HomeMy WebLinkAboutCC Resolution 9425 (Homeowners Insurance Crisis)RESOLUTION NO. 9425
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SAN RAFAEL
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 Council of
the City of San Rafael joins other cities in California in
declaring the following principles:
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;
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;
RESOLVED, that all insurance companies offering any type
of insurance in California should be reqired to pay an assessment
to the statewide catastrophic insurance pool to ensure its
continued viability;
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;
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 the underwriting
guidelines specified in the legislation;
RESOLVED, that the City of San Rafael 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.
I, JEANNE M. LEONCINI, Clerk of the City of San Rafael,
hereby certify that the foregoing resolution was duly and
regularly introduced and adopted at a regular meeting of the
City Council of said City held on Monday, the seventh day of
August, 1995, by the following vote, to wit:
AYES: COUNCILMEMBERS:Cohen, Heller, Phillips, Zappetini & Mayor Boro
NOES: COUNCILMEMBERS:None
ABSENT: COUNCILMEMBERS:None
JEAIWE M. LEONCI I, City Clerk