Analyzing And Defending Claims Involving Large Single-Family Homes

Despite recent public health considerations, data and news reports show construction and sales of luxury single-family homes as a percentage of overall market share has grown over the past several years.

As construction of residential properties with a sales price at or above $2 million rises, the number of claims associated with such properties has also increased, and claims professionals frequently are presented with factual and legal issues not encountered in claims arising out of more common types of properties, such as multifamily communities and production projects.

Some may find that the policy analysis and claims-administration protocols typically used in other kinds of matters may not be as effective in these more complicated claims.

Claims professionals responsible for managing construction-defect claims most commonly encounter one of two types of claimants: institutional claimants—generally either a homeowners’ association or property-management company; or individual owners of a modest single-family home.

Such claimants tend to view the prosecution of construction-defect claims as transactional in nature—i.e., what benefit is available and at what cost?