Bill
S 4211
Bill S 4211 mandates full replacement cost fire insurance for multiple dwellings, ensuring funds are used for rebuilding, protecting tenants and property owners from loss.
Bill Number: S 4211
Title: Requires Replacement Cost Fire Insurance on Multiple Dwellings and Use of Insurance Proceeds to Replace Such Multiple Dwellings
Status: Referred to Housing, Construction and Community Development
Introduced: February 03, 2025
Classification: Bill
Bill S 4211 aims to enhance the protection of tenants and property owners of multiple dwellings by mandating that fire insurance policies cover the full replacement cost of the buildings. The intent is to ensure that in the event of a fire or similar disaster, the insurance proceeds are sufficient to fully replace the damaged or destroyed multiple dwellings, thereby safeguarding housing availability and stability for affected residents.
Mandatory Replacement Cost Coverage: The bill requires that all fire insurance policies for multiple dwellings must include coverage for the full replacement cost of the property. This means that the insurance payout will be based on the cost to rebuild the property to its original condition, rather than its market value at the time of the loss.
Use of Insurance Proceeds: The legislation stipulates that any insurance proceeds received from claims must be utilized specifically for the replacement of the damaged multiple dwellings. This provision ensures that funds are directed towards rebuilding efforts rather than being diverted for other uses.
Property Owners: Owners of multiple dwelling units will be directly impacted as they will be required to obtain replacement cost fire insurance. This may lead to increased insurance premiums but will provide greater financial security in the event of a loss.
Tenants: Residents living in multiple dwellings will benefit from the assurance that their homes can be rebuilt if destroyed, thereby reducing the risk of displacement due to inadequate insurance coverage.
Insurance Companies: Insurers will need to adjust their policies and pricing structures to comply with the new requirements, which may affect their underwriting processes and risk assessments.
Current Status: As of February 3, 2025, the bill has been referred to the Housing, Construction and Community Development committee for further consideration.
Related Legislation: This bill is part of a series of related bills from prior sessions (S 1435, S 3256, S 3398, S 4606, S 3371, S 3414, S 4595, S 4792, S 5874) that address similar issues regarding housing and insurance, indicating ongoing legislative interest in improving housing security and insurance practices.
Bill S 4211 represents a significant step towards ensuring that multiple dwellings are adequately insured against fire damage, promoting the stability of housing for tenants and protecting property owners' investments. As it moves through the legislative process, stakeholders will be closely monitoring its implications for the housing market and insurance industry.
Compiled from official sources — confirm details with the bill’s official record.
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