6th Circuit Affirms for Cincinnati Insurance on Defects Coverage

CINCINNATI - The 6th Circuit Court of Appeals ruled on Feb. 4 that construction defects and water intrusion experienced by residents of homes built by Beazer Homes Investments is not property damage as defined by general liability policies issued to Beazer by Cincinnati Insurance Co. The Cincinnati Insurance Co. v. Beazer Homes Investments LLC, et al., No. 08-5967 (6th Cir.).

The Circuit Court affirmed a declaratory judgment issued in Cincinnati's favor, rejecting Beazer's argument that a 2007 South Carolina state court holding in Beazer's favor prevented Cincinnati from contesting coverage in this case.

Cincinnati sought the declaratory judgment from the …