HomeMy WebLinkAboutCC RESO 95-130RESOLUTION NO. 95-130
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NATIONAL CITY
CALLING UPON THE STATE LEGISLATURE
AND THE DEPARTMENT OF INSURANCE TO RESOLVE
THE HOMEOWNERS INSURANCE CRISIS IN CALIFORNIA
WHEREAS, having suffered substantial losses in California due to
catastrophic natural disasters seventy-five percent of insurance carriers have
either ceased or severely limited writing new homeowners' policies in California,
and some carriers have banned new policies in specific geographic areas of the
state; and
WHEREAS, California homeowners are facing a crisis due to the lack of
affordable, readily available homeowners insurance; and that crisis is having far-
reaching effects on the state's homebuilding and real estate industries; and
WHEREAS, the insurance companies have failed to recognize the
extraordinary measures of local communities who have taxed and assessed
themselves to fund needed improvements to fire prevention and emergency
preparedness and response; and
WHEREAS, efforts to negotiate a new mechanism for catastrophic
insurance coverage have failed to achieve a resolution that is economically
viable and fair to all parties throughout the state; and
WHEREAS, the crisis to all Californians has become so severe that it
demands urgent attention and speedy resolution,
NOW, THEREFORE, BE IT RESOLVED, that the City of National City
joins other cities in California in declaring the following principles:
BE IT FURTHER RESOLVED, that the delinkage of earthquake and
homeowners insurance should only occur after state and/or federal natural
disaster insurance pools are established to provide affordable and adequate
earthquake coverage;
BE IT FURTHER RESOLVED, that basic catastrophic coverage should
be provided to restore a home's habitability, and that such basic coverage
should be available with minimal deductible and without any cap on insured
value;
Resolution No. 95-130
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BE IT FURTHER RESOLVED, that all insurance companies offering any
type of insurance of California should be required to pay an assessment to the
statewide catastrophic insurance pool to ensure its continued viability;
BE IT FURTHER RESOLVED, that when setting rates and determining
risk, insurance companies should be required to take into account the existence
of local programs to upgrade emergency infrastructure and/or to reduce fire fuels
such as wildland brush in public open space and overgrown vegetation within
household perimeters in compliance with local and state fire codes;
BE IT FURTHER RESOLVED, that nonrenewals of insurance should be
subject to the same restrictions as cancellations, and that these principles
should be clearly outlined in the legislation; and that insurance companies
should be required to maintain existing homeowners' policies as long as
policyholders meet with the underwriting guidelines specified in the legislation;
BE IT FURTHER RESOLVED, that the City of National City calls upon the
State Legislature and the Insurance Commissioner to resolve the crisis in the
availability and affordability of homeowners insurance during the current session
in order to protect the state economy and the safety and well-being of all
California property owners.
PASSED and ADOPTED this 15th day of August 1995
ATTEST:
Lore Anne Peoples, Y Cit Clerk
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APPROVED AS TO FOR
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George H. Waters, Mayor
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Linda Kaye Ha - r
Assistant City Attorney