The entire Dec Page this month deals with EIFS, exterior insulation and finish systems. This article discusses the history of EIFS and EIFS-related claims under the CGL coverage form. The information is presented in two parts, with the first part in the August issue and the conclusion in the September issue.

Questions and Answers

A garage policy has different deductibles on the physical damage coverage for certain vehicles, depending on the cause of loss. If a tornado causes the building to collapse on the vehicles, which deductible is applied to the loss? See Garage Policy and Applicable Deductible.

In another garage policy situation, the insured damaged a customer's auto computer and digital instrument panel while installing a radio; but, the damage was not discovered until after the customer paid the repair bill and tried to start his car. Does the insured have coverage for this property damage claim? See Garage Operations and Completed Operations Claim. The completed operations coverage of a garage policy is the focus of attention in another question, with the issue being a claim for bodily injuries occurring off the insured's premises due to the work of the insured garage. Does the garage policy offer off-premises liability coverage? See Garage Liability and Products Completed Operations Claim.

The installation of EIFS (exterior insulation and finish system) has caused many a claim and lawsuit to arise. If the allegation is that the insured's using EIFS resulted in water damage, does the insured have coverage under his general liability policy, even though there is an exclusionary endorsement pertaining to EIFS on the policy? See EIFS Application and Resulting Water Damage.

Bad Faith and Insurer Actions

The Bad Faith and Insurer Actions article has been updated to reflect not only the development of bad faith actions within the court system but where bad faith stands today. New to this article is a chart identifying how states treat bad faith and first party cases. See Bad Faith and Insurer Actions.

Reasonable Expectations

The Reasonable Expectations article has been updated to reflect more recent actions in courts regarding reasonable expectations. See Reasonable Expectations.

Personal Umbrella Policy

The Personal Umbrella policy DL 98 01 10 06 may be used as a stand-alone form or in combination with homeowners and auto forms to cover most insureds' needs. It is a true umbrella in that it provides excess limits following underlying coverage forms, and provides coverage for situations excluded or not addressed by underlying forms. The form was updated in October 2006 to correspond to changes made to the current Homeowners forms. See Personal Umbrella Policy.