Supporters Will Revive Attempt To Aid Homeowners Who Lose Property In Natural Disasters
By Associated Press - June 24, 2004SACRAMENTO (AP) _ Insurance Commissioner John Garamendi said Thursday that he'll try to revive legislation that would prevent insurers from refusing to sell or renew homeowners' policies because of damage caused by natural disasters.
The measure by Sen. Martha Escutia, D-Norwalk, was rejected Wednesday by the Assembly Insurance Committee, despite pleas from victims of last year's Southern California fire storms.
"The disaster took 24 lives and burned 3,600 homes from Simi Valley to San Diego,'' Garamendi said. "Now the victims of those fires are being burned again as insurance companies deny them the coverage they need to rebuild their homes and their lives.''
Garamendi and Escutia said the legislation would be amended into another bill to try to get around the Insurance Committee and bring the proposal to the floors of the Senate and Assembly for votes.
"We will not give up until every past and future victim of such a disaster is protected from insurance companies who cancel them after a legitimate claim,'' Escutia said.
The bill started out as a measure that would have barred insurers from refusing to sell or renew a policy or imposing a surcharge because of claims that were triggered by fires that started off the homeowner's property or by floods, earthquakes, lightning and other weather-related events instead of homeowner negligence.
The measure also would have prevented insurers from denying coverage or imposing a surcharge in cases in which claims weren't paid for some reason and when the homeowner made repairs or removed hazards to eliminate the possibility of more damage.
In a last-minute attempt to win votes in the committee, Escutia agreed to limit the bill to cover claims stemming from natural disasters and fires that triggered a state of emergency.
A spokesman for Garamendi, Norman Williams, said reintroduction of the narrower bill was the "most likely scenario.''
Insurance industry representatives argued that the bill would force companies to boost their overall rates for homeowner coverage. | 
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