Latest News…August 12, 2019

Where We Are

CFSIC has received 1,016 applications as of August 9. That’s 177 new applications in two weeks.

Total incurred claim activity (defined as all paid claims and all claim in line to be paid based on application information) is now $112,261,674. The liability for active claims is $80,309,944. The difference represents inactive claimants, many of whom are in litigation with their homeowners’ insurers. CFSIC is now underwriting against expected net revenues of $121.6M. When the value of reserve liabilities for active and inactive claims on our books hits that number, we will cease taking applications. This is apt to happen well before the close of this calendar year…or 30 months prior to CFSIC’s sunset date of June 30, 2022. The only thing that will prevent this from occurring, in our estimation, is a re-evaluation of the status of all inactive claimants in our system.

CFSIC had processed 247 Participation Agreements before it went into suspension on August 5. The total value of construction activity approved by these Participation Agreements is $35,158,722.

22 families have now been returned to their homes with new foundations. It has taken us only four months for this to happen. An estimated 25 more will be back in their homes before the middle of September.

The average cost of a foundation replacement rests now at $144,000…down from $173,990 four months ago.

CFSIC Is In Suspension

CFSIC went into suspension on August 5.

The suspension will last until it is lifted. We estimate that the suspension will be lifted by late September or early October, when the new round of funding should be approved by the CT Bond Commission. We have been assured by responsible state officials that we will be on the agenda for additional funding.

Contractor Advisory

The Superintendent will be in touch with all contractors shortly to discuss two issues.

The first issue is that we will be asking for contractors’ cooperation in keeping their schedules as flexible as possible with regard to the homeowners whose Participation Agreements are now in line but remain unsigned, pending the removal of our suspension. We need contractors to help us. For the most part, contractors have shown themselves willing to work with homeowner schedules. We want to make sure that continues.

The second issue is that it has come to our attention, over the past several weeks, that a major provider of utility services has begun to charge a significant amount for the disconnection and reconnection of an important utility type. This matter was brought to our attention by a number of contractors. Our attempts to reach out to that utility, through an acknowledged representative for assistance, have thus far not been successful.

It is very important to note that all utilities are very heavily regulated and that they have limited flexibility in some cases with respect to the charges levied to consumers for the services they provide.

This point aside, CFSIC’s position is that the disconnection and reconnection of utilities is an allowable cost under Section 1 of the templated contractor proposal in use by almost all contractors now engaged in helping homeowners. As this new and unexpected expense issue has emerged, CFSIC has had two choices: disallow this increased utility disconnection/reconnection cost; or absorb it, in the interest of not victimizing claimants…we have chosen the latter position.

Unfortunately, in some cases, this unexpected increased cost has resulted in a homeowner exceeding the allowable cap on all work performed, and the homeowner has been stuck with this additional expense, which is regrettable.

Meanwhile, faced with the possibility of reducing our effectiveness by slowing down the construction process, and because utility disconnection/reconnection expenses would normally be covered (although we did not anticipate in the amounts we are seeing relative to this particular utility), CFSIC has decided to use taxpayer dollars to absorb the expense as part of its claim cost, in order to help homeowners through the crumbling foundations crisis.


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


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:

– Email CFSIC at:

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