Connecticut House Bill HB05639

Connecticut 2013 Regular Session

• Introduced: 1/23/13
• Refer: 1/23/13

Caption

An Act Concerning Certain Property Insurance Claim Settlement Practices.

Impact

If enacted, HB 5639 would standardize the claims process for homeowners insurance in the state. It would require insurers to take into account the need for repairs in adjoining areas related to the initial loss when determining settlement amounts. Such a requirement is likely to benefit homeowners by ensuring that they receive comprehensive coverage for damage that is interconnected, preventing them from facing financial strain due to partial settlements. The legislation could enhance consumer confidence in the insurance process by providing clearer expectations on claims handling.

Summary

House Bill 5639, titled 'An Act Concerning Certain Property Insurance Claim Settlement Practices', seeks to amend the general statutes regarding homeowners insurance policies. The primary intention of this bill is to establish a requirement for insurance policies to cover not only the direct loss but also the necessary repairs or replacements in associated areas that might be affected by a claim. This measure aims to achieve a degree of uniformity in how insurance claims related to property damage are processed, thereby promoting fairness and transparency in settlements.

Contention

While the bill aims to improve the settlement process, it could also lead to significant implications for insurance companies, which may view it as a potential increase in their liability. Opponents may argue that imposing such requirements could lead to higher premiums for homeowners, as insurance providers might need to adjust their pricing models to accommodate the broader scope of potential claims. Additionally, there could be concerns regarding the administrative burden on insurers to accurately assess and manage claims involving multiple adjoining areas, which may create complications in the claims management process.