The facts
WRX Construction was working on a new home build - a ground-up new two-story single family dwelling - which was close to completion. Martin, the General Contractor, had hired a plumber, John, who was working late on a Friday night installing valves. As John packed up and left the jobsite, he mistakenly overlooked a small leak that was coming from one of the valves he had installed. Even though the leak was minor, it steadily spread through one of the walls and down to the first floor of the home. The jobsite was left unattended over the weekend and when Martin arrived at the jobsite early on the following Monday morning, he immediately noticed significant damage to the property.
The result
Water from the valve leak had covered the entirety of the upstairs bathroom floor. Further leakage was found inside one of the walls and in the ground floor living room. The damage was extensive with flooring, molding, electrical fixtures and some of the structural aspects of the property affected by the leak. Fortunately, Martin, the General Contractor, had a broad builders risk policy in place and the claim was covered.
Risk factors
Risk factor #1
Unfortunately due to the specialized flooring required to replace some of the damage caused by the leak, there was a delay in finishing the project. This event could have been mitigated or completely prevented by having somebody conduct daily checks on the jobsite. Home builders should ensure that they have somebody carefully check jobsites at close after subcontractors have completed their work at the end of each day. A check over the weekend would have prevented a claim like this from being so extensive.
*The claim scenario is strictly documented for illustrative purposes only and provides an example of what a policy could cover. It is intended to provide a general overview of the program described. Please remember only the insurance policy can give actual terms, coverage, amounts, conditions and exclusions. Program availability and coverage are subject to individual underwriting criteria.
