YOU ASK:

Will homeowners insurance repair structural issues due to a poor builder?

WE ANSWER:

No, the homeowners insurance will not pay if the house suffers from structural damage that is caused by a poor builder. The homeowners insurance policy will expressly exclude damage due to faulty workmanship and construction.

Such damage is usually due to a gradual process. When there is a mistake made in the construction or if the job was done haphazardly, the damage caused by this would not be considered "sudden and accidental". By definition, the homeowners insurance will only cover damage or loss resulting from sudden and accidental events.

The one who will be responsible for liability due to damages will be the contractor who did the job. You can file for a liability claim against your contractor. This will cover structural damage. Your insurance company may cover damage or loss to property as a result of structural damage.

So, your first move will be to file a liability suit against your contractor. This will mean that you don't have to pay any deductible and you won't have a negative mark on your claims record. Remember, even if the claim you file against your homeowners insurance is not paid, it will still be listed as a claim and this can cause your premiums to increase during the time you start renewing the policy.

That is why it is good for you to use a contractor that has liability insurance and who will provide a warranty for their work. Your contractor's liability insurance is an important safeguard to protect you as well as the contractor when something bad happens during or after the construction.

If you are concerned about poor building workmanship, you can ask your insurance agent for builder's risk insurance. This will provide payment if your personal property and furniture are damaged due to exposure while the construction was ongoing. You can also check if your contractor has this coverage in his builder's insurance.

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