A state working group proposes a surcharge on every Massachusetts condo insurance policy
A state working group proposes a surcharge on every Massachusetts condo insurance policy
2026-09-10 · Massachusetts · Regulation · Proposed — not yet introduced
Proposed. A Massachusetts working group has recommended funding a foundation-remediation programme with a surcharge on homeowners insurance policies — and its revenue arithmetic expressly includes condominium policies. Nothing has been enacted; implementing legislation has been filed.
The Crumbling Concrete Stakeholder Working Group Final Report was submitted to the Legislature on 31 March 2026, convened by the Secretary of the Executive Office of Housing and Livable Communities under section 105 of Chapter 9 of the Acts of 2025. The group had 17 members: impacted homeowners, community advocates, state agencies and regulators, legislators, and experts in insurance, mortgage lending, construction materials and municipal administration.1
The problem
Concrete foundations containing the mineral pyrrhotite deteriorate over decades. 43 Massachusetts cities and towns are affected, concentrated in central and western Massachusetts and along the Connecticut and New Hampshire borders. Full foundation replacement runs $150,000 to $250,000 per home — a figure that becomes catastrophic when the failing foundation sits under a multi-unit condominium building rather than a single-family house.
The money, and where it would come from
- Funding target: $20 to $30 million per year for 5 to 10 years
- A homeowners insurance surcharge of $6 to $12 per policy per year (Connecticut's comparable model is $12)
- A $6 per cubic yard fee on concrete aggregate, estimated at roughly $19.5 million a year
- Plus bond authorisation, appropriations and federal funds
The surcharge base is the detail for this audience: the report's revenue math uses roughly 1.7 million policies including condominium and homeowners policies, excluding renters. Every Massachusetts condominium unit owner would pay into it.
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