Fresh off the defeat of a legislative bill that would have helped people with crumbling foundations, a new plan has emerged.
State Senator Tim Larson said he will propose an amendment to an existing bill that will raise an estimated $20 million per year to help homeowners who have to replace their basements due to failing concrete.
The legislation would require homeowners and insurers to each pay a $10 fee when a homeowners or renters insurance policy is renewed each year. There would also be a $10 fee on new and renewed mortgages.
Larson could not tell the NBC Connecticut Troubleshooters if all the proposed fees and surcharges would be passed on to homeowners and renters.
Last week, a bill with a similar proposal was voted down by state judiciary committee.
The state has already agreed to bond up to $100 million over the next five years to give grants to people with crumbling basements, but some elected officials say it may not be enough.
At last check, 685 people have registered complaints with the state saying their basements are cracking due to failing concrete. Replacing a basement can often cost upwards of $200,000.
In response to Larson's proposal, Eric George, president of the Insurance Association of Connecticut, released this statement:
“This hasn’t been and it is not an insurance issue. Homeowners insurance covers accidental losses. There are exclusions to homeowners insurance to make premiums affordable. Without those exclusions, premiums would not be affordable. It’s arbitrary to place a tax on insurance companies for something that was never covered by insurers, while the parties that are responsible for this have been held blameless.”
