Construction Defect Claims

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What You Need to Know About Construction Defect Claims

It’s a fact of life that with time, all buildings being to erode and structures fail- but in the insurance world, this sometimes is due to a construction defect which means that someone is going to be held responsible in the event of damage or an injury. The frequency of construction defect claims have been increasing over the years, so it is especially important to ensure that you understand how they work and who can be held responsible.

What is a construction defect claim?

Construction defect claims arise when a structure fails and causes damage to property or people because of a “construction defect.” Construction defects occur because a component was defectively constructed, installed incorrectly or not appropriate for the structure in question. When construction defects occur, damage can be vast and can include a total collapse of the structure, doors and windows that don’t work properly and leaks among other things.

Who is held responsible?

This varies from case to case and a variety of people can be held responsible in construction defect claims. Whether it’s the property owner, builder, designer, architect, real estate broker, supplier, or buyer or seller, the money involved in these claims can be vast. Imagine there is a construction defect in a large condo building. While repairs may be small for each individual unit- this price and multiply to huge amounts when you consider each and every unit together.

It’s important to understand construction defect claims on both sides of the equation. If you are someone who could be held responsible, you need to know your rights and not only ensure you do your work properly, but also that you know how to protect yourself in the event of a claim. On the other hand, if you are someone who has been injured or whose property has been damaged as a result of a construction defect, you need to know whether or not your claim will hold basis in court. Click here to learn more about construction defect claims.