Company: CVCO
Filing Date: 2025-01-31
Form Type: 10-Q
Source: 0000278166-25-000007
Chunk: 59

Company: CAVCO INDUSTRIES, INC.
Filing Date: 2025-01-31
Form: 10-Q
Item: Part I, Item 8
Chunk 59
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 27,735 25,880 Ceded premiums—nonaffiliated(25,572)(25,572)(18,971)(18,971)$40,460 $41,508 $40,345 $35,649 

11

Typical insurance policies written or assumed have a maximum coverage of $0.4 million per claim, of which we cede $0.15 million of the risk of loss per reinsurance. Therefore, our risk of loss is limited to $0.25 million per claim on typical policies, subject to the reinsurers meeting their obligations. After this limit, amounts are recoverable through reinsurance for catastrophic losses in excess of $4.0 million per occurrence, up to a maximum of $110 million in the aggregate for that occurrence.The following details the activity in the incurred but not reported reserve for the three and nine months ended December 28, 2024 and December 30, 2023 (in thousands):Three Months EndedNine Months EndedDecember 28,2024December 30,2023December 28,2024December 30,2023Balance at beginning of period$14,620 $9,154 $10,540 $10,939 Net incurred losses during the period9,662 9,489 41,753 29,152 Net claim payments during the period(12,028)(9,189)(40,039)(30,637)Balance at end of period$12,254 $9,454 $12,254 $9,454 

13. Commitments and Contingencies

Repurchase Contingencies. The maximum amount for which the Company was liable under the terms of repurchase agreements with financial institutions that provide inventory financing to independent distributors of our products approximated $122 million and $121 million at December 28, 2024 and March 30, 2024, respectively, without reduction for the estimated resale value of the homes. In the quarter ended December 28, 2024 we received one repurchase demand notice for two homes. In all cases, the estimated fair value exceeded the repurchase price so no loss reserve was deemed necessary. Our reserve for repurchase commitments, recorded in Accrued expenses and other current liabilities, was $3.2 million at December 28, 2024 and $2.9 million at March 30, 2024.Construction-Period Mortgages. Loan contracts with off-b