Michigan COA rules that Condo Association’s Insurance Policy may cover water damage resulting from construction defects

In Walters Beach Condominium Association v Home-Owners Insurance Company, unpublished opinion of the Court of Appeals, issued November 16, 2017 (Docket No. 335172), the Michigan Court of Appeals held that water damage caused by construction defects may be covered under a condominium association’s insurance policy. At issue was a rain storm caused water damage to 4 units in the Walters Breach Condominium. The storm occurred on August 30, 2013, and some of the unit owners witnessed water enter through various areas around their walkout basement doors, including around the light fixtures, the ceiling, and the door wall. The condominium association submitted a claim for the damage and the insurance company hired a structural and forensic engineering firm investigate the damage.    Read the article……………….

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