Note 13 - Insurance and Construction Defect Claim Reserves

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block]

13. Insurance and Construction Defect Claim Reserves

The following table summarizes our insurance and defect claim reserves activity for the years ended

December 31, 2018,

2017

and

2016.

These reserves are included as a component of accrued liabilities in either the financial services or homebuilding sections of the consolidated balance sheets.

	December 31,
	2018			2017			2016
	(Dollars in thousands)
Balance at beginning of period	$	52,686		$	50,954		$	47,061
Expense provisions		11,213			9,697			7,531
Cash payments, net of recoveries		(8,591	)		(9,215	)		(3,638	)
Adjustments		-			1,250			-
Balance at end of period	$	55,308		$	52,686		$	50,954

During

2017,

we recorded a

$1.3

million adjustment to increase our insurance and construction defect claim reserves. The adjustments were related to greater than expected expenditures by our homebuilding subsidiaries.

No

such adjustments were required for the years ended

December 31, 2018

and

2016.

In the ordinary course of business, we make payments from our insurance and construction defect claim reserves to settle litigation claims arising primarily from our homebuilding activities. These payments are irregular in both their timing and their magnitude. As a result, the cash payments, net of recoveries shown for the years ended

December 31, 2018,

2017,

and

2016,

are

not

necessarily indicative of what future cash payments will be for subsequent periods.