Claim denied by Insurance?

Question

Had Builder's Risk Insurance, this insurance is for construction of residential house, the foundation wall collapsed during 3rd day, the foundation wall was not build as per plan, i had to sue builder, architect and surveyor. my insurance company denied the calim. i though they will pay to repair or rebuild and then recover or sue my builder. they also denied to pay me rent even though i had loss of use of property coverage. any way i can collect the claim to rebuild, repair foundation wall or rent i pay till the wall is fixed.

Answer 1

Builders Risk policies are very limited in what they cover, I have never heard of one covering contractors mistakes.  You need to go after the contractors GL(general liability) policy, or the contractor himself.  Probably easier to go after GL company.  Dont know HOW you could get your insurance company to pay loss of use for rent. You couldnt have been living there because it was under construction, and if you were living there then you should have purchased a HO-3 Homeowners policy as soon as your certificate of occupancy was filed with the county.

Answer 2

You're going to have to hire an attorney to sue the builder. Insurance, especially builders risk, is limited in what it does and does not cover. A wall falling down because it was improperly built is not covered. Had it been knocked down by vandalism or burnt down by fire it would have been covered. The insurance company is not responsible for paying this claim and suing the builder, you are.

Answer 3

A builders risk endorsement on a policy is for theft of building materials, only.  If the house was to be done in about 6 months, you could have purchased a regular homeowners policy (if it was intended to be your primary home) and added the endorsement.  Faulty construction is NEVER covered by any property policy.  It is an exclusion in the policy.  You have to contact the commercial policy, hopefully you obtained certificates of GL & WC from the contractors (ALL of them working on the house) so you know who the insurance company is.  It is also possible they deny coverage for faulty workmanship because a GL generally is for accidental damage (for example - a piece of construction equipment catches on fire & burns down your half done house, or a ladder falls & breaks your brand new custom window).  You cannot collect loss of use on a house that is not built yet.  You are not living in it, therefore not using it.  You would have to pay rent if the collapse didn't happen.  There is no loss of use to cover.

NO construction I know takes the exact amount of time stated by the contractor and I am sure there is a clause in the contract you signed that has to do with this.  Things happen, weather happens, emergencies happen with other customers of the contractors.  If you are only 3 days behind now, consider yourself lucky.

Answer 4

Builder's risk has an exclusion for inherent vice and latent defect - which means, they screwed up on the building of it.  

That policy is NOT a warranty for good work.  

There isn't any "loss of use" on a builder's risk policy.  It's for uninhabited buildings.  Builder's Risk automatically terminates, when the building becomes occupied.  But a homeowners won't cover foundation wall collapse, either.

I don't think you have a leg to stand on, sorry.  Just like the foundation . . .