The crumbling foundation crisis in Connecticut finally has some promising news! A process has been put into place for homeowners to get needed relief from the expense and stress of identifying and remediating your home if affected with a crumbling foundation. Approximately 41 towns in CT may have homes built with concrete supplied by the JJ Mottes Company between 1983 and 2016.
It is possible to test and/or inspect for indication of pyrrhotite in the concrete used for structural foundations. A home buyer who purchases after February 1, 2019 must have a report from a professional engineer issued prior to closing on the sale to be eligible for a claim for reimbursement or replacement of a crumbling foundation. The CT Foundation Solutions Indemnity Company LLC (CFSIC), a captive insurer limited to the crumbling foundation problem, is now operational to process claims and is beginning to pay for the following two types of claims:
Claim Type 1: for those who have a compromised foundation according to the set standards that are seeking financial assistance for the foundation replacement.
Claim Type 2: for those homeowners who had a comprised foundation according to the set standards that have already replaced an entire foundation and are seeking reimbursement for the costs associated with replacement.
The application may be submitted online with documentation of visual inspection by a licensed CT engineer and/or core boring test result. CFSIC may pay up to $175,000.00 of the cost of remediation. They will also reimburse for the licensed engineer’s inspection and 50% of the core boring testing up to $2000.00, if needed. Condominium owners, who do not own the foundation under their unit, may also be eligible for relief.
The funding for this reimbursement is provided by the CT Department of Housing, as well as a $12.00 surcharge on homeowners’ insurance policies issued in Connecticut. To qualify for a claim the homeowner must have a licensed engineer report with a severity classification of Class 1, Class 2 or Class 3. Those with class 3 severity will receive attention first There are three levels of Type 1 claim severity that are established with claim handling priority:
Class 1: A CT licensed engineer concludes that no indication of deleterious pyrrhotite-bearing aggregate is present, based on the visual examination report. (For a claim to be considered Class 1, CFSIC requires a core sample of the foundation finds pyrrhotite is present in the sample)
Class 2: Based on the visual examination report, a CT licensed engineer concludes that that visible cracking patterns commonly associated with deleterious pyrrhotite-bearing aggregate are present, with crack widths less than 1.0mm that extend less than 20% of any contiguous wall plane. (No core sample is required)
Class 3: Based on the visual examination report, a CT licensed engineer concludes that that visible cracking patterns commonly associated with deleterious pyrrhotite-bearing aggregate are present, with crack widths more than 1.0mm that extend more than 20% of any contiguous wall plane. (No core sample is required)
There have been some recent changes to the required real estate seller disclosure form as of August 2018. Sellers are required to disclose whether they know of any problem with the foundation or if any testing has been done. The disclosure also states that a purchaser MAY have a home with a poured concrete foundation inspected for signs of pyrrhotite in the concrete.
There are federal tax deductions over the next 20 years for homeowners who have suffered losses due to a crumbling foundation: https://www.courant.com/politics/hc-pol-irs-crumbling-foundations-20181016-story.html
Insured homeowners by Travelers Insurance, Liberty Mutual, and The Hartford may be eligible for additional assistance through their Benefit Programs: https://www.travelers.com/claims/individuals/home/ct-concrete.aspx
Below you will find links for more information, a map of identified towns, and the application to file a claim. Schaefer Inspection Service can help you with the engineering requirement or questions for a crumbling foundation anywhere in CT. Call our office for more information: 800-345-2776.