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Who Is Liable When a Contractor’s Mistake Damages a Neighbor’s Property?

The contractor, homeowner, or both may be able to be held liable when a neighbor’s home is damaged by the construction company’s work. One should not be made to bear the burden when a contractor that they do not hire causes them monetary harm. Who pays depends on a variety of factors including whether the contractor is insured, whether the homeowner is insured, and their coverage.

Someone Must Pay for the Damage

A homeowner has property rights, and one of them is not to have their home damaged when their neighbor has construction work completed. The neighbor must take care to hire the right contractor with a good reputation for safety. It is also the neighbor’s responsibility to ensure that the contractor is licensed and bonded. Otherwise, the neighbor would likely be on the hook for any damages that their contractor causes. 

Presumably, the contractor carries adequate professional insurance to cover damages. This would be the first way to compensate the neighbor when something goes wrong. Licensing is a legal requirement in Nevada, but some disreputable contractors may cut corners. Handling a claim under these circumstances can be complicated because there may be numerous issues, including if the contractor’s insurance company tries to settle the claim for less than it is worth. 

The Homeowner Is Ultimately Responsible

Legally, the homeowner who hires the contractor is responsible for what a construction company does on the job. It would be unfair to leave their neighbor in a financial hole for something that they could not control, done by someone who they did not hire. If the homeowner whose property was damaged cannot get the claim covered by the contractor’s insurance company, he or she could file a lawsuit against the neighbor. Moreover, if the neighbor has hired a shoddy contractor, he or she can also be made to pay when they do not have enough insurance. They could even be liable for negligent hiring.

One whose property has been damaged should meticulously document the harm. This includes taking pictures and contemporaneous notes about what happened. The homeowner should immediately inform the neighbor of what happened. If it looks like there is any reason why the damage would not be fully covered, the homeowner may be able to work with a construction attorney to potentially file a lawsuit against the neighbor and the contractor. 

What Our Clients Say

My family and I are thankful to Maddox, Segerblom and Canepa for their assistance during a three year case regarding construction defects to our home. We are truly appreciative of their knowledge, determination and assistance during this process. They were always courteous, and available to answer any and all of our concerns and questions. Thank you for the wonderful resolution. Many thanks to you and your staff.

Frances Castelli

We used Maddox, Segerblom & Canepa to represent us in a legal suit re problems in construction on new properties that we purchased from a developer.

We were very pleased with the representation provided by this law firm. They were fully communicative, responsive to our questions and were very knowledgeable about the issues that required resolution. Even after we reached a resolution, they have been responsive in making sure to point us in the right direction for help with repairs that are required.

We would recommend them to others with similar issues that require legal help.

Atam & Margo Lalchandani

Maddox, Segerblom & Canepa did a FANTASTIC job in our construction defects case. I interacted with several people from their office throughout our 2 year litigation. Their staff is friendly, knowledgeable and always prompt about getting back to you when you have questions/comments/concerns. I especially enjoyed working with Darcy, Ardea, Eva, and Sandra. Being part of a lawsuit is no fun for anyone, but if you have to be a part of one, I can’t say enough positive things about this firm!

Victoria Fox

The law firm of Maddox, Segerblom, and Canepa were amazing to work with. They were thorough and always available for any questions we had. We worked a lot with Sandy who was always professional, friendly, always on time for appointments and just a great person to represent this firm. We have never been involved in a law suit before and they made it comfortable for us. We appreciate the hard work the lawyers and people who work for the firm did and would recommend them.

Becky Loudenburg
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