Insurer Says Pollution, 'Your Work' Exclusions Apply to Drywall Claims

NORFOLK, Va. - An insurance company that sold commercial package and umbrella policies to a Virginia homebuilder has filed a declaratory judgment action, seeking a decision on whether several exclusions in its policies preclude coverage for Chinese drywall claims. Builders Mutual Insurance Co. v. Dragas Management Co., et al., No. 09-195 (E.D. Va.).

In the April 23 complaint, Builders Mutual Insurance Co. asks the U.S. District Court for the Eastern District of Virginia to supports its decision to deny cover of claims asserted against Dragas Management Corp. based on the total pollution and "your work" exclusions.

Dragas was insured under …