Case Denied: Construction Defect

Here is a topic that you will either understand from the start, or not have a clue as to what this is!  Either way you should take a minute and read this.  If you have been through this type of claim/litigation you can share your stories at http://casedenied.blogspot.com 
Here is the Wiki Answers with a simple definition: "A Housing or Construction Defect is a building flaw or design mistake that reduces the value of the home, and/or causes a dangerous condition. Some defects are obvious (such as water seepage) but many are less obvious and do not become apparent until years after a building was constructed. A construction defect can arise from a variety of factors, such as poor workmanship or the use of inferior materials. Common examples of housing and construction defects are water leakage, faulty electrical or heating systems in a home, indoor mold growth, dry rot, and unstable landscaping."

So does your basic Homeowners or Commercial Policy provide coverage for "Construction Defect" claims?  Not a "yes or no" type answer can be given!  Most of the time "Construction Defect" claims are filed by Associations on behalf of the owners/members against the Contractors (and sub-contractors etc.)

If you are alone with your "Construction Defect" and file with your Insurance Company, chances are (99%) that your claim will be denied.  Exclusions like "Wear and Tear," "Mysterious Disappearance," "Intentional Acts," as well as "Mechanical Breakdown," "Flooding and Mud Slides" and "Construction Defects" are part of most Insurance Policies.  This leaves the Homeowner or Business owner to pursue their own legal remedy against the responsible third party.  If you recently purchased a "New" home (just built) in a track of other homes, and you find some construction damages, chances are there are other owners that have similar problems, and an attorney has already started fishing for clients.

Bottom line is that these types of claims while excluded by most insurance policies, can be pursued if there are others to join in, or you have the financial resources to handle it alone.

Suggestion if you find yourself with "Construction Defects" is to get some free legal advice first.  See if you have a case and then make your decision, and of course file the claim with your Insurance Company!  Have them put the Denial in writing!

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