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Daily Real Estate News  |  July 1, 2009  |   Construction Defects May Have Risen During Boom
Shortages of both skilled workers and quality materials during the housing boom of the late 1990s and early 2000s is contributing to a surge in construction defects, some housing experts say. Some municipalities also fell behind inspecting and certifying new homes.

Criterium Engineers, a national building-inspection firm, says that 17 percent of homes built in 2006 had at least two significant defects, up from 15 percent in 2003.

Construction defect insurance claims have declined in the last couple of years, “but the ones that are being filed are pretty severe in terms of the total damage alleged,” says Paul Amirata, vice president of claims for France-based Axa Group, one of the world’s largest business insurers.

Buyers of homes built during the boom should consider getting a thorough inspection by a building inspection engineer and reviewing purchase and warranty contracts carefully with an attorney, experts advise.

Source: The Wall Street Journal, M.P. McQueen (06/30/2009)

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