Insurer Says It Won't Cover Drywall Fix Absent Judgment, Settlement

NORFOLK, Va. - Firemen's Insurance Co. has moved to dismiss claims that it owes coverage for an insured's decision to replace defective drywall in several Virginia homes, arguing that the subject policy only covers damages resulting from a court judgment or settlements that involve input from the insurer. Builders Mutual Insurance Co. v. Dragas Management Corp. and Firemen's Insurance Co. of Washington, D.C., No. 09-185 (E.D. Va.).

The July 21 motion in U.S. District Court for the Eastern District of Virginia also states that coverage isn't available, regardless of the insured's failure to provide adequate notice of its drywall remediation …