22 October 2020Actuarial & underwriting

CFSIC suspends payments for crumbling foundations until July 2021 due to lack of cash

The Connecticut Foundations Solutions Indemnity Company (CFSIC) will not provide any more participation agreements to support further work on crumbling foundations until at least July 2021, CFSIC has said.

CFSIC expects its next round of funding next July, which should allow it to enter more participation agreements with homeowners suffering from crumbling basement walls due to pyrrhotite.

CFSIC stressed this applied to all applicants and does not mean certain times of building are being given preferential treatment. “All the money we’ve gotten has been committed to construction or reimbursements,” CFSIC said.

“The Superintendent has committed close to $30.6 million in construction commitments from the $20 million received from the last CT Bond Commission allotment and $10.6 million from the Healthy Homes surcharge. That’s it. That’s all that can be committed until the next round of funding,” it added.

As of October 9 CFSIC had helped to get, 223 families back into their homes. The average cost of a foundation replacement was $155,359, with the cap for a property being $175,000.

CFSIC has 1,639 registered claimants, including 431 pending claimants who it admitted may never receive funding, and certainly will not until at least 2026 or 2027.