Siding Lawsuits Frequently Asked Questions
During the last several years, more than 29 manufacturers of building products have been the subjects of settled, class-action siding lawsuits. Many homeowners are unaware of the details of the suits. Furthermore, the documentation and claims process is complex and time-consuming.
Below are some of the most common questions about the claims process and its financial aspects.
General Questions
Why have I not heard about these class-action siding lawsuits before now?
How do I know if I qualify?
What is composite wood siding and why does it fail?
Why must I deal with this problem now?
How does the siding class action reimbursement process work?
Can I file a claim on my own?
What services does ClaimSource One provide?
How much do you charge for your services?
Will I receive enough money to completely replace the defective siding on my home?
Why does ClaimSource One require my social security number?
Financial Questions
What factors may have contributed to low or no results on my initial claim?
How was my damage award calculated?
What if I receive a payment confirmation letter from the independent claims administrator?
Did I receive enough money to completely replace the siding on my home?
Why was a second inspection charge deducted from my settlement payment?
What services does Claimsource One provide?
How much does ClaimSource One charge for services?
When may I expect to receive my siding lawsuit settlement payment?
How can I recover additional damage awards for future damage?
How can I ensure siding lawsuit settlement payments are issued to me or the prospective buyer should my property sell during the claim process?
Am I liable for taxes on the siding settlement payment?
The notification process used in many of the building product class-action settlements are nationwide advertising campaigns using television, newspapers and radio. According to the court settlement, you are considered notified whether you see or hear the advertisements or not.
If you own a home that was built between 1985 and 1998, and have damaged siding, you may qualify. If you previously owned a home during this time period and spent money to replace the siding, you may qualify for reimbursement. If you'd like to learn more, we'll tell you how to identify damaged siding.
What is composite wood siding and why does it fail?
Often referred to as fake or composite wood, composite wood siding is a man-made product that uses various combinations of wood chips and glue, overlaid with very thin laminate, to give a "real wood" look on the surface.
For the most part, composite siding does not handle water very well, causing wood fibers to expand and contract causing the boards to crack, buckle, peel and delaminate. As the paint cracks, it allows more moisture damage to occur, and fungi and bacteria to penetrate the wet wood. Other factors contribute to the failure of composite wood siding such as the quality of its installation and/or the design of the structure.
Why must I deal with this problem now?
There are many reasons why it makes sense to file a claim now.
- The siding could cause subsequent damage to other products on your home such as wall and roof sheathing and other interior products.
- You could have a problem selling your home in the future. You could be held legally accountable for not disclosing this product and its problems to a potential buyer. As homebuyers become increasingly sophisticated and do their own research, they will discover that this product exists on your home and select another home.
- You will need this money to help defray the cost of repairing or replacing your problem siding.
- You must file a claim within the filing deadlines or miss out on settlement dollars.
How does the siding class action reimbursement process work?
Each settlement has a different set of requirements. Most settlements require, but are not limited to the following:
- Submittal of samples of product from each structure to prove the product exists on the property.
- Documentation to prove ownership of the subject property.
- Claim forms must be filled out for each structure.
Once the sample of your siding and paperwork is approved by the claims administrator, a court appointed inspector will inspect your siding and determine how much damage you have. You will then be paid a depreciated amount based on the square footage of damaged siding.
Can I file a claim on my own?
Yes, you can file a claim without our services, but the process can become very time-consuming and difficult. You must know and prove who the manufacturer of the siding is. You must cut a piece of siding off your home. You must complete complex paperwork and deal with the court. And you must be familiar with damage protocols to feel certain that you collect an adequate amount for your damage.
What services does ClaimSource One provide?
- We come to your property and identify the siding on your home.
- If the siding is involved in an ongoing class-action lawsuit, we will handle the claims process for you.
- We will meet with the third-party inspection representative, if necessary.
- We will review your settlement to make sure it accurately reflects your damage and that the settlement protocols were correctly interpreted.
- We handle distribution of settlement proceeds.
- ClaimSource One creates and maintains a database for future and subsequent claims.
How much do you charge for your services?
Our service is guaranteed, and fees are based solely on a percentage of the settlement we recover for you. There are never any hidden charges or up-front fees for our service. Our guarantee is simple: when you get paid, we are paid. If for some reason we do not recover a settlement, there is never a charge for our services.
Will I receive enough money to completely replace the defective siding on my home?
The settlement amount usually does not cover the cost of complete replacement or reclad. Properties exhibit different damage characteristics and many damage awards have a depreciation deduction of up to 27 percent. Many property owners will use the damage award as a down payment on a complete reclad or to repair only those areas that require immediate attention.
Why does ClaimSource One require my social security number?
Several of the class action settlements require homeowners’ social security numbers in order to process exterior siding claims. ClaimSource One respects the privacy of our clients and maintains strict confidentiality with regard to a client's personal information. This information is not shared with anyone other than our qualified, internal processing staff and the Independent Claims Administrators for the class action settlements. Once a claim is paid out or closed, documents are shredded onsite under the supervision of ClaimSource One management. For more information, visit http://www.claimsourceone.com/privacy.html
What factors may have contributed to low or no results on my initial claim?
Several factors may result in a small or no damage award that contributed to the court-appointed inspector's results.
- Your siding may have little or no qualifying damage at this time.
- The court-appointed inspector assigned to inspect the property may be inexperienced. The third-party inspection firm does everything in its power to properly train field inspectors, including classroom instruction and on-site training. In addition, there are third-party court-appointed auditors that ensure correct inspection protocol is followed.
- If your house was painted prior to the court-appointed inspection, it may conceal some of the damaged materials.
- Surface mildew or an inadequate paint job can appear as damage to the untrained eye, but according to the settlement, does not qualify for reimbursement.
How was my damage award calculated?
Damage awards are between $4.40 and $6.18 per square foot. Rates vary in geographic regions and by product type. Some siding types also include depreciation deductions based on the age of the property and non-painting deductions. The calculations for your claim are specified in the Settlement Results that either accompany your check or are forwarded to you within a few days after receipt of your check. Should you have additional questions after reviewing the Settlement Results, please use our contact form or contact us at 404-252-1771 or Toll Free 888-474-0775.
What if I receive a payment confirmation letter from an independent claims administrator?
If you receive a payment confirmation letter from an Independent Claims Administrator (ICA) and have not received your payment, please contact the ClaimSource One Corporate Office immediately. Your check may have been returned to us if you have moved, sold the property or it is a rental property. If the check has been lost or misplaced, ClaimSource One will stop payment and reissue your check. Please be aware the payment amount indicated in the ICA's letter is for the full amount of the settlement payment. Service fees and second inspection fees (if applicable) are not deducted in the payment amount stated in the letter.
Did I receive enough money to completely replace the siding on my home?
The settlement amounts usually do not cover the cost of a complete reclad. Many damage awards have up to a 27% depreciation deduction. All properties exhibit different damage characteristics and composite siding materials may not require immediate replacement. Certain architectural details, such as, roof/wall intersections and chimneys require immediate attention and these repairs may be covered by the damage award. Many property owners will use the damage award as a down-payment on a complete re-clad. A typical example is provided below:
Damage award 498 SF x 3.98 = $1982.00
Less 30% Fee $595.00
Net amount to property owner $1387.00
Why was a second inspection charge deducted from my settlement payment?
A ClaimSource One, Inc. representative chose to request a second inspection after comparing our Agent's initial inspection to the independent inspector's results. We believe the initial independent inspector's results were inaccurate. Therefore, we requested a Second Inspection (independent of the initial independent inspector's results). There is a $100 fee for a second inspection request if the results of the second inspection were lower than the first inspection. The cost ($100.00) is deducted from the claim. ClaimSource One absorbs the pro-rated percentage of this fee based on the service charge. There is no charge deducted if the results of the second inspection are higher.
You have been automatically paid the higher amount resulting from the two inspections. You are not limited to making a single claim and we will continue to file subsequent year claims until the results are accurate.
What services does Claimsource One provide?
We visit your property and identify the siding on your home. If the siding is involved in an ongoing class-action lawsuit, we will handle the claims process for you. We will schedule third-party inspections or meet with the third-party inspection representative, if necessary. We will review your settlement to make sure it accurately reflects your damage and that the settlement protocols were correctly interpreted. We handle distribution of settlement proceeds. ClaimSource One creates and maintains a database for future and subsequent claims.
How much does ClaimSource One charge for services?
Our service is guaranteed and fees are based solely on a percentage of the settlement we recover for you. Our guarantee is simple, when you are awarded a settlement then we are paid. If for some reason we do not recover a settlement, there is never a charge for our services. There are never any hidden charges or up-front fees for our service. Service fees average 30% but may be slightly higher on based on the siding product and complexity associated with filing the claim.
When may I expect to receive my siding lawsuit settlement payment?
The average claim process takes 6-10 months depending upon the product manufacturer or if a second inspection is requested. Settlement payments are received at ClaimSource One from the Independent Claims Administrators 1-2 times per month. We are committed to processing your check within 1 week following receipt of all payments. The "Settlement Results" will either accompany your check or are mailed separately within 10 days.
How can I recover additional damage awards for future damage?
Approximately one year from your original file date, we will contact you with specific instructions regarding a subsequent year claim. The settlement agreement allows us to file annually for any new damage that occurs to your siding. We order photos of the inspection results and an on-site inspection by a ClaimSource One Agent will occur. We will review the results and determination to re-file will be made at that time. You will be notified of our findings and any additional documentation that may be required to file a subsequent year claim.
Note: We recommend you defer repairing or replacing damaged siding to maximize your payment settlement for subsequent year claims.
How can I ensure siding lawsuit settlement payments are issued to me or the prospective buyer should my property sell during the claim process?
If your property is For Sale, please notify the ClaimSource One Corporate Office immediately. We can provide information and an Assignment of Claim form that will ensure proceeds are issued to you (the seller) or a prospective buyer should your property sell during the claim process. Several Class-Action Settlements stipulate that up to the day of the closing, payment awards are due to the seller. Thereafter, the settlement payment is awarded to the new property owner unless an Assignment of Claim is tendered. In all instances, we strongly encourage you to disclose the damaged siding issue and pending claim settlement to the new property owner. Disclosing the information may entitle you to receive the proceeds for any repairs you agreed to in the sale and provide the future owner an opportunity to submit subsequent year claims.
Am I liable for taxes on the siding settlement payment?
Generally, you are not liable for any taxes received as a result a settlement. Please check with an accountant or CPA regarding tax implications of any transaction.
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