Clarendon Sues Over Coverage of Homeowners Association Drywall Suit

MIAMI - Clarendon National Insurance Co. has filed a declaratory judgment action against three homeowners associations, seeking a ruling on coverage for a Chinese drywall suit filed by residents in a WCI Communities Inc. development. Clarendon National Insurance Co., et al. v. Heron Bay Community Association, et al., No. 12-60810 (S.D. Fla.).

The May 2 lawsuit filed in U.S. District Court for the Southern District of Florida says Clarendon has neither a duty to defend nor indemnify the associations under three businessowners liability policies, all of which contain a pollution exclusion.

Clarendon's insureds, Heron Bay Community Association, Parkland Golf and …