Developer obtained required insurance before Foxglove flood, records show

A developer obtained comprehensive liability insurance covering claims related to a flooding earlier this year, according to new documents.
A flooded detention pond is pictured near Ivy Loop in Winters on Jan. 17, 2019. Photo by Matthew Keys/Winters Express
A flooded detention pond is pictured near Ivy Loop in Winters on Jan. 17, 2019. Photo by Matthew Keys/Winters Express

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newly-released documents. The documents were obtained by the Express as part an ongoing investigation into a flooding incident that occurred in mid-January involving several homes and other property located along Foxglove Circle, Ivy Loop and other nearby streets. On Jan. 16, a strong Pacific storm triggered an overflow of the Rancho Arroyo detention basin located behind several homes along Foxglove Circle. The storm sent water from the detention basin into at least three homes along Foxglove Circle and resulted in flooded roadways along Ivy Loop and other streets. City officials say they now believe a breached canal caused excess water to flow into the detention basin, which caused a rare flash flood in the area. The flood resulted in serious property damage in the subdivision, including over $100,000 in structural damage to a home located directly in front of the detention basin. Shortly after the flood, a city official told the Express an indemnity clause with developer Homes by Towne required them to obtain comprehensive liability insurance that covers both the developer and the city. That clause was contained in a development agreement signed between city officials and Homes by Towne in 2017. Records obtained by the Express showed the policy was supposed to be activated and proof of the policy was to be sent to the city in the form of a certificate of insurance before development began in the area. Last week, city officials furnished a copy of the certificate of insurance for a comprehensive liability policy taken out by Homes by Towne through the National Fire and Marine Insurance Company. The policy, which lists the City of Winters as an additional insured party, covers Homes by Towne from March 1, 2017 to March 1, 2019. That policy includes a payout of up to $750,000 for each occurrence of property damage after development projects covered under the agreement were completed. The date on the certificate of insurance was listed as Feb. 1, 2019, two weeks after the flooding incident along Foxglove Circle and Ivy Loop. It was not immediately clear if proof of insurance was furnished to the city before development began in 2017. A city official did not return a request for comment by press time. In a public memo distributed by email on Friday, City Manager John Donlevy said individuals affected by the flooding “are working with insurance companies to resolve claims and get repairs completed.”]]>

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