Gov. Malloy and Attorney General Jepsen Announce Agreement with Travelers to Provide Supplemental Assistance to Crumbling Foundation Homeowners
Insurer Commits $5M for Current and Past Insureds to Supplement Awards from the State’s New Captive Insurance Foundations Remediation Program
Governor Dannel P. Malloy and Attorney General George Jepsen today announced that the State of Connecticut has entered into a memorandum of understanding with Hartford-based Travelers Companies, Inc. to provide supplemental financial assistance to current and former Travelers policyholders who file claims and receive awards to remediate their crumbling concrete foundations through the state’s new captive insurance program.
Under the agreement, Travelers will establish and administer the Travelers Benefit Program and commit $5 million to the program. Connecticut homeowners who are current or past Travelers policyholders, who are experiencing deterioration of their foundation due to the presence of pyrrhotite in the concrete aggregate, and who have also opted to participate in the assistance program launching through the Connecticut Foundations Solutions Indemnity Company (CFSIC) will be eligible for this supplement.
Homeowner participation in the program will be voluntary. The supplemental assistance will be available to qualifying homeowners, but is not required for homeowners to receive general assistance through the CFSIC.
“Travelers has stepped up in a very big way to help homeowners navigate this complex issue,” Governor Malloy said. “We are grateful for this commitment by Travelers and are hopeful that other insurers follow that lead and participate in the program. Now it’s also time for the federal government to recognize that is truly a natural disaster and come to the table with additional remedies.”
“Since we first attempted to establish a voluntary insurance assistance program, Travelers has been a willing partner in trying to devise workable solutions to this looming disaster,” Attorney General Jepsen said. “I commend Travelers for stepping up to the plate with this commitment and for agreeing to work with the state by creating this program. The epidemic of these deteriorating foundations is devastating to these homeowners, but it’s also catastrophic to northeastern towns and the economy of the entire state. I strongly encourage members of the public who hold policies with other companies – whether they have a crumbling foundation or not – to call their insurance company and urge them to establish similar benefit programs and be part of the solution.”
“Living in Tolland, I see the effect this disaster takes on the faces of my neighbors,” Lt. Governor Nancy Wyman said. “It is real, and our affected homeowners need all the help they can get. I give sincere thanks to Travelers for taking a leadership role to lessen the gap between the total grant amount and the actual cost of fixing their foundations.”
Michael Klein, Executive Vice President and President of Personal Insurance at Travelers, said, “Since this problem emerged, we have been committed to finding a solution that will assist our customers dealing with this unfortunate and complex issue. We appreciate the support from Governor Malloy and Attorney General Jepsen, and we collectively believe this fund will provide a significant measure of relief to affected homeowners.”
“I commend Travelers for its critical leadership in helping their policyholders affected by crumbling foundations,” Insurance Department Commissioner Katharine L. Wade said. “It is my hope that other companies will follow their lead and participate. We all recognize the need for getting as many stakeholders as possible to help address this crisis.”
“We are pleased that Travelers has committed to support these families in their time of need,” Department of Consumer Protection Commissioner Michelle H. Seagull said. “We know that this is only one more piece of support that these families need, and hope that more insurance companies join this effort. We’re committed to continuing our work with the public and private sector to solve this issue.”
“All of us have worked hard to get this important arrangement done,” CFSIC Superintendent Michael Maglaras said. “I predict other commercial insurers will follow the visionary lead of Travelers.”
The maximum per-home benefit that the Travelers Benefit Program will pay is $25,000 for current insureds and $10,000 for past insureds; any supplemental benefit is in addition to the benefit paid by CFSIC. CFSIC benefits are expected to be capped at $175,000, while the costs of repairing some homes are likely to exceed that amount. The Travelers Benefit Program will help current and past insured to make up the difference between what CFSIC will pay and the remaining costs of fixing the foundations.
Enrollment in CFSIC is required, as is demonstration of current or past policy enrollment with Travelers. Pursuant to the agreement, the Connecticut Insurance Department will monitor Travelers’ participation and administration of the Travelers Benefit Program.
For more information on the Travelers Benefit Program, consumers should visit www.travelers.com/ctconcretefund or contact Travelers at 1-800-527-2416.
Consumers with related questions can contact the Connecticut Insurance Department at 1-800-203-3447 or the CFSIC by emailing firstname.lastname@example.org.
**Download: Memorandum of understanding and full details of the terms of the Travelers Benefit Program
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Jaclyn M. Severance