"If
California builders, sub-contractors and laborers cannot get
insurance, homes cannot be built, and the American dream
cannot be realized"
Insuring
for Construction Defects Keeps the American
Dream Out of Reach
When you hear the
phrase, "I want to live the American
dream," and you ask what that means, many
people say that they want to own their own
home where they can raise their family.
Unfortunately, the dream is becoming more
difficult to achieve in California because of
the current challenges we face in dealing with
construction defect claims, lawsuits, and the
construction dispute resolution process.
Although the California Legislature continues
to deal with issues in workers' compensation,
energy, and the budget, it must now deal with
one of the less publicly visible but equally
challenging issues - insurance for
construction defects.
If California builders, sub-contractors and
laborers cannot get insurance, homes cannot be
built, and the American dream cannot be
realized. This may sound overly dramatic, but
the issue is real. Consider this:
·California has seven out of 10 of the
highest priced housing communities in the
nation;
·The median housing price in California has
reached nearly $323,000, well out of the price
range for a large number of families;
·Fire fighters and teachers in some parts of
the state cannot live in their own communities
because of housing prices, and they have to
commute up to three hours away from where they
live.
The Root of the Problem
So, what is driving the current construction
defect insurance crisis, and why is it so
difficult for builders and sub-contractors to
find insurance at any price? I'll use the
California workers' compensation crisis to
help explain why construction defect insurance
is unaffordable.
