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Middletown alderman backs state bill to require clearer homeowners-insurance disclosures
Summary
At a Community Communication and Historical Society Committee meeting, the presiding alderman said he has asked Assemblywoman Kaye and Senator Scoofa's office to pursue a state bill requiring insurers to disclose policy coverages so homeowners aren’t surprised by gaps; the council may pass a resolution of support when the bill reaches the assembly.
The committee presiding alderman said the city is seeking state legislation to require insurance companies to provide clearer disclosures about what home insurance policies cover.
"I've reached out to Assemblywoman Kaye to see whether we could get state legislation that will basically require insurance companies to provide a disclosure or information to prospective customers of the different policy coverages they offered," the chair said, noting that the intent is to inform residents rather than mandate specific coverage.
The chair cited recent cases in the winter months when furnace failures and frozen pipes left homeowners surprised to learn their policies did not cover the full replacement costs. He said furnaces can cost "$20 to $30,000" to install, and that those kinds of expenses underscore the need for clearer disclosure about coverage limits and exclusions.
A draft bill prepared by Assemblywoman Kaye's staff was attached for committee review, the chair said, and the city's leaders have reached out to Senator Scoofa's office as well. The chair added the council may consider a resolution expressing local support once the measure is scheduled for committee or floor action in the assembly.
The chair emphasized the proposal would not force insurers to offer additional coverage — a step he said would likely raise premiums — but would require insurers to make differences among policies clear so consumers can choose options that match their needs.
No formal vote or motion was recorded in the committee on the matter. The chair asked members to review the draft and indicated the council would consider next steps, including a possible resolution of support, when the bill advances at the state level.
