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House Co-Sponsorship Memoranda
House of Representatives
Session of 2015 - 2016
Regular Session
MEMORANDUM
| Posted: | February 12, 2016 09:32 AM |
|---|---|
| From: | Representative Robert F. Matzie |
| To: | All House members |
| Subject: | Seismic Testing & Drilling Legislation |
| In the near future, I will be introducing legislation that will require insurers in the Commonwealth to cover all types of earthquakes – whether “naturally occurring” or caused by “human activity” – for homeowners that have purchased earthquake insurance. In my district several structures were damaged after seismic testing was conducted in search of natural gas shale deposits, but were not covered by homeowners insurance. After I had raised concerns, the Insurance Commissioner directed all insurers writing homeowners insurance policies in Pennsylvania to cover such occurrences under a homeowners’ earthquake rider. My bill will place this important directive into statute. It is important to note that this legislation only affects those homeowners that have purchased earthquake riders. Currently, an earthquake rider can be purchased from anywhere between $0.15 and $0.65 per $1,000 of coverage for a dwelling depending on the deductible, construction type, and territory. While there has been a downturn in drilling as of late, it’s clear that manmade earthquakes could happen again and we must protect our constituents from potential exclusions that may leave them uncovered. Previous to this, some insurers attempted to exclude coverage for earthquakes that are not “naturally occurring.” Although rectified with this directive for now, I believe it would be beneficial to codify this situation in law. I respectfully ask that you give your consideration to co-sponsoring this legislation. |
Introduced as HB2365