Va. High Court Says Pollution Exclusion Bars Drywall Coverage

Law360, New York (November 1, 2012, 6:37 PM EDT) -- The Virginia Supreme Court on Thursday issued a groundbreaking decision finding that insurance coverage of faulty Chinese drywall claims could be denied under a pollution exclusion, establishing a potential hurdle to homeowners nationwide seeking restitution for the defective material.

Answering a question certified by the Fourth Circuit, the Virginia high court ruled that sulfuric gas emitted from faulty Chinese drywall could be considered a pollutant and therefore a pollution exclusion in a TravCo Insurance Co. policy could act, along with several other exclusions, to bar insurance...
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