QUESTION: Five years ago I bought a house in Cedar Grove Estate, Gregory Park, St. Catherine. It was financed through the NHT open-market scheme. The developers said that hairline cracks would appear in the walls. They gave a commitment to fix them. Cracks were present when I took possession. Others appeared over time. They are bigger than hairline cracks and run the length and breadth of the house. They have been repaired many times. However, when it rains, water still seeps in. My house was flooded during Hurricane Ivan because of this. The developers told me to write a letter their lawyer. I wrote twice and have not received a response. The hurricane season is now ap-proaching and the problem remains. Will my insurers pay to fix the damage?
vj0963@msn.com
Answer: Forecasters say, according to a report in this newspaper, that this year will "continue a string of ... above-average stormy seasons" that began 10 years ago. If the May showers are anything to go by, your family could continue to expect even wetter days during June to November. After your experience with Charley and Ivan during 2004, I can well understand the discomfort that you feel.
You have a very big problem. It has very little to do with insurance. Do not waste your time trying to file a claim against your insurers - or for that matter - seeking a response from the developer's attorney. Contact the National Housing Trust. They have far more at stake than you and should wield more influence. My theory is that the cracks in your house are not the problem. They are signs of the problem. The developers, it seems, have been leading you and probably other house buyers in the scheme 'wide'. Why do I say this?
I typed 'building foundations' in the search engine of TheFreeDictionary.com website. It provided clues which in my opinion as a layman could explain the cracks in your house. Foundations were defined as the footings of "buildings or structure(s)." They serve to transfer the weight(s) of building(s) into the ground ..." The main dangers to foundations were said to be "movement and uneven support." Changes in the ground water table and flowing water can create problems to the footings. "Changes in moisture can cause clay soil to swell or shrink ... the variation can cause a footing sitting ... on the soil to distort, cracking the structure over it ..." The development of cracks in the walls of your house and the attempts over the years to fix them suggests to me that the problem probably lies with the foundation of your house and/or the type of soil on which it was built.
House insurance policies are very specific about the things that they cover. The typical contract provides protection against losses caused by fire, explosion, earthquake, hurricane and flood, for example. The appearance of cracks in walls due to an earth tremor would qualify as earthquake damage. Similarly, cracks that appeared after flooding could be said to be due to the insured perils of flood or hurricane.
On the other hand, your house appears to have had a recurring series of cracks over the last few years. It is clear to me on the basis of the information you supplied, that none of the cracks in your house was caused by an insured peril. Under these circumstances, I doubt that your insurers would pay to repair your house.
If my theory about the cause of the problem is correct, NHT should find a solution to your problem. It should be in their interest to do so if they still hold a mortgage on the property. If the problem remains unresolved for much longer it will reduce the value of their investment. On the other hand, if my theory is wrong, NHT [or the developer] should explain why. Further, you should ask the trust to say in writing (a) what is the real cause of the problems and (b) when your house will be finally fixed. In the event that you do not get a response from the NHT, may I suggest that you bring the matter to the attention of your MP or retain the services of an attorney. After all, when you bought your house, you did not expect to end up living in an aquarium each time it rains.
Cedric E. Stephens provides independent information and advice about the management of risks and insurance. If you need free information or counsel to help you solve a problem write to The Financial Editor or contact Mr. Stephens directly at aegis@cwjamaica.com
