Garamendi’s Insurance Solution Adds Insult

I think I have this straight in my mind: John Garamendi allows 20th Century Insurance Co. to dump in excess of 200,000 homeowners policyholders in the street (“Insurance Pool Told to Cover Quakes, Fires,” June 23). These policies have guaranteed replacement coverage for home and contents, special form, liability and can accommodate a variety of riders.

This dumping creates the possibility of a shortage of homeowners coverage--a possibility Garamendi should have been aware of when he approved the dumping.

Now, to solve the problem, he intends to offer California Fair Plan policies to anyone. These policies are issued on a form that pays only actual cash value for your home if you have a fire. No content coverage, no liability coverage, no special form and no riders offered.

I’m sure the 200,000 policyholders with deluxe coverage with 20th Century will be thrilled to know that John Garamendi has arranged for them to get substandard, bare-bones coverage.

Marjorie M. Berte of Gov. Pete Wilson’s office said of the order: “It’s fine to the extent it solves an immediate availability crisis.”

Why do we put up with this nonsense?

VERN J. BURNETT

Los Angeles