Insurer Cites Verdict Against Home Builder in Denying Coverage for Defects

CINCINNATI - A home developer's insurer is not obligated to provide a defense or indemnification where a jury has already determined in the underlying case that the developer intentionally violated building codes, the 6th Circuit has ruled. Assurance Company of America v. Continental Development & Construction Inc., et al., No. 090-5705 (6th Cir.).

The Circuit Court's ruling came in an unpublished opinion on Aug. 26 in which it affirmed judgment for Assurance Company of America in a construction defect coverage case.

At issue in this appeal, was coverage for a $525,000 jury verdict again Continental Development & Construction Inc., its …