Insurer Says Exclusions, Policy Noncompliance Bar Drywall Coverage

MIAMI - Mt. Hawley Insurance Co. says it has no obligation to defend or indemnify a developer and contractor against four state court lawsuits filed by Florida homeowners affected by Chinese drywall. Mt. Hawley Insurance Co. v. Rafuls & Associates Construction Co. Inc., et al., No. 10-20214 (S.D. Fla.).

In a Jan. 22 complaint filed in U.S. District Court for the Southern District of Florida, Mt. Hawley says that coverage for the property damage and personal injury claims is precluded by exclusions contained in policies sold to the builders. The insurer also says that coverage for claims against the general …