The insurance company told me that flood-related damages are not covered.

What does your insurance agent state? Can you receive an claim there? If you are UNHAPPY can get out best move on than worry, here in Texas rains are horrible at times.

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Lynn911

Thanks for your quick response! Yes, the seller is a real estate agent. When I talked to him after the first rain a month after closing, he responded that he had disclosed about the flooding. When I told him that he had also assured me that everything had been fixed, he said he would get back to me. Bottom line: he offered to buy the house back, mentioning that he had talked to his attorney.
Although I am out about $5K, I am not sure that an attorney wouldn't cost as much or more than I could recover - although my pictures and talks with engineers / architects indicate that the house cannot be fixed. I haven't lived in town long and we are talking about a real estate dynasty here. The non-local attorney I talked to suggested I have a very good case, especially as I have documented the extent of the flooding (I used to be Litigation Coordinator for a Fortune 500).
In the meantime, I would have to clean up the mess again (I just did it three days ago, but we had even more extensive flooding yesterday - the phrase "A River Runs Through it" comes to mind), live with the mold, fan noise, and expense of new carpet, etc. We may have more rain tonight...

Hello Seti,
Let me get this straight, the real estate agent was the seller, right? You have a legal issue on your hands here. Full disclosure is a HUGE part of real estate. Contact an attorney ASAP. Not only have you put money into upgrades, but you have been through a lot and are probably entitled to a settlement. You need professional assistance with this problem. Good luck, I hope it all works out.