A construction defect is defined as a structural design, building, manufacturing, or installation failure that impacts the property value thus causing a loss. These types of losses are often caused by using improperly designed materials, poor workmanship, failure to comply with construction codes, failure to conduct a proper inspection, and/or failure to complete the work as contracted.
A Liability Insurance Policy provides coverage for business and contractor needs such as risks involving customer injury and property damage. This insurance also covers libel and slander from construction defect claims. A liability insurance policy may cover property damages and damages related to bodily injuries directly caused by a construction defect. There are different types of deficiencies, the most common being breach of a construction contract, design deficiencies, material deficiencies, faulty constructions, or installations.
Property owners prejudiced by contractors sometimes do not understand the insurance claim process or are unaware of their rights to pursue damages against the contractor, at the same time, construction business owners or independent contractors sometimes ignore or are uneducated as to the depth and functionality of their own policies and can make the restitution process dreadful for the property owner.
Though it is important to understand that the insurance company can determine no liability as to the damages and deny coverage for your claim. Likewise, the insurance company can determine that a partial coverage can be submitted and acknowledge liability for certain damages of the property that under the policy provisions deserves coverage. Another scenario can be the contractor’s carrier policy does not provide enough coverage and part of the damages will have to be assumed by the contractor. If you have been wronged by a contractor or construction defect and you are struggling to obtain a response from the company or they have failed to cure the defect, contact our office today at (954) 442-7600 to speak with our insurance claim specialists for a free consultation.