Lawmakers create ‘insurance company’ to help homeowners

In this April 11, 2017 photo, numerous cracks run through a basement wall of Tim Heim's home in Willington, Conn. Home foundations in a part of the state are failing because of the presence of the mineral pyrrhotite in the concrete, and a growing number of homeowners are seeking financial relief from their town. (AP Photo/Susan Haigh)

HARTFORD, Conn. (AP) — Connecticut legislators are creating an insurance company to help homeowners whose foundations are crumbling because of an iron sulfide found in the concrete.

The new state budget takes the unusual step of establishing a not-for-profit captive insurance company to distribute $100 million in state bond funds over five years to help pay for the costly repairs and replacement of deteriorating foundations.

Related Content: Homeowners with crumbling foundations could see relief thanks to state budget

East Hartford Rep. Jeff Currey, a Democrat who helped craft the legislation, says a captive insurance company will be regulated and licensed by the state, making sure the funds are strictly monitored.

This marks the first time the state of Connecticut has created such an entity, which is essentially a highly regulated form of self-insurance. A captive was created to distribute funds to the victims of the 9/11.

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