Connecticut House Bill HB05805

Connecticut 2023 Regular Session

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

Caption

An Act Requiring Homeowners Insurance Coverage For The Peril Of Collapse For Properties Affected By Crumbling Foundations.

Impact

If enacted, HB 5805 would amend Title 38a of the general statutes to ensure that insurance companies provide this specific coverage to homeowners, addressing a significant gap in existing insurance policies. This amendment would not only enhance the protection for affected homeowners but could also lead to increased scrutiny of building standards and practices. Furthermore, requiring this type of coverage may encourage insurance companies to more thoroughly assess their policy terms concerning foundation stability, potentially leading to broader reforms in homeowners insurance practices across the state.

Summary

House Bill 5805 is a legislative proposal that mandates homeowners insurance policies within the state to include coverage for the peril of collapse specifically for properties affected by crumbling foundations. This bill responds to concerns raised regarding the safety and financial protection of homeowners whose properties may suffer structural issues related to foundation deterioration. The impetus for this legislation arises from a growing recognition of the risks posed by compromised foundations and the financial burden these issues can impose on homeowners.

Contention

The discussions surrounding HB 5805 may encounter points of contention, particularly regarding the potential implications for insurance premiums and the responsibilities of insurance companies. Opponents may argue that mandating such coverage could lead to higher costs for homeowners, as insurers might adjust their rates to accommodate the increased risk associated with crumbling foundations. Additionally, concerns about the financial impact on insurance providers and their ability to manage these risks effectively may also be a topic of debate during the legislative process.