Connecticut Homeowners Ask Legislature for Assistance on Bad Foundations

March 28, 2018

  • March 28, 2018 at 1:38 pm
    paul says:
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    Gee, I guess we just overlook Coverage A & B Exclusion 2. e (2) Inherent vice, latent defect…And, (6) Settling, shrinking, bulging or expansion, including resultant cracking, of pavements, patios, foundations, walls, floors, roofs or ceilings. Collapse would be a consequentially loss due to an excluded peril. I love how a legislator wants to shift liability from a defunct concrete company to taxpayers by forcing on them another tax in the already highest taxed state in the country.

    • March 28, 2018 at 3:15 pm
      Agent says:
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      One of the highest taxed states with a corrupt Democrat leading them. Bailing city of Hartford out when they are in budget crisis as well. No wonder people are fleeing the N/E.

  • March 28, 2018 at 1:54 pm
    Frank A. Lombard CPCU ARM says:
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    Paul, you may want to read those exclusions a little more closely. Homeowners policies may not cover loss “caused by” the defective material (pyrrhotite) but the same exclusion extends coverage to “ensuing” or resulting loss. Most of these homes have sustained “ensuing” structural damage and that repair cost should be covered. Let the insurers recover their losses from the offending concrete company.

    There’s also a provision in the policy “Conditions” which requires the policyholder to protect the property from further damage. A compelling argument can be made that the cost of raising these structures so the defective foundation can be replaced is a “reasonable step”. That cost should be a covered expense.

    Why are these issues not part of this discussion?

    • March 29, 2018 at 10:22 pm
      okt0ber says:
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      They’re required to protect from further damage due to a covered loss. Deterioration of a foundation is not a covered loss. Insurance companies do not have to pay for protecting the property from further loss due to something that isn’t covered.

      • March 30, 2018 at 9:09 am
        Frank A. Lombard CPCU ARM says:
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        Loss was not caused by deterioration, the loss was caused by a “defective material” with an ensuing loss to the structure. That’s quite different from a normal deterioration type loss.

        • April 2, 2018 at 8:05 am
          Tax Cuts 4 PolaRich Bears says:
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          This seems to be a product liability issue, not HO. Or, a M&C issue. [ I wonder if those policies were considered and found to provide inadequate cover? ] Otherwise, there would be no incentive for contractors to use quality materials for foundations or other construction materials because … HO … would cover their mistakes.

          It looks like this is an issue of improper inspection of construction in progress or verification of sufficient insurance limits of contractors building cheap homes. I wonder how many contractors and material suppliers are involved in the construction of the damaged foundations versus how many are involved in the proposed state bailout of the harmed homeowners.

          • April 2, 2018 at 9:04 am
            Frank A. Lombard CPCU ARM says:
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            If a defective appliance started a fire in your home and it burned down, would you say M&C issue; sue the manufacturer? I don’t think so. If defective concrete caused your floors to buckle and your walls to crack, wouldn’t that damage be covered by home insurance? I would think so. Home policies are not expected to cover defective materials or workmanship but they are expected to cover “ensuing” or resulting damage. Home insurers then have the right to recover from the responsible party.



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