Builder Construction Defect Advice

[Ravi B.]

Hi BP Community,

We closed on a rental townhome (brand new construction) that immediately had a raw sewage leak that covered much of the first floor damaging tenant possessions on day one.  The builder has been giving us the run-around on compensation for damages to tenants possessions, and the issue appears to be systemic as the same issue happened with a couple of other units in the same community.  What recourse do I have here?  Is it worth pursuing my landlord policy for the claims adjuster to go after their insurance or filing a lawsuit?  Damages came out to slightly over $4k.  I got wind that the builder is checking their warranty language (outsourced to a third party I believe) to find a way out of responsibility.  This has dragged on for two months now that has created a lot of stress for myself and the tenants.  Any advice is greatly appreciated.  I assume filing a lawsuit will ultimately cost more money than what its worth, unless you all have different experiences.