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Construction Defect Laws Scoring Success in a Growing Number of States

The process, which discourages lawsuits, is an important step in making general liability insurance more accessible and affordable for builders.

At mid-summer, this was how the situation shaped up:

• The states that have enacted legislation this year so far are: Alaska, Colorado, Florida, Idaho, Indiana, Kansas, Kentucky, Montana, Nevada, South Carolina and West Virginia. Those states join Arizona, California, Michigan and Washington on the list of states with notice and opportunity laws.

• Legislatures in Ohio, Oregon and Pennsylvania are still considering legislation.
• Arkansas, Illinois, Mississippi, New Mexico and Oklahoma considered bills during their respective legislative sessions.
• Additionally, Texas Governor Perry recently signed into law a major industry reform bill to help address disputes over construction defects.

Generally, these laws require home owners to notify builders of alleged construction defects prior to filing lawsuits, and they establish a time frame for this process.

Although the right of home owners to sue is preserved, the laws provide a process that helps solve consumer complaints and address construction defect concerns in a way that can help both the home owner and the builder avoid expensive court battles.

For more information, e-mail Sam Leyvas at sleyvas@nahb.com, or call him at 800-368-5242 x8326.

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