Insurer’s Victory

Allstate prevails in a lawsuit over money to fix crumbling foundations.

HARTFORD – Insurer Allstate has prevailed again in a lawsuit by Connecticut policyholders seeking money to fix their crumbling house foundations.

Federal Judge Vanessa Bryant in Hartford on Tuesday dismissed a lawsuit by Richard and Denise Hyde, of Tolland, who claimed Allstate should be liable for damage to their home’s foundation caused by defective concrete.

The Connecticut Law Tribune reports it’s the 14th of 15 legal cases won by the insurer. The remaining case is pending.

An estimated 35,000 homes in Connecticut and Massachusetts are impacted by disintegrating concrete containing pyrrhotite, an iron sulfide that reacts naturally with oxygen and water. Replacing a foundation can cost $100,000 to $200,000.

Many homeowners have sued after their insurers denied their claims. The state has set up a fund to help homeowners.