The audience quickly grew captive when Glenn Pomeroy, Chief Executive Officer of the California Earthquake Authority (CEA), presented this fact from the U.S. Geological Survey – there is a 99% chance of a 6.7 magnitude or larger earthquake occurring in the next 30 years. To put the scope of this potential natural disaster in perspective the devastating earthquake that hit Northridge in 1994, a quake that is reported to have caused 35 – 80 billion dollars in residential damage, was of the same 6.7 magnitude. The potential financial cost to such an event is made even more polarizing when considering the fact that less than 10% of Californian homes are covered by earthquake insurance. Such an alarming possible future is a factor which led to the establishment of the California Earthquake Authority, a not for profit dedicated to providing residential earthquake insurance to Californians.
The CEA was established following the tragic Northridge Earthquake. Due to the high cost of property damage that was paid out by insurance companies, most of them simply stopped writing Homeowners insurance there afterward. This left a considerable gap for California Homeowners concerned over the severity of another large earthquake. Having seen the devastation of a natural disaster in his home state of North Dakota, Glenn states, “Our goal is to make earthquake insurance as affordable as possible for all California residents.” The evidence of this mission is plain to see. Although over the last 20 years inflation has risen 51% and housing reconstruction has increased by 168%, rates have steadily lowered by 55%. This belief in providing insurance for all has had the effect of raising enrollment rates from average annual increases between 2006-2015 of 7,200 homes to a staggering reported 52,000 homes in the year 2016.
Glenn spoke to the oversight of the organization, mentioning that as a not for profit the CEA is publicly managed and privately financed. Funds are generated from the many insurance companies that join to sell a CEA policy, currently they have a 946,000 policyholders. Proud of the organization’s financial strength, Glenn mentioned that they received an A- from A.M. Best Co., a U.S. based insurance rating company. This rating is the result of a commitment to provide for the insured, the CEA has 15.2 Billion dollars reserved in claim-paying capacity. In addition to this the CEA has a great user friendly Premium Calculator to allow families to find the a monthly premium which best works for their financial situation.
As the U.S. Geological Survey has reported the risk of an earthquake is all to real. It’s come to the point where its essentially a matter of when as opposed to if, and due to this fact the role the CEA can have in many Californian lives has become to some a vital necessity. For more information on acquiring the CEA please call (888) 423-2322.
Legislative Representatives and City Officials Reports
- Josh Torres representative of Southern California Edison reports that they are currently hosting a push to promote transportation electrification. This promotion provides incentives to people who convert to clean sources of energy.
- Peter Amundson, Mayor of Arcadia reports that he is focused to three main areas during his term, fiscal responsibility, law enforcement and education. As a contributor and member of the Downtown Arcadia Improvement Association he announced that the Patriotic Festival held in Arcadia’s Transit Plaza is scheduled for July 1, 2017.
- Tim Schwehr Economic Development Analyst for the city of Arcadia reported that he and Jason Kruckeberg, assistant city manager attended the Vegas International Council of Shopping Centers Conference. This was a great opportunity for business recruitment. An unoccupied residence ordinance has been passed by city council. Summer watering schedule has been put into affect – 3 days a week between the months of May and October.
- Linda Sells of the MAD Town Council reports that representatives of the MAD Town council attended the Memorial Day Festival in Arcadia in order to educate the local Arcadia community. MAD Town Council will be meeting with Duarte’s Town Council. MAD Town Council will be meeting at Pamela Park on June 21, 2017.
- Mike Vercillo of the Arcadia Police Department reports that there has been an increase in property crimes recently. The Arcadia Police Department encourages its community to harden their targets by locking and alarming homes.