Fla. Judge Says Insurer Must Defend Chinese Drywall Claims Despite Pollution, Health Hazard Exclusions

TAMPA, Fla. — A federal judge has ruled that the pollution exclusion in insurance policies sold to a storage facility does not bar coverage for claims stemming from the company’s sale of Chinese drywall that allegedly damaged property within numerous Florida residences.

Judge James S. Moody of the U.S. District Court for the Middle District of Florida ruled May 8 that the exclusionary language in the policies pertains solely to damage caused by pollution that occurs in the outside environment, rather than the interior of a home.

Judge Moody’s ruling followed a motion for summary judgment filed by American Home …