Exclusions in 2 Policies Defeat Defense Coverage for Calif. Home Seller

SAN DIEGO - A California appellate court affirmed April 22 that neither of two insurers defend a policyholder sued by the purchasers of a second home. Hsu v. Fire Insurance Exchange, et al., No. G032188 (Calif. 4th App. Dist.).

John C. Hsu is a defendant in a lawsuit alleging that a new house purchased from Hsu was infested with toxic mold because of negligent design and construction. The house in Laguna Beach, Calif., was originally built for Hsu and his family, but Hsu sold it after deciding not to move from the family's home in Cypress, Calif., according to a …