Assembly Panel OKs Revival of Quake Aid

An Assembly committee on Wednesday reversed itself and approved legislation to revive a state-operated earthquake insurance program to help homeowners repair damage caused by major temblors.

A 6-3 vote--the minimum required for approval in the Housing and Community Development Committee--sent the bill, sponsored by Assemblyman Rusty Areias (D-San Jose), to the Insurance Committee for further screening.

There was no debate. The same committee rejected the measure by a one-vote margin last week, but Areias received permission to seek reconsideration.

The former state earthquake insurance program was repealed last year after critics claimed it was bordering on insolvency and giving the public a false sense of security.

If the program had been in existence Jan. 17 when the Northridge quake occurred, Areias estimated, it would have contained about $350 million, enough money to give each of the estimated 60,000 to 70,000 Los Angeles-area homeowners who had damage a check for about $5,000.

The new program is designed to provide homeowners with up to $15,000 to repair homes damaged by earthquakes. It would cost homeowners a mandatory $25 to $75 a year, depending on where they live and the type of home construction.