In a major win for mobile homeowners, the Senate Insurance Committee today passed Senate Bill 525 by Senate Minority Leader Brian W. Jones (R-San Diego), which will finally ensure that that California’s FAIR Plan provides the same basic property insurance—including full replacement value coverage—for mobile and manufactured homes as it already does for standard residential dwellings. Click here for the bill’s fact sheet.
“Today’s bill passage is a huge step forward for the 500,000 Californians who live in mobile homes and have been left underinsured for far too long,” said Leader Jones. “The key word for SB 525 is equity. This bill simply provides equity to mobile home owners, many of them middle-class and lower-income, who are currently underinsured through no fault of their own.”
The consequences of underinsurance of mobile homes can be seen right now in the Pacific Palisades. In February, fires tore through Palisades Bowl Mobile Estates and Tahitian Terrace in Pacific Palisades. The residents, mostly seniors, lost their homes. Because the FAIR Plan doesn’t offer full replacement coverage to mobile homes, many can’t afford to rebuild.
“What’s happened at the mobile home parks in the Pacific Palisades is the future for every mobile home owner in California. Our SB 525 will prevent more tragedies like these from occurring,” Leader Jones continued.
The idea for SB 525 came directly from a constituent of Leader Jones, Kent Michitsch from Ramona, who testified in support of the bill. For six years, Leader Jones and his team worked alongside Kent Michitsch, trying to find a viable solution for his underinsurance. His story reflects the struggle of countless mobile homeowners across the state, many of whom have been denied the ability to purchase full replacement value coverage for their homes.
“My home is just as much a home to me as anyone else’s is,” said Kent Michitsch. “All manufactured home owners are asking for is the opportunity to replace it in the event of a fire, just like anyone else. Today’s vote gives hope to families like mine who’ve been overlooked for too long. Thank you Senator Jones for standing up for us.”
California’s FAIR Plan was created to be a last resort for homeowners when the private market fails. Many manufactured homeowners are being denied or are unable to obtain full replacement cost coverage. Instead, these homeowners can only secure insurance based on the initial purchase price of their home, rather than its present-day replacement value, leaving them drastically underinsured—especially in California’s increasingly fire-prone environment.
SB 525 does not add anyone new to the FAIR Plan. It simply clarifies that the FAIR Plan must offer mobile home owners the option of paying for full replacement insurance and equal coverage.
SB 525 passed out of the Senate Insurance Committee on a (4-0) vote. The bill now advances to the Senate Floor for consideration.