Va. Judge: Policy Exclusions Bar Coverage for Chinese Drywall Losses

NORFOLK, Va. - A federal judge in Virginia ruled June 3 that four separate exclusions contained in a homeowner's policy bar coverage for damage caused by Chinese drywall. Travco Insurance Co. v. Ward, No. 10-14 (E.D. Va.).

Judge Robert G. Doumar of the U.S. District Court for the Eastern District of Virginia awarded partial summary judgment to TRAVCO Insurance Co. in a declaratory judgment action brought by the insurer.

Judge Doumar determined that the insured's residence suffered a direct physical loss within the meaning of the Travco policy, but that the claimed losses are excluded by the policy's latent …