If you discovered a construction defect after moving into a new home or having work done, and the company who did the work has filed for bankruptcy or gone out of business, you may think there is nothing you can do and that you will have to pay for the repairs out of your own pocket. Fortunately, in many cases, you actually can recover compensation from a bankrupt or defunct business’s insurance company. To find out if you’re eligible to file a claim, you should call an experienced construction defect lawyer in South Carolina as soon as you can.
In South Carolina, there are options for homeowners with construction defects whose builders have filed for bankruptcy or gone out of business. The best way to learn about which options might be right for you, such as suing your homebuilder, is to schedule a consultation at Hayes Law with a seasoned South Carolina construction lawyer.
File an Insurance Claim
Learning that your builder or contractor filed for bankruptcy can intimidate some homeowners, and they might believe they are out of luck when it comes to recovering for damages and defects. However, your builder or contractor should have an insurance policy to cover their construction defects. Even though the builder has filed for federal bankruptcy protection, you and your South Carolina construction lawyer can still pursue a claim against the insurance policy and potentially recover funds. Going out of business or filing for bankruptcy does not negate an insurance policy.
The same applies if the builder or contractor has gone out of business. Their insurance policy should still cover any construction defects the company is liable for at the time they had a current policy.
Find the Subcontractors
Most homes or condos are built by a general contractor who has a group of subcontractors working under them. They might hire one to do the electrical, one for landscaping, and a different one for masonry. If the general contractor goes out of business or files for bankruptcy, you can still file a lawsuit or an insurance claim against any subcontractors who contributed to the construction defect. Subcontractors should also have their own insurance to cover any defects they are responsible for.
It might take some time to find out who the subcontractors were and to track them down, but this is a viable option for many homeowners who find construction defects after their general contractor files for bankruptcy.
What About HOAs?
Homeowner’s associations (HOA) have the same options as homeowners when it comes to pursuing a claim for construction defects. They may need the assistance of a South Carolina construction lawyer to seek damages for problems with common areas such as parks, pools, or community buildings. The homeowners within the HOA do not have to assume these costs if they file an insurance claim or pursue the subcontractors who worked on the project.
Common Examples of Construction Defects
There are a wide variety of construction defects that could entitle you to file a claim against the party that performed the work or that party’s insurance company. Some of the most common include:
Inherently dangerous design
Failing to comply with local building codes
Defective door or window seals
Use of improper or defective materials
Issues with wood flooring
Substandard fire prevention features
Issues with ventilation or exhaust systems
Discuss Your Options with a South Carolina Construction Lawyer
Even if your builder or contractor has gone out of business or filed from bankruptcy, you still likely have several options for financial recourse with a knowledgeable South Carolina construction lawyer on your side. By scheduling a consultation, you can have your case analyzed to determine your next steps for your construction defects or contractor disputes.
Keep in mind that you do not have an unlimited amount of time to file insurance or legal claims. Your statutory rights and ability to file an insurance policy claim are time-sensitive. If you fail to act within the allowed amount of time, you may have no recourse at all, even with the help of a construction attorney. Since legal claims and insurance policies will have deadlines that differ, don’t assume that your rights to act are expired or that they will last forever. Take your case to legal counsel and let them determine if time is still on your side.
Don’t lose your legal rights and options with a construction defect by waiting too long to get help. Get in touch with Hayes Law today. Call (843) 805-7003 today or contact us online.