Water infiltration has sunk Eden Prairie couple at an estimated $150,000 in damages, and hundreds of other area homeowners could have the same problem
By John Molene
Like most homeowners, when Larry and Carolyn Suarez purchased their home on Antlers Ridge in 1991, they were essentially buying into the American dream.
Seventeen years later, a large part of that dream has turned into a nightmare.
The Suarezes’ home, which they figure is worth about $800,000, has water infiltration damages estimated at between $100,000 and $200,000.
“You don’t think to do this,” said Larry Suarez, about having his home tested for water intrusion problems. “It was the last thing on my mind – water coming through my walls?
The damages to their home would be hard enough to handle if they had someone to share the responsibility with. They don’t. A shocking reality is that the Suarezes – and many, many other homeowners in Eden Prairie and elsewhere, are finding out. They’re on their own.
“There’s a lot of people at fault here,” Suarez added. “I’m not one of them, and I have to pay the cost.”
Most homeowners’ insurance policies don’t cover water infiltration damage. Homebuilders are liable, but only if the damage is discovered less than up to 10 years after the completion of construction. Furthermore, the Minnesota state statute of limitations states that no claim for defects can be brought more than two years after the discovery of the injury.
Water intrusion typically involves rainwater penetrating the home’s exterior, entering the interior walls and slowly, secretly, rotting the structure. It’s an insidious problem, as damage can occur with little or no outward signs to a prospective buyer, or even a longtime homeowner.
Certainly, Larry Suarez had no idea his home was riddled with water intrusion problems.
Now, however, is a much different story.
“You can take fistfuls of building sheathing out of the home,” said J. Robert Keena, a partner with the Eden Prairie law firm, Hellmuth & Johnson, which focuses in this area of litigation.
While the statutory new home warranty provides protection to homeowners in the event a major construction defect is discovered, that protection is subject to very strict timelines, as well as a complicated body of case law before any sufficient compensation can occur.
The age of the home is critical. Any legal claims for defective construction must be started within two years of the date of discovery of the defect, and that discovery must occur no more than 10 years after the completion of the construction, the firm states.
Stucco homes built in the late 1980s to late 1990s are particularly prone to water infiltration, or intrusion. Homes built during that era used different construction materials and processes to help make the homes more energy efficient or aesthetically pleasing. But in many cases, those improvements created other problems.
“Of stucco homes built in the 1990s and early 2000s, testing companies have told me that 70 to 90 percent have at least one area of damage,” said Keena.
Five attorneys in his firm alone are working on the issue, and his firm fields hundreds of calls a year from homeowners with similar problems, Keena said.
“Literally thousands of Minnesota homes built in the past decade have experienced water intrusion problems, causing an explosion in residential construction defect litigation,” Keena wrote in an information primer for homeowners. “While the debate continues as to who is at fault, there is little debate that construction defects have resulted in millions of dollars in damages statewide. Today it is not uncommon for a home that suffers from water infiltration to require hundreds of thousands of dollars of repairs.
“Since there are strict time limitations that apply to all construction defect claims, it is important for homeowners to understand their rights and take action quickly,” Keena went on.
Homes built after 1988 seem to have an increased risk of containing abnormal moisture. Some studies suggest this risk may be as high as 90 percent. Certain types of siding material, especially stucco and EIFS (Exterior Insulated Finish System), together with installation methods, appear to be major contributing factors. Another cause might be poor assembly of wall and roof systems.
Many homeowners are unaware they even have a problem. And even the ones that know they have a problem, have a series of steps they must complete fairly quickly if they hope to receive compensation.
Immediately upon discovering a problem, a homeowner must notify the builder in writing. Telephone conversations or an in-person meeting does not satisfy the statutory obligation. If you do not notify the builder or contractor in writing within six months of discovering the problem, you may lose all rights under the statutory warranty.
The Suarezes, both self-employed in sales, make a good income. But they’re staggered at what it will cost to repair their home.
The Suarez’s 4,300-square-foot home was a model home built by well-known Chaska builders Durst & Gans Building Corp.
Contacted Tuesday morning, Durst and Gans partner David Durst said he didn’t have a comment on the Suarezes’ situation, or this story.
And when Larry Suarez was looking to hire a contractor to finish his basement last spring, he turned to the original builders for an estimate. It was Durst & Gans co-owner Jim Gans who came to Suarez’ home and discovered the structure damages.
“He said we have a problem, and that he was not in a position to fix it,” Suarez said.
“Some builders out there will take care of their customers. [Suarez] would really love to see the builders help them out,” Keena said, while admitting that was a long shot.
The number of such builders willing to help homeowners with water intrusion problems after the statute of limitations has expired was probably about “5 percent,” Keena said.
The problem, all agree, if left untreated, will only get worse.
“We have to get it fixed, it’s simple math,” said Suarez. “It’s $150,000, but I’ve got to go for it.”
Suarez remains upset that he has little to no recourse other than to pay to fix the problem himself.
“I did think I would get coverage, and I’m not happy about that, either,” he said. “I’m not a rich person. ... and what of families who don’t have the means to fix this?”
The city of Woodbury – a similar-sized Twin Cities suburb with a similar late 1990s and 2000 construction boom – has done extensive research on the subject of water intrusion. Among its findings are:
* 41 percent of stucco homes built in Woodbury between 1990 and 1999 have suffered from significant water intrusion, which required major repairs, many exceeding $100,000.
* 11 percent of stucco homes built in Woodbury since 1999 (after more restrictive building codes designed to prevent water intrusion took effect) have suffered from significant water intrusion, which required major repairs.
* 5 percent of previously repaired stucco homes, failed again.
There are exceptions, but the problem affects mostly stucco homes built between the late 1980s and the early 2000s.
“Although builders are increasingly recognizing and addressing the causes of moisture intrusion in new construction, we do see problems in some newly built homes,” said Liz Hersey, marketing manager at Hellmuth & Johnson.
A small silver lining for homeowners with water intrusion damage and past the statute of limitations is that repair costs have dropped a bit, because of the drop in new home construction.
But Suarez has a warning for his Eden Prairie neighbors.
“You never think it could happen to you,” he said. “We never cut corners.”
Resources
There is a growing number of Web sites with information regarding the water infiltration problem, among them are:
* U.S. Environmental Protection Agency, www.epa.gov/iaq/molds/moldguide.html [1]
* Home inspection and moisture testing, www.privateeyemn.com
* Home Inspections of Minnesota, www.homeinspectionsofmn.com/mtesting.php [2]
* Law firm Hellmuth & Johnson also has extensive materials on the subject. Contact them at 952-941-4005 or jkeena@hjlawfirm.com [3]. The firm also sponsors a Web site dedicated to the issue at www.mnwaterintrusion.com [4].