July 31, 2015
NEW JERSEY CLARIFIES THAT CONSEQUENTIAL DAMAGES CAUSED BY SUBCONTRACTORS’ DEFECTIVE WORK IS AN OCCURRENCE OF PROPERTY DAMAGE
In Cypress Point Condominium Ass’n, Inc. v. Adria Towers, et al., 2015 WL 4111890 (July 9, 2015), --- A.3d --- (App. Div. 2015), the New Jersey Appellate Division put to rest any question that consequential damages caused by construction defects at a condominium complex constitute an occurrence of property damage under a general contractor’s policy. The court also provided helpful authority that should permit insurers to better allocate between covered and uncovered costs of repairs.
Attachment: Insurance Coverage Alert - August 2015
