Insurers To Seize On Gaps In Ga. Construction Defect Ruling

Law360, New York (July 15, 2013, 7:56 PM EDT) -- While the Georgia Supreme Court on Friday issued a pro-policyholder ruling that standard policies can insure damage to a contractor's work, the decision leaves an opening for insurers to escape coverage by arguing that the required type of property damage hasn't occurred.

The ruling lets homebuilder Taylor Morrison Services Inc. pursue coverage with HDI-Gerling America Insurance Co. for a class action brought on behalf of more than 400 homeowners claiming the concrete foundations of their homes were improperly constructed.

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