NJ Court Tees Up Fights On Building Defect Coverage Trigger

By Jeff Sistrunk (October 17, 2017, 10:09 PM EDT) -- A New Jersey appeals court set the stage for high-stakes battles between policyholders and their insurers over insurance for construction defect liability claims by ruling last week that coverage extends until the nature and scope of the property damage becomes apparent.

In an Oct. 12 opinion, a panel of the state Appellate Division vacated a trial court's ruling that Selective Insurance Co. has no obligation to defend or indemnify HVAC subcontractor Air Master & Cooling Inc. in litigation over alleged defects at a condominium building. The lower court had ruled in Selective's favor based on its conclusion that the purported damage...

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