Does a builder have insurance if a building has defects? Beware builders and owners!

Most builders or contractors have a commercial general liability ("CGL") insurance policy for a particular project.  It is often required by the construction lender.  However, whether this policy actually affords any meaningful insurance to either the contractor or the owner is another question.

Much to the surprise of builders and owners, construction defects are generally NOT covered by either a CGL policy or the owner's homeowners policy (or business policy).  The example we often give clients is that if your roof leaked as a result of a construction defect, the insurance company might pay for the damage the leak caused, but not the cost of repairing the leak.

Reduced to the most basic terms, a CGL policy will only cover losses caused by an "occurrence" not a defect.  An occurrence could be a fire or storm, for example, that occurs while the builder is working on the project.  It would also likely cover personal injuries suffered by third parties on the job.

Several years ago, CGL policies provided additional insurance for subcontractors on the job.  Under these older policies, if a contractor was negligent, it might be covered under the policy.  However, in more recent years that coverage has been written out of the policy and can only be acquired by purchasing a separate endorsement from the insurance company.

For builders who find themselves without coverage and facing a substantial claim - bankruptcy may be the only alternative which is terrible news for both the contractor and the owner.

Email me if you have other questions.

This blog does not create an attorney-client relationship. You should not rely upon this blog for legal advice, but instead should consult an attorney experienced in your area of concern.

Make sure that your automobile insurance policy has underinsurance coverage in the event of an automobile accident.

Did you know that in North Carolina, a person is only required to have $30,000 in automobile liability insurance coverage?  With the rising cost of health care and mandatory diagnostic medical procedures, a person seriously injured in an automobile accident may face medical expenses in excess of $30,000 in a matter of a day or two. That is why it is imperative that your insurance policy contain underinsurance coverage, sometimes called UIM.

UIM coverage means that if the person who caused the accident does not have enough insurance to pay you for your medical bills, pain and suffering, lost wages, disability, etc., then your policy will provide you with additional coverage - up to a million dollars.

Buy UIM is not required in North Carolina and there is an additional premium to have it included in your policy.  However, the increased premium is well worth it.  Furthermore, if you make make a UIM claim, it will not increase your premium or affect your insurance in any way.

In making a UIM claim, one must be very careful.  Oftentimes the injured party will mistakenly give a release to the insurance company that insured the person that caused the wreck. When this occurs,  your right to make a UIM claim may be lost.

If you have questions about this, email me at Fred DeVore visit us at DeVore, Acton & Stafford, Attorneys at Law.

This blog does not create an attorney-client relationship. You should not rely upon this blog for legal advice, but instead should consult an attorney experienced in your area of concern.

Handling Auto Accidents & Insurance Companies

 If you have had the unfortunate experience of being in an automobile accident, you have likely also suffered the uncomfortable and painstaking task of dealing with an insurance company.  And depending on the at-fault party's insurance policy limits, you may find yourself dealing with more than one insurance company.  Often times, your own insurance policy provides coverage for Uninsured Motorists (UM) and Underinsured Motorists (UIM).  This means that if you suffer property damages, medical expenses, and personal injuries beyond the at-fault party's policy limits, your own insurance company is responsibly for paying the excess.

However, it is important that you know that your own insurance company becomes an adverse party in that instant.  Though they have a duty to evaluate and adjust your claim fairly, they do not have to pay what they disagree is owed.  Unfortunately, disagreements seem to be the norm rather than the exception.  Therefore, you may be forced to hire an attorney to initiate litigation to recover for your damages and injuries.  Disagreements on property damage and personal injuries must be resolved by a jury and an experienced litigation team is vital to maximizing a jury award. 


This blog does not create an attorney-client relationship. You should not rely upon this blog for legal advice, but instead should consult an attorney experienced in your area of concern.

Negligent Truck Maintenance

Driving adjacent to or even near a tractor trailer represents one of the largest fears of the driving public. Simple physics and common sense suggest that if your mini cooper and a tractor trailer collide, your chances of walking away unscathed are remote. However, in my experience, for the vast majority of these truck drivers, I am amazed with their skill in controlling their vehicle. However, their ability to drive and ability to maintain their vehicle are two separate notions.

Driving skill is irrelevant when carriers and their drivers fail to properly inspect, light, clean, and otherwise maintain their tractors and trailers. Take a stroll down I-40 or I-77 in the evening and you're likely to find a host of violations of the Federal Motor Carrier Safety Regulations. Such regulations require, among other things, that all trailers be equipped with specific reflective stripping. The stripping is an alternating red and white pattern that must extend along the entire width of the trailer's rear, and must (in total) extend at least halfway down the length of the trailer. There are also requirements that these reflectors be continually cleaned and replaced as needed. The purpose of these reflectors is to give oncoming and passing motorists an idea of the size and bounds of the tractor and/or trailer. Even a minor collision between an average sized car and a tractor trailer can have a devastating result. Thus, trucking carriers and their drivers need to adequately light, clean, and routinely inspect their vehicles to ensure they are in compliance with the Motor Carrier Requirements - to save lives and escape liability.

Consequences of Writing a Worthless Check (NC)

If you are like me, then there are times in your hectic life when you aren't quite sure exactly how much money you have in your checking account. In an age where electronic bank statements (e-statements) are the usual way people check account balances, it is easy to lose track of how much you have, or more importantly, how much you don't have. Add to that the number of days it takes for some credit card companies to process funds, or how long it takes "Aunt Millie" to deposit the $500 check you wrote her, and it can be rather simple to overdraft or write a check that bounces. For those of you where this applies, I warn you to be very cautious of those checks you are writing. The consequences of writing a bad or worthless check in NC are much steeper than you might think.

In North Carolina it is against the law for any person or corporation to make, draw, or deliver any check for a certain sum of money, knowing at the time of making there were insufficient funds for the check. If the amount of the check is over $100 the person is guilty of a Class 2 Misdemeanor, if it is over $2,000 it is a Class 1 Felony.

I know what some of you may be thinking...you are thinking that if you are unsure of how much you have in your checking account when you write the check, then you can argue you didn't know you had insufficient funds. However, "knowledge" of writing a worthless check is ordinarily proved by circumstances from which it may be inferred. For example, if you have written bad checks in the past or if you wrote a check immediately after depositing certain funds in your account, with knowledge that it takes awhile for your bank to process deposited funds, you may be guilty of a misdemeanor or a felony. If the evidence draws an inference that you knew you were writing a worthless check, you may be criminally liable.

Also, the act of writing the worthless check is enough to give the State probable cause to believe the person charged is guilty of the crime. Unfortunately, paying off a worthless check after a person is charged with the crime is immaterial to the determination of whether probable cause existed to initiate a worthless check proceeding.

Moral of this story: Don't write worthless checks!

5 Ways to protect yourself:
1.) Keep up-to-date records of everything you buy, not just what's on the E-statement.
2.) Always check your bank account before writing a check, especially one over $2,000.
3.) Don't write any checks from closed accounts.
4.) If someone tells you they are just holding the check and won't deposit it, don't believe them or if you do, make sure you have the funds...Believing somebody won't deposit it is not a defense to writing a worthless check.
5.) If you have written a worthless check and haven't yet been charged, either see an attorney or make every effort to pay off the entire amount of the check as soon as possible.