New state disaster-aid affiliate
A national coalition dedicated to preparing Americans for natural disasters recently launched a California affiliate in Sherman Oaks, pledging to create a fund for people without enough insurance.
James Lee Witt, former director of the Federal Emergency Management Agency, and retired Adm. James M. Loy, former deputy secretary of the Department of Homeland Security, co-chair the national coalition ProtectingAmerica.org. The new affiliate, ProtectingCalifornia.org, will focus on financially preparing Californians for the next big earthquake. The fund, paid into by insurance companies and private investors, would cover insurance claims that exceed homeowners’ coverage.
“When a catastrophe hits, the insurers will have paid out claims to the limits required by laws,” Loy said. “The state fund will then kick in and pay the remaining losses up to its funding capacity.”
The privately financed California Earthquake Authority offers basic earthquake insurance. But representatives of ProtectingCalifornia.org said that fund is not large enough to cover insurance claims in the event of a catastrophic temblor.
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