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HB 5088

AN ACT REQUIRING HOMEOWNERS INSURANCE COVERAGE FOR THE PERIL OF COLLAPSE FOR RESIDENTIAL BUILDINGS AFFECTED BY CRUMBLING FOUNDATIONS.

2025 Regular Session Introduced by Tom Delnicki

Connecticut bill mandates homeowners insurance must cover structural collapse from crumbling foundations, shifting repair costs from homeowners to insurers.

REF. TO JOINT COMM. ON Insurance and Real Estate
#buildingmaterials #homeowners'insurance
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Bill Summary · HB 5088

Legislative bill overview

HB 5088 mandates that homeowners insurance policies in Connecticut must include coverage for structural collapse caused by foundation deterioration in residential buildings. The bill addresses a specific insurance gap that has left homeowners vulnerable to catastrophic, uninsured losses when foundations crumble due to age, defective materials, or environmental factors.

Why is this important

Connecticut has experienced a crumbling foundations crisis affecting thousands of homes, particularly those built with defective concrete in the 1980s-2000s. Without mandatory insurance coverage, homeowners face repair costs often exceeding $100,000-$500,000+ with no financial recourse, creating significant personal financial hardship and depressing property values in affected areas. This bill attempts to shift some financial responsibility from individual homeowners to insurance carriers.

Potential points of contention

  • Insurance cost implications: Insurers will likely argue this mandate increases premiums substantially for all policyholders to cover a concentrated geographic problem, potentially raising costs statewide to benefit affected homeowners
  • Moral hazard and fraud concerns: Mandatory collapse coverage could incentivize insurance fraud or discourage preventative maintenance if homeowners assume insurers will cover eventual failure
  • Pre-existing condition exclusions: Complex questions arise about whether homes already showing foundation problems should be covered, potentially creating coverage disputes and litigation
  • Affordability and market stability: Insurers may refuse to write policies in high-risk areas or exit the Connecticut market entirely, worsening the existing insurance availability crisis
  • Alternative solutions: Policymakers may debate whether subsidized repair programs, state insurance pools, or foundation remediation initiatives would better address root causes than mandated coverage

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

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