Karen Reimus reimus1@aol.com

1. Wildfire Roadmap to Recovery: Meeting #5, January 17, 2008Rancho Bernardo Community Presbyterian ChurchWorking with an architect and 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 atwww.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 ProcessDue Diligence in Choosing Architect/Contractor Patty and Dennis Moser Architects

14. Overview of Building ProcessDue 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 Listby 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 Listby 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 Listby 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 Listby 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 Listby 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 Listby 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. ContactInformation 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