Here's What You Need To Know About Applying ForCrumbling Foundation Funds

By Kathleen McWilliams

October 16, 2018

On Nov. 15, applications will begin being accepted from homeowners seeking state funds to replace their failing foundations.  The Captive Insurance Agency, now called the Connecticut Foundations Solutions Indemnity Company or CFSIC, was created by the legislature last year to help homeowners pay for replacing their foundations.

The $133 million fund set up by the state through bonding money and the $12 surcharge on homeowners insurance policies, will pay for a portion of the costs to replace a foundation and reimburse homeowners for the work they have already done.  The cost to replace a failing foundation averages about $185,000. Insurance companies have refused to pay the claims, saying that the failure does not meet their definition of a structural collapse. The $133 million should cover 700 homes, thought here could be as many as 34,000 homes with failing foundations, according to state estimates.

So how does it work?

Homeowners with failing foundations should apply online for reimbursement and replacement starting on Nov. 15. The CFSIC will go through the applications and then pay out the claims, until the funds run out.   The maximum CFSIC will pay out to an individual will be $175,000. The amount of funding made available to each homeowner will be based on the home’s measurements.

Am I eligible for funding?

Applications for replacing a foundation are called Type 1 applications and will be judged based on how badly the foundation has deteriorated. The insurance company has set up a scale for rating how bad the damage is and will prioritize those most at risk for collapse.  Reimbursement for work already done on a foundation will be awarded on a first-come, first-served basis.  Superintendent of CFSIC, Michael Maglaras, said the program will not pay out as many claims for reimbursement as it will for replacement.  Only eight claims for reimbursement will be paid this fiscal year to make sure there will be enough funding for foundations at risk for collapse to be replaced.“We had to leave space open for those with reimbursements, but we also had to prioritize people whose homes are falling down,” Maglaras said. “I have no idea how many applications for replacement we’re going to get.”

What do I need to apply?

Blank applications are available online at crumblingfoundations.org so homeowners can get their paperwork in order before the launch date. These applications can be printed and filled out, but may not be submitted until the Nov. 15 launch date. To apply for a foundation replacement claim, homeowners will need to fill out an application form found online and attach proof of ownership, a copy of a core sample inspection and a visual inspection report, as well as two estimates from approved contractors. Homeowners must also attach copies of communications with their insurance providers if they have filed a claim.  They will also need to show proof that their home was built in 1983 or later.

For a reimbursement, applicants will need to fill out an application form and attach the inspection reports. They will also need to answer questions about the replacement cost.  Maglaras said that incomplete applications will not be accepted and will only slow down the process for those who have their documentation in order.  "I want a lot of completed applications,” he said. “Quickly get your documentation in so you can be at the top of the line on Nov. 15.”

What happens when the funds run out?

Maglaras said he is hopeful that once the program gets started, more funding will become available. The program is funded through 2022, but Maglaras said that the more applications he receives, the more likely the issue will attract funding from FEMA, insurance companies and the federal government.  “I hope this is just a catalyst,” he said. “This crisis so far has just been talk. This is not the perfect formula. The perfect formula is we have $1 billion to pay out.”

Who do I contact if I have questions?

After Nov. 15, email or call cfsic@esis.com or 844-763-1207.

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