January 17, 2008

1. Wildfire Roadmap to Recovery:
Wildfire Roadmap to Recovery:
Meeting #5, January 17, 2008
Meeting #5, January 17, 2008
Rancho Bernardo Community Presbyterian Church
Rancho Bernardo Community Presbyterian Church
Working with an architect and
Working with an architect and
contractor to rebuild your home
contractor to rebuild your home
Karen Reimus
reimus1@aol.com

3. Fine print:
The information provided in this program is intended for
general educational purposes only. It should not be
construed as legal advice.
The speakers at today’s program are volunteering
their time as educators.
Neither United Policyholders nor the Rancho Bernardo
Community Presbyterian Church endorse or warrant the
message or services of any volunteer speakers.

4. United Policyholders’ resources:
Tips for reviewing contractor/adjuster estimates to rebuild your
home.
Where to find it at www.uphelp.org : “Aid to SoCal Fire survivors” section
Sample Scope of Loss/Rebuilding Estimate
Where to find it at www.uphelp.org : “Disaster Relief section, State Specific
Relief, CA. Roadmap to Recovery”
Trade summary/rebuilding estimate basics
Where to find it at www.uphelp.org “Claim Tips” section; tips for fire
claimants; sample proof of claim forms
CA. Roadmap to Recovery – links and info re: CSLB.
Where to find it at www.uphelp.org; “Disaster Relief” section
“Find (professional) Help” section www.uphelp.org

5. Spell things out in advance:
Always use only a Fixed Fee Contract
for new construction.

6. Periodic payments as phases
are satisfactorily completed:
All funds for construction should be
held in a fund control account and be
dispersed by a third party throughout
construction to the general contractor.

7. Preventative measures:
Protect yourself from having
construction liens placed against your
home by getting lien releases or having
a preliminary title report done prior to
final payment.

8. Hire carefully:
Make sure your Architect and General
Contractor are fully licensed in the
State of California.
Check license status with the CA.
Contractor’s State Licensing Board at:
www.cslb.ca.gov or call 1-800-321-CSLB
(2752).

9. Insurance protection:
Make sure:
Architect has a minimum of $500,000
worth of Errors and Omissions insurance
General Contractor or Builder has a
minimum $1,000,000 liability policy.
NOTE: Many general contractors dropped
liability coverage after the cost skyrocketed
post 9/11

10. Protect yourself in the future:
Make sure your Contractor provides
you with a Warranty Policy to cover
future defects.

11. Speak to references in person:
Speak to no fewer than three
references each for your Architect
and General Contractor

12. Our heartfelt thanks to:
The Rancho Bernardo Community
Presbyterian Church
All our UP Mentors and Sponsors
The speakers at tonight’s meeting

13. Overview of Building Process
Due Diligence in
Choosing Architect/Contractor
Patty and Dennis Moser
Architects

14. Overview of Building Process
Due Diligence in Choosing Architect/Contractor
Dennis Moser
Architect
Owner, Moser Ventures
Former member, Board of Directors of the BIA
Co-founder of Alliance for Habitat Conservation
Project Manager, Stonefield merchant builder
programs after Cedar and 2007 Fires

15. Due Diligence in
Choosing Architect/Contractor
Patty Moser
Architect
Owner, Moser Ventures
Project Manager, Stonefield merchant builder
programs after Cedar and 2007 Fires

16. Contract
Guidelines/Pitfalls
Jon Epsten, Esq
JEpsten@epsten.com
Volunteer, San Diego County Bar Association

17. Contract Check List
by Thomas Gatlin
Does the contractor have a valid contractor’s license?
(www.cslb.gov/index)
Does the contractor have minimally acceptable levels of general
liability insurance, automobile insurance & worker’s comp insurance?
Has the Association been named as an additional insured on all
of the contractor’s insurance policies?
Have all the subcontractors submitted proof of their contractor’s
licenses and insurance policies?
Has the contractor complied with all of the Association’s
bidding requirements?

18. Contract Check List
by Thomas Gatlin
Is there a written contract?
Has the scope of the work to be performed been clearly defined?
Does the Association have to pay start-up costs to the contractor?
Is the amount of start-up costs reasonable
(less than 10 percent of the total contract price?
Are progress payments required at reasonable intervals?
Have payment obligations such as “upon delivery” been deleted?

19. Contract Check List
by Thomas Gatlin
Have the payment provisions been written so that the
Association only pays for work that has been satisfactorily completed?
Is the contractor required to submit mechanic’s lien releases before
each payment?
Should the Association write joint checks to the contractor and
subcontractors if unconditional lien releases are not provided?
Can the Association hold a retention from each progress payment
until the end of the contract?
Is final payment required only after all mechanics’ lien rights
have been expired?

20. Contract Check List
by Thomas Gatlin
Are the starting and completion dates clearly specified?
Is there a liquidated damages (predetermined monetary payment)
provision in the contract?
Are there benefits to the Association if the contractor finishes earlier
than expected? Would a performance bonus provision provide
incentive to the contractor to finish earlier than required?
Can the Association terminate the contract “without cause?”
If “cause” is required, is it clear under what conditions the contract
can be terminated?

21. Contract Check List
by Thomas Gatlin
Has the contractor clearly indicated the warranties being given?
Are there any materials manufacturers’ warranties?
What exclusions are there in the warranties?
Are these exclusions reasonable?
Will the contractor be required to supply a performance bond or
labor and materials bond?
Is the contractor required to post a bond to protect the Association
from a mechanics’ lien recorded by a subcontractor?

22. Contract Check List
by Thomas Gatlin
Have all required bonds been given to the Association before the
contractor begins work?
Is the contractor required to indemnify the Association for its
negligent acts and omissions?
Have all obligations of the Association to indemnify the other party
deleted from the contract?
Have limitation of liability clauses been deleted?
Does the contract require some form of Alternative Dispute
Resolution (mediation or arbitration) prior to or in lieu of litigation?
Is there an attorneys’ fee provision in the contract?
Has the contract been reviewed by legal counsel?

23. Title and Title
Insurance Implications
of Fire Recovery
Mark J. Tew, Esq
mtew@dbosslawfirm.com
Volunteer, San Diego County Bar Association

24. Title Insurance v. Homeowner’s
Insurance
General Homeowner’s or Casualty Insurance:
Continuing premiums
Protection for future anticipated accident or event
Title Insurance
Generally retrospective in its scope and coverage
From date of Policy (usually purchase date)
backwards
A single premium product
Limited by Policy limits as of date of Policy

25. Contract of Indemnity
A Title Insurance Policy is a contract of
indemnity. It does not insure that title is in any
state or condition. Rather, pursuant to the covered
risks section of the Policy, and subject to the specific
terms and conditions of the Policy, it will indemnify the
insured in the event the insured has suffered a covered
loss.
Generally the Title Co. cannot be liable for
negligence in failing to identify defect or
encumbrance.

26. Areas of Title Concern During
Rebuilding and Recovery Process
Boundary Disputes
Encroachment of own structures onto neighboring property
Encroachment of neighboring structures onto one’s own
property
Discovery of Encroaching Structures
Boundary Walls or Fences
Wells
Leach Lines
Encroachment Easements

27. Tendering the Claim
Date of Discovery
2 Year Statute of Limitations from date of discovery
of potential title claim
Tender Claim in Writing
Preserve record
Postpone Self-Help Measures
Allow title insurance company to address matter
Some self-help measures can limit your policy
coverage and can create liability for yourself

28. Tendering the Claim
Common areas for denial of coverage
Post-policy event
Created, suffered, or assumed by insured
Known to the insured, but not to the Company
(no notice provided to the company in writing)
Differences in Policy protection
New CLTA/ALTA Homeowner’s Policy

29. Programs and Benefits Offered by
Title Industry to Fire Survivors
Lender’s Policies
During refinance
40-50% reduction in policy premiums to fire survivors
Owner’s Policies
Reduced rate for re-issuance of existing policy
40-50% reduction in policy premiums to fire survivors
Free copies of recorded documents
Reduced escrow fees for fire survivors

30. Purchasing New Title Insurance
after Reconstruction
Lender’s Policies
Obligatory
Owner’s Policies
CLTA/ALTA Homeowner’s Policy
Substantially more coverage
Covered Risks Post-Policy
New Owner’s Policy not necessary in all
circumstances
Consult with your Title Officer / RE Agent

31. Contact Information
Mark J. Tew, Esq.
The Boss Law Firm
7220 Trade Street, Ste. 207
San Diego, CA 92128
Phone – 619.234.1776
Fax – 858.444.3817
mtew@dbosslawfirm.com

32. Break Out Sessions
Open to 9:30 pm: Firm Stop time
Upstairs:
State Farm : Dormer West
Farmers : Skylight West
Allstate : Upper Courtside East
Other Companies: Sanctuary