| SPI Winterization Disclaimer Sticker |
| Wednesday, 05 January 2005 | |
|
One complaint
issue frequently encountered in our
industry is the claim that
damages at a given
property are due to
or result from the winterization procedure
performed at the property. The claim is often submitted by a
third-party buyer, but it may also
be made by the mortgagor. Because the damages
associated with such claims
are generally water-related damages, these
claims may seek
substantial amounts of
money, for damage
to plumbing/heating
systems, ruined
carpets, and even
mold, alleged to have been caused by the
winterization procedure.
When Safeguard is presented with such claims, we first point out to the claimant that a winterization procedure is a preventative measure, completed pursuant to specific guidelines and not designed to assess or in any way guarantee the operability or functionality of the heating or plumbing systems. We then demonstrate that the winterization procedure was not a cause of the alleged damages, providing documentation that the winterization was performed properly according to applicable specifications, and noting that in the case of most such claims, it is another intervening action (such as someone compromising the winterization by turning on the water, improperly dewinterizing the property, etc.) that is the true cause the problem. If the claim is submitted by a third-party buyer under an as-is contract, we point out that the buyer assumed all conditions present in the property and cannot seek after the fact to make Safeguard or any other party responsible. For the most part, we are successful in making the above arguments, and we generally prevail in refuting or at least minimizing these claims. Nevertheless, we could bolster the strength of our arguments if we had something in writing that set forth the true limits of the winterization procedure. Whenever Safeguard conducts a
winterization, informational tags are attached and displayed at
various points in the property that are involved in the
winterization. We are
proposing that the
informational tag should be modified to include a
disclaimer warning any
and all parties who enter the property after a winterization
procedure a) of the
restrictive nature of a winterization, and b) of the dangers
of tampering
with the systems before the property has been
dewinterized.
Here is our proposed
disclaimer language:
WARNING: A winterization was performed at this property pursuant to a work order issued by your mortgage company. The sole purpose of a winterization is to prevent damage from freezing pipes. The winterization completed at this property was a system shut-down only: the plumbing system was not tested for damage or leaks. This procedure is not a guaranty or warranty of any kind with respect to the HVAC, plumbing, or any other mechanical systems at this property. The plumbing system should be dewinterized by a licensed contractor or plumber before the water is turned back on, to assure that the system is operational. As always, your input is important to us, so please let us know if you have any thoughts or comments regarding our proposal to include this disclaimer on our winterization tags. Thank you, Robert Klein |
