Here is an actual claim. Read and please comment.
My customer is a Real Estate Agency and I insure their BOP...Has E&O elsewhere. My customer's agent represents the buyer as buyer's agent. 2 years after house closes, new buyer is claiming kids have asthma due to mold in house. The owner/seller of house didn't disclose there was underground pit that was not closed in fully. (Used to be garage now turned in to living room) A hygienist advises there is dampness and mold in house due to this. So, seller didn't disclose. He's gotta have some liability. The house never had proper building permits either.
So, from my customer, the buyer's agent, they could have some E&O liability in that they didn't discover the house didn't have proper permits. Had they done so the house wouldn't have sold etc.
E&O had mold exclusion obviously!!!!
So, what if buyer's sues all agencies, home inspector, etc. and is claming due to this "issue" the family couldn't have meaningful family time, all that stuff that goes with these lawsuits? The BOP excludes mold liability and E&O....
If my customer is found to have some negligence would you think the BOP might provide some defense for the personal injury? Or not?
Be interesting to see how this one pans out. Many hands in the house (builder, seller, seller's agent, buyer's agent, home inspector, appraiser maybe, the county even)
Thanks in advance!
My customer is a Real Estate Agency and I insure their BOP...Has E&O elsewhere. My customer's agent represents the buyer as buyer's agent. 2 years after house closes, new buyer is claiming kids have asthma due to mold in house. The owner/seller of house didn't disclose there was underground pit that was not closed in fully. (Used to be garage now turned in to living room) A hygienist advises there is dampness and mold in house due to this. So, seller didn't disclose. He's gotta have some liability. The house never had proper building permits either.
So, from my customer, the buyer's agent, they could have some E&O liability in that they didn't discover the house didn't have proper permits. Had they done so the house wouldn't have sold etc.
E&O had mold exclusion obviously!!!!
So, what if buyer's sues all agencies, home inspector, etc. and is claming due to this "issue" the family couldn't have meaningful family time, all that stuff that goes with these lawsuits? The BOP excludes mold liability and E&O....
If my customer is found to have some negligence would you think the BOP might provide some defense for the personal injury? Or not?
Be interesting to see how this one pans out. Many hands in the house (builder, seller, seller's agent, buyer's agent, home inspector, appraiser maybe, the county even)
Thanks in advance!
