Homeowner's insurance covers a myriad of potential problems. It never fails though that the damage incurred from a storm or other destructive force is un-insurable due to level of risk or simply not included in any policy.
House Bill 5522
The "failing-foundations" bill (proposed by Rep. Robert Megna, D-New Haven) is an attempt to protect homeowners who are experiencing foundation and structure issues. The intention of the bill is to "mandate that insurance companies cover structural collapse." Collapse would be covered if attributed to "decay from defective materials or construction methods."
The bill had an unstable beginning
For all of its good intentions, House Bill 5522 has struggled to get pushed through. Last week, the legislature's insurance committee barely squeezed it through with a 10-9 vote.
Complaints against the bill
It only helps future homeowners who experience a failing of their house foundation. It doesn't help those currently affected by this damage.
Connecticut Coalition Against Crumbling Basements
In Connecticut, 165 homeowners have filed complaints with the State Department of Consumer Protection. Their complaints are that a chemical reaction is causing their foundations to fail.
Their claims have been denied because their policies do not cover chemical reactions. Foundation repair can reach upwards of $200,000. Some residents have even resorted to class-action lawsuits against their insurance companies.
Who's to blame?
Representatives in the insurance committee have expressed concern for the bill. Current lawsuits regarding failing foundations will not be helped with this bill. It raises the question of moving it forward when it does not solve current problems.
Other representatives dislike how it switches the roles of insurance companies and construction companies. Many fear that the bill will "become a warranty policy." That the risk involved when building will now fall on insurance companies.
House Bill 5522 has cleared one committee; but it still has a way to go.
Insurance litigation can help if you have a denied claim. House Bill 5522 is for future homeowners. But what are your options now? If your claim has been denied, contact us today. We specialize in getting clients the money they need after their insurance company denies their claims (Commercial, Industrial and Residential).