An Act Concerning Prior Claims Experience For Homeowners Insurance Policies.
If enacted, HB 05927 would amend Title 38a of the general statutes, which governs insurance in the state. This change aims to protect current homeowners from potentially unfair insurance practices linked to past incidents they were not responsible for. Additionally, this bill could provide a level of security for property owners, who could potentially face increased insurance costs due to factors unrelated to their own insurance claims history. This regulation could ultimately lead to a more equitable insurance market for homeowners.
House Bill 05927, introduced by Representative Boukus, addresses the practices of homeowners insurance companies regarding the consideration of prior claims experience. The primary objective of the bill is to restrict insurance companies from declining or nonrenewing policies or imposing surcharges based on claims that were filed while the property was owned by a previous owner. The bill establishes that such claims should not influence insurance decisions unless the risk associated with those claims has not been mitigated.
The discussion around HB 05927 is expected to involve various stakeholders, including homeowners, insurance companies, and legislators. Proponents of the bill argue that it promotes fairness and protects homeowners from being penalized for the claims history of former owners, which is seen as a necessary measure to enhance consumer protection. Conversely, insurance companies might express concerns that the bill could limit their ability to assess risk effectively, potentially leading to higher premiums or reduced coverage options across the board if they are unable to factor prior claims into their risk evaluations.