State Surcharge Approved for Crumbling Foundation Assistance

HARTFORD, CT — The state senate on Wednesday passed by a vote of 19-17 a bill that imposes an insurance surcharge to assist homeowners with crumbling concrete foundations.

According to the area senatorial contingent, House Bill 5209 places a $12 surcharge on a homeowner’s insurance policy upon their issuance or renewal beginning in 2019, with all the funds to be placed in a newly created Healthy Homes Fund.

The fund will pay for the remediation of homes with crumbling concrete foundations, as well as lead abatement in homes, and remediation of homes in a specific area of New Haven that are sinking.

Eighty-five percent of the moneys in the Healthy Homes Fund will be transferred to the Crumbling Foundations Assistance Fund for crumbling foundations remediation. Those funds will be distributed through the nonprofit, private captive insurance company Connecticut Foundation Solutions Indemnity Company, LLC, which is in the process of being licensed.

The surcharge is expected to raise $10.2 million per year.

The bill passed the House on May 5 on a 97-42 vote.

Photo Credit: Chris Dehnel