With Governor Lamont’s signing of the new and revised crumbling foundations legislation, we have made and will continue to make changes to our underwriting and claims management guidelines in conformance with the law.
For example, with respect to condominiums (see the condo section below for further commentary) and PUDs, we will be putting condos and PUDs in line completely by July 30.
Other changes in the legislation require review by our counsel in order to proceed with implementation. Any further changes will be subject to the new 15-day notice requirement set forth in the enabling legislation changes.
We are grateful to Governor Lamont and his whole team for their awareness of our program and its needs.
Where We Are
It appears likely that CFSIC will be going into suspension with regard to the signing of new Participation Agreements with affected claimants on July 22. A “suspension” has nothing to do with the application process…and everything to do with available cash on hand to meet promises made by way of disbursements to contractors and homeowners.
We will be making a more complete announcement containing much more detail on July 22.
Meanwhile, we ask everyone to understand that we are in very close communication with the CT Department of Housing and with the Governor’s Office. Everyone within state government is aware of our condition, and they are being receptive and responsive to our needs. They are collaborating and working with us very closely in enabling us to continue our progress. More will be announced on July 22.
The Superintendent has authorized more than $33 million in foundation replacements and reimbursements.
Homes across the affected area are in various stages of completion, with a number of families only a few weeks away from getting back into their homes. The next round of Type 2 foundation reimbursements is now in process, as the new fiscal year has begun.
The claim adjustment team is now actively engaged with almost all affected condo associations. Applications have been received. Meetings have been and are being conducted.
CFSIC currently carries $93 million in incurred claim liabilities on its books. Because of our outreach to condos and PUDs, that reserve number will increase to $105 million by the end of July. In other words, we have identified potential foundation replacements for severity coded 3 and 2 foundations for condos equaling $12 million of additional liability to which CFSIC will commit.
It is important to remember that CFSIC is budgeting that it will receive in revenue $125.5 million before it sunsets on June 30, 2022.
Sunset of CFSIC Foundation Re-examination Program
The CFSIC-sponsored foundation re-examination program will sunset on July 31, 2019. Work being undertaken now or requested now up to July 31 will continue to be paid for by CFSIC as part of its outreach to homeowners who had engineer visual examinations conducted, at some point in the past, but where no severity class code had been applied.
Effective immediately Mr. JM Albaine is no longer associated with the CFSIC re-examination process.
As mentioned above, until July 31 we will continue to honor and pay for re-examinations done by the engineering firm found in Section 12 of the “For Homeowners” section of this site.
Given that all CT-licensed home inspectors are now educated in the importance of severity-coding foundations, and all 47 CFSIC-certified home inspectors are appropriately trained, there is no reason for us to continue the re-examination program.
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.
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: firstname.lastname@example.org
– Email CFSIC at: email@example.com
Michael Maglaras, Principal
Michael Maglaras & Company