HomeMy WebLinkAboutReso 096-95 HomeownersInsuranceRESOLUTION NO. 96- 95
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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 home-building 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 Dublin 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 required 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 non-renewals 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; and
BE IT FURTHER RESOLVED, that the City of Dublin 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, APPROVED AND ADOPTED this 8th day of August, 1995.
AYES:
Councilmembers Barnes, Burton, Howard, Moffatt and
Mayor Houston
NOES: None
ABSENT: None
ABSTAIN: None
C~ Clerk
Mayor