Beginning in January 1, 2019, Connecticut homeowners will see a $12 increase in their homeowner's policy. The Healthy Homes Fund Surcharge was passed by the Connecticut Legislature (CT HB05209) to raise as much as $100 million in the next 10 years mainly to assist Connecticut homeowners with crumbling foundations. The legislation is set to expire on December 31, 2029.
The surcharge is not a premium and applies to policies on residential dwellings with four or fewer units and on condominiums. Renters policies are exempt.
The bulk of the money collected in the Healthy Homes Fund Surcharge will be used for grants-in-aid to homeowners with homes located in the immediate vicinity of the West River in the Westville section of New Haven and Woodbridge for structurally damaged homes due to subsidence and to homeowners with homes abutting the Yale Golf Course in the Westville section of New Haven for damage to such homes from water infiltration or structural damage due to subsidence. The fund will also go toward programs designed to reduce health and safety hazards in residential dwellings in Connecticut such as lead, radon and other contaminants or conditions and pay for the removal, remediation, abatement of these contaminants.
June 2025 UPDATE: The state-created captive insurer handling Connecticut homeowners’ claims for crumbling foundations is in line for another $100 million in bond funding in the biennial budget now awaiting Gov. Ned Lamont’s approval.
Lawmakers are promising $25 million in each of the upcoming fiscal years in what should be the last appropriations needed, according to officials at the Connecticut Foundation Solutions Indemnity Co. (CFSIC)
The insurer’s superintendent, Michael Maglaras, has said he does not intend to ask for any more funding for CFSIC beyond the fiscal year ending June 30, 2030. By then, the “vast majority of this crisis will be behind us, and that it will be time to wind down CFSIC’s operations by the end of 2031,” he wrote In a February report.
Maglaras estimates that by June 30, 2030, there could about 725 new claimants that will require a minimum of $100 million in funding. That would bring the total number of CFSIC claimants since it began underwriting in 2019 to between 3,200 and 3,700.
Source: Insurance Journal
The surcharge is not a premium and applies to policies on residential dwellings with four or fewer units and on condominiums. Renters policies are exempt.
The bulk of the money collected in the Healthy Homes Fund Surcharge will be used for grants-in-aid to homeowners with homes located in the immediate vicinity of the West River in the Westville section of New Haven and Woodbridge for structurally damaged homes due to subsidence and to homeowners with homes abutting the Yale Golf Course in the Westville section of New Haven for damage to such homes from water infiltration or structural damage due to subsidence. The fund will also go toward programs designed to reduce health and safety hazards in residential dwellings in Connecticut such as lead, radon and other contaminants or conditions and pay for the removal, remediation, abatement of these contaminants.
June 2025 UPDATE: The state-created captive insurer handling Connecticut homeowners’ claims for crumbling foundations is in line for another $100 million in bond funding in the biennial budget now awaiting Gov. Ned Lamont’s approval.
Lawmakers are promising $25 million in each of the upcoming fiscal years in what should be the last appropriations needed, according to officials at the Connecticut Foundation Solutions Indemnity Co. (CFSIC)
The insurer’s superintendent, Michael Maglaras, has said he does not intend to ask for any more funding for CFSIC beyond the fiscal year ending June 30, 2030. By then, the “vast majority of this crisis will be behind us, and that it will be time to wind down CFSIC’s operations by the end of 2031,” he wrote In a February report.
Maglaras estimates that by June 30, 2030, there could about 725 new claimants that will require a minimum of $100 million in funding. That would bring the total number of CFSIC claimants since it began underwriting in 2019 to between 3,200 and 3,700.
Source: Insurance Journal
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