An Act Concerning Homeowners Insurance Claims Resulting From A Catastrophic Event.
Impact
If enacted, HB 5630 would significantly alter the landscape of homeowners insurance within the state. The bill's provisions would remove grounds for policy cancellation that are based solely on the occurrence of catastrophic losses, thereby protecting homeowners who might experience surges in claims following events like hurricanes, floods, or severe storms. Proponents argue that this will not only protect individuals from losing their homes but also help stabilize communities in the aftermath of devastating events by ensuring residents have adequate insurance coverage during their recovery.
Summary
House Bill 5630 aims to amend Title 38a of the general statutes to ensure that homeowners insurance policies cannot be declined, canceled, or non-renewed solely based on losses incurred from catastrophic events, such as natural disasters. The purpose of this bill is to provide greater protection to homeowners facing financial strain after such incidents, preventing insurers from unfairly penalizing them for events outside their control. This legislative change seeks to create a more supportive environment for policyholders, enhancing their security during challenging times.
Contention
While the bill presents a positive step for consumer protection, there may be concerns from insurance companies regarding the financial implications of such regulations. Opponents could argue that it may result in increased risk for insurers, leading to higher premiums for homeowners or even fewer companies willing to write homeowners insurance in this challenging environment. Thus, a balance may be necessary to ensure both policyholder protections and the economic viability of the insurance market.
An Act Concerning Insurance Market Conduct And Insurance Licensing, The Insurance Department's Technical Corrections And Other Revisions To The Insurance Statutes And Captive Insurance.