The legislation to support the Crumbling Foundation Assistance Fund, Public Act No. 18-160, An Act Imposing a Surcharge on Certain Insurance Policies and Establishing the Healthy Homes Fund, went into effect Jan. 1, 2019.
The act imposes a $12 surcharge per named insured under each homeowners policy. The policies that require the surcharge are personal risk insurance policies on owned dwellings with four or fewer units, including condominiums. The surcharge will not be considered a premium. Homeowners must pay the surcharge every calendar year. The collection of the surcharge will continue through Dec. 31, 2029.
The remitted surcharges are deposited into the HHF created by this legislation, except for the cost of funding an administrative officer at the Connecticut Insurance Department to collect the surcharges. The Healthy Homes Fund is a separate, non-lapsing account within the General Fund. Eighty-five percent of the deposits will be transferred to the Crumbling Foundations Assistance Fund, no more than 30 days after surcharges are remitted into the HHF. No more than $1 million dollars from the Healthy Homes Fund will be given to the Department of Economic and Community Development to then distribute as grants-in-aid to homeowners with water damage in the New Haven area. The remainder of the money in the Health Homes Fund will go toward a program to reduce health and safety hazards in residential dwellings, including the removal, remediation,and abatement of lead, radon and other contaminants.
The Crumbling Foundations Assistance Fund was established in 2017 as part of the Connecticut budget process. The fund establishes the Connecticut Foundation Solutions Indemnity, a nonprofit captive insurance company, to provide financial assistance to owners of residential buildings for the repair or replacement of foundations that have deteriorated due to the presence of pyrrhotite in the concrete. The CFSIC is responsible for distributing funds to repair or replace crumbling foundations as well as reimburse homeowners who repaired their foundations prior to Oct. 31, 2017. Not sure if your homeowners policy will have the surcharge or if your home qualifies for the program? Give us a call and we can help you find out.