New Law on Storm Shutters Helps Homeowners in Connecticut

REGIONAL - Thanks to a new law, those living along the Connecticut shoreline will be protected from insurance companies.

The law, recently signed by Governor M. Jodi Rell at a public ceremony, prohibits insurance companies from refusing coverage because a person has not installed permanent storm shutters or impact-resistant glass on his house.

"This is good news for homeowners in coastal towns. Some insurance companies were threatening not to write insurance or renew policies unless people installed storm-resistant shutter or high-impact glass," said Republican Representative Marilyn Giuliano.

Giuliano represents the 23rd House District which consists of Lyme, Old Lyme, Old Saybrook, and coastal Westbrook, towns where many residents have homes close to the Connecticut River or Long Island Sound.

The law took effect July 1, Giuliano said, because "it didn't make sense to do this which is time sensitive and then postpone its effective date until October 1 after the end of the storm season."

More than just an issue in Connecticut, Giuliano said that insurance companies are looking at their risks and that coastal properties are highly vulnerable to damage from coastal storms.

Such storms, Giuliano said, could result in billions of dollars of damage.

While storm-resistant shutters or high-impact glass installation is meant to mitigate loss from hurricanes and other severe storms, Giuliano feels the law protects those who are unable to take such measures.

"Cutting off someone's home insurance is too drastic. This legislation will create other options and give homeowners incentives to secure their homes against hurricanes and other severe storms," Giuliano said.

The law requires insurers to offer a discount, starting January 1, 2008, for those who have installed permanent storm shutters or impact-resistant glass.
It will allow coastal homeowners to find an insurance company to cover their homes who previously had difficulty buying homeowner insurance.

The new insurance commissioner, Tom Sullivan, is now allowed to establish and adapt regulations for a Coastal Market Assistance Program, CMAP, to help coastal residents obtain homeowners insurance.

CMAP consists of a voluntary network of participating insurers and insurance producers operating under Sullivan's guidance to assist homeowners.

Another part of the law will allow many who own mobile dwellings to be classified as "homeowners" making them eligible for the same protection as coastal homeowners.

To receive that qualification, mobile homeowners must live in a dwelling that is equipped for year-round living which is permanently attached to a foundation on property the person owns or leases.

The dwelling must be connected to utilities, be assessed as real property for tax purposes, and be in accordance with state and local laws and ordinances.