In addition to making it more difficult for small businesses to survive, California’s insurance issue is now continuing. Having been in business for almost 15 years, Chateau Davell Winery is owned by Eric Hays.
For his company, he added, fire insurance began at about $3,000 and increased progressively over time. He stated that the largest increase he had seen this year was to $20,000 in value.
“It’s not something that was in our business plan or our expenditure costs. So having to come up with that money, it’s coming out of our profit honestly,” Hays stated.
For the first time since his opening, Hays has had to raise pricing as a result of this.
“We held off for a long time, you know, even with inflation, costs, cost of living, fires, all of that. But we finally have to give in,” Hays stated.
According to Hays, the $20,000 annually works out to more than $1,600 per month, which is currently greater than the building’s mortgage payment.
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He clarified that one of his main concerns is that he might have another fire insurance jump the following year.
“That’s what’s concerning. We’re making it work this time but another jump like that, it could be devastating,” he stated.
Hays expressed his hope that swift action may be taken to ensure the survival of all property and business owners.
“It’d be great if there were some sort of regulation with the insurance companies or some sort of assistance from the state or the feds, something to help,” Hays stated.
