Sneaky Peek Construction
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Sneak Peek: Construction Defect Claims and Additional Insureds
1. OBJECTIVES • Survey trends in construction defect claims against builders and subcontractors • Describe differences in coverage issues and insurer obligations relating to contractors, subcontractors, additional insureds, and indemnitees • Analyze key policy provisions, including what constitutes an “occurrence,” “damage to property,” “your work,” and more • Evaluate how tenders of defense and indemnity should be made under both policy and trade agreements Image Source: Unsplash/Henry Co
2. CASE STUDY: CUSTOM HOME Image Source: PFCS
3. Image Source: PFCS
4. CGL COVERAGE ISSUES What is potentially covered? What is not covered? • Rip & Tear Costs (Investigation and Access Costs): • Lennar Corp v. Markel American Insurance Co., 413 S.W.3d 750 (Tex. 2013) – CGL insuring agreement extension of coverage to pay “damages because of property damage” required insurer to pay “rip and tear" costs builder-insured incurred in ripping all of the EIFS off of the homes to access wood rot due to water infiltration
5. CASE STUDY: LEED BUILDING REPAIR Image Source: PFCS
6. Image Source: PFCS
7. DISCUSSION • Defending Claims • Investigating Claims • Claims Handling • Coverage Image Source: Unsplash
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Sneaky Peek Construction
