09/13/2026
Winding Down the Type 2 Claim Process…
At the recent July meeting of CFSIC’s Board of Directors, the board voted unanimously to begin winding down the CFSIC Type 2 (reimbursement) claim category.
The winddown process will begin on September 15, 2026. The Type 2 claim category will cease on March 15, 2027.
Why is this happening?
First, the original intent of the Type 2 claim was to allow a limited number of victims of the crisis who had used their own funds to replace a crumbling foundation, before CFSIC existed, to seek reimbursement for their remediations subject to providing needed evidence to CFSIC.
This initial idea was expanded by the Superintendent and the Board to permit a maximum of 125 Type 2 reimbursement claimants during the life of CFSIC. We wanted to make certain that we left no one behind, subject to the cap of 125 total reimbursements.
But the most important reason that we have continued the Type 2 program to date is because, in the initial years of CFSIC’s life, the wait time for our great adjustment staff to get to your Type 1 claim…open it up and start to work with you…could be a year or longer. Today, it is less than 120 days.
In other words, there’s simply no reason anymore for a victim of this crisis to withdraw as much as $205,000 from their retirement or savings account to fund a Type 2 remediation and then apply to CFSIC for reimbursement after the fact, when you can apply now as a Type 1 claimant and receive access to state funds not only more quickly but at less personal financial risk.
As you can see, the time to phase out the Type 2 claim has truly come.
CFSIC has already handled 116 Active Type 2 claimants in the last seven years…the cap is only 125. We think it’s time to direct the victims of this crisis to where they can get the help they need as quickly as we can get it to them…and that’s by filing a Type 1 claim application, because that’s actually a faster way to get help.
We’ve compiled a short list of Q&As that will help victims and contractors understand what this change means. These follow.
Question: What if you get to March 15, 2027 and you have three or four spaces left out of the cap of 125? Will you just keep the program going until you hit 125?
Answer: No. If we hit the 125 number before March 15, 2027, we will shut down the Type 2 process immediately. If not, we will shut it down anyway for new applications on 3/15/27…whether the cap has been reached or not. The Type 2 claim designation is going to go away.
Question: I’m a homeowner in the affected area and was thinking about applying as a Type 2 claimant because someone told me that the wait to get a Type 1 application considered is a year or more. What should I do now?
Answer: You’ve been given some bad information. The wait time to have a Type 1 application opened and reviewed is currently under 120 days. The process of remediation as a Type 1 claimant can actually be faster than that of a Type 2 claimant…and then there is the added benefit of your not having to use your own funds.
Question: I’m a contractor, and I’ve made a proposal to do Type 2 work, and that proposal is still outstanding with a homeowner. What happens as a result of this announcement?
Answer: If your proposal is dated before 9/15/26, then think hard about what this means. That homeowner is going to have to accept and sign your contract before 9/15/26. On top of it, you’re going to have to finish that remediation very quickly to the exclusion of any other work you’re doing. Why? Because that Type 2 claimant is going to have to have a finished foundation before they can apply to CFSIC, and more importantly they’re going to have to be made an “Active” Type 2 claimant…and all of this will have to happen before 5:00 PM on 3/15/27. We are suggesting to you that a better way to serve this victim of the crisis is to withdraw your Type 2 proposal right now and encourage them to apply as a Type 1 claimant, and for them reconsider your proposal once an ESIS team member makes the claimant Active as a Type 1. In other words, stop soliciting Type 2 work effective immediately.
Question: Are you saying that CFSIC will no longer accept a new Type 2 claimant with a construction contract dated September 15, 2026 or subsequent?
Answer: That’s what we’re saying.
Question: But what if the contract was signed by the homeowner before 9/15/26 and construction is scheduled but has not yet begun?
Answer: Then the Type 2 claim can proceed…HOWEVER, be aware of three things: the Type 2 remediation would have to be completed AND the Type 2 application would have to be submitted AND the Type 2 claimant would need to qualify as Active, all before close of business on 3/15/27…or no chance for a reimbursement from CFSIC.
Question: I’m a contractor and I’m already halfway through a Type 2 remediation…what happens now that you’ve made this announcement?
Answer: Finish the project. But be aware that you must finish it, and the claimant must apply as a Type 2 claimant AND qualify as an Active claimant, all before close of business on 3/15/27…or no chance for a reimbursement from CFSIC.
Question: I finished a Type 2 remediation several months ago. To the best of my knowledge, my customer hasn’t actually filed their Type 2 application yet with CFSIC. What should I tell them?
Answer: Advise them to apply as a Type 2 claimant NOW…provide the claim adjuster with what they need to make the claim “Active” and do it all before 5:00 PM on 3/15/27…or lose the chance to be reimbursed.
Question: I’m a contractor. My contract with the homeowner was signed before 9/15/26 and construction is scheduled but has not yet begun. I’ve already told the homeowner that I can’t get to the project before 3/15/27. What happens now?
Answer: Your homeowner will not be able to apply as a Type 2 claimant. Cancel the contract and encourage them to apply as a Type 1 claimant. You run the risk of legal jeopardy in this example if you do not act wisely.
Question: I am an Inactive Type 2 claimant. I know I still need to provide CFSIC with documentation so that I can be made Active. What’s the deadline for me?
Answer: If you do not do what you need to do to move your claim into “Active” status before 5:00 PM on March 15, 2027, you lose your ability to be reimbursed.
Question: I have an Active Type 2 claim now. Does this affect me?
Answer: No.
Question: If I choose to skip being a Type 2 claimant and apply as a Type 1 claimant, when should I expect to receive my funding or Participation Agreement?
Answer: That’s not the question you should first be asking. The question you should be asking is “How long does it take, these days, for a new Type 1 application to be opened for the first time?” The answer to that is “under 120 days.” How long it then takes, after that, for you to become “Active” depends mostly on whether your application is complete. The question after that…and this is the critical question…is how long did you take to get your minimum of two contractor bids once you became Active? The single biggest reason for delays in getting a Participation Agreement and funding is not the CFSIC process…it is procrastination on the part of claimants.
Question: Okay. But this doesn’t seem very practical. Suppose my Type 2 remediation doesn’t begin until February 1, 2027? Does that mean that not only does the Type 2 remediation have to be completed but I have to apply to CFSIC as a Type 2 claimant and be made Active, all before March 15, 2027? That sounds impossible to me.
Answer: That not only sounds impossible, it is impossible. But rather than do that, why don’t you simply apply today as a CFSIC Type 1 claimant? Which means that your Type 1 application will be opened, and you’ll be working with a claim adjuster, well before your Type 2 remediation was scheduled to begin. Not only that, you won’t need to withdraw many thousands of dollars from your retirement account to fund your own remediation and run the risk of missing the deadline. Apply now as a Type 1 claimant and put yourself in line for your remediation to be funded by CFSIC.
Question: But I replaced my crumbling foundation in 2015 and planned this year to seek reimbursement as a Type 2 claimant. What happens to me now?
Answer: With respect, we have to ask you some simple questions: the CFSIC program has been in place since 2019, and you are just now, in 2026, applying for reimbursement for a foundation replacement that happened in 2015? We’d have to ask why you haven’t applied before this. Why you haven’t sought reimbursement from CFSIC for thousands of dollars that came out of your pocket many years ago. When we get past those questions, and presuming you still own the home that was remediated, you now have until March 15, 2027 not only to apply but also to be made “Active” as a Type 2 claimant.
We’re sure there will be more questions and concerns as this winding down process begins. You can phone the ESIS staff at (844) 763-1207 or the Superintendent’s office at (860) 487-0000. Or you can email us at [email protected].
If the overarching goal of CFSIC is to get as much help as we can, in the fastest way we can, to the victims of the crumbling foundations crisis…then emphasizing the Type 1 claim process, as we move toward CFSIC’s sunset date, will achieve that end.
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If you have any questions about the operation of the program, ESIS is your best source of information on your claim, and their phone number and email are shown below.
Phone: 844-763-1207
Email: [email protected]
As you work through the information and application process, here’s how you can get help:
– Call ESIS (the claim adjuster) at: 844-763-1207
– Email ESIS at: [email protected]
– Email CFSIC at: [email protected]
To learn more about the CFSIC program:
A Profile of CFSIC: Turning Despair into HopeWelcome to CFSIC’s websiteLatest News: September 8 2026President's Message, July 27, 2026Why Foundations FailVideo Application AssistanceApply (Pending Claimants)Contact CFSICNeed Help Getting Started?Step 1: Do I Have a Claim?To qualify for the program...
