Connecticut House Bill HB05349

Connecticut 2021 Regular Session

• Introduced: 1/22/21
• Refer: 1/22/21

Caption

An Act Requiring Homeowners Insurance Coverage For The Peril Of Collapse.

Impact

The proposed changes under HB 5349 could significantly impact homeowners by providing them with necessary financial security in the event of a collapse. Currently, many insurance policies may not offer specific coverage for collapse scenarios, which can leave homeowners vulnerable to substantial losses. By requiring that such coverage be included, the bill aims to foster a more robust insurance market that prioritizes the safety and financial well-being of homeowners. Additionally, it may encourage insurance companies to reassess their policy offerings, potentially leading to broader changes in the industry.

Summary

House Bill 5349, titled 'An Act Requiring Homeowners Insurance Coverage For The Peril Of Collapse', seeks to amend title 38a of the general statutes to mandate that homeowners insurance policies include coverage for the peril of collapse. This legislative initiative aims to enhance the protection of homeowners by ensuring that their insurance policies adequately cover potential structural failures of their homes, which can have serious financial implications. The bill is positioned as a consumer protection measure that addresses a significant gap in current homeowners insurance coverage.

Contention

Notable points of contention surrounding the bill may arise from the cost implications associated with expanding coverage requirements. Critics may argue that mandating collapse coverage could lead to increased premiums for homeowners, placing an additional financial burden on consumers. Furthermore, insurance companies could oppose the bill on the basis of wanting flexibility in determining coverage options based on risk assessments of different properties. There may also be discussions regarding the implications for insurance claims processes and the definition of what constitutes a 'collapse' under this new mandate.