We recently found out that over $20k of work is needed on our house because some materials were installed incorrectly during construction. It caused serious water damage and rot over time due to rain coming in. We’re the second owners, and the house was built in 2007, so we can’t sue the builder since they’re out of business. Is there any chance homeowners insurance would cover any of this?
No, but you might want to talk to a lawyer. Even if the builder is out of business, their insurance might still cover the damages caused by their poor work. However, rot is almost never covered.
For everyone suggesting to go after the builder, the house was built 16 years ago, and the person who posted said they’re outside the statute of limitations.
Storm said:
For everyone suggesting to go after the builder, the house was built 16 years ago, and the person who posted said they’re outside the statute of limitations.
You might still want to check with a lawyer. Some statutes of limitations don’t start until the damage is discovered or should have been noticed.
@Orin
There’s more than just the statute of limitations at play here. You also have the statute of repose, which sets a time limit after the construction is completed. These vary by state, and some states are more favorable for these kinds of lawsuits than others. Even if you discover damage right away, the statute of repose could block recovery after a certain period.
@Noor
Good point. It’s probably worth checking with a lawyer, even if it’s a long shot. Better to be sure.
Storm said:
For everyone suggesting to go after the builder, the house was built 16 years ago, and the person who posted said they’re outside the statute of limitations.
Yeah, unfortunately suing isn’t an option, which is why we’re trying to figure out if insurance could help. But it doesn’t seem likely.
@Bailey
Your homeowners insurance likely won’t cover this because it’s long-term water damage and due to faulty workmanship, both of which are typically excluded. Home insurance usually covers sudden and accidental damage, not ongoing problems caused by poor construction.
I don’t think you can go after the builder at this point. Most builders only offer a 10-year structural warranty. You’d need to prove in court that the damage was due to poor workmanship, not faulty materials. If the materials are at fault, you’d have to pursue the manufacturer, and the legal fees could easily exceed $20k.
Even though the builder is out of business, they still had insurance, and you might be able to sue them or the subcontractors. If others in your area have similar problems, it could even become a class action case.
Rot and slow leaks are rarely covered by insurance.
No, insurance won’t cover this. But I would still try to go after the builder, even if they’re out of business.
When did you buy the house? Did you have a home inspection before the purchase? You might be able to go after the inspector if they missed something, or even the previous owners if they didn’t disclose known damage. You’d have to check the laws in your state, but that might be an option.
Nope, insurance won’t cover it.
It’s likely outside the statute of limitations since the house is 16 years old, but it’s worth a quick chat with an attorney to confirm.
Homeowners insurance usually doesn’t cover poor workmanship or construction defects, but it’s worth checking your policy. They cover sudden, unexpected events like storms, but not long-term issues. You might want to check if the damage can be connected to a covered event, but it’s probably a long shot. Consulting a lawyer for advice might help too, especially regarding the previous owner or inspector if they knew about the damage and didn’t disclose it.