Insurer Ordered To Cover KB Home Chinese Drywall Suit

Law360, New York (May 18, 2011, 1:49 PM EDT) -- A Florida federal judge ruled Tuesday that Auto-Owners Insurance Co. has a duty to provide coverage to American Building Materials Inc. in an underlying state court action brought by KB Home Inc. over allegedly defective Chinese drywall.

In granting the defendants' motion for summary judgment, Judge Susan C. Bucklew concluded that the commercial general liability policy issued to drywall supplier ABM provides coverage for the property damages alleged in the underlying lawsuit, and that none of the policy exclusions asserted by plaintiff Auto-Owners precludes that coverage....
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