May 17, 2006

Edward B. Rust Jr., CEO
State Farm Insurance
1 State Farm Plaza
Bloomington, Illinois 61710

Dear Mr. Rust:

I hope that my letter and the enclosed information will persuade State Farm to advise their home insurance policyholders in Western North Carolina of the risks of buying mountain slope property.

Most people think of California when you mention landslides. They don’t associate these disasters with Western North Carolina. In September 2004, 130 landslides caused 5 deaths and destroyed 27 homes in these mountains.

In February 2005 the North Carolina General Assembly passed the Hurricane Recovery Act. Part of the bill provided funding for the North Carolina Geological Survey to begin a landslide hazard map for nineteen counties. The state has recognized the risk of slope development and the North Carolina geological staff has published extensive reports warning about the dangers of unregulated mountain development.

Currently there is little or no state supervision of mountain development. Safety ordinances and guidelines are left to local municipalities. Most local governments are not requiring geologic hazard mapping as a requirement for building permits. This lack of safety protocol poses serious personal and financial risks.

Buyers of mountain property should ask the developer for a copy of the hazard report certifying that their home is constructed on stable ground. Owners and buyers of mountain property should be advised that homeowner policies will not cover damage caused by earth movement and ground water flooding.

According to Marc Pruett, Haywood County soil and erosion control officer, “anyone with a bulldozer and backhoe can carve out homesites and roads into the mountainside. This lack of engineering is causing homes and roads to slide down the mountain throughout the county.” Mr. Pruett’s description of the effects of on going mountain slope development is true for much of Western North Carolina.

Thank you for your interest in this serious matter.

Sincerely,

Lynne Vogel