Insurance Company Says Toxic Drywall Exclusion Bars Coverage of Fla. Condo Owner’s Lawsuit

MIAMI — Tower Insurance Co. of New York has filed a declaratory judgment action in Florida, arguing that a toxic drywall exclusion contained in a policy it sold to a condominium association negates its coverage obligations for a Chinese drywall-related claims brought against the group.

The Nov. 15 lawsuit filed in U.S. District Court for the Southern District of Florida also cites pollution and impaired property exclusions, as well as other preclusive policy provisions, in support of Tower’s refusal to defend or indemnify the association against a lawsuit filed by one of its members.

Marcia Toledo sued Tower insured, Pembroke …