Impaired Property and the CGL Form

Our insured is a plumbing and heating business. The insured has a CGL policy and had a claim recently that was denied by the insurer based on the impaired property exclusion. The claim involved a garage floor that was damaged after the pipes underneath it froze and broke. There was a defect in the control panel of the boiler that the named insured installed and this caused the boiler to shut off, resulting in loss of heat and the freezing of the pipes. Our insured did not install the garage floor; he only installed the boiler, the control panel, and the pipes. Now, we can understand the denial of coverage for the damage to the insured's work, but the insurer also denied coverage for the damage to the garage floor, saying that the floor is impaired property and property damage to impaired property is excluded. We think that there should be coverage for the garage floor damage. What do you think?

Michigan Subscriber