The superintendent of the captive insurance company that’s providing financial relief to homeowners with crumbling foundations says he expects dozens more affected homeowners will soon seek help, given recent action by the Connecticut State Supreme Court.
Connecticut’s highest court ruled Tuesday against several homeowners who sued their insurers after having their claims denied.
Connecticut Foundation Solutions Indemnity Co. (CFSIC) head Michael Maglaras told state lawmakers Wednesday he expects to hear from at least 70 homeowners who were awaiting the court’s rulings to see if their insurers would be forced to cover their claims. Those homeowners’ applications for financial assistance from the state-funded insurance company are currently in “inactive status.”
Eric George, president of the Insurance Association of Connecticut, says the court’s decisions that typical homeowners’ policies don’t cover crumbling foundation expenses affirm the group’s long-held position.
To date, 1,196 homeowners and condominium associations have filed claims with CFSIC; only 247 have so far had their claims granted and around 150 homeowners with foundations damaged by the iron sulfide pyrrhotite will be back in their homes by this time next year. CFSIC has paid out $14.1 million of the $100.1 million in active claim liabilities it has so far. New funds allocated by the State Bonding Commission earlier this fall will cover at least the next 61 claimants in line, but after that point agreements with the remaining homeowners in line will be rationed out at two per week to keep the fund solvent for the next several months.
Gov. Ned Lamont announced two weeks ago that a new loan program administered by the Connecticut Housing Finance Authority has been launched in partnership with several state lender to help homeowners replace decking, plumbing and other items not covered by CFSIC but which were damaged by their failing foundations.





