Is there recourse from Inspector or Insurance?

[Ksue]

I purchased an 18 year old home in September 2000 in Plano, Texas. During the option period, I had a home inspector come out and contacted State Farm Insurance to see if they would insure the house. The original roof is a wood shingle. According to the seller's disclosure statement, a "composition" shingle roof overlay was done 4 years ago. The inspector passed the house stating the roof was in good condition and State Farm inspected the house and took pictures and agreed to insure the home.

Two weeks ago, we suffered major ice storms. I filed a claim with State Farm as I had developed six leaks in the roof. I also contacted four different roofing companies to assess the problem. ALL four of the roofing companies said my roof was in poor shape and recommended that the two roofs be removed; and install decking and new shingles. Each company noted that the overlay was of poor quality with 3 different types/brands of shingles. All companies said it would be next to impossible to trace the origin(s) of the leaks and since the overlay was done, it voided the warranty of the shingles. To patch the roof, no roofing company will warranty it. The roofing companies told me that all of this should've come out during the inspection process as the roofing nails were not the right size; 3 different brands of shingles applied; and several comp shingles missing. All four roofing companies will provide me with letters as well as estimates that can be provide in mediation/litigation.

State Farm's adjustor came out today and deemed that the damage was not due to hail, wind, or ice. The adjustor said the damage inside my house would be less than my 1% deductible. He recommended that I have a roofing company water my roof with a hose and patch it.

I know to patch this roof would be insane and more costly in the long run. Also, more damage would be done to my furniture and interior of the house.

Since the inspection company passed the house as well as State Farm passed the house and agreed to insure it, shouldn't one or both of these parties be liable for putting a new roof on my house? Surely, I should have some recourse? I can't imagine the State of Texas would leave me out in the cold.

Your advice is welcome and much needed! Thanks!

 

[HomeGuru]

File a complaint against the home inspector wit that State home inspection licensing authority and file a complaint against the insurance company with the Insurance Commissioner. Hire an attorney to review you case and send hammer letters to the two. Also file a claim against the the home inspectors errors and ommissions insurance. The State of Texa regulates both home inspectors and insurance companies but you have to formally file complaints first in order to initiate regulatory investigations. Also file complaints with the BBB. You can never not complain too much.

 

[Ksue]

Thanks for the information - got one last question

Hi Home Guru,

Thanks for the reply, my intention is to file a complaint with the State Board of Realtors (Texas) against the home inspector; State Board of License (against inspector); State Board of Insurance (against insurance co.), etc.

I have contacted two attorneys which wanted $4,000 retainer fees, which for me is steep. I did get the name of one other attorney who has gone up against State Farm numerous times, I'm hoping he will have some mercy. I can do all the legwork, etc., myself, I just need to make sure I go in the right direction.

My last question is this: since the seller disclosed in the seller's disclosure statement that the overlay was done 4 years ago. If there was no permit obtained, is there a possibility that I can also go after the seller? I am sending the seller a certified letter to get the name of the roofing company who did the work, etc. My hunch is they are probably long gone out of the state of Texas.

I appreciate your help in this. Thanks

 

[Ksue]

Sale of house contract

I forgot to mention, in the sale of the house contract, there was no mention of the roof repairs to be made. The seller was an elderly lady (over age 65), and she probably assumed that the roof overlay was done properly. Little did she know they did a really bad job.

 

[HomeGuru]

You do have a cause of action against the Seller.

 

[Ksue]

Cause of action on roof

Hi Home Guru,

Thanks for the response. This may seem like a dumb question, but how is it possible that I may have a "cause of action" against the seller? She did disclose in the seller's disclosure statement that an overlay was done 4 years ago. At the time she listed the house for sale, she probably believed that the roof was in good condition. That, I feel is why the real estate contract did not mention anything regarding roof repairs to be made.

Would the cause of action be due to the fact that she did not have a licensed contractor do the work, and that a permit was not obtained? City of Plano (Texas) requires a permit be obtained when roof work is done.

Could you provide me with more detail. Also, is it a good idea to get letters from the roofing companies that have looked at the roof, to provide in their letter(s) the condition of the roof and what the solution (new roof) is. I feel I have to be very careful where I tread. I don't know if I will need this, should civil action be required.

Basically, I feel it's the fault of the seller, home inspector and State Farm.

Thanks I sure do appreciate your input on this!

 

[HomeGuru]

You have not asked a dumb question.
The Seller disclosed the roofing overlay was done 4 years ago but was not specifc in providing full disclosure of the material facts and history surrounding this statement. In other words, the Seller can be held guilty of misrepresetnation by ommission. In addition to the general statement with respect to the roof overlay, the Seller should have stated/completed the following:

1) reason why the overlay was completed. Was the wood shingle roof leaking, beyond it's life, damaged and deteriorated etc.? What was the age and condition of the wood shingle roof? Why was the roofing material changed from wood shingles to
compostion? Why did the roofer just do an overlay rather thn replace wood shingles or redo the entire roof with replacement wood shingles? (Of course it was the price)

2) provided a copy of the contract and warranty, if any. If no contract or warranty, the Seller should have disclosed these facts.

3) disclose that the roof overlay was completed by an unlicensed contractor and therefore in violation of State licensing law. Disclose that there was no building permit for the roof overlay and therefore in violation of the building code. Disclose that the Seller makes no representation as to the quality of workmanship and materials used.

It is obvious that the work was substandard and it has not been established if in fact, there were additional repairs to the roof after the overlay was completed or if the unlicensed contractor used the wrong nails and 4 different tpes and brands of composition shingles. Probably left over shingles from previous roofing jobs.

Lastly, you should get everything in writing from everyone because that will be your documented evidence to prove your claims. For more info on seller disclosure, do a search using those search words. I have responded to to other posts on the same subject and you will get a broader insight by reading my other responses. Courts have ruled that the Seller is not only required to disclose material facts that the Seller knows but also should have known. You should also read the Texas Seller Disclosure law.

Keep me posted.

 

[Ksue]

Update

Hi Home Guru

State Farm's agent called me and they don't see how damage was due to ice. I reviewed my State Farm homeowner's policy with regard to coverage. I DO NOT see where ice is included (it does spell out hurricane; wind; and hail), nor do I see where ice falls under exclusion. I will go ahead and request a hearing with the Arbitration board. I hope they are judges and not reps from insurance companies, I'll find out what makes up the arbitration board. It certainly can't hurt to pursue this avenue.

I have filed a complaint with the State Board of Insurance against State Farm. I have sent the CEO/Chairman of State Farm a certified letter.

I have filed a complaint against the inspector with the State Board of Realtors that govern home inspections. Since he is a Professional Engineer, I am waiting for callback from State of Texas to see if they have State Board of Engineers where I can file a complaint. Since he is a PE it does not fall under the licensing board.

I've contacted my mortage loan officer to see if I can obtain a home improvement loan. The roof needs to be replaced; gut feeling tells me I'll be the "fall guy" on this and with each rain/ice/snow storm that we have my house will sustain more damage. I have to protect myself and minimize damage. I hope I have enough equity to get a home improvement loan.

I am considering filing a small claims lawsuit against the seller for the cause of action. Is this worth it? Would I base my damages on what it will cost to replace the roof, if so since it's over $5K small claims won't accept it..Or can I base it solely on the disclosure issue?

I'll keep you posted and sure do appreciate you giving me any angles that I haven't thought about!

 

[HomeGuru]

Since the inspector is a PE, there is a State regulatory agency that licenses this indivdual as an engineer. Check to see if he has errors and ommission insurance.
You need to file a complaint in civil court and not small claims. Due to the small amount claimed, it may not be worthwhile since attorneys fees would amount to around the same amount or more that your are trying to collect.
You are better off spending the attorney fee money towards the cost of putting on a new roof.

 

[Ksue]

Update

Hi Home Guru

Thanks for your reply, you've really helped me out!

I agree, if push came to shove, attorney fees vs. a new roof, I will take the new roof...I've applied for a home improvement loan, the loan officer is the one who handled my mortgage, he's a gem so he knows me...

State of Texas has a Board of Professional Engineers in which I can file a complaint with...I'll check and see if he's got errors and omission insurance, etc..

Also, there is an "Angel of Mercy", I am meeting with an attorney tomorrow. His fee is $200/hour, HOWEVER, he does work contingency...If nothing else, he can point me in the right direction.

In the meantime, it's rock and roll, hope my home improvement loan flies and my roof will be put on before end of January...

I filed my complaint against State Farm with Board of Insurance. I'll go ahead and proceed thru the Arbitration Board (if attorney thinks its a good move)

Have a good day, many thanks and I'll update you when I get significant info!!

 

[HomeGuru]

Ok, you are doing good. You'll get the loan and the new roof will be on soon. Keep rocking and rolling.