Connecticut officials say two insurance companies have agreed to provide a total of $10.5 million to assist homeowners with crumbling foundations.
Gov. Dannel P. Malloy and Attorney General George Jepsen announced Tuesday the state has reached separate agreements with The Hartford and Liberty Mutual Insurance to help current and former policyholders who file claims and receive awards through the new Connecticut Foundation Solutions Indemnity Company.
The Hartford has agreed to commit $3.5 million while Liberty Mutual Insurance will provide $7 million.
“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," said The Hartford spokesperson Michelle Loxton.
“This has been a particularly complex issue and we applaud the state for establishing a fund to assist Connecticut homeowners in this unfortunate situation when the policy does not provide coverage," added Jim MacPhee, president and chief operating officer of Liberty Mutual Global Retail Markets (U.S.).
Governor Malloy said he believes the commitments from The Hartford and Liberty Mutual is significant progress for homeowners with crumbling foundations.
“The crumbling foundation crisis is a widespread and complex problem that requires all stakeholders to be a part of the solution. These commitments from The Hartford and Liberty Mutual represent significant progress for affected homeowners, and I applaud both companies for stepping up," Governor Malloy said.
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Jepsen said the money will help homeowners bridge the gap between what they receive from the indemnity company and the cost of replacing their home's foundation.
"This is an important commitment made by these two companies today, and I’m hopeful that additional insurers will join them to help address this potentially catastrophic situation,” Jepsen added.
Thousands of homes have been affected by the presence of an iron sulfide that has reacted naturally with oxygen and water.
Consumers with related questions can contact the Connecticut Insurance Department at 1-800-203-3447 or the CFSIC by emailing info@crumblingfoundations.org.
