When determining if damage to property was the result of construction work that showed signs of defects or faulty workmanship, the ultimate decision depends heavily on the state laws that are in play in the situation. In some cases, this is considered an accidental occurrence in Texas courts.
CGL (Commercial General Liability), the standard for insurance policy forms, has recently undergone changes to the way inadvertent construction defects may be classified. Since the changes, deciding which state law to follow in these cases has become a highly critical matter that generally ends up being outcome determinative.
A lack of agreement from state to state
Not all courts are handling this serious problem in the same way. In some states, the law is failing the people and it’s up to individuals to learn how to protect themselves and their property from these regulatory shortcomings.
For instance, some state laws still reflect the outdated method of analyzing these situations, while other states’ court handling of the cases has been wholly incorrect. However, most jurisdictions are of the opinion that when the workmanship of a property shows signs of faults or defects, the modern CGL insurance policy is free to consider that an occurrence.
Wording becomes highly critical when digging into these types of legal policies, making it something for property owners to pay careful attention to in their own state laws. Although some states still hold that an inadvertent construction defect may not be deemed an occurrence unless the property damage that was caused by the defects occurred to anything besides the “building,” “structure,” or “project.”
When inadvertent construction defects are found to be the cause of property damage, this is now considered an occurrence under CGL. It’s always important to stay up to date on the policies held in the state where you live to ensure that you’re aware of how to legally protect yourself and your property if these types of situations arise.
