U.S. Rep. John Campbell (R-48), from California, has received praise from the California Earthquake Authority, for his introduction of H.R. 3125, which was legislation to pair with S. 637, that was introduced by U.S. Sen. Dianne Feinstein, earlier in 2011.
Together, the two bills will work to bolster the system for natural disaster recovery in the United States, by setting the Earthquake Insurance Affordability Act (EIAA) into effect.
CEO Glen Pomeroy from the California Earthquake Authority, has announced his gratitude to Sen. Feinstein and Rep. Campbell for the bipartisan efforts they have made to take on this critical challenge. He went on to say that “EIAA will allow the nonprofit CEA to dramatically reduce its expenses-and the savings will directly benefit policyholders.”
He also explained that in areas that are at a greater risk of earthquakes, a larger number of families will be able to obtain coverage by earthquake insurance, as it is simply too costly for many to be able to afford at the moment. Through EIAA, it will be possible for more homeowners to obtain affordable coverage, meaning that when a large earthquake does occur, a lower number of families will need to rely on the federal government for assistance in rebuilding.
In California, a state that is considered to be earthquake-prone, not even ten percent of homes have earthquake damage coverage. Among the earthquake-prone regions in the entire country, there are 75 million homes, and the percentage of those homes that are protected are also very low. It is the hope that this legislation will change this fact across the nation, not just in California.