Damage to Your Work Exclusion and Subcontractor Exception

Our insured, a general contractor, engages subcontractors to build homes. The HVAC subcontractor installed a furnace and one year after the work was completed, the subcontractor's work caused the house to burn down. The general contractor's CGL form was amended by deleting the wording “this exclusion does not apply if the damaged work or the work out of which the damage arises was performed on your behalf by a subcontractor” from exclusion l.

Our question is: should the policy respond to the rest of the damage to the house other than the HVAC equipment that caused the loss?

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