News & Legal Insights

The Florida Attorney General’s Office struck a settlement deal with homebuilder KB HOME. After a three-year investigation, the AG found evidence that the company violated Florida law by (1) not informing homeowners that their homes violated building codes and were not constructed according to original plans and specifications, and (2) denying warranty coverage to homeowners who were otherwise covered. The settlement requires KB HOME to repair homes that meet a certain criteria and pay out-of-pocket expenses to current and former homeowners who had to leave their homes due to construction defects or repair work conducted by KB HOME.

Is your home eligible for repairs under the KB HOME settlement?

First, you must currently own a KB HOME in Florida and the original homeowner must have bought the home after April 17, 2005.  Second, whether your home qualifies for repairs depends on:

• The age of your home
• The size of a stucco crack
• Whether your home has delaminated stucco
• Whether your home has been repainted
• Whether your home has been vacant at any time for more than 270 days.

You have until August 10, 2017, to request repairs. KB HOME will assess whether you qualify for repairs or the extent of repairs needed. If you disagree with KB HOME’s assessment, a company named Bonded Builders will be decide all repair disputes. If KB HOME makes repairs to your home, you will be asked to sign a waiver that extinguishes your right to file a lawsuit against KB HOME based on construction defects existing before the date of the waiver.

Are you eligible for reimbursement of out-of-pocket expenses?

You may qualify for reimbursement if you are now own or previously owned a home built by KB HOME in Florida since April 17, 2005, and have paid out-of-pocket expenses directly caused by a construction defect in your home or the repairs carried out by KB HOME. The expenses must have occurred before February 10, 2016, and you must submit proof of loss (photographs, cancelled checks, credit card statements, receipts) along with your claim by August 10, 2017. Claims are for property loss only. Claims for lost wages, emotional distress and loss of equity are not allowed. If your claim is accepted and it is for more than $500, you will be asked sign a waiver that extinguishes your right to file suit against KB HOME based on construction defects existing before the date of the waiver.

You are not eligible for reimbursement if (1) on the date of February 10, 2016, you were individual homeowner or a member of a homeowners’ or condominium association represented by an attorney and were in litigation with KB HOME; or (2) as individual homeowner or as member of a homeowners’ or condominium association represented by an attorney, you had served a written notice on KB HOME to make repairs that had not been resolved by February 10, 2016. In addition, homeowners’ associations, condominium associations and properties owned by a lender, bank or the government cannot claim reimbursement.

Will you receive the full amount of your expense claim?

Possibly. A claims administrator will decide whether to pay your claim. You may receive a percentage of your claim up to the full amount requested. You won’t know how much you will receive until after August 10, 2017, when all the claims have been received. The claims administrator makes the final decision about your claim.

How can Lieser Skaff help you?

Our experienced Tampa Construction Defect Attorneys can you help you determine whether your home qualifies for repairs under the settlement and assist you in negotiations with KB HOME and Bonded Builders if necessary. If you do not qualify for repairs under the settlement, we will help you explore legal options, such as filing a construction defect and breach of warranty lawsuit. We can also assist you in filling out your claim for reimbursement of expenses and help you gather the necessary documentation to support your claim. Let us help you protect your legal rights.