For many homeowners in CT, this past year, they learned that their investment in a home and future for their families is literally crumbling beneath them. According to the Connecticut Department of Housing, the issue affects over 35,000 homes in the state (mainly located in the north, east, and central parts of Connecticut).
The issue is with the foundation on their homes deteriorating due to the presence of a naturally occurring mineral, pyrrhotite, an iron sulfide that was found to originate in a quarry in Willington. The slow deterioration happens when it’s exposed to air and oxygen and creates an unsound structure. To repair the issue the existing foundation must be replaced and can range in costs from $150-250 thousand per home. Much of these needed repairs fall outside of property insurance policies and have left residents with hefty out-of-pocket expenses that many simply are unable to afford.
Legislation for Aide
Earlier this year, the CT House approved a bill, “House Bill 5209, An Act Imposing A Surcharge On Certain Insurance Policies And Establishing The Healthy Homes Fund,” to help the state generate $10 million annually to assist in efforts being put forward to help homeowners affected by the crumbling foundation issue in the state.
New Insurance Charges
The approved bill comes in the form of a 10-year surcharge tax of $12 added to all home insurance bills (homeowner, tenant, and condo policies) effective 01/01/2019 through 12/31/2029.
The surcharge will be assessed to each named insured on the policy, up to a maximum of $24 ($12 x 2) per policy.
All insurance companies are required to comply and the bill will also, “help pay for lead and radon abatement homes and the remediation of homes that are sinking in a New Haven neighborhood,” according to Insurance Journal.