liability insurance homeownership
Can previous homeowner file a claim for hidden damage on their old property?
<p>We purchased a house in Texas 5 months ago. 3 months ago we discovered hidden water damage from a roof leak within exterior walls.</p>

<p>Our insurance hired a third party engineering firm who concluded the damage had been happening long before we bought the house. The previous owner is trying to make things right, and filed a claim with their insurance.</p>

<p>The damage and problem was completely hidden within the walls with nothing visible that could be noticed during the home inspection. But the previous owner's insurance is trying to deny the claim, claiming it's not their problem since the issue was not noted at the time of sale.</p>

<p>Is this a legit reason to deny a claim? Or is the previous owner's insurance company responsible (assuming no other reason for exclusion) for hidden damage that occurred prior to the sale while they were the insurer?</p>

<p>Unfortunately for you, the insurance company is right.</p>

<p>Even with the rise of modern consumer protection law, <a href="https://en.wikipedia.org/wiki/Caveat_emptor" rel="nofollow noreferrer">caveat emptor</a> ("Let the buyer beware") still largely applies to real estate transactions. Exceptions are where the building is new (not applicable), the seller gave a specific warranty (unlikely) or the seller deliberately concealed the defect (not applicable).</p>

<p>If, as you say, the damage was "completely hidden" it is unlikely that your building inspector was negligent or breached their contract so you cannot recover from them.</p>

<p>Sadly, this is at your cost. Your insurer may be liable but that would depend on the terms of your insurance policy.</p>
