New home water leakage & damage

[Shule Liu]

We moved in a 2015 home one month ago. Last Friday, we saw water coming out of the floor and found a leakage around the faucet in the kitchen. We have called the insurance and claimed damage. When cleaning the cabinet below the sink and removing the liner paper, we found two moldy boards below the paper and a big hole below the two boards (See pictures below). When we tough the cracked bottom boards of the cabinet, it fell into pieces, leaving a huge hole. What’s worse, there are also molds around the wall behind the cabinet, which should be a damage caused by a previous damage. The seller said they know nothing about the holes and previous leakage, but it is impossible because it is obvious that someone have hided the damaged. We are very disappointed because it has just been one month since we moved in. I will appreciate if I can have your suggestions on if it worth going to court, and where can I get some help and advices. 

Pic 1. The hole we found at the bottom of the cabinet

Pic 2. The two moldy boards on that hole

Pic 3. Liner papers on the two boards

Pic 4. The huge hole after the cracked parts fell

Pic 5. Damages and molds around the walls and cabinet