Warranty Will Pay for Structural Failure but Will Not Do It for Future Issues

[chulo]

My question involves a consumer law issue in the State of: Colorado

We bought a house from Richmond American Homes in 2006 in Parker CO. Apparently, the builders didn't leave a space for the main columns in the basement to move when the ground moves and that's why we are seeing cracks on the walls and ceiling and doors not closing. We have a warranty for 10 years covering structure that came with the purchase. It is through Residential Warranty Company, RWC. We received a letter from RWC saying that indeed there is a defect in the structure of our house and that they will pay to fix it.They sent us a letter stating they will cover the cost to fix the problem ($35000). It's all good there, but on that letter they want us to sign, they are stating that they will release themselves from any other damage that could be cause by that defect, existing or non existing, or that might arise in the future. Since warranties at this point only cover structure (we have 4 years left on our 10 year warranty) there would not be anything else they would cover. It's a "get out of jail free card" pretty much. We see at this point that there is no other option but to accept. At least they are covering the costs of the fix and we just need to pray that nothing else happens in the future. We need to make a decision by next week

Do you have any suggestion?

- - - Updated - - -

This is what they want me to sign by next week

Consideration:
Thirty Four Thousand Nine Hundred and Sixty One Dollars and No Cents ($34,961.00)
For the aforesaid consideration, the receipt and sufficiency of which is hereby acknowledged, Homeowner(s) hereby fully release
and forever discharge Releasees from any and all claims, demands, causes of action, and suits for damages or equitable relief of
whatever kind or nature, which Homeowner(s) might now have, or claim to have, or might hereafter have or claim to have, and
whether the same be now known or not known at this time, in any way arising, or resulting, or to arise in the future, by reason of the
following defect:

“All matters pertaining to the covered conditions in RWC File No. xxxxx as outlined in Warranty Coverage Report dated March, 2012
with respect to the northeast quadrant of the garage and the interior columns in the basement.”

It is the intention of Homeowner(s) to hereby fully release the above named and referred to Releasees from any and all kind of
liability and damage whatsoever which may have arisen, or might arise in the future, to Homeowner(s) by reason of the above
described defect(s).

It is expressly understood and agreed that this Full and Final Release is intended to include and does include not only now known
losses and damages, but also any losses and damages not now known or anticipated, and any and all claims that Homeowner(s) may
have against any Releasee by reason of the above defect(s).

It is expressly understood and agreed and Homeowner(s) do hereby expressly stipulate and agree, to indemnify, hold forever
harmless, and defend Releasees against loss from any and all claims, demands and actions, in law or in equity, that may hereafter at
any time be brought by Homeowner(s) directly or indirectly, or by any other person or legal entity in connection with the
aforementioned defect(s).

If at any time, any part of this document is found or held to be invalid, then such findings or holdings shall not effect the validity of
the remainder hereof.
Homeowner(s) further declare and represent that no promise, inducement or agreement not herein expressed has been made to
Homeowner(s), and that in regards to the above described claims, this release contains the entire agreement between the parties and
the terms hereof are contractual and not mere recitals. This Full and Final Release shall be binding upon Homeowner(s) and inure to
the benefit of Releasees and their heirs, successors and assigns.

Homeowner(s) hereby further warrant that they have read the foregoing document carefully, that they know the contents hereof
and sign as their own free act, intending to be legally bound thereby.

Executed on the date shown in the notarization below.

[Mr. Knowitall]

Here's the conundrum - I doubt that the insurance company is going to materially improve its offer unless you agree to its present proposed terms, as it wants to cut off the possibility of future losses. You can lawyer up and try to insist that the insurance company abide by the terms of its policy, but the insurance company may well take the position that it's present offer exceeds its duties and that, if you're going to take that approach, you can either accept a much more modest repair with the possibility that they'll also have to perform additional future repairs, or that you can litigate and see how a court eventually rules on the issue (or arbitrator, if that's what your policy requires). I'm not telling you what your insurance company will actually do, but I am saying you can't count on them to play nicely.

Have you had their proposal reviewed by a professional, such as a structural engineer, to see if it is in fact likely to permanently solve the problem?