Can't get HomeOwner Insurance Thx to Seller

[mark1210]

What is the name of your state? TX

Hello All,

I need some advice, my fiancee' along with myself purchased a home last July. We were not informed of the prior claims of the home and that the most recent claim was paid out and its funds not used to repair the problem. The previous owner had 5 claims in 4 years. 3 theft claims, 2 hail damage clams. The 1st hail damge claim was in 1990 and was paid out and proof submitted the roof was repaired. In 1995 another hail damage claim was paid out but no proof submitted that the roof was repaired/replaced. This information was provided by a C.L.U.E. report. Additionally, the seller failed to list pre-existing problems on our home (shower pan leaked, soft shower walls, etc) and we are having problems renewing our insurance and finding new insurance on our home. We are being denied because of the sellers claim in 1995 for the roof, and because of the shower. The shower is one of the problems that was pre-existing. What are our options to get homeowners insurance? Do we need to tell the mortgage company about this? We have tried many many companies and they always want to view the home inside and out and it fails everytime due to the roof and shower. Perhaps I should go after the seller and his agent for DTPA?

Thanks,
Mark

 

[HomeGuru]

You have a cause of action against the Seller for nondisclosure of material facts pursuant to the seller real estate disclosure law.
You need to repair the defects and obtain approval from the isurance company so that you can get coverage.
You need to contact your mortgage lender and they will find out anyway because the insurance company notifies all parties on the policy. Contact your lender and ask for help. They may end up force-placing insurance coverage to protect your interest at a much higher cost than if you obtained your own insurance. You should go back to your real estate agent and home inspector and let them know what is going on. The roof and shower problems should have been disclosed by the Seller and discovered by your home inspector. Did your real estate appraisal mention any problems with the condition of the home relative to its age etc.?

 

[mark1210]

Homeguru,

Thank you for your reply. We have been in the home now for a year but do have paperwork to show that 2 months into the home the water heater rotted out (concealed by seller with a thermal blanket and missed in insecption), the seller did mention the roof was replaced in his listing but didn't state that a few years later it had been hail damaged again. I take it the roof, shower, and water heater should have been disclosed?
We weren't aware of the roof problem until the insurance renewed here this month (1 year later) and they performed a CLUE lookup on the home. Needless to say we were cancelled.
Currently we don't have the $12,500 to fix the shower wall and shower pan and roof. I doubt the mortgage company would really care since it isnt' their problem. The appraisal didn't mention or catch any of this, the home is 10 years old. I take it the seller can be held liable for the pre-existing damages and can be made to credit is the difference we will be paying in insurance and aggrivation? We are going to mediation with our lawyer. Any ideas how he may present this type of case?

Thanks so much!

 

[HomeGuru]

Homeguru,

Thank you for your reply. We have been in the home now for a year but do have paperwork to show that 2 months into the home the water heater rotted out (concealed by seller with a thermal blanket and missed in insecption),

**A: did the Seller really conceal a damaged water heater or was the insulation put on years ago such that no one could tell the actual condition of the water heater. Home inspectors are not liable if the heater is wrapped with insulation. You have yet to confirm that you did have a home inspection.
Did you have a home inspection? If so, the inspector was not required to report on the condition
of the water heater due to the wrapped condition but surely would have and should have caught the shower walls.
************
the seller did mention the roof was replaced in his listing but didn't state that a few years later it had been hail damaged again. I take it the roof, shower, and water heater should have been disclosed?

**A: the Seller was required by law to disclose what they knew and what they should have known. It appears that you have a strong case for the roof at least.
************
We weren't aware of the roof problem until the insurance renewed here this month (1 year later) and they performed a CLUE lookup on the home. Needless to say we were cancelled.
Currently we don't have the $12,500 to fix the shower wall and shower pan and roof. I doubt the mortgage company would really care since it isnt' their problem.

**A: the mortgage company does care because they need insurance coverage. If the home burns down with no insurance, you do not have the money to build a new house to protect their interest in the property.
************
The appraisal didn't mention or catch any of this, the home is 10 years old. I take it the seller can be held liable for the pre-existing damages and can be made to credit is the difference we will be paying in insurance and aggrivation? We are going to mediation with our lawyer. Any ideas how he may present this type of case?

Thanks so much!

**A: your attorney will know what to do. Use the seller disclosure law etc.