A home can look finished while still containing serious construction defects.
Improperly installed roofing, windows, siding, flashing or waterproofing may not cause visible damage immediately. Problems may only appear after heavy rain, melting snow, strong winds or several freeze-and-thaw cycles.
When water eventually enters the home, the owner may assume the damage will automatically be covered by insurance.
Unfortunately, that is not always the case.
Property insurance is not a warranty for poor workmanship, defective construction or improper installation.
Depending on the cause of the damage and the policy wording, a claim may be partially covered, restricted or denied.
Insurance Is Not a Construction Warranty
Home insurance is generally intended to respond to insured events, not to guarantee that a home was properly designed or constructed.
The responsibility for properly completing construction may rest with:
- The contractor
- The subcontractor
- The builder
- The installer
- The designer
- The manufacturer
- The property owner performing the work
A construction defect does not necessarily become an insured loss simply because it is expensive to correct.
For example, insurance would not normally be expected to pay the cost of removing and reinstalling shingles solely because they were installed incorrectly.
Similarly, insurance may not pay to replace improperly installed windows simply because they allow water to enter.
The homeowner may need to pursue the contractor, installer, builder or applicable warranty provider.
Poor Workmanship Does Not Automatically Void the Entire Policy
It is important to use accurate language.
Poor workmanship does not necessarily void all insurance on the property.
Instead, the policy may exclude:
- The cost of correcting the defective work
- Damage to the defective component itself
- Gradual or repeated water seepage
- Rot, mold or deterioration
- Damage that should have been prevented through maintenance
- Some or all resulting damage, depending on the wording
Some policies distinguish between the defective work and separate resulting damage. Others contain broader exclusions.
The insurer must investigate the cause, timing and extent of the damage before determining coverage.
Improper Shingle Installation
A roof is a system—not simply a layer of shingles.
A claim may be affected when an investigation finds that roofing materials were:
- Improperly fastened
- Installed with too few fasteners
- Installed using incorrect fasteners
- Installed over an unsuitable surface
- Installed without the required underlayment
- Improperly sealed
- Installed on an unsuitable roof slope
- Installed contrary to manufacturer requirements
- Improperly installed around valleys, vents or roof penetrations
A low-slope roof may require a different roofing system or additional installation measures. Shingles should be selected and installed based on the roof design and manufacturer’s requirements.
If shingles lift or water enters because the roof was never properly installed, the damage may be treated differently from shingles that were properly installed and later damaged by an unusually severe windstorm.
The cause of the failure matters.
Roof Flashing and Penetrations
Many roof leaks occur around transitions or penetrations rather than through the middle of the roofing material.
Areas of concern include:
- Chimneys
- Plumbing vents
- Skylights
- Roof valleys
- Dormers
- Wall-to-roof intersections
- Satellite or equipment mounts
- Exhaust vents
- Changes in roof elevation
Missing or improperly installed flashing can allow water to enter behind the roofing system.
Caulking alone is not always an adequate substitute for properly designed and installed flashing.
Water may travel some distance from the entry point before becoming visible inside the home, making the source difficult to identify without a proper inspection.
Improper Window and Door Installation
Windows and exterior doors must be integrated into the building envelope.
Problems can occur when:
- Flashing is missing
- Flashing is installed in the wrong sequence
- Drainage paths are blocked
- Openings are not properly sealed
- The window is installed out of square
- Exterior membranes are improperly connected
- Water is directed behind the cladding
- Interior moisture is mistaken for exterior water entry
Improper window installation may allow small amounts of water to enter repeatedly.
The first visible sign could be:
- Stained drywall
- Bubbling paint
- Soft trim
- Swollen flooring
- Mold
- Rot inside the wall
- Moisture below the window
By the time these signs appear, the problem may have existed for months or years.
Gradual or repeated seepage and deterioration are commonly treated differently from sudden accidental water damage. IBC notes that insurance is intended for sudden and accidental damage, while ongoing or repeated moisture problems may be considered maintenance issues and may not be covered. Siding and Exterior Cladding
Siding is not merely decorative. It is part of a system intended to manage water and protect the building envelope.
Potential problems include:
- Missing or improperly installed building paper or membrane
- Incorrect flashing above windows and doors
- Improper clearances from roofs, decks or the ground
- Blocked drainage or ventilation paths
- Incorrect fasteners
- Loose panels
- Unsealed penetrations
- Improper transitions between materials
- Stucco cracking or separation
- Water being trapped behind the cladding
Water behind siding can damage sheathing, insulation, framing and interior finishes.
Replacing the interior drywall does not solve the problem if the exterior construction defect remains.
Decks, Balconies and Additions
Decks and balconies attached to a home can create water-entry points.
Concerns may include:
- Improper ledger attachment
- Missing flashing
- Water directed toward the building
- Poor waterproofing
- Inadequate drainage
- Improper connections between old and new construction
Additions can also create problems where the new roof, wall or foundation connects to the original structure.
These transition areas should be carefully designed, flashed and inspected.
Bathrooms and Showers
Improper waterproofing is another common source of damage.
Tile and grout are not always the primary waterproofing system. Water management may depend on membranes, pans, drains and properly completed transitions behind the visible finish.
Warning signs may include:
- Loose tile
- Cracked grout
- Soft flooring
- Staining below the bathroom
- Swollen baseboards
- Persistent musty odours
- Moisture on adjacent walls
A shower that gradually leaks because it was improperly constructed may not be treated the same as sudden water damage from a burst supply line.
Renovations Completed by the Property Owner
Do-it-yourself construction is not automatically excluded from insurance.
However, work should still comply with:
- Building codes
- Permit requirements
- Manufacturer instructions
- Accepted construction practices
- Electrical, plumbing and heating requirements
Performing the work personally does not transfer the cost of correcting mistakes to the insurance company.
Before completing major work, property owners should consider whether the project requires a qualified or licensed trade.
Permits and Inspections
Required permits and inspections should be obtained.
These may include:
- Building permits
- Electrical permits
- Plumbing permits
- Gas permits
- Heating-system inspections
- Wood-burning appliance inspections
A permit or municipal inspection can be valuable, but it does not necessarily provide a comprehensive warranty for every part of the work.
Property owners should also retain:
- Contracts
- Drawings
- Invoices
- Product information
- Installation manuals
- Inspection reports
- Photographs taken before walls are closed
- Written warranties
These records may be helpful if a defect is discovered later.
Warning Signs Homeowners Should Investigate
Watch for:
- Water stains
- Peeling or bubbling paint
- Soft drywall
- Swollen trim
- Musty odours
- Visible mold
- Loose or lifting shingles
- Missing shingles
- Cracked exterior caulking
- Water around windows
- Discoloured ceilings
- Rotting exterior materials
- Efflorescence on concrete
- Unexpected frost or condensation
- Repeated leaks in the same area
Do not repeatedly patch or paint over the symptom without determining the source.
A small stain can be evidence of a much larger concealed problem.
Buying a Home
Before purchasing a property, consider obtaining an inspection from a qualified professional.
Pay particular attention to:
- The age and condition of the roof
- Roof slope and roofing type
- Flashing
- Windows and exterior doors
- Siding and stucco
- Foundations
- Deck and balcony connections
- Recent additions
- Finished basements
- Renovated bathrooms
- Evidence of previous water damage
Ask the seller for:
- Renovation permits
- Contractor invoices
- Warranty information
- Inspection records
- Dates of major improvements
- Details of previous water entry
A standard home inspection may not uncover every concealed defect, but it can identify visible warning signs and areas requiring further review.
Hiring a Contractor
Before work begins:
- Verify the contractor’s experience
- Request references
- Obtain a written scope of work
- Confirm who is responsible for permits
- Ask for proof of liability insurance
- Request warranty information
- Confirm products will be installed according to manufacturer requirements
- Document the work with photographs
- Keep all invoices and contracts
The lowest quotation is not always the least expensive option when improper construction later requires extensive repairs.
What to Do When You Discover Damage
When water entry or another construction-related problem is discovered:
- Take reasonable steps to prevent additional damage.
- Photograph the affected areas.
- Avoid permanently covering or destroying evidence before it is documented.
- Contact your broker or insurer promptly.
- Keep damaged materials when requested.
- Obtain a qualified assessment of the source.
- Locate contracts, invoices, warranties and inspection documents.
- Contact the contractor or warranty provider where appropriate.
Do not assume a claim is covered or denied before the cause has been investigated.
Review the Construction of Your Home
Property owners should periodically review the condition and quality of:
- Roofing
- Flashing
- Windows
- Exterior doors
- Siding
- Stucco
- Caulking
- Deck connections
- Balconies
- Showers
- Foundations
- Recent renovations
Finding and correcting improper construction before it causes significant damage is usually far less costly than discovering after a loss that the repairs are not insured.
Home insurance provides essential protection against many unexpected losses, but it is not a substitute for quality construction, proper installation, regular inspection or ongoing maintenance.
Every claim depends on its cause and the specific policy wording. Speak with your insurance broker about your coverage and consult a qualified construction professional when you have concerns about your home.