Clarification of Right to Repair Act Applicability and Insurance Coverage

This letter is provided in response to your request for clarification regarding the applicability of California’s Right to Repair Act (SB 800) and the related insurance coverage for the newly constructed residence referenced below. This is the construction of a new residence and the provisions of the Right to Repair Act are applicable.

The residence constitutes new residential construction under California law. As such, California Civil Code Sections 895–945.5, commonly known as the Right to Repair Act (SB 800), apply to the project.

In connection with the construction of this home, a Project-Specific Liability Policy (PSP) was placed and written on an occurrence form. Upon Substantial Completion of construction, the project entered completed operations status under the policy.

The PSP provides completed operations liability coverage for construction defects for a total period of ten (10) years from the date of Substantial Completion. The home received Certificate of Occupancy on February 12, 2025. This coverage period is consistent with, and intended to align with, the statutory time frame established under the Right to Repair Act for latent construction defect claims.

This insurance coverage is not a warranty or guarantee of workmanship. Rather, it is liability insurance that may respond to covered claims alleging bodily injury or property damage arising out of construction defects, subject at all times to the policy’s terms, conditions, exclusions, limits, and applicable endorsements.

Nothing in this letter is intended to modify, expand, or replace any rights, obligations, or procedures established by the Right to Repair Act, nor does it alter the scope of coverage provided by the insurance policy.

This clarification is provided for informational purposes only at the request of the seller in connection with the pending transaction.