Legal Question in Real Estate Law in Massachusetts

Hi,

Our builder cracked our drain pipe which connects to our dishwasher and sink. The contents of our sink and dishwasher emptied into our finished basement for 3 days before we realized there was a problem. The builder put the claim through his liability insurance which only covers actual cash value (less depretiation). The builders insurance company suggested I claim through my homeowners policy, but I don't want to since it may increase my home owners insurance rate for years to come. Since our rug is 7 years old, they told me they will pay me for the rug minus depreciation. We are already paying our builder a good deal of money for our project and now we will have to contribute to replaing our carpet? Is there anything I can do? Should I hold back money from the builder on our project or could I bring him to court to recoup the difference? They keep asking me to claim through my home owners since it will pay 100% for the carpet (replacement value) and then they could recoup some of the money later from the builders insurance policy (called subrugation?). I'm afraid to do that as I don't want my home owners premiums to go up. Any advice would be greatly appreciated. Thank you in adavnce.

Sincerely,

Ellen


Asked on 9/18/10, 1:51 pm

2 Answers from Attorneys
Roderick Oreste Oreste Law

Hi Ellen,

I've handled similar cases like yours. I wouldn't rely on what the builder's insurance company is telling you because they're only protecting their own interests and trying to minimize their costs, not yours. You can certainly go through your home owners insurance, but check with them first to see if your premiums will go up if you put in a claim.

If your premiums will go up if you put in a claim, I suggest sending a 93A demand letter to the builder asking for the full cost of replacing the carpet. If the builder refuses, then you can sue for up to 3 times the amount of damages.

I'd be happy to answer any other questions you may have or if you'd like to talk further.

Rod Oreste

[email protected]

617-871-9662

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Answered on 9/23/10, 2:05 pm
Craig J. Tiedemann Kajko, Weisman & Colasanti, LLP

You might consider finding out how much your premiums would increase if you made the claim (and for how long), then ask the builder to agree to reduce the amount owed to him to for the work to compensate for the premium increase. You might also offer him the opportunity to replace the item himself.

However, you should be careful not to release any rights to recoup costs from the builder by accepting funds from his insurer and settling that portion of the claim. You might want to consult with a lawyer to look out for this.

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Answered on 9/23/10, 2:38 pm


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