The JLC reports, in its March 2011 edition, that a recent decision by the South Carolina Supreme Court…(that’s the big guys)…that an insurance company that refused to cover a contractor - who was sued because his poorly installed windows (and other defects) caused water damage - was correct and did not have to pay.
The court ruled that the insurer was within its rights to refuse coverage since the damage did not result from a “fortuitous event” or “chance”. Shoddy workmanship is not insurable.
The president of the regional chapter of Associated Builders and contractors says that this will “bankrupt a lot of builders”.
Any contractor and/or all of their workers, anyone that drives a nail, installs drywall, wiring, plumbing, roofing, framing, should all be licensed, have insurance and required educational classes. Anyone who builds a home or repairs them should all have these requirements, insurance, and licenses.
Everything should be tracked when it comes to any building and home repairs.
If home inspectors are to be, then repair persons, builders, even agents who do “home checks” should have the same requirements.
It would stop a lot of lawsuits. Oh, I guess that would put some attorneys out of business. Geesh.
This should make the honest contractors insurance rates not rise so rapidly. Back when I was a general contractor, I had my rate raised 61% in one year. I ask the insurance company why such a sharp increase. I was with their company over 10 years without any claims. They said it was because other contractors was messing up, not me. :-k Sad but true.
So what happens to the home inspector who did not (could not) see the shoddy work when the house was resold?
This will cause more useless contractors to try their hand at home inspection.