The Hartford and Liberty Mutual to assist Crumbling Foundations captive


Connecticut has entered into two separate memoranda of understanding with The Hartford and Liberty Mutual Insurance to provide supplemental financial assistance to policyholders who file claims and receive awards to remediate their crumbling concrete foundations through the state’s captive insurance programme, the Connecticut Foundations Solutions Indemnity Company (CFSIC).

According to the Connecticut Coalition Against Crumbling Basements, homes in northeastern Connecticut face crumbling basement walls due to pyrrhotite.

The coalition added that pyrrhotite 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 sulfide originating from a quarry in Willington, CT.

The Hartford is committing $3.5 million to a newly established benefit programme which will provide supplemental assistance to current or past policyholders who are experiencing deterioration of their foundation due to the presence of pyrrhotite in the concrete aggregate.

Similarly, Liberty Mutual has committed $7 million to their own benefit programme offered to eligible policyholders.

Both benefit programmes will launch through the CFSIC. 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,” Connecticut Governor Malloy said. “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.”

Jim MacPhee, president and chief operating officer of Liberty Mutual Global Retail Markets (US), added: “We continue to empathize with our customers who have been impacted by crumbling foundations due to defective concrete. 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. We believe it’s the right thing for us to provide additional assistance to our customers who would have no other avenue for relief if their repair costs exceed their CFSIC benefit.”


The Hartford, Liberty Mutual, Crumbling Foundations, Captive, Connecticut, North America

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