January 29, 2019

Crumbling foundation aid distributed this week

HBJ PHOTO | Bill Morgan
HBJ PHOTO | Bill Morgan
South Windsor resident Kristen Cole is one of many homeowners dealing with cracks in her home's foundation.

A portion of Connecticut homeowners who applied for crumbling concrete foundation relief will begin receiving checks this week, according to the nonprofit insurer supporting them.

Connecticut Foundation Solutions Indemnity Co. LLC (CFSIC), which is providing up to $175,000 for homeowners with deteriorating foundations, on Monday said 25 of 400-plus applicants filing "type 2" claims for foundation reimbursement will be the first to receive financial support within the next 45 days. The application process began Jan. 10.

The financial-assistance program is funded by $100 million in state bonding and $9 million a year over a decade with funds raised by an annual $12 surcharge on certain homeowner insurance policies and money from the Connecticut Department of Housing.

An estimated 35,000 homeowners in the state are impacted by foundations breaking apart due to pyrrhotite in the concerte, which causes cracking, flaking, separation and bowing when exposed to oxygen and water. It costs between $150,000 to $250,000 to repair or replace the damage, according to the housing department.

As of Monday, CFSIC determined that 32 of 65 homeowner applications for foundation reimbursements were "active," according to its new guidelines.

"In a handful of cases, we require additional backup from the homeowner or contractor, but the process of moving these claimants, one by one, into the payment stream continues," said Michael Maglaras, CFSIC's superintendent assigned by the state to manage the nonprofit fund, which will cover 700 foundations.

Maglaras, also the principal of Ashford's Michael Maglaras & Co., said the nonprofit insurer will soon alert "type 1" applicants, or homeowners seeking foundation repairs, to begin the contractor proposal process.

CFSIC is still accepting applications, Maglaras said, as the captive insurer received less applications than expected during its first full week of enrollment.

This story has been updated

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