Stucco Homes: Insurance Coverage

Stucco is a type of siding used on the exterior walls of homes and businesses. It is a textured plaster or cement material that has been used since the early 1900s. Stucco is popular due to its aesthetic appeal, insulation properties, and affordability. However, stucco can be prone to damage, and issues can arise if it is not installed correctly. Poorly installed stucco can result in water damage, pest infestations, and mould growth. So, what counts as stucco for house insurance?

Stucco damage and insurance coverage

Stucco is a type of siding or exterior cladding for buildings, made from cement, silica, and limestone. It has been used since the early 1900s and has become increasingly popular in recent years due to its aesthetic appeal, insulation properties, and low cost.

However, stucco is a porous material, and if it is not installed correctly, it can cause significant problems for homeowners. Water can penetrate the stucco, leading to pest infestations, mould and mildew, and wood rot. These issues can cause severe structural damage to a home and may result in the building becoming uninhabitable.

When it comes to insurance coverage for stucco damage, there are several factors to consider. Firstly, most insurance companies will only cover stucco damage if it was installed by a licensed professional. If the stucco was installed by an unlicensed contractor, your insurance is unlikely to cover any resulting damage. Secondly, the damage must not be pre-existing. Insurance companies will only cover stucco damage if it occurred after the policy was purchased. Thirdly, the specific type of damage may impact whether it is covered. For example, water damage is often not included in standard homeowners insurance policies and may require separate coverage. Finally, the insurance company may require proof or evidence of the damage, such as photographic evidence in the case of mould or water stains.

If your stucco was installed by a licensed professional, and the damage meets the criteria outlined above, your insurance company should cover the repairs. However, if the stucco was installed improperly or by an unlicensed contractor, you may need to take legal action against the contractor or builder to receive compensation for any damage to your home.

Licensed contractors and insurance claims

Stucco, a type of siding for the exterior of buildings, has been used since the early 1900s. It is made of cement, silica, and limestone, and it creates a thin layer of insulation for the building. While stucco is a popular choice for many homeowners due to its aesthetic appeal and cost-effectiveness, it is also a porous material that can cause major problems if not properly installed.

Poorly installed stucco can lead to increased humidity, pest and insect infestations, mould and mildew growth, and water damage. These issues can result in costly repairs and even render a building uninhabitable. To avoid these problems, it is important to hire a licensed contractor who is experienced in stucco installation.

If you are facing issues with your stucco, the first step is to determine the cause of the problem. A skilled inspector can help identify any cracks or other defects and advise on the necessary repairs. If the issues are due to faulty installation, you may be able to file an insurance claim or take legal action against the contractor.

• Licensed and certified professionals: To ensure that your stucco installation is done correctly, always hire a licensed and certified contractor. This is crucial because most insurance companies will only cover stucco damage if it was installed by a qualified professional.
• Insurance requirements: For insurance companies to cover stucco-related damages, certain requirements must usually be met. These typically include having the stucco applied by a licensed contractor, ensuring that the damage is not pre-existing, and being able to provide proof of the damage.
• Builder's or contractor's liability: In some cases, the responsibility for stucco-related issues may fall on the builder or contractor who installed the stucco. They should carry insurance coverage, and you may be able to receive compensation from their insurance company if you can prove that their faulty work caused the damage.
• Warranty options: When hiring a contractor, inquire about the availability of a warranty for their work. A warranty can provide additional protection in case any issues with the stucco arise after installation.
• Insurance claim process: If you need to file an insurance claim for stucco damage, it is recommended to seek assistance from a public insurance adjuster or an attorney specialising in stucco defect claims. They can help you navigate the complex process and ensure your claim is properly handled by the insurance company.
• Prevention is key: While stucco can be a great option for your home, it is essential to hire a skilled and licensed contractor to avoid potential issues. Proper installation and maintenance are crucial to preventing water-related damage, which is often not covered by homeowners insurance.

Water damage and insurance

Water damage is a common issue with stucco, a type of exterior cladding for houses that has been used since the early 1900s. Stucco is made of natural materials like limestone, silica, and cement, creating a decorative and insulating layer. However, it is porous and can absorb too much moisture, especially when installed incorrectly. This can lead to costly repairs, with some issues stemming from poor stucco installation including increased humidity, pest infestations, mould growth, and water damage to walls and ceilings.

When it comes to insurance, the coverage for water damage depends on several factors. Firstly, it's important to distinguish whether the damage is sudden and accidental or gradual. Most insurance policies will cover sudden plumbing issues, such as a burst pipe due to frozen temperatures, as this is considered sudden and accidental. On the other hand, gradual damage from a leaking pipe over several months may not be covered.

Secondly, the source of the water damage matters. If the damage is caused by internal factors, such as a water leak from plumbing or a broken pipe, it is typically covered by homeowners insurance. Roof leaks are generally covered as well. However, water damage from external sources, such as flooding, is usually not covered by standard policies. This type of damage often requires separate flood insurance.

Additionally, water damage caused by ongoing leaks or a lack of maintenance may not be covered. This includes issues from aging roofs, leaky faucets, and mould or rot due to unaddressed moisture. Basic home insurance also typically excludes damage caused by sewer backup and sump pumps, unless you have added optional coverage, such as "Water Backup Coverage."

When dealing with water damage, it is essential to document the incident by taking videos and photos of the affected areas and damaged belongings. Removing excess water and taking preventative measures to avoid further damage is also crucial.

In the context of stucco, insurance coverage for water damage depends on the installation. If the stucco was installed by a licensed Exterior Insulation and Finish System (EIFS) contractor, and the damage occurred after the policy was purchased, insurance may cover water-related issues like stains, mould, and blisters. However, if the damage is due to poor installation, it may fall under a different set of considerations.

In summary, water damage insurance coverage depends on the specifics of your policy and the circumstances of the damage. It is always advisable to carefully review your insurance policy and consult with your insurance provider to understand your coverage in the event of water damage, especially when dealing with stucco or other exterior cladding materials.

Insurance claim denials

Stucco is a type of siding used on the exterior walls of homes and businesses. It is made from cement, limestone, and silica and has been used since the early 1900s. Stucco is a popular choice for many due to its aesthetic appeal, insulation properties, and affordability.

However, stucco has its drawbacks. Being a natural product, it is porous and can absorb too much moisture, especially if it hasn't been installed correctly. Poorly installed stucco can lead to a host of issues, including increased humidity, pest and insect infestations, mould and mildew growth, and water damage. These issues can cause extensive and costly damage to a property and may even render it unsafe or unsellable.

When it comes to insurance claim denials, there are several reasons why a stucco-related claim may be rejected. Firstly, insurance companies typically require that the stucco must have been applied by a licensed contractor for the claim to be valid. If the stucco was applied by an unlicensed professional or even by the homeowner themselves, the claim will likely be denied.

Secondly, insurance companies usually require that the damage must not have pre-existed the insurance policy. In other words, if the damage was discovered before the insurance policy was purchased, the claim will likely be rejected.

Thirdly, the type of damage can also affect whether a claim is approved or denied. For example, water damage is often not covered by standard homeowners insurance policies and may require a separate rider or endorsement. Therefore, if the damage is related to water leaks, the insurance company may deny the claim on the grounds that water damage is not covered under the policy.

Additionally, insurance companies may deny a claim if they believe the damage was caused by pre-existing issues or poor maintenance rather than a sudden, accidental event. This is why it is important to conduct regular maintenance and address any issues with your stucco promptly, as neglecting them could void your coverage.

Finally, insurance companies may also deny a claim if the stucco was installed using improper materials or techniques that do not meet industry standards. This is why it is crucial to hire a licensed and reputable contractor who follows the appropriate installation procedures and uses high-quality materials.

If your insurance claim for stucco-related damage is denied, there are still options available to you. You may be able to pursue legal action against the builder or contractor responsible for the faulty stucco work, especially if they were negligent or failed to follow proper installation procedures. Their liability insurance should cover any damages caused by their shoddy work. Alternatively, you can consult an attorney to explore the possibility of challenging the insurance company's decision through the legal system, especially if you believe your claim was wrongfully denied.

Insurance litigation

Stucco is a type of siding used to decorate the exterior walls of homes and businesses. It is a textured plaster or cement that has been used since the early 1900s. In recent years, stucco has become an increasingly popular choice for siding due to its economical cost, aesthetic appeal, and insulation properties.

However, stucco has its drawbacks. Being a natural and porous product, stucco can soak up too much moisture, especially when it hasn't been installed correctly. Poorly installed stucco can lead to a host of issues, including increased humidity, pest and insect infestations, mould and mildew growth, and water damage. These issues can cause extensive and costly damage to a property, leading to insurance litigation when homeowners seek to repair the damage.

When dealing with stucco-related problems, there are a few options for insurance litigation. Here are the key considerations:

• Homeowner's Insurance Claims: Whether or not homeowner's insurance covers stucco damage depends on several factors. Firstly, most insurance companies will only cover stucco damage if it was installed by a licensed and certified professional, especially for Exterior Insulation and Finish Systems (EIFS). Secondly, the damage must not have pre-existed the insurance policy, and it must be provable. Water damage, in particular, may not be covered by insurance policies, so it is essential to carefully review your policy.
• Builder's or Contractor's Insurance: If your homeowner's insurance denies your claim or does not cover stucco-related problems, the responsibility may fall on the builder or contractor who installed the stucco. This is because poor installation is often the cause of stucco-related issues. Attorneys can assist in litigating against the builder or contractor's insurance company to seek compensation for faulty work.
• Legal Action Against Insurance Company: If your insurance company denies your claim for stucco damage, you may have the option to challenge their decision through the legal system. This option is typically pursued if you believe your claim is legitimate and you have met all the requirements set by your insurance provider. An attorney can guide you through the process of suing the insurance company and presenting evidence to support your claim.
• Legal Action Against Builder or Contractor: If you purchased a brand-new home and discovered stucco-related issues, you may have the option to sue the builder directly. An attorney can help prove negligence or faulty work on the part of the builder or contractor, especially if there is evidence of poor installation or failure to meet industry standards.

Frequently asked questions