CGL Extends Coverage for Injury Arising from Defective Construction
National News • May 28, 2008
Property damage resulting from defective construction is unquestionably excluded in the commercial general liability policy; but what about bodily injury? And is injury or damage caused by the ...
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Subject: RE: RE: RE: Myth that the CGL is not a Warranty or Bond
Posted On: May 28, 2008, 6:18 pm CDT
Posted By: Cindy
Comment:
I've seen conflicting court opinions on whether construction defects are covered. IRMI.com often covers this topic, too. Regardless of whether the policy covers it or not, some builders are using it AS a warranty. (I've seen some insurance industry documents that specifically say it is not to be used as a warranty, but when a court says it covers defects, the court is in effect saying it can be used as a warranty, it seems.)
The homebuilders should be concentrating on building the houses right in the first place. The defects are often entirely preventable and the resulting damage by shortcuts is entirely predictable. Omission of roofing felt, flashing, etc, improper grading/drainage, all can lead to water intrusion and mold.
Whether one believes mold harms your health or not, there's no doubt that mold's job is to eat/decompose the material it grows on. That means it rots the house, compromising its structural integrity and value.
Leaks and mold are serious defects that relate to construction shortcuts and mistakes. Builders can expect to keep doing battle with their insurance carriers until the building industry can build houses that keep the water out. I'm not talking about mismatched paint here, but significant defects that any sane person would want fixed or want compensation for. The problem will not go away until the builders address quality in a meaningful way.
Subject: RE: RE: RE: Myth that the CGL is not a Warranty or Bond
The homebuilders should be concentrating on building the houses right in the first place. The defects are often entirely preventable and the resulting damage by shortcuts is entirely predictable. Omission of roofing felt, flashing, etc, improper grading/drainage, all can lead to water intrusion and mold.
Whether one believes mold harms your health or not, there's no doubt that mold's job is to eat/decompose the material it grows on. That means it rots the house, compromising its structural integrity and value.
Leaks and mold are serious defects that relate to construction shortcuts and mistakes. Builders can expect to keep doing battle with their insurance carriers until the building industry can build houses that keep the water out. I'm not talking about mismatched paint here, but significant defects that any sane person would want fixed or want compensation for. The problem will not go away until the builders address quality in a meaningful way.