Insurance company denies damage claim
Q. We bought our home a few months ago, and the seller repaired a few minor problems that were found by our home inspector. Everything seemed fine at first, but then we discovered water on the kitchen floor and some cracked floor tiles. The water was coming from a leak under the dishwasher, causing damage to the wood under the tiles. Our home warranty insurance covered the dishwasher repair, and the floor damage caused by the leak was supposed to be covered by our homeowners policy. Unfortunately, the homeowners insurance company said the damage was a pre-existing condition and therefore not covered. We called our home inspector and he said the damaged subfloor was not visible under the tiles, and leaking under the dishwasher could not have been discovered by him without removing the panel at the base of the fixture. He said removing the panel was outside the scope of his inspection. He also said that no floor damage was apparent when he inspected under the house. So now we're stuck with the cost of major repairs to the floor structure. We can't afford to hire an attorney and don't know what else to do. What advice can you give us?
A. The homeowners insurance company should show cause for designating the floor damage as "pre-existing." How did they determine whether the damage was old or was caused by a recent leak? This is an important point to raise with them, and they should provide a definitive answer. If it appears that they are merely trying to dodge a claim, you should have the damage professionally evaluated by a qualified expert, such as a licensed pest control operator. If the damage is old, that should be indicated by the color of the water stains and by the presence or absence of rot or delamination. Pest control operators, by the way, are experts in moisture-related damage involving fungus and dry rot.
If leaking under the dishwasher has been an ongoing condition, rather than a recent leak, water stains and damage should have been apparent on the underside of the floor structure when your home inspector inspected the crawl space. A re-inspection of the subarea by a qualified pest control operator would help to determine whether this is an old problem or a recent one. Photos should definitely be taken when the subfloor is reinspected, as these will be needed when confronting the home inspector or the insurance company.
If conditions under the house indicate old damage and old leakage, your home inspector should be liable for failing to disclose the problem. If conditions indicate recent damage and recent leakage only, your homeowners insurance company should be compelled to honor your claim. If no one is willing to accept responsibility, attorney fees may not be an issue because the repair costs are probably within the realm of small claims court. If you decide to take that step, spend an hour with an attorney for advice on how to present your case.
• To write to Barry Stone, visit him on the web at www.housedetective.com, or write AMG, 1776 Jami Lee Court, Suite 218, San Luis Obispo, CA 94301.
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