The Connecticut Insurance Department sent a notice to insurers writing homeowners insurance in the state, notifying them they are not allowed to cancel or non-renew homeowners policies based on foundation problems.
“It has come to the Insurance Department’s attention as a result of various news reports and meetings with senior state officials that a number of Connecticut homeowners are concerned that they may have home foundations that are crumbling or otherwise deteriorating, the cause of which is unclear,” the Department said in its Oct. 6 notice.
News reports state that this degradation to foundations has happened over a period of years and indicate that affected homes built in the late 1980’s may be experiencing crumbling foundations.
The Insurance Department noted, however, that it is not aware of any homes that have abruptly collapsed or caved in as a result of a deteriorating foundation.
The Department said it has received at least one complaint from a homeowner whose insurer sought to non-renew the individual’s homeowner’s policy due to a crumbling foundation issue. The Department directs that no insurer take any action to cancel or non-renew an affected homeowners insurance coverage as a result of a foundation found to be crumbling or otherwise deteriorating.
The Department said it expects that any non-renewal action taken by insurers be strictly in accordance with its underwriting guidelines and rules that are filed with and recorded effective by the Department.
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