THE PROBLEM of construction defects has made writing insurance for homebuilders seem almost as difficult as the home-building process itself. Insurance companies have given away too much coverage in the past. Courts have interpreted insurance policies more broadly than insurers intended, and many attorneys have learned to take advantage of the situation when filing lawsuits. At times, the combination of these factors has effectively turned the CGL into a performance bond for contractors.
The insurance industry recently has developed some temporary answers to the problems related to insuring contractors, but we still need to find better, more permanent solutions. In this article, I'll discuss insurance for home builders and the potential problems that construction defects present, how the construction and insurance industries address those problems today, and whatsolutions we should consider for the future.
Sue-me nation
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
