Insurance companies in Mass. cannot change policies for homeowners with crumbling concrete

I-Team

MONSON, Mass. (WWLP) – There is an update to a story the 22News I-Team has been covering for months now. The state has warned insurance companies that they can’t cancel, refuse to renew, or raise a homeowner’s insurance policy because of crumbling concrete.

In a letter sent to insurance companies, the state’s Office of Consumer Affairs and Business Regulation’s Division of Insurance says they are aware that homeowners have been concerned they will lose their coverage because of a crumbling foundation.

“To ensure the stability of the home insurance market, this Bulletin is being issued to make sure that homeowners will not lose their existing home insurance policy due to any concern that their home has or is suspected to have pyrrhotite in its foundation,” the letter states.

Dozens of homes in western and central Massachusetts have tested positive for pyrrhotite, a natural occurring mineral that causes concrete to crack and crumble once it’s exposed to water.

The fix is not covered by insurance and costs hundreds of thousands of dollars, out of pocket, for homeowners. The Division of Insurance letter, though, will not force insurance companies to cover crumbling concrete in their policies.

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