The launch of the Connecticut Foundation Solutions Indemnity Company (CFSIC), the non-profit captive set up to distribute remediation funds to assist homeowners by the ‘crumbling foundations’ issue, has been postponed.
CFSIC was scheduled to launch on 15 November but is now estimated to be a month delayed due to the volume of public comments received during the 30-day public comment period.
The ‘crumbling foundations’ issue was caused by concrete of a stone aggregate mined from a quarry containing pyrrhotite, which has resulted in cracks forming decades after the foundation was constructed.
Fixing the cracks: a breakdown of the crumbling foundations captive solution
According to the Connecticut Mirror, around 5000 homes have been affected and with the cost of re-pouring, a complete foundation estimated at between $150,000 and $200,000 the overall exposure to loss could be billions of dollars.
The captive will administer the Crumbling Foundations Assistance Fund, which was set up to distribute the remediation funds to homeowners across the state—with $100 million available in state bonding over the next five years.
Steve Werbner, president of CFSIC, announced the delay on the CFSIC website.
He wrote: “I want to thank those who have given us thoughtful and constructive comments about CFSIC’s proposed underwriting and claims management guidelines.”
“It is clear to us now that, due to the volume of your comments, CFSIC will not launch on November 15 as previously planned.”
“My best estimate is that we will be about a month delayed.”
Werbner continued: “First, our board needs to meet to consider your comments, and then, to the extent there are any changes to our guidelines, we need time to make them, inclusive of integrating any changes into a complex electronic claims management system.
“Once the board meets and considers all comments, we will announce, on the CFSIC website, our launch date.”
“We’ll also be clear on various pages on the site what changes have been made, in order to help you with the application process.”
