THOUSANDS OF householders are likely to be left without compensation for defective infill in their houses after HomeBond withdrew any offer of compensation.
The company, which provides structural deficit cover on behalf of the construction industry, unilaterally withdrew any previous or future offer of compensation in letters sent to households affected by structural defects caused by the use of pyrite, an infill material that expands when it comes into contact with moisture.
The letter, in legal language, states: “Please note that any prior representation from any agent or employee of HomeBond, whether oral or written, or whether expressed or in implied terms, to accept liability or to carrying out testing or remedial works or to pay monetary sums in relation to a dwelling, is hereby withdrawn.”
In a statement yesterday HomeBond said it was not legally obliged to provide compensation. It sought to blame the quarries that had provided the infill materials. It also referred to the High Court case involving builder James Elliott Construction Ltd versus stone merchant Irish Asphalt Ltd in May.
Mr Justice Peter Charleton said infill provided for a youth centre in Ballymun was “not fit for purpose”, and the builder was entitled to damages against Irish Asphalt.
HomeBond said the liability for major defects only applies when the defect is the result of negligence on the part of a builder or his subcontractor. It said the quarries were liable under the Liability for Defective Products Act, 1991.
Pyrite is estimated to affect 20,000 householders in Ireland. Affected material, used in foundations, expands and causes cracks and bulging in walls.
The Pyrite Action Campaign was initiated in recent weeks after residents in housing developments in Counties Dublin, Offaly, Louth, Meath and Kildare joined together to highlight their problems.
Sandra Lewis, from the campaign, said HomeBond had initially agreed to compensate householders. She said her family would be forced to rent a house because the home they bought in Temple Court in Santry was uninhabitable.
The decision has come “out of the blue”, according to Minister of State at the Department of Agriculture Shane McEntee, whose Meath constituency has been badly affected by the problem.
He said many householders had paid €10,000 in the value of a house to insure such eventualities, and said the construction industry would not be allowed to walk away from its responsibilities. HomeBond says the figure was closer to €200 per home.
Socialist TD Clare Daly described the situation as “outrageous” and said householders were conned into believing HomeBond had insured their homes against major structural damage.
