Insurer Says No Coverage For $2.8M Building Defect Award

By Hope Patti (May 19, 2022, 2:18 PM EDT) -- A custom home builder is not owed coverage of a $2.8 million arbitration award granted to a couple over construction defects, the builder's insurer told a Texas federal court, saying the defects do not constitute property damage needed to trigger the insuring agreement.

American Builders Insurance Co. said in a complaint filed Wednesday that it has no duty to defend or indemnify Diamante Custom Homes LLC with respect to the underlying arbitration brought by Byron and Lori Burris.

"In the construction-defect context, initial faulty construction or the mere incorporation of a faulty component into a larger project or system is not...

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