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HB 5686

AN ACT REQUIRING HOMEOWNERS INSURANCE COVERAGE FOR THE PERIL OF COLLAPSE.

2025 Regular Session Introduced by Kurt Vail

Requires homeowners policies to cover collapse, expanding protection for homeowners; effective immediately, June 20, 2025, after enactment without governor signature.

REF. TO JOINT COMM. ON Insurance and Real Estate
#homeowners'insurance
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Bill Summary · HB 5686

Summary — HB 5686

Title: AN ACT REQUIRING HOMEOWNERS INSURANCE COVERAGE FOR THE PERIL OF COLLAPSE
Subject: Homeowners’ insurance
Introduced: April 23, 2025
Status: Enacted (filed without the Governor’s signature); Effective immediately (June 20, 2025)
Companion Bill: SB 3069

Purpose and intent

The bill’s stated purpose (from the title) is to require that homeowners insurance policies provide coverage for the peril of collapse. The legislation aims to ensure that losses resulting from structural collapse — subject to whatever definitions and exceptions the enacted language specifies — are covered under standard homeowners insurance programs rather than being routinely excluded.

Note: The full bill text is not included in the materials provided. This summary is based on the bill title and procedural record. For exact statutory language (definitions, exclusions, limits, and implementation details), consult the enrolled bill text or the state insurance code amendments.

Key effects and expected provisions

While the specific statutory language is not in the record provided, bills of this form typically do one or more of the following:
- Require insurers offering homeowners policies to include coverage for the peril of collapse (or prohibit blanket exclusions of collapse losses).
- Define “collapse” and specify covered causes (for example: weight of snow/ice, hidden decay, vermin, faulty construction may be enumerated in statute or left to policy language).
- Identify exclusions or limitations (e.g., collapse caused by earth movement, wear and tear, or maintenance neglect may remain excluded unless explicitly covered).
- Address premium or rating implications and require notice to policyholders of new coverage.
- Provide an effective date and directions for insurers to amend policy forms.

Because the enrolled bill is not attached, readers should review the final enrolled text for the precise coverage scope, definitions, monetary limits, and any required policy notices.

Who would be affected

  • Homeowners and prospective buyers: broader or clarified coverage when a structure collapses, potentially reducing out‑of‑pocket loss for covered collapse events.
  • Insurers and underwriters: required to modify policy forms, underwriting rules, reinsurance arrangements, and pricing to reflect mandated coverage.
  • Insurance agents/brokers: need to explain changed coverage to clients and update marketing/quote materials.
  • Contractors/building code and inspection sectors: possible indirect effects if collapse coverage influences claims or building practices.

Procedural timeline (selected highlights)

  • Filed: April 23, 2025; Referred initially to Intergovernmental Affairs and to the Joint Committee on Insurance and Real Estate.
  • Committee activity and hearings: late April–May 2025; reported favorably without amendment.
  • House and Senate: Passed both chambers in May 2025 (including recorded votes and suspension of the three‑day rule where noted).
  • Enrolled and transmitted to Governor: May 26–May 28, 2025.
  • Filed without Governor’s signature and effective immediately: June 20, 2025.

Practical next steps for stakeholders

  • Homeowners: review current policies and discuss collapse coverage with your insurer or agent.
  • Insurers: consult the enrolled statute and prepare revised policy forms, rates, and customer notices as required.
  • Regulators and consumer advocates: monitor insurer compliance and guidance for standardized policy language.

For exact legal obligations, definitions, and any exceptions or limits, refer to the enrolled bill text or the updated insurance code sections as enacted.

Compiled from official sources — confirm details with the bill’s official record.

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