Interesting. A real problem can be hall sensors on car engine management. Highest rating I've seen is 120C. And it does seem to be heat that kills them. But they're not normally situated close to exhaust heat, so you'd expect they'd not get much above coolant temp, so say 100C.
If its overheated to the point of being too hot to touch -- well it'll work now but the most likely effect is a reduction in working life span. Probably a cheaper long term solution would be to replace with a new item and fit it in such a location that will make sure that it cant be covered (again) and can run a bit cooler. Any chance of sending the invoice to the builder? I'm guessing you'll get a "FO - see you in court" type response so pointless.
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