For Those Who Are Waiting…
A number of CFSIC claimants have completed and submitted their applications for Type 1 or Type 2 claims, and are concerned about what that means if they are awaiting the outcome of a claim acceptance or denial by an insurer…or are awaiting the outcome of litigation with an insurer on an individual or group basis.
We wanted to make clear how CFSIC’s position on the issue of insurance company acceptance or denial, as well as CFSIC’s position regarding active litigation, affects claimants.
First, if you have filed a Type 1 application with CFSIC, inclusive of evidence that your foundation has been judged to be a severity class code 3 or 2 by a licensed professional engineer, and you are awaiting the outcome of a claim you filed with a commercial insurer or litigation you are involved in on an individual or group basis, your CFSIC claim will be held in “inactive” status as a result of this. This is CFSIC’s position as approved by its Board of Directors.
However, many homeowners are concerned that CFSIC will run out of money before it can pay these kinds of claims now in inactive status, and we wanted to give homeowners comfort with regard to this.
First, if you have filed a CFSIC Type 1 claim that has been verified as a severity class code 3 or 2 because a licensed professional engineer has undertaken a visual examination that has determined that your foundation is severity class coded as such, CFSIC will maintain a reserve for your potential claim…even though you are not classified as an active claim.
What this means is that, though you are not in line as an active claimant, we know who you are, and we are maintaining a reserve liability on CFSIC’s balance sheet in the event you become “active” because you have been able to provide CFSIC with all required points of evidence, inclusive of evidence that your claim has been settled by an insurer or denied by an insurer, or that your litigation is now a settled fact.
Many homeowner claimants have complained that CFSIC is treating them unfairly with regard to this issue and that, as a result, CFSIC’s funds will be depleted before their commercial insurance claim issues are settled or litigation is settled. We wanted to make certain that homeowners knew the facts. We will carry reserves on our books for these types of claims as described above.
What this means is that if claims are reserved, they are part of CFSIC’s total projected liability and therefore are part of our thinking with respect to when our estimate of total CFSIC funds to be received will run out.
What’s important for all current and potential claimants to know is that CFSIC’s funds are finite. Not only are they finite, but CFSIC is not now in line to receive its current fiscal year funding from the State of Connecticut, and we have no idea when we will be. It is one thing for us to make promises; it is another for us to keep them.
We can tell you, however, that if you are a Type 1 severity class code 3 or 2, and this has been verified in our system because you have provided us with a completed and signed application, as well as evidence of a severity class-coded visual examination, CFSIC is carrying a liability for the eventual payment of your claim, once your claim moves into active status.
With regard to Type 2 claimants, the same holds true: if you are currently a Type 2 claimant awaiting the outcome of a commercial insurer claim acceptance or denial, or awaiting the outcome of claim litigation, we have your inactive claim reserved if you have correctly completed and submitted an application to CFSIC, and have provided us with a visual examination report or core test report evidencing the existence of pyrrhotite in the foundation you replaced. Your claim will remain inactive and in reserve until such time as your CFSIC claim becomes “active” because you have been able to provide CFSIC with all required points of evidence, inclusive of evidence that your commercial insurance claim has been settled or denied, or your litigation has been settled.
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If you have any questions about the operation of the program, ESIS is your best source of information on your claim, and their phone number and email are shown below.
Phone: 844-763-1207
Email: cfsic@esis.com
As you work through the information and application process, here’s how you can get help:
– Call ESIS (the claim adjuster) at: 844-763-1207
– Email ESIS at: cfsic@esis.com
– Email CFSIC at: info@crumblingfoundations.org
To view a video of how to complete an electronic application, go here.
To apply for a Type 1 claim, go here.
To apply for a Type 2 claim, go here.
To learn more about the program, if you are a homeowner, including application help, go here.
To learn more about the program, if you are a contractor, go here.
Michael Maglaras, Principal
Michael Maglaras & Company
Superintendent, CFSIC