In wake of quake, Californians would benefit most from ‘Affordability Act’

The Washington Times ^ | September 14, 2011 | Tim Devaney

[Tolerance Sucks Rocks]

With the East Coast earthquake still a fresh memory, lawmakers on Capitol Hill are pushing a bill designed to cut rates so more homeowners can afford quake insurance coverage, but the scope of the plan remains a big question mark with critics arguing that California would be the big winner at the expense of the rest of the nation.

The nonprofit California Earthquake Authority is pushing the “Earthquake Insurance Affordability Act” that it says would cut rates by as much as 20 percent for homeowners. It also could leave the federal government on the hook for up to $5 billion in loan guarantees.

“We are charging our policyholders so much each year to withstand an event that doesn’t happen very often,” said Glenn Pomeroy, CEO of the California Earthquake Authority. “There are people out there that can’t buy earthquake insurance, because they can’t afford it. Homeowners look at this and think, ‘Pretty expensive. I think I’ll run the risk myself.’ “

Critics say the bill is little more than a California bailout. The state, after all, bears the brunt of earthquake activity in the United States. Even after last month’s rare 5.8 quake in Virginia that rattled the East Coast, damage was minor. Few affected homeowners even had quake coverage.

“It might be true that California would be saving money this way,” said Michelle Minton, political analyst with the Competitive Enterprise Institute, “but the rest of the United States wouldn’t. This is exclusively a California bill. And everybody knows it.”

[Tolerance Sucks Rocks]

Will they ever stop???

(The Senators, I mean, not the earthquakes.)

PING!

[muawiyah]

Californians can mitigate the effects of earthquakes quite readily by building one story structures; bolting the roof to the frame and the frame to the foundation; using the latest and greatest in design standards for framing and mortar.

[SierraWasp]

So, what’s the “new deal” gonna be on flood insurance that the non-CA states seem to need more of???

[Lorianne]

Wha?
Why should everyone pay for CA’s earthquake insurance?

This just never ever ends ... well it will end when we crash.

[dragnet2]

Enjoy your upcoming winter in Maryland!

[calex59]

Once again the government trying to stick their face into something that isn’t there business. They want me(and you) to pay for someone else’s earthquake insurance. Senators, get out of our private lives and stay out!

[Lorianne]

A Blue-State Bailout in Disguise (WSJ)
Our new study shows that under the Obama jobs bill, debt-ridden states will get another big handout..

http://online.wsj.com/article/SB10001424053111904353504576568352231645730.html

[jammer]

Of course, as all non-trough-feeders are, I am against it. But there is one positive note: it will help keep Californians in California, rather than metastasizing to other states.

[PistolPaknMama]

“We are charging our policyholders so much each year to withstand an event that doesn’t happen very often,”

Really? So you need more people to subscribe and take it out of mine and my children's pockets? If the event does't happen very often, maybe you could charge less. No, you want the taxpayers to fund it so you can charge more to more people. DC and CA will love this, everybody else won't.