Jerry Lewis: “I am today introducing the California Homeowner Earthquake Protection Act, legislation granting tax-exempt status on…”

“I am today introducing the California Homeowner Earthquake Protection Act, legislation granting tax-exempt status on State authorities established for the purpose of providing earthquake insurance. As a 30-year insurance professional the chairman of the House Appropriations Subcommittee overseeing FEMA and Federal disaster assistance, I am concerned about an emerging insurance crisis in my State. California Governor Pete Wilson is poised to sign a measure establishing the California Earthquake Authority [CEA], a unique publicly run and privately financed State program to supply earthquake insurance for millions of homeowners in our State. The California Homeowner Earthquake Protection Act will add viability to the CEA and will address a looming and potentially devasting crisis affecting every homeowner--the ability to purchase affordable earthquake insurance. Under California State law, insurance companies that sell homeowners coverage are required to offer earthquake protection as well. However, as a result of the 1994 Northridge earthquake which resulted in over $1.2 billion in insured losses, many insurance companies are now moving out of the marketplace. In fact, of those companies that offered earthquake coverage before the Northridge earthquake, 95 percent no longer offer policies to homeowners. In the near term, over 1 million families may not have their homeowner coverage renewed.”