Raised Bill No. 518 Summary

• Insurance companies must provide coverage for structural collapse peril (including from hidden decay, defective materials, or construction defects) and mitigation to prevent collapse on all homeowners policies issued or renewed on or after the effective date.

• Insurance companies are prohibited from refusing to insure, denying coverage, or limiting coverage to individuals whose policies include collapse coverage; violation is an unfair and deceptive trade practice.

• Extends the statute of limitations for lawsuits involving collapse claims from 24 months to 72 months after inception of loss, and allows insureds to recover damages, attorneys' fees, and costs.

• Establishes a $20 per-policy surcharge on homeowners, renters, condominium, and master policies issued or renewed on or after July 1, 2018; surcharges collected by insurers and insurance licensees are deposited into the Crumbling Foundation Assistance Fund until June 30, 2025.

• Updates enforcement provisions to allow the Insurance Commissioner to order monetary penalties, license suspension/revocation, restitution, and attorney's fees and costs for violations of the insurance regulations.