Multiple Exclusions Block Coverage for Condo Plumbing Leak and Mold

NASHVILLE, Tenn. - While a federal judge concluded that one exclusion for water seepage did not preclude coverage for a plumbing failure and related mold damage, the judge said other exclusions did apply, including one for construction defects. Montclair Condominiums Association Inc. v. Community Association Underwriters of America, Inc., et al., No. 3:08-0718 (M.D. Tenn.).

Judge Robert L. Echols of the U.S. District Court for the Middle District of Tennessee also ruled July 9 that Montclair Condominiums Association Inc. was not owed coverage under its policy's "collapse" provision.

Montclair sought coverage from QBE Insurance Corp. after a single unit was …