STORY FROM: Superstorm Sandy Insurance Litigation

Building Contractor’s Claim for Water Damage Excluded, 10th Cir. Affirms

DENVER — A building contractor’s claim for water damage to portions of a building it was renovating is excluded from coverage under its builders’ risk policy because the contractor’s own work had not been damaged, a federal appellate court has ruled.

In upholding a trial court’s ruling, the 10th Circuit U.S. Court of Appeals on Feb. 16 explained that because the contractor had not begun constructions on the damaged portions, the damage caused by melting snow was not covered.

The University of Denver hired GH Phipps Construction Co. (GHP) to renovate and expand its library. Because the library contained asbestos, ...

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