Ariz. Builder Owed Indemnification for Voluntary Repair of Home

PHOENIX - Liberty Mutual Fire Insurance Co. has been ordered to reimburse a developer for repairs to 50 homes damaged by faulty construction, despite the fact that the repairs were not made pursuant to suit and Liberty's policy excluded coverage for voluntary payments. Desert Mountain Properties Limited Partnership v. Liberty Mutual Fire Insurance Co., No. 1 CA-CV 08-0802 (Ariz. Ct. App., Div. 1).

The Arizona Court of Appeals said in its Aug. 3 opinion that coverage could be warranted for breach of the underlying construction contracts whether or not the homeowners have filed suit.

This case arose from cracks and …