Two Connecticut insurance companies will provide supplemental financial assistance to current and former policyholders who file claims and receive awards to remediate their crumbling concrete foundations through the state’s new captive insurance program, outgoing Gov. Dannel P. Malloy and Attorney General George Jepsen announced Tuesday.
Under its agreement, The Hartford will establish and administer The Hartford Benefit Program and commit $3.5 million to the program. Connecticut homeowners who are current or past policyholders of The Hartford, 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 Co. (CFSIC) will be eligible for this supplement.
Under its separate agreement, Liberty Mutual will establish and administer the Liberty Benefit Program and commit $7 million to the program. Connecticut homeowners who are current or past policyholders of Liberty Mutual, 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 CFSIC will be eligible for this supplement.
Homeowner participation in these programs will be voluntary. Supplemental assistance will be available to qualifying homeowners, but is not required for homeowners to receive general assistance through CFSIC.
“The crumbling foundation crisis is a widespread and complex problem that requires all stakeholders to be a part of the solution,” Malloy said in a statement. “These commitments from The Hartford and Liberty Mutual represent significant progress for affected homeowners, and I applaud both companies for stepping up. I personally want to thank former Insurance Commissioner Katie Wade for her hard work during her tenure in bringing these carriers to the table to help us work toward a solution.”
“We believe that providing additional funding is the right thing for The Hartford to do for our customers and communities,” The Hartford spokesperson Michelle Loxton said in a statement. “While most homeowners policies do not cover these damages, we recognize the highly unusual nature of this issue and the impact it is having on families in Connecticut.”
The maximum per-home benefit that the benefit programs 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 Hartford and Liberty Benefit programs 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 either The Hartford or Liberty Mutual. Pursuant to the agreement, the Connecticut Insurance Department will monitor the companies’ participation and administration of the programs.
Malloy and Jepsen announced the first supplemental benefit program with Hartford-based Travelers last month.
