Insurers Say Builder Can't Prove Coverage for $4.9 Million Arbitration Award

NORFOLK, Va. - Insurers named in a lawsuit to recover a multi-million dollar arbitration award against a Chinese drywall installer have responded by insisting there is no evidence that its policies cover the damage. Dragas Management Corp. v. The Hanover Insurance Co., et al., No. 10-547 (E.D. Va.).

Hanover Insurance Co. and Citizens Insurance Co. contend in a Jan. 14 response brief that the removal and replacement of drywall that its insured Porter-Blaine installed in 74 Virginia homes does not constitute an occurrence or property damage under policies it sold the company.

Therefore, there is no coverage for a $4.9 …