Chimney Collapse during Liner Installation Noncompensable Faulty Workmanship?

The named insured has an HO 03. A contractor installed a new chimney liner with a bladder/fill method. The contractor filled half the chimney with new cement liner when the chimney pulled away from the house and collapsed, damaging the vinyl siding and the roof and completely destroying the chimney.

The named insured filed a claim with her carrier, who stated the claim is noncompensable as faulty workmanship on two counts:  count one—the chimney was not properly anchored to the house ,and count two—the contractor made an error in the installation, resulting in collapse.

Given the facts, is the claim noncompensable ?Or are we correct that it was a work in progress, sudden and accidental? No building codes existed at the time of construction (1978 ), which now state that a chimney must be anchored to the structure.

Ohio Subscriber

The HO 03 provides coverage for direct physical loss to covered property involving collapse of a building or part of a building if the collapse was caused by “use of defective material or methods in construction, remodeling or renovation if the collapse occurs during the course of the construction, remodeling, or renovation.”

 

Also, in the exclusions section, ensuing loss to property in Coverage A or B is covered even though faulty design, workmanship, renovation, or remodeling is excluded.

 

Since the contractor was actively working on the chimney to install a new liner, the collapse of the chimney and the damage to the siding and roof are covered.

 

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