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OCEANSIDE, Calif. — Imagine receiving an insurance letter that says your policy is being canceled due to fire risk and the only place you can find coverage will cost you 800%.

That’s what is happening at the Pilgrim Creek Estates in Oceanside. A mobile home community made up of 200 homes many on fixed incomes and seniors living on the manufactured homes.

When residents mailed the letters to CBS 8 asking for help, they went to Oceanside and walked into lion’s den of outraged residents.

“Instead of $2,500 deductible we got a $50K deductible,” said Katy Drexler, resident.

Now the entire community must pay $160,000 for insurance to cover their HOA amenities.

“This clubhouse is used every day and the pool is used every day of the week and it would cripple us,” said Drexler.

The pool is often used for physical therapy for many residents as well.

Residents say the insurance company for the HOA American Alternative Insurance Company based out of New Jersey dropped them because they are considered to be a fire risk.

CBS 8 called the company and after five minutes on hold the call dropped.

Drexler says after putting out 25 bids, they could only get 100% coverage through a group of insurance carriers which went from $20,300 to $160,500.

“They've [residents] had heart problems because this, have had mini strokes,” said Corrine Oshima, resident.

Homeowners across the state and in San Diego have been faced with the issue of insurance companies canceling policies citing fire risk.

Residents at Pilgrim Creek Estates also say theirs went up too.

“I don't know how long I can keep this up, eventually I'll have to sell the house,” said Jerry Petterson.

A neighbor says this is just wrong.

“I'm sick of all this, I'm so upset about it all,” said Marilyn Rutherford, resident.

A representative for the California Department of Insurance says the agency is in the process of contacting the residents of Pilgrim Creek Estates over this issue.

Last week CDI Commissioner Lara submitted his Safer from Wildfires Regulation Plan, which requires insurance companies give discounts to policy holders for fire mitigation.

Next week on Capitol Hill, The House Financial Services committee is holding a hearing called the State of Emergency: Examining the impact of growing wildfire risk on the insurance market.

“President Biden, we need your help, this has to stop,” said a resident’s daughter.

Neighbors say something must got to give.

“We need answers, this isn't right,” said David Weaver, resident.

CBS 8 spoke with the Deputy Fire Chief who says there has not been a direct recent event that would make the community a higher fire risk. 

Pilgrim Creek Estates borders Camp Pendleton which has a wide enough fire break. 

CBS 8 will continue to work for you to help this community get answers.

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