Trees at risk amid state insurance crisis

Maybe the biggest irony in the insurance mess downtown homeowner Scott Salters and his family find themselves in lately is that they chose their new home partly because of the neighborhood's grand old trees. No more than a month after they moved into the cottage-style home on Elm Street, State Farm delivered what amounted to an ultimatum: Cut down two large pine trees in their front yard — one 100 years old, the other 70 — or say goodbye to their home insurance policy. It's true both trees stand close to the house. But Salters said it was never a problem under previous owners, which makes him think the situation is less about the trees than it is about California's insurance crisis. “They're part of the charm and character of the house and the overall neighborhood,” Salters said, adding that he's shopping for a new insurance carrier in hopes he won't have to cut down the trees after all. Trees loom ever larger in the insurance struggles facing the state's homeowners lately. Although branches hanging over a roof have long drawn warnings from inspectors, people in the business say carriers increasingly cite potential damage from trees as a reason for dropping even longtime policyholders. Homeowners policies are a big part of California's insurance problems lately, but they're not the only one as businesses, too, choose between sharply higher premiums and the loss of their policies. The state Department of Insurance, which did not respond to a request for comment on this story, is undertaking a series of reforms designed to address insurers' concerns about financial losses related to natural disasters and delays in official reviews that are required before they can raise premiums. Local insurance agents said Salters' case appears to be unusual, in that the typical request is for homeowners to trim back their trees for reasons such as wildfire risks. None reported having heard of an order to remove a tree altogether. But neither were some of them surprised, considering the worrisome trend of insurers scaling back their exposure in the Golden State. They said trees have become a bigger focus as companies are more proactive in canceling homeowner policies. “The insurance companies are playing all sorts of games right now to try and get out from insuring homes,” Bakersfield independent insurance broker James D. “Jim” Miller said. On the contrary, said Insurance Information Institute spokeswoman Janet Ruiz. She wouldn't discuss Salters' case specifically, and neither would State Farm, but Ruiz denied trees are being used as some sort of excuse to walk away from policies. Insurers don't want to lose their customers, she said, so they give policyholders the opportunity to make a correction. “We've had a lot of trees falling during storms because they're old or they're diseased or there's issues with the trees,” Ruiz said. “So, we are seeing more concern over trees that have the potential to create a (financial) loss. “Unfortunately,” she continued, “some of them are the trees that we've come to love.” Local tree trimming and removal services confirmed they're getting a healthy flow of orders lately as insurers insist changes be made to the landscaping around homes. But they say most of that business comes from mountain areas where wildfires pose a threat. “Some of these houses have oak trees that are, you know, beautiful and they do overhang the roof,” said Joe Salas, a partner at Salas Tree Service who sees a recently has gotten a lot of business in the Tehachapi area. “But nothing as far as removals.” The Bakersfield real estate broker who helped the Salterses buy their new home, Gary Belter, said it would be a shame if the family had to remove the two trees, a job that would require the use of a crane and could cost in the tens of thousands of dollars. Not only do trees provide welcome shade, but they provide character in a neighborhood more than 100 years old, said Belter, adding, “The landscaping is a big part of what you buy.” He'd never heard of a policyholder being told to remove a tree, though Belter said he has heard recently of a newly purchased home passing inspection only to face being dropped by its insurer unless the whole house is re-plumbed and the structure bolted to its foundation. Miller said that even if Salters is able to get a new policy without removing the two pines, there's no guarantee an inspector won't show up in six months saying, “you know what, we're going to nonrenew that house if you don't cut (those trees) down.” In the Lebec area, he has heard lately from homeowners who were told by their insurers to cut their trees way back such that now, “they're skeletons.” “That isn't why those people moved up there,” Miller said. Salters noted the two trees in question are regularly inspected and maintained by a certified arborist. The idea of losing them makes him and his wife not just frustrated but also sad because of the connection the pines have already made with their young son who enjoys playing under their shade in the front yard. “They're not just flowers,” he said. “We have memories in them.”

Maybe the biggest irony in the insurance mess downtown homeowner Scott Salters and his family find themselves in lately is that they chose their new home partly because of the neighborhood's grand old trees.

No more than a month after they moved into the cottage-style home on Elm Street, State Farm delivered what amounted to an ultimatum: Cut down two large pine trees in their front yard — one 100 years old, the other 70 — or say goodbye to their home insurance policy.

It's true both trees stand close to the house. But Salters said it was never a problem under previous owners, which makes him think the situation is less about the trees than it is about California's insurance crisis.

“They're part of the charm and character of the house and the overall neighborhood,” Salters said, adding that he's shopping for a new insurance carrier in hopes he won't have to cut down the trees after all.

Trees loom ever larger in the insurance struggles facing the state's homeowners lately. Although branches hanging over a roof have long drawn warnings from inspectors, people in the business say carriers increasingly cite potential damage from trees as a reason for dropping even longtime policyholders.

Homeowners policies are a big part of California's insurance problems lately, but they're not the only one as businesses, too, choose between sharply higher premiums and the loss of their policies.

The state Department of Insurance, which did not respond to a request for comment on this story, is undertaking a series of reforms designed to address insurers' concerns about financial losses related to natural disasters and delays in official reviews that are required before they can raise premiums.

Local insurance agents said Salters' case appears to be unusual, in that the typical request is for homeowners to trim back their trees for reasons such as wildfire risks. None reported having heard of an order to remove a tree altogether.

But neither were some of them surprised, considering the worrisome trend of insurers scaling back their exposure in the Golden State. They said trees have become a bigger focus as companies are more proactive in canceling homeowner policies.

“The insurance companies are playing all sorts of games right now to try and get out from insuring homes,” Bakersfield independent insurance broker James D. “Jim” Miller said.

On the contrary, said Insurance Information Institute spokeswoman Janet Ruiz. She wouldn't discuss Salters' case specifically, and neither would State Farm, but Ruiz denied trees are being used as some sort of excuse to walk away from policies.

Insurers don't want to lose their customers, she said, so they give policyholders the opportunity to make a correction.

“We've had a lot of trees falling during storms because they're old or they're diseased or there's issues with the trees,” Ruiz said. “So, we are seeing more concern over trees that have the potential to create a (financial) loss.

“Unfortunately,” she continued, “some of them are the trees that we've come to love.”

Local tree trimming and removal services confirmed they're getting a healthy flow of orders lately as insurers insist changes be made to the landscaping around homes. But they say most of that business comes from mountain areas where wildfires pose a threat.

“Some of these houses have oak trees that are, you know, beautiful and they do overhang the roof,” said Joe Salas, a partner at Salas Tree Service who sees a recently has gotten a lot of business in the Tehachapi area. “But nothing as far as removals.”

The Bakersfield real estate broker who helped the Salterses buy their new home, Gary Belter, said it would be a shame if the family had to remove the two trees, a job that would require the use of a crane and could cost in the tens of thousands of dollars.

Not only do trees provide welcome shade, but they provide character in a neighborhood more than 100 years old, said Belter, adding, “The landscaping is a big part of what you buy.”

He'd never heard of a policyholder being told to remove a tree, though Belter said he has heard recently of a newly purchased home passing inspection only to face being dropped by its insurer unless the whole house is re-plumbed and the structure bolted to its foundation.

Miller said that even if Salters is able to get a new policy without removing the two pines, there's no guarantee an inspector won't show up in six months saying, “you know what, we're going to nonrenew that house if you don't cut (those trees) down.”

In the Lebec area, he has heard lately from homeowners who were told by their insurers to cut their trees way back such that now, “they're skeletons.”

“That isn't why those people moved up there,” Miller said.

Salters noted the two trees in question are regularly inspected and maintained by a certified arborist. The idea of losing them makes him and his wife not just frustrated but also sad because of the connection the pines have already made with their young son who enjoys playing under their shade in the front yard.

“They're not just flowers,” he said. “We have memories in them.”