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Resolution 1995-64 ~, ~.; . . -......' 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; -1- RESOLUTION NO. 95 - 64 . . 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. ~Ujy Mayor ~ City Clerk -2- RESOLUTION NO. 95 - 64 . . 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 , 19.J!.2.., (Seal)