Q: My basement has had previous flood damage that was hidden from us and not found on inspection, do i have legal recourse?
My basement recently flooded from a sump pump that failed during a rain storm. After calling the insurance company and having them send ServPro out to assess the damage we discovered that there was previous flood damage and mold growing inside the walls. Insurance says they wont cover it because "backup sewer and drain" isnt listed on my insurance even though it is an appliance that failed and caused the flood. Can i pursue legal action against the real estate agent, inspection company, seller, etc. for keeping this information from me and not disclosing everything prior to buying the house?
An Oregon attorney could advise best, as obligations to disclose can differ according to state law. But your question remains open for two weeks. As as GENERAL premise of contract law, taking affirmative steps to hide a condition that was known could be bad faith (e.g. applying thick coatings in a deliberate effort to conceal mold). But it sounds like you are talking about a condition INSIDE the walls - which could be something no one was aware of, or something more difficult to establish the awareness of. You could reach out to local attorneys who could probably offer more meaningful, state-specific analysis. Good luck
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