Courtney, Blumenthal, Murphy, Larson Urge Insurers To Participate In State Relief Program For Crumbling Foundations
WASHINGTON, D.C. – (RealEstateRama) — Representative Joe Courtney (CT-02), Senator Richard Blumenthal (D-Conn.), Senator Chris Murphy (D-Conn.), and Representative John Larson (CT-01) released letters they sent jointly to Connecticut insurers regarding efforts proposed by the State of Connecticut to provide relief to homeowners burdened by crumbling foundations in central and eastern Connecticut.
The members met on July 12 with three of the largest insurers operating in the impacted region – Liberty Mutual, State Farm and All State – to underscore the urgency of the issue and urge their participation in the program. In addition to sending a follow up letter to these companies urging them join, the members sent letters to other insurers operating in the region that have not yet committed to participating in the relief program. The members also sent a separate letter to The Hartford and Travelers thanking them for joining the effort.
In their letters, the members state that: “The urgency of this problem is clear. Failure to enact a workable plan to provide relief will have a lasting impact not just on homeowners and communities, but on all those connected to the housing market, including insurers. We hope that your company will be a constructive and collaborative part of making this plan work in order to provide needed relief to your customers, their neighbors, and our communities.
“We are deeply disappointed that other insurers operating in the region, including your company, have not yet committed to being a part of this plan” and that “given that this plan is so far the only realistic option put forward that provides relief outside of litigation, we urge to you take seriously the devastating consequences of allowing this effort to falter.”
In a separate letter thanking The Hartford and Travelers for joining the effort, the members noted that: “your early commitment to the program sends a strong message to your fellow insurers and to homeowners desperate for action.”
Connecticut Attorney General George Jepsen said: “I’m grateful to our federal delegation members for their strong support and advocacy on behalf of this program. This problem goes beyond individual homeowners and represents a public policy problem for our state. This program obviously offers relief to families and communities, but it is also in the interests of insurance companies to participate. It offers them benefits and protections – including caps on financial exposure and release from the uncertainties of existing and potential litigation by homeowners who participate, as well from any claims the Department of Insurance may have for unfair insurance practices. I’m grateful to those few companies who have indicated their willingness as good corporate citizens to participate, but I would urge their peers to join in this effort to help Connecticut homeowners in desperate need of assistance.”
