Governor Dannel P. Malloy and Attorney General George Jepsen announced that the state of Connecticut has entered into separate memoranda of understanding with The Hartford and Liberty Mutual Insurance to 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.

Under its agreement, The Hartford will establish and administer The Hartford Benefit Program and commit $3.5 million to the program. Under its separate agreement, Liberty Mutual will establish and administer the Liberty Benefit Program and commit $7 million to the program.

Connecticut homeowners are eligible for this program if they:

Are current or past policyholders of either company,
Are experiencing deterioration of their foundation due to the presence of pyrrhotite in the concrete aggregate, and
Have also opted to participate in the assistance program launching through the Connecticut Foundations Solutions Indemnity Company (CFSIC).

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.

Details in the foundation

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 two companies will help current and past insureds 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 a demonstration of current or past policy enrollment with either The Hartford or Liberty Mutual.

"The crumbling foundation crisis is a widespread and complex problem that requires all stakeholders to be a part of the solution," Governor Malloy said in a press release. "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."

Consumers with related questions can contact the Connecticut Insurance Department at 1-800-203-3447 or the CFSIC by emailing info@crumblingfoundations.org.

Special Reports /

Conn. enters two separate agreements with The Hartford, Liberty Mutual

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