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Senator says surcharge to help homeowners is not dead

HARTFORD, Conn. (AP) A key Connecticut lawmaker says a proposed surcharge on insurance policies to raise money to help homeowners with crumbling foundations is not a dead issue.

Sen. Cathy Osten, the Democratic Senate chairman of the Appropriations Committee, said Friday ``the surcharge will come out again'' this session, despite the Judiciary Committee defeating legislation last week on a 24-16 vote.

Eastern and central Connecticut homeowners with foundations crumbling because of an iron sulfide are angry lawmakers defeated legislation imposing a $20 surcharge on every homeowner policy issued in Connecticut to create an assistance fund.

The bill also would have required insurers to cover ``peril of collapse,'' which the industry says raises costs for everyone.

Lawmakers last year approved $100 million that still needs to be distributed, but homeowners say more is needed.

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