Sell the house? You mean of course with full disclosure

Anywho...my buddy has the same issue, although we've only seen it in the basement---RUT-ROH it's in the walls too! We haven't talked about that!

To answer your question yes he used PEX.

I wonder, in the event of a leak or mutiple leaks does homeowners insurance cover the damage?

Also, pressure testing could lead to a complete disaster---think sprinkler system. And even if you fixed or replaced the bad places in time the rest will go.

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