Expert advice for the slide-affected

Randall Bell

Working in the field of real estate damage economics, I typically

have to take long flights to inspect the disaster sites that we

study. Little did I know that the next disaster I would see would be

in my own backyard.

As I drove to my office in Laguna Beach on June 1, fire, police

and rescue emergency vehicles continuously passed me. I thought that

something had happened on the beach, only to learn minutes later

about the major Laguna Beach landslide. This tragedy will certainly

go down in history as one of the area’s most devastating and

expensive landslides.

Like any disaster, it has both emotional and practical issues.

Having worked on many crises around the world, ranging from the World

Trade Center site to crime scenes and the nuclear weapons test

grounds on the Bikini Atoll, I always make a point to note some

lesson. Here is my advice to pass along to our Laguna Beach neighbors

who are dealing with this situation:

* Be grateful: While this disaster has created an economic and

emotional mess, fortunately nobody lost their lives or was seriously

injured. I have worked on many disasters where hundreds or even

thousands were killed, so keep this disaster in perspective. As bad

is it was, it could have been far worse. Losing a house is far better

than losing a child or other loved one.

* Comply with all city and state authorities. The landslide area

may still be unsafe, and going into dangerous areas can put you at

unnecessary risk. I once was standing in a living room of a house

that fell 125 feet just a few hours later, and I realized how serious

these warnings really are. Stay out of unsafe areas.

Furthermore, the city of Laguna Beach has excellent resources and

help for those impacted by the slide. Keep in touch with the city.

* Accept the help of others: Family, friends, clergy, local

agencies and counselors all offer support after a loss such as this.

They want to help, so let them.

* Document all damage. Once allowed by local authorities to enter

your property, don’t just collect your valuables, also photograph and

videotape all of your possessions and the damage. Keep a file that

documents all the damages.

* Avoid the “blame game.” The combination of steep hillsides and

heavy rains creates landslide risks, and sometimes there is nobody

but Mother Nature to blame. There is an inherent risk in building on

steep slopes, and a “room with a view” comes with a price. Right now

there are many nonprofessionals who have speculated on the causes of

the damages. However, this information can be misleading and create a

lot of misdirected blame. It will likely take weeks or months to

really know what triggered the landslide, so wait for competent and

trained geotechnical professionals to conduct their studies before

pointing the finger.

* Contact your insurance agent. Soils and landslide issues are

generally not covered under a conventional home insurance policy, but

contact your agent anyway. Discuss what options that you may have

under your policy.

* Call your lender. Even though your home may be damaged or

destroyed, your loan may remain in full force. Talk to your lender

about any options. Assure them that you have secured the premises and

are actively doing all you can to protect their collateral.

* Appeal your property taxes. If your property is damaged or

cannot be occupied, you may be eligible for a reduction or

elimination of property taxes. Beware, as deadlines apply. Contact

the Orange County tax assessor’s office at: Webster J. Guillory,

Assessor, 630 N. Broadway, Building 12, Santa Ana Civic Center, Room

142, Santa Ana, CA 92701; assessed value of property assessor dept.

(714) 834-2727; assessment appeals application (714) 834-2331;

schedule an appeals hearing (714) 834-3457; appeals board (714)

834-3453 or online: oc.ca.gov/assessor.com.

* Consider the risks of rebuilding. Nobody can absolutely

guarantee that building on the steep hillsides of Laguna Beach is

safe. If you do have the option to rebuild, consider the risk.

Portions of the market will not hesitate to rebuild after a

landslide. (This is called the “Malibu Effect” which is a term taken

from areas of Malibu that have recurring floods, fires, mudslides and

wave damage, yet are always rebuilt). Others would never consider it.

Decide which category you are in.

* Disclose, disclose, disclose. Even if you think everyone in the

world already knows about this landslide, California law requires a

full written disclosure when you eventually sell a property. Many

lawsuits are generated every year by those who fail to make proper

disclosures when they sell.

Randall Bell is the CEO of Bell Anderson & Sanders LLC, in Laguna

Beach, which specializes in Real Estate Damage Economics. He is the

author of “Disasters: Wasted Lives, Valuable Lessons and the Home

Owners Manual”. For more information visit www.RealEstateDamages.com.