Connecticut House Bill HB05088

Connecticut 2025 Regular Session

• Introduced: 1/10/25
• Refer: 1/10/25

Caption

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

Impact

The bill's implementation would result in a significant change to state insurance regulations, requiring all homeowners policies to incorporate clauses that explicitly cover collapse due to crumbling foundations. This modification is expected to provide greater security for homeowners who might otherwise face disastrous financial consequences if their homes collapsed due to conditions arising from crumbling foundations. It could also lead to increased insurance premiums, as insurers may adjust their pricing to accommodate the added risk.

Summary

House Bill 05088 aims to mandate that homeowners insurance policies in the state include coverage for the peril of collapse specifically for residential buildings affected by crumbling foundations. This legislative initiative is a response to the growing concerns regarding structural integrity and safety related to buildings that have been compromised due to foundation deterioration. The bill seeks to ensure that homeowners are protected financially in cases where their property may experience collapse due to these foundational issues.

Contention

While proponents of HB 05088 argue that it is essential for the protection of homeowners, critics may raise concerns regarding the financial implications for insurance companies and the potential impact on insurance costs for consumers. There might also be disagreements on the definitions of 'crumbling foundations' and what conditions would qualify for coverage under the new regulation. Overall, the bill is anticipated to provoke discussions around consumer protection versus insurance industry sustainability.