Often, it is said that you cannot build something without having a strong
foundation in place. Unfortunately, many homeowners in Connecticut
have found out that is not actually the case.
Over the past few years, more and more Connecticut homeowners
have discovered that the concrete foundations of their homes have
cracked, and they are no longer structurally sound. This phenomenon
is caused by the presence of pyrrhotite, a naturally occurring mineral that
corrodes and causes massive cracking when exposed to groundwater. While
the true scope of the issue is not fully known—as it can take 20 or 30 years
for the problem to manifest—it already has affected hundreds of homeowners
in the state.
In order to provide relief to those impacted by this problem, the
Connecticut General Assembly recently passed legislation to establish a Health
Homes Fund. This fund is financed through surcharges on a variety of
insurance policies sold in the state.
Under the law, a $12 surcharge is imposed on homeowners, condo and
common-interest community policies. This surcharge is charged when the policy
is issued, and when the policy is renewed. It is important to note that this surcharge
is per policy and not per named insured. So, even if multiple people are listed as
insureds on a policy (e.g., a person and his or her spouse), the surcharge
The surcharge is not part of the insurance premium; it is a separate
charge. Under the law, the surcharge is payable in full upon commencement or
renewal of the policy, and no portion of such surcharge will be reimbursed if the
policy is canceled.
If you should have any questions on this surcharge, or anything else related to your
insurance policy, reach out to us for assistance.