{"id":890811,"date":"2016-08-30T11:11:19","date_gmt":"2016-08-30T17:11:19","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=890811"},"modified":"2016-08-30T11:11:19","modified_gmt":"2016-08-30T17:11:19","slug":"new-jersey-supreme-court-issue-important-decision-for-homeowners-and-contractors","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/new-jersey-supreme-court-issue-important-decision-for-homeowners-and-contractors\/","title":{"rendered":"New Jersey Supreme Court Issue Important Decision for Homeowners and Contractors"},"content":{"rendered":"<p>Wally Zimolong | <a href=\"http:\/\/www.supplementalconditions.com\/2016\/08\/new-jersey-supreme-court-issue-important-decision-for-homeowners-and-contractors\/\" target=\"_blank\">Supplemental Conditions<\/a> | August 23, 2016<\/p>\n<p>The lack of insurance coverage for a <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/new-jersey-high-court-follows-nationwide-majority-on-cgl-coverage-for-general-contractor\/\" target=\"_blank\">contractor\u2019s faulty workmanship<\/a> is the bane of both homeowners looking to recover damage for defective work and contractors seeking to defend against such claims. \u00a0In many states, like Pennsylvania, courts hold that <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/pennsylvania-court-holds-faulty-workmanship-not-an-occurrence\/\" target=\"_blank\">faulty workmanship is not an \u201coccurrence\u201d<\/a> that is covered by a standard commercial general liability insurance policy. \u00a0In other words, courts hold that CGL policies cover damage to other property not part of the construction project itself.<\/p>\n<p>This is problematic for both the homeowner and the insured. \u00a0For the homeowner, the lack of a policy providing indemnification sometimes means the homeowner is left trying to collect against a defendant, who is otherwise but has little to no assets against which to collect a judgment. \u00a0For the contractor, the lack of a policy providing coverage means that assets are at risk and it could be forced to spend significant sums in attorneys fees defending the case.<\/p>\n<p>In <em>Cypress Point Condominium Association, Inc. v. Adria Towers, LLC<\/em>, the New Jersey Supreme Court held that a contractors standard CGL policy covers consequential damages caused by defective workmanship, even if the consequential damages are to the project itself. \u00a0At issue in <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/litigating-construction-defects-in-community-association-property-part-iii\/\" target=\"_blank\">Cypress Point Condominium Association<\/a>, was language contained in a standard ISO CGL policy that is used in as the standard language in a majority of policies. \u00a0The case arose out of a dispute between the insured contractor and its insurer over whether damage caused by\u00a0leaking windows and facades\u00a0was covered under the contractor\u2019s CGL policy. \u00a0The Court held that such damages are covered holding:<\/p>\n<p>\u201cbecause the result of the subcontractors\u2019 faulty workmanship here\u2014consequential water damage to the completed and nondefective portions of Cypress Point\u2014was an \u201caccident,\u201d it is an \u201coccurrence\u201d under the policies and is therefore covered so long as the other parameters set by the policies are met.\u201d<\/p>\n<p>The importance of this holding is significant. \u00a0First, homeowners stand a much better chance of collecting on a damage claim against a contractor found liable for defective work. \u00a0Second, contractor\u2019s can expect coverage from their carriers in almost all defective construction claims.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wally Zimolong | Supplemental Conditions | August 23, 2016 The lack of insurance coverage for a contractor\u2019s faulty workmanship is the bane of both homeowners looking to recover damage for defective work and contractors seeking to defend against such claims. \u00a0In many states, like Pennsylvania, courts hold that faulty workmanship is not an \u201coccurrence\u201d that&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/new-jersey-supreme-court-issue-important-decision-for-homeowners-and-contractors\/\">Continue reading <span class=\"screen-reader-text\">New Jersey Supreme Court Issue Important Decision for Homeowners and Contractors<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[4,30,3],"tags":[309,4739,68,23,139],"class_list":["post-890811","post","type-post","status-publish","format-standard","hentry","category-construction-defects","category-general-liability-policy","category-insurance-claims","tag-occurrence","tag-commercial-general-liability-policy","tag-faulty-workmanship","tag-insurance-coverage","tag-new-jersey","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>New Jersey Supreme Court Issue Important Decision for Homeowners and Contractors - Advise &amp; 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