Resolution 1995-64
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RESOLUTION NO. 95 - 64
A RESOLUTION OF THE COUNCIL OF THE CITY OF GILROY 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 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 Gilroy 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;
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RESOLUTION NO. 95 - 64
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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 Gilroy 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 7th day of August, 1995, by the following
vote:
AYES:
COUNCILMEMBERS: GILROY, KLOECKER, MORALES, ROWLISON,
VALDEZ and GAGE.
COUNCILMEMBERS; None
NOES:
ABSENT; COUNCILMEMBER:
ROGERS.
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Mayor
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City Clerk
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RESOLUTION NO. 95 - 64
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I, SUSANNE E. STEINMETZ, City Clerk of the City of Gilroy, do
hereby certify that the attached Resolution No. 95-64 is an original
resolution, duly adopted by the Council of the City of Gilroy at a regular
meeting of said Council held on the ~ day of
at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
Official Seal of the City of Gilroy this ~ day of Auaust ,19~
Auaust
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(Seal)