Legal Question in Insurance Law in New York
Who Can Sue an Insurance Company
Who Can Sue an Insurance Company in a situation where a builder builds an additon on to a home, does a lousy job, and damages the existing home? Does the builder himself have to sue the insurance company or can the person who had the construction done on their home sue the insurance company? The person who had the work done on their home does not want to sue the builder but wants to sue the insurance company. Can the person that had the work done sue the builders insurance comapny or must the builder sue? The builder has agreeded that the job was not right and has said to the insurance company they should pay and the insurance company is refusing to honor the claim saying the builders policy does not cover the problems with his work and there is no apparent damage to the home yet. So the builder agrees and the insurance will not pay.
1 Answer from Attorneys
Re: Who Can Sue an Insurance Company
If the contractor was negligent in the construction of the addition, thereby damaging the existing structure, you must sue the contractor directly. The contractor is protected by the insurance company, who will then hire a lawyer to defend, and pay any damages that come about.
If the insurance company says that the policy does not cover the damages, either you or the contractor has to bring an action (declaratory judgment) to decide if the policy covers the loss.
Without seeing the policy there is no way of knowing if he has a policy that covers the loss.
If you don't sue, you will lose your right to be compensated for your loss.
In conclusion, you do not have a contract with the insurance company, the contractor has. You must sue the contractor, and the contractor will then start an action against the insurance company.
That is why you have insurance, to protect you against these types of lawsuits.
The insurance company should not be allowed to get away with it. You are the one who is suffering, not the contractor
If you need further information, please feel free to contact me.
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