Connecticut House Bill HB05802

Connecticut 2023 Regular Session

• Introduced: 1/18/23
• Refer: 1/18/23

Caption

An Act Prohibiting Homeowners Insurance Policies From Discriminating Based On The Use Of Aluminum Electrical Wiring In Common Interest Ownership Communities.

Impact

If passed, HB 5802 would directly amend Title 38a of the general statutes, reinforcing the rights of homeowners within condominium, cooperative associations, and other similar ownership communities. This change would provide a level of protection against potentially unfair insurance practices and promote fair treatment concerning the specific electrical wiring used in these buildings. The bill could lead to more equitable insurance offerings and alleviate financial strain on residents whose properties are currently treated unfavorably due to the wiring type.

Summary

House Bill 5802 seeks to prevent homeowners insurance policies from discriminating against common interest ownership communities, specifically concerning the use of aluminum electrical wiring. This legislation is aimed at ensuring that insurance rate-setting and policy offerings do not reflect biases against properties that utilize aluminum wiring, which was commonly used in older constructions. The bill is proposed to remain in effect until 2032, prohibiting discrimination practices that could adversely impact homeowners and residents in these communities.

Contention

However, this bill may face contention regarding the implications of such a provision. Insurance companies could argue that the inclusion of aluminum wiring poses safety risks, potentially increasing liability, which could conflict with the intent of the legislation. Debates may arise between consumer advocates advocating for fair treatment and insurers concerned about risk management and financial impact. Balancing homeowners’ rights and insurers’ business must be navigated carefully, generating discussion about the best approach to insurance regulation.