Collapsing House Gives Owner That Sinking Feeling

Brooklyn home owner battles insurance agent over structural mistakes to his house.

Nathan Kerr is trying to dig himself out of a hole, literally, as his Brooklyn house is sinking around him. Kerr bought the house 'brand new' back in 2003, and didn't think he'd face any issues for years. But now, just seven years later, he's facing major re-construction and a possible lawsuit.

It all began in the fall of 2009 he says: "I came home and saw a huge crack in the ceiling and I also noticed that the floor had sunken".

Concerned, Nathan called his home insurance agent, State Farm and reported the problem. Thinking there may be a leak or water problem, State Farm's Claims Representative at first sent a plumber to inspect Nathan's house. When no leak was found, State Farm than contracted a huge hole be dug in the first floor of Nathan's house.

After inspecting underneath the house , State Farm told him that structurally everything was sound, but the material, or dirt that the builder had used in the back-fill had caused the "extreme settlement". State Farm then placed the blame on the builder and told Nathan that this was not a covered claim. 'He' was now responsible to fill in the hole dug by State Farm and they weren't going to cover any loss of income or loss of use.

Nathan says, "They were saying I was on my own! They had no responsibility."

Nathan says he also tried to contact the builder, but was not successful. He didn't know if State Farm had made any efforts to contact the builder themselves.

As he told Howard, "Their last words to me were, it's now my responsibility, not theirs".

That's when Nathan called Help Me Howard.

To get an independent opinion, Help Me Howard called Evan Grugett, an independent Building Inspector to take a look at Nathan's situation.

According to Evan, Nathan is facing major structural repair. Evan concurred with State Farm's assessement, that the builder had used the wrong filling, even adding that they had also thrown in debris such as old tires, electric wire and bricks to further fill in underneath the house.

Evan explained the situation by saying, "he's been harmed. He's got a fairly new building that's got a major structural problem. I don't know how it was written, but often these insurance companies will pay him and go after the builder."

Nathan says, "If this is a policy of theirs, the way they do business, this has got to change. I'm hoping that no other homeowner has to go thru that."

Howard also tried reaching out to the builder, who is no longer listed.

In a written statement, State Farm Insurance had this to say:

"

Due to privacy issues, we cannot provide information regarding Mr. Kerr's claim. In general terms, State Farm conducts inspections of losses and makes claim decisions based on the coverage provided in the policy. Not all losses are covered by the homeowner's policy.

Nathan Kerr has also filed a complaint with the state insurance commission.

We hope that State Farm reconsiders Nathan's claim and will continue to stay on top of this story.

Produced By Monique Singhroy