The state has arranged for Hartford-based Travelers Cos. to provide supplemental financial assistance to current and former Travelers policyholders who file claims and receive awards to remediate their crumbling concrete foundations through the state’s new captive insurance program.
Under the agreement, Travelers will establish and administer the Travelers Benefit Program and commit $5 million to the program. Connecticut homeowners who are current or past Travelers policyholders, who are experiencing deterioration of their foundation due to the presence of pyrrhotite in the concrete aggregate, and who have also opted to participate in the assistance program launching through the Connecticut Foundations Solutions Indemnity Company (CFSIC), will be eligible for this supplement.
Homeowner participation in the program will be voluntary. The supplemental assistance will be available to qualifying homeowners, but is not required for homeowners to receive general assistance through the CFSIC.
“Travelers has stepped up in a very big way to help homeowners navigate this complex issue,” Gov. Dannel P. Malloy said in a statement. “We are grateful for this commitment by Travelers and are hopeful that other insurers follow that lead and participate in the program. Now it’s also time for the federal government to recognize that is truly a natural disaster and come to the table with additional remedies.”
“Since this problem emerged, we have been committed to finding a solution that will assist our customers dealing with this unfortunate and complex issue,” Michael Klein, executive vice president and president of personal insurance at Travelers, said in a statement. “We appreciate the support from Gov. Malloy and Attorney General Jepsen, and we collectively believe this fund will provide a significant measure of relief to affected homeowners.”
The maximum per-home benefit that the Travelers Benefit Program will pay is $25,000 for current insureds and $10,000 for past insureds; any supplemental benefit is in addition to the benefit paid by CFSIC. CFSIC benefits are expected to be capped at $175,000, while the costs of repairing some homes are likely to exceed that amount. The Travelers Benefit Program will help current and past insured to make up the difference between what CFSIC will pay and the remaining costs of fixing the foundations.
Enrollment in CFSIC is required, as is demonstration of current or past policy enrollment with Travelers. Pursuant to the agreement, the Connecticut Insurance Department will monitor Travelers’ participation and administration of the Travelers Benefit Program.
For more information on the Travelers Benefit Program, consumers should visit www.travelers.com/ctconcretefund or contact Travelers at 1-800-527-2416.
