The Sad Truth
I was doing an appraisal once, and a woman at town hall told me a few tragic war stories. They emphasize the importance of obtaining all permits and final approvals for repair work. She said that there had been two recent occasions with insurance agents that came by her office. These agents were checking the records on two houses in that town. One insurance company was involved in a lawsuit filed by a contractor against a homeowner. This contractor was doing some repair work in the attic area of a house. There had been work done a few years earlier by another contractor in this attic area. Well, the second contractor was working and he fell through the ceiling! This contractor sued the homeowner for millions of dollars. The basis of the lawsuit was that the prior repairs did not have a permit and final approval from the town building inspector for the work done.
The other insurance agent that came into this woman's office at town hall was also handling a lawsuit for millions of dollars. She told me that a child was swimming in someone's pool along with the homeowner's children. Unfortunately, something shot out of the pool water filter device and hit this boy in the eye. The boy is now blind in one eye! His family sued the homeowner because they didn't have a final plumbing inspection approval for the pool equipment which included the pool water filter.
An attorney gave one of my clients another very good reason why it's imperative to get all final permits and approvals. He said that someone could get hurt on your property due to repairs or upgrading that wasn't done properly or safely. If this happens and you don't have permits and approvals for the work, you could be sued. We've already seen this in the stories I just mentioned. However, to make matters even worse, your insurance company may try to refuse paying the claim if you lose in court. The insurance company may tell you that it's your negligence for not making sure that all valid permits and approvals had been obtained! You certainly don't want to get stuck in a position like that. Especially, when someone gets injured.