Amarjit Singh Pabla sits in one of his new eight-apartment projects. He has since lived a financial nightmare after the builder went into liquidation in February 2022. The sudden downfall left him burdened with hundreds of thousands of dollars in repair costs, raising urgent concerns about consumer protection in the construction industry. Pabla is left with mounting legal costs and deepening anxiety. Her plight points to a much larger problem affecting thousands of investors stuck in such limbo across the state.
After his builder went bust, Pabla was left out to dry. He was shocked to learn that addressing the flaws in his own building would run him an eye-popping $716,000. This surprising announcement came three months after QBE, his insurance company, sent an independent assessor to look at the damage. This long wait for the report added to Pabla’s anxiety. Little did he know, he was doing much more than navigating forms and the complexities of insurance claims—he was fighting for his financial future.
Despite QBE’s initial payout of just under $12,000 for plumbing repairs in July 2022, Pabla’s struggles continued. He was working under a reinsurance contract that limited QBE’s exposure. As a consequence, he was stuck with huge, unfinished problems to tackle entirely on his own. As with Pabla’s repair, it has likely doubled due to increasing material and labor costs. He is worried that bankruptcy is on the horizon if he can’t come to an agreeable closure with his insurance payor.
The Financial Toll of Collapse
That reality hit HomePanda cofounder Pabla especially hard when his builder went bust, leaving him “holding the bag with no recourse.” With most repair costs already surpassing $20,000, insurance soon became imperative by state law. The problems that followed with QBE have only added to his misery.
He has already racked up $32,000 in legal fees and is soon to face a much larger expense as the repair estimates continue to skyrocket. The anxiety of the possibility of losing it all has affected his physical well-being.
“I’m suffering. I ended up having a heart attack a few years ago while I was going through this process,” – Amarjit Singh Pabla
Pabla’s total liability is limited to $100,000 per unit. If his claim has not been paid, the repairs he needs that he admits are required might bankrupt him.
The Challenges of Insurance Claims
The unfortunate state of affairs underlines the constant battle most investor-advised people go through when fighting against deep pocketed insurance companies, such as QBE. On the extended timeline for claims to be processed, Pabla said it has made him feel helpless.
“They [QBE] want to pay you the bare minimum, and if you don’t accept that bare minimum, they will set up a team of their lawyers, which they have in every state,” – Amarjit Singh Pabla
John Berrill, a consumer insurance expert, stressed that people are often confused about what their coverage really is. This lack of awareness can make things more difficult.
“Because this insurance kicks in as part of your building contract, most people don’t even know they have it — or if they know they have it, they’re not looking at the details of it,” – John Berrill
This deficit of knowledge can leave investors exposed when things go south with their beleaguered builders. Pabla pointed out that the insurance process itself can be an intimidating experience, one filled with experiences meant to intimidate patients from insurers.
“They will harass you and they will try to intimidate you [so] that you submit to their wishes,” – John Berrill
A Call for Better Consumer Protections
With each new bankruptcy of a large builder, the cries for better consumer protection become more acute. Unfortunately for investors like Pabla, his experience is representative of a growing trend that has left many trusting investors—including builders and home insurers—holding the bag.
QBE continues to vigorously pursue resolutions of customer claims, but understands the difficulties raised in cases where multiple defects are alleged.
“QBE continues to engage with all relevant parties and remains committed to reaching a resolution for the customer,” – QBE spokeswoman
In spite of reassurances from QBE that the claims were being handled, Pabla is left in a lurch by a system he called broken. He wrote recently about the desire to repair every single defect in his house. In doing so, he can finally put this entire ordeal behind him.
“From QBE, all I want is that all the faults within this building are rectified. And once they are rectified, then I’m able to sell and move on,” – Amarjit Singh Pabla
Pabla’s story illustrates the stark realities individuals must wrestle with in the wake of builder bankruptcies. It highlights the pressing need for reforms that will help to better protect consumers in the years to come.
