Court: Insurance Coverage for Partial Building Collapse Precluded Under Exterior Insulation and Finish System Exclusion

NEW YORK –– A New York trial court has awarded summary judgment to insurers in a declaratory action arising out of a dispute for coverage for an allegedly faulty cement material used to level and waterproof concrete masonry walls.

In the July 23 decision, the New York Supreme Court for New York County found that since the material was used in preparation for installation of the exterior insulation and finishing system, coverage for the resulting claims is “clearly” excluded.

Plaintiffs FSLM Associates LLC and First Avenue Builders filed the declaratory action, saying that during the development of a condominium …