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Multiple lawsuits erupt in homeowner’s insurance fiasco

Must seller's insurer repair defects discovered by buyer?

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Cynthia and Daniel Davis built their own home. Upon completion of the home, they obtained a homeowner's insurance policy. They lived in the house about nine months before selling it to Rick and Kristin Engebretsen. After the home sale, the Davises bought another home, cancelled their old homeowner's insurance policy, and bought a new homeowner's policy from the same insurer. Purchase Bob Bruss reports online. Approximately three years after the Engebretsens purchased their home, they sued the Davises and their professional home inspection company. The buyers alleged negligence, fraud, and breach of contract for failure to disclose improper construction and design that created latent (hidden) defects for improper drainage, soil preparation and landscaping, resulting in mold growing under the home and contaminating the air. The Engebretsens alleged personal injury from the high concentrations of fungi, including sinus and respiratory infections. The home sellers tendered defense of the ...