Does Homeowners Insurance Cover Construction Defects?

To file a claim on their homeowner's insurance is the first idea of many homeowners who have had troubles due to poor construction work. In addition to their homeowner's insurance typically not covering the damage, filing a claim is often a bad choice for further reasons.

Any incorrect, flawed, or poor construction work constitutes a construction defect. When people speak of construction faults, they typically refer to both the incorrect work and the resulting damage to the structure.

Typically, homeowner's or property insurance does not cover construction faults. Typically, insurance policies exclude coverage for harm resulting from defective craftsmanship and construction. Homeowner's insurance and property insurance plans provide coverage for immediate accidental damages, whereas building defect damages are typically the result of long-term harm. For instance, property insurance will generally cover a tree falling on a home but not the damage caused by water entering a home over time due to an incorrectly fitted window. In fact, there are murky areas and justifications for why homeowners or property insurance should cover building problems, but insurance companies routinely refuse such claims.

Not only is it unlikely that your homeowner's insurance will cover the damage, but filing a claim on your policy can result in higher insurance premiums, which may not be desirable. Renewing your homeowner's insurance coverage after filing a claim for property damage may be difficult, as the insurer may not be prepared to do so until repairs are done.

Suppose you have problems that appear to be the product of incorrect construction, such as water damage to walls, ceilings, or floors with no obvious source of water or cracks around doors and windows. In that case, you should visit a building defect attorney. A construction defect attorney can determine whether the damage was caused by a sudden accident, which would be best addressed by filing a claim with your homeowner's insurance, or by poor construction, which would be best addressed by filing a lawsuit against the contractor. If the damage was caused by faulty construction, a lawsuit against the builder might allow you to recover the cost of repairs. The builder should have his or her own insurance policy, and this policy should cover any damages to your home.