Q&A: Greg Econn

By MICHELLE EDGAR | Special to the Palisadian-Post

As Los Angeles continues its rebuild in fire-affected neighborhoods, one challenge remains: ensuring homeowners, developers and lenders are protected during the construction process.

I sat down with Greg Econn, chair of the insurance board at Steadfast LA and executive vice chairman of Venbrook Insurance Services, to discuss the latest on builder’s risk insurance, homeowner engagement and environmental compliance—offering insights for anyone navigating the complexities of rebuilding.

Econn has five decades of experience in insurance broking and is known for his industry knowledge in all facets of real estate coverage and construction insurance. He leads Venbrook Real Estate Practice, focusing on product innovation, market agility, customer service and strategic partnerships.

Edgar: Why is builder’s risk insurance so important for rebuilds?

Econn: Builder’s risk insurance is typically required for anyone using a construction loan to finance a new build or rebuild. The policy protects against risks during construction—including wildfires, water damage, theft, etc.—before a homeowner’s standard insurance takes over. Without it, both homeowners and banks face palpable exposures.

Edgar: Can you give an example of how this plays out?

Econn: Absolutely. Imagine a homeowner with a $2 million loan on a property where the land is valued at $3 million. If their house is lost and they start rebuilding without builder’s risk insurance, they take a serious and unnecessary risk. This not only leaves the homeowner economically vulnerable but also jeopardizes the bank collateral.

Edgar: How about the policies on the market—are they sufficient?

Econn: That’s a key point and a complicated answer. Policies vary widely both in terms of price and coverage. Cheaper options may exclude wildfire, flood, water damage, theft, etc. during construction. Homeowners and developers must review policy terms, not just price … you get what you pay for.

Edgar: Who else is involved in this rebuild effort?

Econn: We are informed that numerous builders and developers are developing multiple homes. For example, developers, including Thomas James Homes, Samara, PacQuest, etc., including numerous general contractors, are predicting costs of around $500-plus per square foot, depending on scale, amenities and specific locations.

Edgar: Beyond insurance, what other strategies are being implemented?

Econn: An Owner Controlled Insurance Program is being developed to cover liability for all parties, including a 10-year construction defect component after project completion. Being fire safe as a community effort, identifying home ignition zones and making the conditions of the neighboring homes and vegetation a part of the wildfire reduction effort and strengthening community connectedness. Additionally, we are working on data-driven safety frameworks, predictive analytics, including roof sprinklers (which are not currently required by permit).

Earth Analytics Group is a perfect example of addressing a loss before it occurs. Its predictive fire ignition modeling could be an invaluable tool to identify the most at-risk zones, prioritize brush-clearing activity, heat and wind detection monitors thereby providing automated alerts to the public (think schools and hospitals, for example) and even including private firefighting units, etc.

Edgar: Environmental compliance is another concern. What’s the status there?

Econn: Environmental soil testing is not mandatory under state, city and county guidelines. Banks rely on these standards, and contamination coverage is typically not included in homeowner policies. In some cases, a pollution policy may be required even if FEMA handled the debris removal. Legal teams are reviewing internal protocols to ensure compliance.

Edgar: Any urgent risks that homeowners should be aware of?

Econn: Yes. First, many homeowners haven’t yet secured builder’s risk insurance. Second, low-cost policies may leave homeowners exposed to major hazards.

Edgar: What’s the most important takeaway for homeowners and developers navigating this rebuild?

Econn: Don’t assume past insurance coverage is enough. Review terms carefully, secure builder’s risk insurance early and stay engaged with your developer or bank. This is about protecting your home, your investment and the broader community during a critical rebuild phase.

Greg Econn is executive vice chairman of Venbrook Insurance Services and a nationally recognized leader in real estate and construction insurance. At Venbrook, Econn leads the Real Estate Practice, developing innovative programs for property owners, developers and contractors. He also founded a real estate program called Real Estate America Property Association: reapa.org. Econn lectured for 30 years at UCLA’s Anderson School extension program and has made presentations to leading law firms, accounting firms and trade associations. He is also the Steadfast LA insurance chair, advancing insurance standards and supporting resilient rebuilding across
Los Angeles.