Leavenworth and Cashmere Caucus

Leavenworth and Cashmere residents will be caucusing this Saturday like the rest of the state to decide who will run as our presidential candidates for 2008.

I'm a long time political junkie having been raised in Olympia and gone to campaign events since I was about 6. When I was in high school, I even went down to the Capitol to heckle Ross Perot. However, this weekend will be my first caucus. In years past, the primaries and caucuses have been too little, too late for us in Washington State. This year, with tight races, we count.

In Leavenworth - The Democrats are meeting at Icicle River Middle School on Titus Road at 1 pm. The Republicans are meeting at the Leavenworth Fire Station on the Chumstick Highway (across from Cascade High School) at 12:30.

The Republicans are also caucusing near Lake Wenatchee at 12801 Chiwawa Loop Road and for folks in Peshastin or Dryden at 2592 Saunders Road.

In Cashmere - The Democrats are caucusing at the Cashmere City Hall (in downtown Cashmere, just off of Cottage Ave.) again at 1 pm. The Republicans are meeting a block away at Cashmere Valley Bank at 12:30.

If you need more info, or want to get more involved in party politics contact the Chelan Democrats or the Chelan Republicans

Leavenworth's Eagle Creek Road - Wider or Not?

Eagle Creek Road winds up through a narrow canyon along the meandering Eagle Creek. Just a few miles from downtown Leavenworth, residents and vacation home owners along Eagle Creek get the best of both worlds - close to town and yet a very quiet rural existence.

Chelan County is currently considering making major repairs of this windy country road. According to a recent article in the Leavenworth Echo (article not yet online) the road was originally a wagon trail up into the mountains. The repairs would flatten and widen the road and add guardrails for safety. Currently the road is about 20 feet wide and would be widened to 28 feet wide.

An article in the Wenatchee World says that some local residents are against the plan. They fear that an improved road would lead to increased speeds and a degradation of the rural atmosphere that they like living on Eagle Creek Road.

I am going to add my voice to the debate. And you can contact your County Commissioner to add yours too.

I think that widening the road would be a great benefit. Those of us who ride bikes can now be safely passed and cars on the road will have increased sight distance to pass as well. Even slow moving tractors will benefit from the wider roads. In rural areas it is also common to walk along the road - also safer with wider roads.

From a fiscal responsibility point of view, I think it would be irresponsible for us to give back $2.5 Million to the state when that money is allocated for much needed repairs on Eagle Creek Road. I'm sure someone in Pe Ell would be happy to spend our gas tax money on roads in the Grays Harbor area (for example) but I'd rather the funds stay here.

Don't mess with the Chumstick!

Don't mess with the Chumstick!

Last weekend a couple of the dumber inhabitants of Western Washington came to visit our sleepy berg.

These hoodlums attempted an armed home invasion on the Chumstick Highway north of Leavenworth and got an education about rural living.

The homeowner grabbed one of the robber's pistol and shot him. Both robbers fled and gave themselves up to local sheriff's deputies.

You can read the full article here.

In my opinion, both robbers are lucky to be alive. The Chumstick neighborhood is typical of rural Eastern Washington. The number of firearms - shotguns, pistols, and hunting rifles, per capita is probably fairly high. If you try and break in to a home here, plan on gettting shot or shot at.

Insurance for Vacant Land?

The Importance of Insuring Vacant Land

By Eric Kossian of Leavenworth Insurance

While vacant land doesn’t have any structures that could burn down, the landowner is still subject to liability lawsuits, so it is advisable to have liability insurance coverage.

To obtain vacant land liability coverage inexpensively the first choice is simply having your agent extend liability from an existing homeowners policy and/or excess liability (umbrella) policy. This costs almost nothing.

But what if you don’t currently own a home? There’s a policy you can get that will cover up to 500 acres of vacant land including up to 25 acres of lakes or ponds. There must be no structures or commercial use and no plans for development or construction during the term. (Once you are ready to build your dream home, you would cancel this and get a Course of Construction Policy which would also cover liability.)

Liability coverage on a Vacant Land Policy has no deductible and uses the expanded definition of Bodily Injury to include Mental Anguish and Emotional Distress. Premiums are low.

Eric Kossian was an Underwriting Specialist with State Farm. He owns Leavenworth Insurance, LLC. an agency providing affluent homeowners throughout Washington State with all their insurance needs. Eric can be reached at (877) 548-5488 or

leavenworthinsurance@gmail.com

Leavenworth Real Estate Market Update

The Leavenworth real estate market is made up of a number of different sectors that always seem to be moving in slightly different directions.

The majority of consumers, whether they are local homeowners looking at an increased tax bill or out of town investors, look to the growth of prices to gauge the strength of the market.

Home prices in Leavenworth WA are certainly up. At the end of May the average list price for a single family home in the Leavenworth area (including Lake Wenatchee and Plain) was $518,000. This is the number that tends to excite people and this is the number that most folks see when browsing the internet or looking in local homes magazines.

Of course the number that has more importance is the average SALES PRICE which is what the buyers are willing to pay. Considerably less - $354,000.

But as I said before, this is a tale of multiple markets wrapped up in each other.

The bulk of the Leavenworth real estate market is single family homes under $600,000 that are not on the water. We could even narrow the range to between $200,000 and $400,000, but the story is much the same.

At the end of May 2007 there were 45 of these homes on the market. Looking at the sales data, we have 5.7 months of inventory. More or less a balanced market with neither buyers nor sellers having much of an advantage. ( I would say that generally, home sellers outside the city limits probably have a stronger market that those inside the city, but that data will be saved for another day.) Last year, there were 39 homes on the market with a 3.9 month supply. Though supply does seem to be rising, we did have 63 homes on the market in August and September of 2005, so it is hard to say if this is a short cycle or a longer term trend.

Homes over $600,000 are the luxury segment of our market. In the past year, 6 homes (non- waterfront) sold in this price range and the 13 homes on the market at the end of May represent 26 months of supply. While few of these sellers are highly motivated, it is by any indication a buyers market. (And has been for some time.)

Waterfront homes are a different beast. Generally, these really just include homes on Lake Wenatchee and Fish Lake, and riverfront homes on the Icicle Creek, Chiwawa, White, or Wenatchee Rivers. At the end of May, there were 11 homes on waterfront or 7.8 months of supply. I think this market sector tends to be pretty balanced, despite ever growing price points.

Overall, I see strong demand for vacation homes by westside buyers at prices under $600,000. This continues to be for "cabins" or other vacation homes generally located outside of the city of Leavenworth.

Leavenworth Insurance - An Interview with Eric Kossian

10 questions for Eric Kossian of Leavenworth Insurance

Here is my second installment of my "10 Questions" series. Eric Kossian of Leavenworth Insurance is a insurance broker in Leavenworth, WA. He is located on Highway 2 in Leavenworth next to Jerry's Saw Shop. His motto is "We love to save you money!"

1. What does an insurance broker do?

Geordie, an insurance broker locates and shops insurance products to protect clients from the financial risk of loss due to such things as fires (property), accidents (liability), death and unsecured retirement investments and income. While most agents think in terms of selling product that is incorrect; we are in the business of asset protection. Some examples of personal assets could be an owned home, cars, income- your ability to produce it, your life (yes, it is a financial asset), and investments. We then use a wide variety of insurance and annuity products to safe guard assets. A good insurance agent asks you lots of questions about everything in your life. This exposes risks which are currently being self insured. A good agent then shows the client options to reduce risk by reducing or moving all or part of the self insured financial risk to others. Having been an Underwriting Specialist for a huge insurance company, I have a keen eye for risk.

2. What special insurance products do you offer for the Leavenworth market that other agents or companies might not offer?

While I office and live in Leavenworth, my clients and my advantages are statewide. I can insure most log homes at the same rate as frame construction ( a big savings). But specifically, the most frequent & obvious area I can help people is eliminating the risk (1 in 5 chance, nationwide after a claim) of not having enough insurance to cover the replacement cost of your home. Almost all “replacement cost” policies are capped and the rest is your out of pocket expense. However, I have found a company that removes the cap and will simply replace your home in the event of total loss (and they almost always cost less!) But generally, I provide better risk analysis. Last week, among the clients I insured were 2 multimillionaires and a young fireman who owns 4 homes. They all had significant gaps that could have cost them hundreds of thousands in the event of a claim and I was able to show each of them things on their existing policies where they could save money. It was very satisfying to help them and I actually get paid to do help! They also have simple investment and retirement income risks that are easy to avoid which I am helping with. Why take unnecessary risk if you don’t have to? Make sure you have the “big things” covered.

3.What kinds of clients can you help the most?

The more one owns the more I can help.

4. What things in a home or things about a home make it difficult to insure?

Homes generally qualify for preferred insurance if they have had updates to the electrical (Romex wiring and 100 amp panel min.), plumbing (no pressurized galvanized pipe), the roof is in good shape, there are no major foundation issues (large cracks, major settling, post & pier or rock & mortar foundation). They also cannot have any type of home business (unless approved 1^st)- including renting out their home for a nightly or vacation rental. Finally, they cannot be more than 5 miles from a fire station or on a road that is inaccessible in winter.

5. Where do you see people being the most underinsured? What liabilities are we not insuring?

There is a long list but the two that effect the most people are: 20% of homes are underinsured, Auto liability is often too low (and is cheap) and many people should have a $200 a year, 1,000,000 excess liability policy. In addition, people often have their assets (their home and retirement assets and their life asset) structured in manner that is risky and not the most conducive to wealth building.

6.Will the massive claims from hurricane Katrina have an effect on insurance in Leavenworth, WA?

Indirectly, yes. With billions being paid out, that is lost investment income for insurance companies. That can affect rates nationwide. That why some many preferred companies will no longer write policies within 40 miles of the gulf and Florida coastline.

More likely to impact Leavenworth home insurance rates is the satellite photo & computer aided modeling insurance companies are doing in California. It will eventually spread to Leavenworth. It has been highly accurate in predicting future losses based on fuels & topography.

7. If I have to snowmobile to my property in the winter how does this affect the insurance?

You will pay an extra $1000-$1500 per year for non preferred homeowners insurance.

8. How is insuring a condo different than a house?

Condo insurance insures only the contents and liability ( the structure is insured by the association). There are several things I recommend for condos and board members.

9. Do you offer insurance for people building a home?

Yes, people who own property and have a contractor who is going to build their dream home need to get Course of Construction insurance. It covers the dwelling and their liability.

10. If you could ask 10 questions of anyone alive today, who would it be and why?

Being a historical buff and the fact that I am writing this at 10:30pm all the people that are coming to mind are all dead! Ha! There is so much more I want to learn about so many things, I would ask the 1^st person permission to ask 1000 people a hundred questions. I love to read on a variety of subjects so at any one moment the person selected could be an astrophysicist or a kindergarten teacher.