2026-09-09 · Connecticut · Regulation

Connecticut has removed the requirement that a condominium association's master policy cover loss caused by terrorism. The repeal is Section 6 of Public Act 26-69, the Insurance Department's own departmental bill, approved June 2, 2026 and effective from passage.¹

It is a small edit to one statute, and it is easy to read past. What it does is convert a coverage floor into a coverage choice.

What the section actually deletes

Section 6 rewrites § 38a-307a. Since 2004 that statute has done two things at once: it barred a terrorism exclusion in condominium master policies, and it permitted one in other commercial risk policies. The act strikes the first half.

The repealed language required that, for “any master policy that is required to be purchased by a condominium association pursuant to section 47-83 or by a unit owners' association pursuant to section 47-255, the standard form of fire insurance policy set forth in section 38a-307 shall not exclude coverage for loss by fire or other perils insured against in the policy caused, directly or indirectly, by terrorism, as defined by the Insurance Commissioner.”¹

What remains is the permissive rule, now applying to commercial risk policies generally: an insurer may exclude terrorism losses “provided the premiums charged for such policy shall reflect any savings projected from the exclusion of such perils.”¹

The statutes it cross-referenced

The deleted clause reached both of Connecticut's association regimes: § 47-83, the master policy duty under the older Condominium Act, and § 47-255, the insurance provision of the Common Interest Ownership Act. Those duties are untouched. An association still has to carry property and liability coverage on the scale CIOA requires; what changed is that the policy satisfying that duty may now come with a terrorism exclusion.

1. Public Act No. 26-69 (Substitute House Bill No. 5373), full enrolled text — Section 6 repeals and substitutes Conn. Gen. Stat. § 38a-307a; approved June 2, 2026 ↩
2. HB 5373 bill status and history, Connecticut General Assembly ↩
3. Property Casualty Insurance Rate Reviews for Calendar Year 2025, Connecticut Insurance Department (January 15, 2026) ↩
4. 2026 Acts Affecting Housing and Real Estate, OLR Report 2026-R-0090 (June 15, 2026) ↩