The New Mold – “Stucco Remediation”
James Rode
There are at least two sides to every story. When it comes to stucco remediation property claims, there are many more. Different homeowners’ insurance companies have varying products and policy verbiage.
The phone calls I receive from prospective clients and friends sound like this, “I noticed a water stain in my family room around the windows. When we took out the drywall, the insulation in the wall cavity was soaked, and the exterior sheathing was completely rotted. The stucco contractor is recommending that I redo my entire stucco system. What do I do, and will insurance pay for it?”
Picture me signaling to my assistant to clear the next hour of my schedule AGAIN and responding to the caller by saying “Well……it depends; tell me more about your circumstances.” In some of these cases the insurance company has already told the homeowner “sorry – there is no coverage.”
Insurance & Stucco Remediation
In certain cases, this is simply incorrect. With that said, it is, unfortunately, my opinion that homeowners are likely not going to be made whole (fully reimbursed) if they have a discounted to moderately-priced homeowners insurance company (i.e. including the high-end policies with moderately priced insurance carriers). If you only recently sustained noticeable interior water damage, these carriers may pay for your damaged drywall, insulation and paint and essentially send you on your way with paying you for the cost of a “Band-Aid” to put on your virus.
If you pay a premium for a deluxe homeowners policy, it is my opinion that you are quite possibly entitled to more consideration from your insurance company. This is a classic example of you get what you paid for and the more you put into something the more you will get out of it.
Irrespective of your particular insurance company, curing this widespread, seemingly contagious stucco virus can be really expensive, and as such these claims are being scrutinized by carriers. You will see full or partial denial letters with phrases like “We do not pay for wear or tear,” or “We do not pay for construction defects,” or “We do not pay for wet rot,” etc., etc., etc.
Contrary to the seemingly applicable exclusions, certain policies provide material partial coverage in these events and some (depending on the actual circumstances and policy language) may provide full coverage.
Determine Remediation Steps
Determining the right remediation steps and how to get paid by your insurance carrier is overwhelming for most homeowners. My suggestions are as follows:
Contact a Licensed Stucco Inspector
If you think water is getting behind your stucco, contact a licensed stucco inspector to assess the extent of your issues and provide a protocol regarding how to remediate. Too many homeowners hire stucco contractors to fix the symptoms and not the cause. This is a mistake. It is like opening Pandora’s Box. You have potentially started an expensive renovation to your home without specifications and competitive bids.
Upon receiving your stucco assessment report, get competitive bids to correct all known construction deficiencies and damage. Ensure that you are getting bids for the same scope of work from reputable contractors.
Use a Public Adjuster
Contact a public adjuster to assist with your insurance claim. Unlike a water heater loss in your basement that released six inches of water into your basement, the cause and scope of water infiltrating your stucco system is less clear to a homeowner. A stucco remediation claim could potentially be fully or partially denied and/or the scope of damages negotiated.
About the Author
James Rode is a partner at MLA Claims and a licensed Public Insurance Adjuster with more than 7 years of experience.
As a property loss consultant and account manager to a Fortune 500 company, James regularly handles large and/or complex commercial property claims up to $20,000,000.
As the Director of Residential Claims for MLA Claims, James is responsible for overseeing and consulting on all residential claims. James has extensive experience advocating for residential clients and preparing estimates for both dwelling and personal property related damage.
James regularly travels to handle insurance claims, which has included living in Puerto Rico for more than one year following Hurricane Maria to handle numerous catastrophic commercial property insurance claims.
Outside of work, James enjoys spending his time with his wife, Kathleen, and their daughter Lily.
James maintains a public insurance adjuster license in many states and jurisdictions, including Pennsylvania, New Jersey, New York, Delaware, Connecticut, North Carolina, South Carolina & Puerto Rico.