The CFSIC Claims Process, Step by Step

If pyrrhotite has been confirmed in your foundation, the next question is the big one: how do you get it paid for? In Connecticut, the answer runs through CFSIC — the Connecticut Foundation Solutions Indemnity Company. This page explains how that process actually works, in plain language, so the maze feels navigable.

What CFSIC is (and isn't)

CFSIC is a captive insurance company the State of Connecticut set up for one purpose: helping homeowners with crumbling foundations. It is not a state agency, and it's not a traditional insurer — you don't pay a premium to file a claim. It exists solely to assist with this crisis, funded through state bonding and a small assessment on Connecticut homeowners' policies.

Two things to understand up front, because they shape everything:

• CFSIC pays after your homeowner's insurer. CFSIC covers the gap after any payment from your commercial insurance. In fact, CFSIC says the single most common cause of delay is homeowners who don't put their insurance company claim front and center first. So filing (or resolving) your homeowner's insurance claim is part of the process, not a side task.
• Funds are limited and prioritized. CFSIC has openly stated it won't have enough money to pay every claim in full, which is why the process is built around severity and getting in line early.

The two types of claim

Type 1 — Foundation replacement. You haven't replaced your foundation yet, and you want CFSIC to help pay for the replacement going forward. This is the most common path.

Type 2 — Reimbursement. You already paid to replace your foundation, and you're seeking reimbursement. (Type 2 claims are paid out in four quarterly installments and are limited in number per year.)

Both types are subject to the same cap: up to $205,000 per eligible residential building (or $82,000 per eligible condo unit), for new proposals dated on or after January 20, 2026.

Severity classes: why they matter so much

Every Type 1 replacement claim must have a severity class code assigned by a Connecticut-licensed professional engineer (or CFSIC-certified inspector) before it can move forward. There are three:

• Class 3 — the most severe deterioration.
• Class 2 — significant but less severe.
• Class 1 — no visible impairment yet (but pyrrhotite confirmed, or eligible to register).

This matters because CFSIC prioritizes claims by severity: Class 3 first, then Class 2, then Class 1. More damaged foundations move up the line first.

The counterintuitive but important part: apply even at Class 1

Here's something many homeowners miss. Even if your foundation is only Class 1 — no visible damage yet — you can still register as a claimant. Why bother? Because CFSIC's guidelines let a registered Class 1 claimant "migrate" to a higher severity class later, if and when the foundation worsens. Registering now protects your place in line. Given that deterioration progresses over time and the program has a hard end date, getting into the system early is often the smart move — not something to put off until the damage is severe.

The claim's three statuses

Your claim will be in one of three states, and knowing which helps you understand where you stand:

• Pending — submitted, but the claims staff haven't opened or evaluated it yet.
• Inactive — registered and date-stamped, but missing required information or evidence, so it can't yet receive funds. It holds your place from the date it was stamped.
• Active — complete and in line for adjustment and payment (in severity order). Active claims have first priority to available funds.

The goal is to get your claim complete so it can become Active — incomplete applications sit as Inactive until the missing pieces are supplied.

The step-by-step path

Broadly, the journey looks like this:

1. Confirm pyrrhotite and get a severity class code from a licensed PE or certified inspector. (See our testing page for how testing works.) A Type 1 replacement claim can't proceed without this code.
2. File your homeowner's insurance claim — get that front and center, since CFSIC pays after your insurer.
3. Apply to CFSIC (you can apply online). Submit the required evidence and documentation. Missing items keep the claim "Inactive."
4. Your claim is registered and evaluated, and assigned a status. It moves up the line by severity as it becomes Active.
5. Sign the Participation Agreement (PA) — CFSIC requires claimants whose claims are in line for adjustment to sign a PA before the adjustment process begins. This makes you a "Participant." (The Superintendent has personally signed more than 1,500 PAs to date.)
6. Choose your contractor — you get to pick, from the list of contractors vetted by CRCOG. Start at CRCOG's website for that list.
7. Remediation — the work proceeds; CFSIC pays its share up to the cap, less any insurer payments.

Once your funding is committed, CFSIC urges you to move forward in good faith — funded claimants who stall can have their funds reallocated to others waiting in line.

What CFSIC does NOT pay for

The cap covers eligible concrete/foundation work — but not everything involved in the project. Notably excluded:

• Drywall and other interior finishing, including re-framing
• Landscaping — driveways, walkways, lawns, plantings, garden structures
• Lost wages, income, or business revenue
• Various other consequential costs

Anything above the $205,000 cap, and any ineligible item, is something you and your contractor must agree on how to handle before work begins. Budgeting for this gap is part of planning realistically.

What about Massachusetts?

If you're a Massachusetts homeowner, here's the honest picture: Massachusetts does not yet have a CFSIC-style remediation or claims program you can apply to. The state is roughly where Connecticut was years ago — real momentum, but no funded program to replace your foundation yet.

What Massachusetts does have today:

• A testing reimbursement program that covers a large share (around 75%) of foundation testing costs. (See our testing page for details.) Note: this helps with testing, not with the cost of remediation.
• Consumer protections and inspection rights, plus aggregate-testing requirements aimed at preventing future bad foundations.

What Massachusetts does not have yet:

• No state-funded program to pay for foundation replacement. This is the big gap. Unlike CT's CFSIC, there is currently no fund a Massachusetts homeowner can file a remediation claim against.

Where the relief effort stands:

• A state Stakeholder Working Group delivered its Final Report on March 31, 2026, formally recommending the creation of a Massachusetts Crumbling Concrete Assistance Fund (CCAF) — funded at a recommended $20–30 million per year over 5–10 years — and outlining two possible models: a captive-insurance program modeled on Connecticut's CFSIC, or a program run through a quasi-governmental housing agency.
• Legislation to create that fund (bills such as S.580 / H.890, "An Act Relative to Crumbling Concrete Foundations") is still pending — it has not yet been enacted or funded. Earlier attempts, including a proposed $100 million relief fund, were rejected.

So: the recommendation is now formally on the table, advocacy is strong (led by groups like MASSRACF), and legislators have called it a priority — but as of now, there is no MA claims process to apply to. What Massachusetts homeowners can do today is get tested (and reimbursed), document everything thoroughly, and stay informed — because eligibility for any future program will likely depend on the records you create now.

Don't wait: the Connecticut deadline

For Connecticut homeowners, the CFSIC application window closes at 5:00 PM on June 30, 2030, with the program winding down after. Claims take time to process, funds are limited and prioritized, and getting into the system early protects your place — even at Severity Class 1. If you think you may have a CT claim, the strongest move is to start now.

(There is no equivalent Massachusetts deadline, because there's no MA remediation program yet — but MA homeowners should still test and document now, as noted above.)

Your next step

The claims process has a lot of moving parts, but you don't have to hold it all in your head. Our free Homeowner's Pyrrhotite Checklist lays out the sequence — testing, severity coding, insurance, and CFSIC application — in order, so nothing slips.

You can also read how testing works, check the affected-towns map, or start with the 7 signs of pyrrhotite.

This article is general information for homeowners, not legal, financial, or insurance advice. CFSIC's rules, figures, caps, and deadlines change — confirm all current details directly with CFSIC (crumblingfoundations.org) or a qualified professional before acting. Figures current as of mid-2026.