We purchased a house in Texas 5 months ago. 3 months ago we discovered hidden water damage from a roof leak within exterior walls.
Our insurance hired a third party engineering firm who concluded the damage had been happening long before we bought the house. The previous owner is trying to make things right, and filed a claim with their insurance.
The damage and problem was completely hidden within the walls with nothing visible that could be noticed during the home inspection. But the previous owner's insurance is trying to deny the claim, claiming it's not their problem since the issue was not noted at the time of sale.
Is this a legit reason to deny a claim? Or is the previous owner's insurance company responsible (assuming no other reason for exclusion) for hidden damage that occurred prior to the sale while they were the insurer?