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Sen. Larson Revives Crumbling Foundations Legislation

HARTFORD— Insurance Committee Co-chair Senator Tim Larson (D-East Hartford) announced today he plans to introduce an amendment that would create revenue for the Crumbling Foundations Assistance Fund through fees on new or renewed homeowners insurance policies and mortgages.

“This proposal renews my continued commitment to help out eastern Connecticut homeowners who are still struggling through this horrific ordeal,” Sen. Larson said. “This legislation provides a new source of revenue, which is a $10 surcharge on new home mortgages, insurance companies who are writing insurance properties in the state of Connecticut and individual policy holders. All of these funds collected will be deposited into the crumbling foundations assistance fund.”

“This is another option we can create to take care of a debilitating problem affecting hundreds if not thousands of homes in northeastern Connecticut,” said state Senator Cathy Osten (D-Sprague), who is an incorporator on the new Connecticut captive insurance company charged with collecting and dispensing state funds to inspect and repair crumbling foundations.

The amendment to SB 377 would:

  • Add a $10 fee on new and renewed mortgage loans after July 1, 2018
  • Require insurance companies to pay a $10 fee on new or renewed homeowners or rental insurance policies after July 1, 2018
  • Adds a $10 surcharge on new or renewed homeowners or rental insurance policies after July 1, 2018(fees shall be sunsetted on June 30, 2025)
  • Require all collected fees to be deposited into the Crumbling Foundations Assistance Fund
  • Increase the amount of time a homeowners has to provide proof of loss to an insurance company from 60 days to 120 days
  • Change the amount of time a homeowner has to take legal action against an insurance company for denying a claim from two years to four years






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