lot of people look at it that way too.
It's like, if I have no skin in the game,
it's okay, I can walk away. I have no equity there,
walk away from it.
Speaker 5 (08:53):
But most homes you know in burbanks that they're putting,
even if they're just put the minimum down payment, but
a few years later now they've got a ton of equity.
Speaker 4 (09:03):
Yeah, they're not willing to walk away from that.
Speaker 3 (09:05):
And you know, so, yeah, because you would lose that
equity and and and you I mean even like in
the ninety four quakes, right, your family was in insurance then, right,
So like that was from what I hear. I wasn't
in southern California when those happened, But so it was
that like a huge impact?
Speaker 4 (09:21):
Was it? Was it crazy?
Speaker 3 (09:22):
Were there are a lot of people who didn't have
earthquake insurance at that time and they were kind of hosed.
Speaker 5 (09:27):
Yeah, same thing like with the fires now people some
people were covered for those earthquakes back then and some
people didn't have coverage. So yeah, they you know, they
went to FEMA and I got a loan or they
got a little bit of money from VIMA to.
Speaker 3 (09:40):
Be able to try to get their house right. But
why wouldn't you want to get an earthquake policy. I mean,
if you don't have an earthquake policy, then you have
one hundred percent deductible.
Speaker 4 (09:48):
It's all you's that's see.
Speaker 3 (09:50):
This is why I want you to correct me where
I'm wrong, because that's I think when I quoted what
I bought my house, I'm out, ooh, I'm twelve years
ago announced since I bought my house, and I think
it was like I think it was twelve hundred bucks
for the year is what it was going to cost
me for an earthquake policy. Then now that's probably gone
up in twelve years what maybe closer to two grand.
But I that's all speculation. Earthquake rage, haven't changed that much.
Speaker 4 (10:10):
Oh really? Yeah, because look, when was the last time
they paid a claim? Here?
Speaker 5 (10:14):
We haven't had any bigger earthquakes, Okay, I mean we're
gonna have one. We don't know when or exactly where,
what if we do? You should be prepared. Even if
you take a policy with a higher deductible, at least
you know, if you have a twenty percent deductible, at
least you got eighty percent covered. If you don't have
earthquake policy. Again, it's one hundred percent deductible, it's all.
Speaker 3 (10:34):
You, it's all you. I got to fix everything. Your
fire policy is not going to come in. No, maybe
you'll get a couple grand from FEMA or you get
a loan from them. Before we move on to condos,
let's talk about that because I think it's something that
a lot of people don't know, like here in southern California,
maybe all of California. You know better than me, Like
I don't think flood insurance is standard with your homeowners
in policy, right, No?
Speaker 5 (10:57):
So yeah, there's two things that aren't covered on your
reg their homeowner policy. One is earthquake what we just
talked about. You get a separate policy for that.
Speaker 4 (11:05):
Uh, huh.
Speaker 5 (11:05):
Same thing with flood. And when I mean flood, I
mean flood from like rising water. But the mud is
coming down the fleet, right yeah, and it's in your
neighbor's house and yours is next.
Speaker 4 (11:15):
That's a flood.
Speaker 5 (11:16):
If you get a burst pipe in your wall of
flood your kitchen, flood your bath, that's covered.
Speaker 4 (11:20):
Okay.
Speaker 3 (11:21):
So if it's some kind of manufacturer like a system
defect or not even a defect, it just breaks and
that causes damage, then that's covered by your standard homeowner's policy.
But if suddenly we get a torrential downpour like what
a mudslide, the mudslide would probably qualify as like floods flood,
the fire happens, and then you got a big rain
that comes out like what happened here, then that would
(11:42):
not be covered.
Speaker 4 (11:42):
That's right.
Speaker 5 (11:44):
You heard that little buzz about the range that had
recently and all the burnt out areas that the mud
was going to come down.
Speaker 4 (11:49):
Yeah, that's flood insurance.
Speaker 3 (11:50):
You know what's funny as I remember it, so, Vito
and I were in a networking group together. I mean
I known him for years since I got into real estate,
because we met through our reeltor association. But I remember
you actually saying you sent it out a reminder, saying, hey,
just a reminder because if the mudslide happens, that's not
covered in your insurance unless you have flood insurance, So
be aware of that.
Speaker 4 (12:09):
So if you're in an area that's.
Speaker 3 (12:10):
A high risk for fires, or near or below hills
of a high risk for fires, then you probably want
to make sure if you're worried about it, getting some
kind of flood insurance added to your policy.
Speaker 4 (12:19):
It sounds like.
Speaker 5 (12:20):
That's true, and I write very little flood insurance in
this area. The only time I write it is when
when your escro company's telling you, hey you must have
it or interest in the flood map area, you get
to have it your lender.
Speaker 4 (12:31):
I guess.
Speaker 3 (12:32):
One of the other questions that I had was talking
about condo policies, and we were talking during the break
that you're saying that those are really hard right now.
Speaker 5 (12:39):
Help explain that for me, Well, there's just a smaller
market for them right now. A lot of carriers aren't
writing condos. And when I say condom, meaning your traditional
HO six policy that covers like a homeowner policy, but
for a condo unit, and.
Speaker 3 (12:53):
That would be like a condo would a town home
where you have shared walls right right, and it would
also be like what everybody who expect a condo if
you don't know what that means, it's like an apartment
that you own. You own the inside structure, but a
group of you, a group of homeowners, have the old complex. Right,
So you'll have a policy for your HOA, your homeowners
association that covers the construction. If the whole development burned down,
(13:17):
god forbid, the HIA has a policy that would rebuild
that whole building for you, and then your policy inside
your unit. I like to use the word paint to paint, right,
that covers whatever needs to happen in the inside of
your unit.
Speaker 4 (13:29):
Is that right? That's right?
Speaker 5 (13:30):
Yeah, So that when the HIA rebuilds the building with
your policy, now, they're going to leave you with an
empty unit. They're not going to be paint on the walls,
They're not even going to have the light switches or
the flooring down, just gonna be plywood, no cabinets, nothing,
that's all you. That's what you're insuring for all the
inside build out that you have to do.
Speaker 3 (13:49):
Do you know why there's just such a small market
for condo insurance and why insurance providers don't want to
write policy.
Speaker 4 (13:55):
It's to risk your policy.
Speaker 5 (13:57):
There's not a lot of you know, you we're not
ensuring for a big, big number either.
Speaker 4 (14:01):
Yeah, but it's your risk of your apolicy.
Speaker 5 (14:03):
There could be any you know, claims happen in the
condos more frequently than in homes.
Speaker 3 (14:07):
So when I hear you say you're not ensuring for
a big number, what you're saying is that there's a
difference between say, replacement costs and a policy that you
would get to cover say a one point five million
dollar home. But in this case, most of the time
we're talking about a six to seven hundred thousand dollars home, right,
So that difference in costs would also impact the difference
in coverage that would be required.
Speaker 5 (14:25):
Right, Well, it's just because we're not building out the
entire building. I'm only building a kitchen and a bathroom.
God at Florine, So maybe it's going to cost me
a one hundred and fifty grand to finish out the
interior of that unit versuon building a house that's going
to cost six hundred and fifty grand to build it
from the foundation up.
Speaker 3 (14:42):
So that's why it would also cost more for a
single family home. And the other thing that I think
you pointed out we were talking about this during the break,
you said that it's a condo's more likely to where
the h away covers the plumbing getting to your unit.
And if say the neighbor above you has a leak
in their toilet or their bathroom sync and it damages
your unit, well now you're either filing and claim using
(15:05):
your coverage, but your insurance is probably gonna want to
go over your go after your neighbor's insurance because they're like,
it's your fault, and there's a lot of fighting that
can happen with that, which gets expensive if it goes
if it gets legal.
Speaker 4 (15:15):
Right, that's why you buy a unit on the top
floor always.
Speaker 3 (15:19):
But am I right that that's part of why insurance
providers struggle to buy.
Speaker 4 (15:23):
Yeah, it gets it's a high risk with very little
reward for.
Speaker 5 (15:25):
Them, yep, And it can get real tricky as to
who's gonna end up paying all that.
Speaker 3 (15:29):
All Right, next movie we come back, I want to
talk about umbrella policies because anybody when you buy a
house and you have a home. Then the next thing
they always tell you that you need an umbrella policy.
But to be honest, I still don't necessarily know why.
I think I know why, but Vito's gonna explain that
when come back.
Speaker 1 (15:43):
You're listening to KFI AM six forty on demand.
Speaker 3 (15:47):
Justin Worsham with you talking Southern California real estate. I
got veto Pale out of the third from Farmers Insurance
and we're talking insurance. So we've talked about earthquake insurance
and homeowner's insurance condo policies. And this has always been
a question that I've just never thought to ask whenever
I'm renewing anything, is umbrella policies. Because when you buy
(16:07):
a home, you usually already come with your auto insurance policy,
which is required by a lot. And I asked you
this during the break, and I want to touch on
that actually first is that homeowners insurance is not required
by law. The real reason why I think most people
get it without knowing why they have to get it
is because their lender requires.
Speaker 4 (16:23):
That they have insurance.
Speaker 3 (16:24):
Right that is correct, And then when you pay off
your mortgage loan, you could foolishly decide to no longer
have homeowners insurance, but then again you'd go back to
your one hundred percent deductible.
Speaker 5 (16:35):
That's right, Yeah, that's great. So we like people have
mortgages on their on their property that it forces them
to have the coverage. So what's that umbrella policy?
Speaker 3 (16:46):
Like, in my mind, it's the thing that covers anything
between your auto and your homeowners is that?
Speaker 4 (16:51):
And they're like, umbrella is that? Or is that? Well,
it's up above that. Okay.
Speaker 5 (16:55):
So if you have your your liability limit on your
home and on your auto, right, so somebody gets hurt
at your property, you have a million dollar liability limit, okay,
but you may have assets for five million in assets, right,
you have other properties, you have other income, so if
you get sued, they can go beyond your million. Now
it's going to come out of you unless you have
(17:17):
an umbrella. Umbrella's extra liability.
Speaker 6 (17:20):
Oh.
Speaker 4 (17:21):
I always thought it was like to bridge the gap.
Speaker 3 (17:23):
For like, if a tree that was in your yard
fell on your car, that your auto policy wouldn't necessarily
cover it, and your home mowe might not cover it.
That's why you have an umbrella. But this whole time,
I'm completely wrong about all of that.
Speaker 4 (17:36):
Yeah, that's not it doesn't cover that.
Speaker 3 (17:38):
It's just so it's extending the liability because now, in
theory you have a home, so you could also have
more assets.
Speaker 5 (17:44):
Yes, but covering your ashet level. We're we're protecting your finances, right,
So we don't want anybody to tap into your finances.
If you have to pay a big claim for somebody,
God forbid, somebody gets killed on your property, somebody drowns
in your pool, the farmer or the insurance carry is
going to pay their policy limit. And if it goes
beyond that, if they're an attorney issuing you for more
(18:05):
than that, your umbrella comes in at that point.
Speaker 3 (18:09):
So has there ever been a situation where you have
not recommended somebody get an umbrella policy.
Speaker 5 (18:14):
Yeah, you're a starving student, you don't. You don't have
two nickels to rub together in your pocket. You know,
you also don't have assets. You don't have any assets.
You're a renter, you don't.
Speaker 3 (18:24):
You don't need to have an umbrella an umbrella policy yet. Okay,
but but you start making money or you have some ashts.
I'm sure you have clients that have well over a
million dollars in assets. Yeah, well, their primary liability is
only going to cover them to maximum.
Speaker 4 (18:40):
Of a million. Okay, you're going to.
Speaker 3 (18:42):
Have and some of them only go to half a minute,
and an auto policy would only Really, that only applies
in auto incidents. It's not like it comes in and
jumps in just because your car was parked in your
driveway at the time something happened.
Speaker 5 (18:56):
Right, No, same way, the same way with the cars.
If you end up hitting somebody in a car, and
god forbid, you kill two or three people in a
bad car.
Speaker 4 (19:02):
Accident, and you're living on your auto policy.
Speaker 5 (19:05):
And you only have the you know, you're limited to
half a million on your auto policy, but they want more.
Speaker 4 (19:11):
It's going to go on to your umbrella.
Speaker 3 (19:13):
The other thing I want to talk to you about
was just a little bit about the fires, and because
I get a lot of questions about like how like
how are insurance companies going to handle us? How is
it like are we already seeing I know because I've
heard from people that insurance companies have kicked in for
the people who lost their homes, have had like had
hotels for like two or three months. And I think
they also were getting some money from FEMA as well.
(19:36):
How like, what's the timeline do you think before we
start seeing them construction starts happening to rebuild these areas
or is that way above your scope?
Speaker 5 (19:43):
Well, the construction of the areas isn't really an insurance question, Yeah,
because because insurance companies have paid out already billions on
these fires recently, okay billions, but a lot of it
is for that additional living expense, you know that they
had to go live somewhere else for a while. The
money to read build is still coming in for that.
Speaker 3 (20:02):
And do you know does it work like like if
my car gets totaled, they just assess the value of
my car and they cut me a check and then
I use that to go get another car. My car
goes away? Does But I imagine for a house that
if you're getting a reconstruction that the insurance company is
involved in, like wanting to get updates and photos of
what the contractor's done so that they're not overpaying. They
(20:22):
don't want to pay for pay fifty percent of what
they're going to pay when only twenty five percent of
the work has been completed.
Speaker 5 (20:27):
Yeah, they'll control distributing that money as as it's needed.
Speaker 4 (20:30):
For that job.
Speaker 5 (20:31):
Okay, you know, I mean some policies will some policies
will give you a big check and then now it's
to you to go negotiate.
Speaker 3 (20:37):
Were there any big takeaways that we learned about the
insurance agent, like industry or anything about like a person
like me who didn't understand why I had umbrella coverage
until now. Is there anything that I that we learned like, oh,
we should do this better from the fires.
Speaker 5 (20:51):
Well, you've got to listen to the insurance companies when
they're talking about, hey, this area is high risk. Why
is it high risk? Well, it's go so even the
forestry department, why aren't they thinning out these trees? You're
adding the fuel the insurance I mean, see that, and
that's why they're pulling out.
Speaker 3 (21:10):
So you got to pay attention to those canaries in
the coal mine. Yes, this and the insurance companies are like, hey,
this is dangerous. That's not the time to limit your coverage.
That's the time to probably make sure that your coverage
is updated, like check in with your person to make
sure you have the right amount of coverage to replace
your home.
Speaker 4 (21:25):
Well, that's true, that's true too.
Speaker 5 (21:27):
A lot of these people that during these fires were
underinsured because they haven't updated their policies in years. These
policies have to be looked at. Your dwelling coverage is
an important number there. Is it insured accurately? If you're
under insured, they're not going to just step up and
pay you the extra. You got to make sure you
have that policy covering the full replacement amount in today's
(21:49):
replacement value.
Speaker 3 (21:50):
You've helped my clients who have lived in some of
these areas where the California Fair Plan was the best
fire insurance plan that they had. My mom has a
California Fair Plan at her home up in the Mounts in
northern California. Do you know of any like are you
pro or against the California Plan? Is there anything that
people need to watch out for with the California Plan
Fair Plan?
Speaker 4 (22:09):
Well, the California.
Speaker 5 (22:10):
Fairplan isn't the best ever. You know, it's it's the
last resort. It's when we no one else wants to rain.
Speaker 3 (22:17):
And you have liability coverage only on your car because
you can't you can't afford to replace your car, like
when you're broke, Like that's your that's your that's the
cheapest option.
Speaker 5 (22:25):
Is that the kind of the idea. Well, it's a
little different than that. But your California Fairplan is going
to come in when nobody else wants to write it.
There's always going to be a you know, the California
Fairplan can come in and write it, but they're still
going to look at it. You can't give them something
that's covered in brush or that's already you know, on fire.
Speaker 4 (22:43):
Whatever they're they're going to underwrite it.
Speaker 5 (22:45):
Yeah, but that's our last resort if no one else
is everyone else is saying no, California Fair Plan will
take it.
Speaker 4 (22:51):
The ironic thing is is.
Speaker 5 (22:53):
If Fair Plan needs runs out of money, it ended
up it ends up coming from the insurance companies that said, no,
we can't write you. Oh, I didn't know that all
the carriers in California are contributing into the California Fair Plan.
Speaker 3 (23:06):
So it's just like if I go pull permits to
add onto my house, they make me pay a small
fee to the school district, and that's a way that
they can get money injected into the school system here locally.
What they did with the California Fair Plan is if
you're going to write policies in California, a small chunk
of that money is going to go back to the
state of California, so we can fund this California Fair
Plan if.
Speaker 4 (23:26):
They need it.
Speaker 5 (23:27):
They need it only if they need it, because they
have their own fund. It's a California Fair Plan. Is
a private company, it's not a government thing. It's a
private carrier. But they are backed by all the other
carriers in California. All the carriers in California have to
agree to contribute to the California Fair Plan if they
want to write business in California.
Speaker 3 (23:47):
Fascinating Anything else you think people should know about insurance
in general, any other tips or takes on anything you know.
Speaker 5 (23:55):
I'm a big believer in don't pay me extra money
for a lower deductible when you're probably not going to
use your insurance. Everybody complains about their insurance premiums, but
I'm still seeing people with a two hundred and fifty
or a five hundred dollars deductible. Well, take a thousand
or fifteen hundred or even a five thousand deductible because
when was the last time you.
Speaker 4 (24:15):
Had a claim? Oh?
Speaker 5 (24:16):
I never have a claim. Well, then don't pay me
extra money for a lower deductible when you're not even
going to use.
Speaker 3 (24:22):
The insurance, like get a way you could self insured,
not completely. But what I'm saying is is that let's
say you save one hundred dollars a month to have
a thousand dollars deductible, pay yourself that extra one hundred
dollars for ten months, and now you've got your deductible
just chilling in a savings account.
Speaker 4 (24:35):
So you've got that insurance. Thank you.
Speaker 5 (24:37):
That's what I tell people. And then if you don't
have a claim, you win. Once you pay it to
the insurance company, it's gone.
Speaker 3 (24:43):
And this is why I like for people to have
a Veto and by that I mean an insurance agent.
Is that you know, I've had policies in the past
where they it's just a it's a random person you
call an eight hundred number. But what I like about
having a person like Veto is that, just like me
being your agent, I want to provide good service to
you so you will be so happy that you will
refer me to other people to also be their realtor.
Speaker 4 (25:06):
And I believe that Veto feels the same way.
Speaker 3 (25:08):
He wants to do what's right for his customers right
and then you get somebody who's helping you to manage
your insurance policies and making sure that things are up
to date. Do you do like follow ups and like
check ins with current clients on their policies or no.
Speaker 4 (25:19):
That's right.
Speaker 5 (25:20):
You know we're in it for the long run. Yeah,
we gain a new customer, it's all about the service
with them. We want to keep them on the books
year after year after year because we get paid to
commission year after year after year, and we want to
ensure them continually. It's easier than getting a new piece
of business if you can get people to renew with you.
Speaker 3 (25:37):
If people have questions or they want to talk to
you about their insurance coverage, how can they reach you?
Speaker 4 (25:42):
Sure?
Speaker 5 (25:43):
My easiest way is just call my eight hundred line.
It's eight seven seven ask veto VI t OS. I
even have a jingle for it. Oh, I want to
hear it? Can we hear it?
Speaker 4 (25:52):
Yeah?
Speaker 5 (25:52):
It goes like this eight seven seven aesk V t
O singing with me justin Evan seven ask V I.
Speaker 4 (26:03):
T O, Thanks VI, You're the best. I appreciate you.
Speaker 1 (26:06):
You're listening to KFI AM six forty on demand.
Speaker 3 (26:10):
Justin Worsham closing out my audition. They gave me every
Sunday this month to do a southern California real estate show,
and now that is coming to an end. If a
lot of folks have actually reached out to me privately
on social media, So if you want to send a
message because you have a question, hit me up on Instagram.
Speaker 4 (26:27):
I'm at home with Justin.
Speaker 3 (26:29):
The Other thing you could do is give me a
Google and find my website. Send me an email that way,
it's justin. You just type j USTI and wor and
then it will finish it out for you.
Speaker 4 (26:40):
Worsham.
Speaker 3 (26:40):
It's like a redneck, says Worsham dishes and feel free
to shoot me an email. My number is not hard
to find if you have a question. I did a
consultation with a guy who was curious about flipping just
a couple of days ago and heard me on the show.
So shout out to Casey and yeah, but before I
end this and we go start talking to Chris Merril
about what he's got coming up in his fantastic show.
(27:01):
Another question I got via social media was about home warranties,
and in fact, even Michelle Cube, who was the she's
the one who created a show. In my mind, she
had the idea for doing this show. She had a
question about this, And a lot of people come to
me and they want to know, is a home warranty
worth it? So let me first backtrack a little bit
and tell you what a home warranty is. So in
almost every case that I've seen across the board, when
(27:24):
you buy a home, the seller usually pays, depending on
the size of the home, somewhere around the minimum I've
seen is around six hundred and fifty dollars. The most
I've seen is two thousand, but that was on a
very very large home, So on average, I would say
it's six to nine hundred dollars. And what that home
warranty does is it provides a little bit of, for
lack of a better way of putting it, insurance on
(27:45):
the systems of the home. The seller has the burden
of liability in California for the transactions. So what that
means is is that the seller is usually liable carries
more liability because the buyer can come back and say, hey,
you knew that this dishwasher was no good when you
sold me the house, Like I just helped a client
who on their previous transaction, they felt like there was
(28:07):
mold underneath the cabinets in the kitchen, in the kitchen sink,
and they had a guy come They're real to recommend
an inspector, and they said something. They said, no, no,
everything's fine, and nothing was mentioned in the seller's disclosures.
And then when they moved in, they went to set
something underneath the sink, like where you'd put your dish detergent,
and it kind of was soft to the touch, and
they realized they put just a vinyl plank and when
(28:28):
they pulled it up, covered in mold, just covered in mold,
and they were trying to sue the cellar. And so
I don't know that that would necessarily be a situation
where a home warranty would apply. But what I'm really
trying to do is give you the example of a liability.
So that means that the seller was liable for not
disclosing that information, and the buyer could show that they
were trying to hide it because they had covered what
(28:48):
was happening. So like an example of a whole warranty
claim that's come up for me is that I had
a client who called They've been living in a house
like eight months and the water heater just stopped working.
So they called the whole warranty company, and the whole
warranty company said, you got to call the manufacturer. And
this is why I think home warranties can help you,
but you have to do it right. So I, as
a realtor, have home warranty reps. So these are sales
(29:11):
reps and their job is the network with people like
me to get business from me. So they want to
make sure that I am taken care of. I want
to make sure my clients are taken care of. The
people that you traditionally call that dispatch the home warranty claim.
Their job is to try to not fulfill that claim.
They do not want to pay out on that claim.
So usually what happens is your best bet is to
(29:34):
contact your realtor and then have them push the rep
who can push something through. So in this case, the
claim number that they called said, well, you got to
call the manufacturer for the home war for the hot
water heater, and then they called me.
Speaker 4 (29:47):
I called my rep.
Speaker 3 (29:48):
Within three days, they had the hot water heater repaired
and they paid I think seventy five dollars was their
deductible or I don't know what the right term is.
It's like their service fee that they called just to
have something looked at. So other examples that have come up.
My clients bought a house and a few months after
they moved in, they noticed that the wall in their
closet was a little soft to the touch, so there
was some water that was coming through the shower head.
(30:09):
So what the home warranty covered was the repair of
the plumbing leak. But what they don't cover is the
sheet rock repair. So what I did, out of kindness,
I covered that for my clients. I paid my guy
to come in and fix that for them because I
wanted it to be right. But they were able to
use the home warranty coverage. Now some questions come up
as in regards to HVAC like heating and cooling and stuff.
And because sometimes you know, your air conditioner never dies
(30:31):
on December twenty first, it always dies on July seventh,
right when it's just hot as eighties in southern California,
or September right that's when it's like, oh now hot,
my air conditioning is gone. And then you have to
that's at a time where all these technicians that the
home warranty company would call, they're very busy too, so
sometimes it's very rare. What you could do is, if
(30:52):
it's an emergency, especially, you call and you file the claim,
but you tell them I have to call my own person,
and then they will usually reimburse you, maybe not the
full cost, but for some some of the cost.
Speaker 4 (31:02):
I've had that come up too.
Speaker 3 (31:04):
So all of this to say, the big question I
get is is a hole warranty worth it? And to me, yes,
it can be. But you have to contact your realtor
and let your realtor contact the rep to see if
it could go through, and you have to be willing
to be patient to wait.
Speaker 4 (31:18):
For them to do the repair in the time that
it takes.
Speaker 3 (31:21):
So what I always tell clients is do the cost
benefit analysis of that, like is it worth waiting or
is it better just for you to pay the five
hundred bucks and have it fixed real quick? That I
can't obviously decide for you. The last thing I want
to say about home warranties is there are a lot
of people. In fact, Vita was telling me this during
the break. He's one of them. So you get a
one year or thirteen month policy, depending on the benefits
that the hole warranty provider gives. You usually get a
(31:43):
one year policy and you could renew that policy. In fact,
now you could just give it a Google or give
me a call and I could connect you with one
of my reps. You can get a home warranty on
your home right now, and they they're usually again about
six to nine hundred bucks, and then that you can
have that warranty. And I know people that just get
them every single year because they feel like eventually their
air conditioning is going to die and that they maybe
(32:05):
they get it replaced. I think they're probably going to
want to fix it before they replace it.
Speaker 4 (32:09):
But that's just me. So I hope that was helpful. Again.
Speaker 3 (32:12):
Reach out to me at home with Justin on Instagram,
get my name at Google j Usti n w R
and it'll finish you for you. Send me an email
if you have questions. But right now I want to
talk to Chris Merril. What you got coming up on
your show? My friend, forget about me. I wanted to
talk about you about home warranty text. Oh okay, you
brought that up.
Speaker 6 (32:26):
Yeah, is there a good home warranty versus a bad
home warranty. I've had home warranty in the past where
it was like, uh, something would go wrong or it
would break, and they go, well, we're just gonna I mean,
it was like duct tape and old screws they were
using to fix things. Like, at what point does the
home warranty actually replace my stuff?
Speaker 3 (32:44):
I've not seen any situation in my experience where they
replace like a whole system. And then as far as
good versus bad, it really I think in Mike's because
I bought a house before I was a realtor and
I use my home warranty and they just told me
no every time I called them. I called them like
five times and they just told me no. And I
talked to the rep. When I became a realtor. She
was like soliciting me for business and she was like,
(33:05):
you got to call me, and for years they did that.
Speaker 4 (33:08):
So you have to go through the.
Speaker 3 (33:09):
Rep, I think in order to have any success whatsoever,
So stay in touch. But and as far as like
good versus bad, they all have about the same coverage.
There's these little bonuses Like one of the companies I've used,
they offer a service where they re key the home
after you buy it. Like, that's a service that another
provider that I use doesn't have, and they change those
(33:30):
kinds of things.
Speaker 4 (33:30):
But almost across the board.
Speaker 3 (33:32):
They will cover appliances, they will cover system failures, they
will cover roof failures, and they will.
Speaker 4 (33:36):
Cover HVAC failures. But that's about all they do.
Speaker 6 (33:40):
See, that's important stuff, I think, So I get how
do I get it done?
Speaker 4 (33:44):
Because that's what I run into too, So that's interesting.
Speaker 3 (33:46):
And now if you your warrant, he probably has expired
in your house, Chris, So my advice would be that
you find a rep, find a sales rep to get
a new home warranty if that's what you want, and
then stay in touch with that sales rep because they'll
take care of you like I, as your realtor would
kind of a thing. So you're a good guy, I try.
What are you talking about today, though, miked.
Speaker 6 (34:01):
Hey, we got the mud slides, but we're reopening parts
of pH But some people have had their house burned down,
but they still get to pay taxes on that.
Speaker 4 (34:09):
That's a big deal.
Speaker 6 (34:10):
And the state of California just passed a new milestone,
so We've got that coming up today, and of course
we'll hit to the LA law, the lawmakers, the law breakers,
the times that there ought to be a law, all
on the program today and on our talkback we'll discuss
this is some people are considering the advantages or disadvantages
of spanking.
Speaker 4 (34:28):
Did you know spanking is on its ups? Really more
people spanking now?
Speaker 6 (34:33):
So were you spanked as a kid and did you
spank yours? That's going to be our see that's interesting,
it is.
Speaker 3 (34:38):
That's great, Thanks Chris.
Speaker 4 (34:40):
So that's going to be on our talk back toive.
Speaker 3 (34:42):
All Right, guys, I really want to say I'm going
to be selfish here for a second. I want to
give a big shout out to Michelle Cube and Oscar
for giving me this opportunity this month. Also for Gary
Shannon let me do those parenting segments. I really think
that without them, I would not be here. And I
really thank all you guys for taking the time to
listen and send it your questions. This was this was
a childhood dream come true. So if this is the
(35:03):
last I get to do this, I'm cool with it.
Bucket List item checked as far as I'm concerned, and
the only regret is I. I just wish my dad
could have seen this because this would have been a
really cool thing. So thank you guys for listening. KFI
AM six forty on demand
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