I recently had a conversation with Jeff & Cynthia Snyder of State Farm Insurance regarding the current Fusion litigation and condo insurance. I thought this was interesting and thought I’d pass it along to Fusion homeowners:
Jeff states, “The difference between insurers is not simply price. The major difference is contained in the ‘fine print’ of the contract itself. All insurance policies contain a list of exclusions. Some insurance policies (contracts) contain a long list, while others contain a short list. A common exclusion often seen written into Condominium Unit Owner Policies are a ‘Builder Defect Exclusion’ where the insurer denies responsibility to provide coverage if a loss is due to a Builder defect.
This leaves the homeowner with the unfortunate task of having to sue the builder directly to gain compensation for damages. If the builder has experienced financial distress or has declared bankruptcy since the project has been built, this can be a daunting task. For this reason, I advise all condo unit owners to make sure that their insurance policy will provide coverage against Losses which take place due to Builder Defect.
Here is an example of a builder defect claim: an owner of a new condo unit has their home flood due to a poorly installed roof top deck, damaging drywall, flooring and personal property. The insurance adjuster discovers the flood was caused due to a builder defect. If the insurance policy contains a Builder Defect Exclusion, the customer will not be able to claim this damage which could amount to many thousands of dollars.
Of course, State Farm has no such exclusion!”
If you’d like more information, or a price quote for homeowner’s, car, or even boat insurance, give Jeff or Cynthia Snyder a call at 310-546-7803.
Let them know I sent you, and keep me posted how it goes for you.