Real estate expert advises on fire victim’s insurance claim

ByKristin Casler

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Updated onMay 19, 2017

Real estate expert advises on fire victim’s insurance claim

A real estate expert advises on a case happened in South Dakota involving fire victims who claim their insurer short-changed their property claim. The plaintiffs’ home was damaged by wildfires and wildfire smoke. They assert that the wildfire smoke contained soot, char, formaldehyde and acrolein. The smoke deposited the particulates and gases on the property resulting in a covered loss under the policy which was confirmed by the defendant insurance company’s claims adjuster and partially paid by the defendant. Defendant now claiming that other sources may have caused the formaldehyde and acrolein gases on the property, and that the loss may be excluded under the policies contamination exclusion. The insurer did not pay for complete remediation of the property.

Plaintiffs hired a real estate expert and sued the insurer for breach of contract and bad faith.

Question(s) For Expert Witness

1. Must the plaintiffs disclose the smoke damage in a real estate sale?

2. How will such a disclosure impact the sale?

Expert Witness Response

inline imageThe plaintiffs will be required to disclose the smoke and fire damage to their property should they ever seek to sell it. I have evaluated the obligation of the plaintiffs to disclose the smoke and fire damage to their property. It is my experience that both circumstances are widely known to licensed real estate brokers and agents, and that the disclosure requirements are also monitored and enforced by lenders and title companies that close such sale transactions.

inline imageI have experience in many smoke-damaged homes and have observed what smoke does to the homes, contents and occupants. I have personally interviewed occupants and performed smoke component testing at over 150 homes and buildings affected by the same wildfires in this case. I have found smoke components throughout the county in the numerous properties I have tested. Inhabitants of affected dwellings, particularly individuals who are consistently in the home (as opposed to individuals who spend most of the day elsewhere), complain of a host of health problems.

inline imageProperty affected by a condition causing physical health issues or electronics failures is damaged and requires remediation before it can be sold without such disclosure. Buyers will view un-remediated homes as damaged. It is well-known in the real estate industry that unfavorable disclosures affect buyers' willingness to pay for property, and reduce value.

inline imageI conclude that buyers will regard property subject to serious disclosures involving smoke damage, smoke effects and smoke components discovered through smoke component testing to be just as damaged as properties damaged from other catastrophic events like sewage disasters, and that this will reduce sales value for the seller, here for the plaintiffs.

About the author

Kristin Casler

Kristin Casler

Kristin Casler is a seasoned legal writer and journalist with an extensive background in litigation news coverage. For 17 years, she served as the editor for LexisNexis Mealey’s litigation news monitor, a role that positioned her at the forefront of reporting on pivotal legal developments. Her expertise includes covering cases related to the Supreme Court's expert admissibility ruling in Daubert v. Merrell Dow Pharmaceuticals Inc., a critical area in both civil and criminal litigation concerning the challenges of 'junk science' testimony.

Kristin's work primarily involves reporting on a diverse range of legal subjects, with particular emphasis on cases in asbestos litigation, insurance, personal injury, antitrust, mortgage lending, and testimony issues in conviction cases. Her contributions as a journalist have been instrumental in providing in-depth, informed analysis on the evolving landscape of these complex legal areas. Her ability to dissect and communicate intricate legal proceedings and rulings makes her a valuable resource in the legal journalism field.

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