Blog: Property Insurance

A recent decision by the California Supreme Court has examined the applicability and use of the “illusory coverage doctrine” as a tool to interpret insurance policies. The Court also questioned whether the doctrine could invalidate unambiguous policy language. While it is undecided whether the doctrine exists, or can exist under California law, the decision seems […]

On September 27, 2024, New York Governor Kathy Hochul signed Bill No. A10342 into law, authorizing the issuance of stand-alone business interruption insurance coverage. This bill was introduced and passed in response to the COVID-19 pandemic, which forced many businesses to close temporarily as a result of government shutdown orders. Many affected businesses submitted insurance […]

The “ensuing loss” clause is a provision that restores coverage for property insurance claims that are subject to certain policy exclusions, such as “faulty workmanship” and “faulty design.” It applies in cases where there is damage from a covered cause of loss that ensues, or results from, the excluded cause of loss. Courts across jurisdictions […]

In a lawsuit resulting from Zurich American Insurance Company (“Zurich”) and American Guarantee and Liability Insurance Company’s (“AGLIC”) sudden change in coverage position, the First Circuit recently certified to the Massachusetts Supreme Judicial Court the question of whether rainwater accumulating on a roof meets the definition of ‘surface waters’ under Massachusetts law. Zurich and AGLIC’s […]

Illinois joins the majority of states finding “property damage that results inadvertently from faulty work can be caused by an ‘accident’ and therefore constitute an ‘occurrence’.” The Illinois Supreme Court’s ruling in Acuity v. M/I Homes of Chicago, LLC1 (“Acuity v. M/I Homes”) is the first high court ruling in Illinois on this critical coverage issue for […]

In the construction sector, the importance of closely vetting downstream parties’ insurance has never been more critical. The markets have been hardening with no seeming end in sight and carriers are looking for any way to get an edge. Owners and general contractors need to be on the lookout for ever broader carrier-specific expansions of […]

Cannabis businesses have now entered the economy of numerous states across the country. Based on the recent regulatory changes which have allowed these businesses to operate, business owners should evaluate several insurance considerations which are unique for cannabis-related companies. Accordingly, business owners should become familiar with business insurance coverages that can protect them and their […]

In Balfour Beatty v. Liberty Mutual Ins. Co., the 5th Circuit Court of Appeals provided valuable insight on coverage available through ensuing loss exceptions to faulty work and design exclusions in builder’s risk insurance policies. In Balfour Beatty, the Court held that, in order to establish coverage through an ensuing loss exception, the ensuing loss must be causally […]

*Special thank you to SDV Law Clerk Iliriana Fteja for contributing to this article. A new bill (SB 2022-736) was recently introduced to the Florida Senate. The proposed amendments to the statutes of limitations and repose could significantly impact construction defect claims by effectively creating additional exposure to contractors and insurance carriers. The proposed bill requires […]

Labor Guard is a project-specific insurance policy for project owners and general contractors operating in New York. The fundamental principle of the program is good risk transfer. SDV is retained to review subcontractor insurance policies and ensure that they meet specific minimum requirements, which are critical to transferring claims off the owner or general contractor’s […]

Recently, in Mt. Hawley Ins. Co. v. East Perimeter Pointe Apts.,1 the Eleventh Circuit Court of Appeals upheld the denial of liability coverage for negligent security claims involving an assault and murder at an apartment complex in Georgia, finding that the insured owner of the complex and its property management firm waited too long to notify their […]

Presented by Saxe Doernberger & Vita, P.C.’s (“SDV”)1 Natural Disaster Recovery Group2 Authored by Kelly A. Johnson3 The devastating extreme cold weather event in Texas often referred to as Winter Storm Uri, which lasted from February 14 to February 18, 2021, caused significant damages to homes and businesses in the region. Temperatures during the winter storm […]