Crumbling Foundations captive board revealed amid pyrrhotite crisis
Incorporators of captive insurer Connecticut Foundation Solutions Indemnity Company (CFSIC) have selected nine board members to help address the crumbling concrete foundations crisis affecting Connecticut homeowners.
Homes in northeastern Connecticut face crumbling basement walls due to pyrrhotite. Pyrrhotite when exposed to oxygen and water reacts and causes swelling and cracking, leading to its deterioration. The damage is said to be irreversible, with no known repairs.
Over 35,000 homes in the north, east, and central parts of Connecticut are facing this potentially devastating issue due to the presence of a naturally occurring iron sulphide originating from a quarry in Willington, CT. The costs to replace a foundations in Connecticut ranges from $150,000-$250,000 per home.
The nine members to sit on CFSIC's board include: Lyle Wray, executive director of the Capitol Region Council of Governments; Donald Poulin, an affected homeowner from Manchester; Mark McDonnell, an investment manager from Stamford; John Filchak, executive director of the Northeast Connecticut Council of Governments; Bruce Kellogg, an affected homeowner from Vernon; John Rachek, an experienced insurance industry executive; Kevin Smith, a banking industry representative; Dan Keune representing the real estate industry; and Steven Werbner, representing municipal government.
“I’m delighted that the Incorporators chose this group of citizens to lead CFSIC,” said Michael Maglaras, principal of Michael Maglaras & Company, whose firm is acting as CFSIC’s superintendent.
“Each person on this board brings knowledge, perspective, and fiduciary ability to the crumbling foundations natural disaster...with the naming of this board, great progress will now be made in serving affected Connecticut homeowners.”
In addition to the voting members of the board, CFSIC will also include four non-voting members. These includes Connecticut representatives Jeffrey Currey and Kurt Vail, and senators Catherine Osten and Tony Guglielmo.
CFSIC is scheduled to be launched and operational in October.
