Advise & Consult, Inc. | October 14, 2015
Two recent court decisions appear to expand property insurance coverage for defective construction work.
The U.S. Court of Appeals for the Eleventh Circuit broadened the definition of covered property damage in the case of Carithers v. Mid-Continent Casualty. The court held that demolition necessary to repair defective construction is property damage covered by insurance.
In previous court decisions, such repair and replacement expense were deemed uncovered property damage.
In the case of Essex Insurance v. Kart Construction, the U.S. District Court for the Middle District of Florida found that exclusions to property insurance coverage during construction work were inapplicable.