Sale Exclusions Bar Coverage for Mold Claims Against Calif. Home Sellers

SAN DIEGO, Calif. - Exclusions for occurrences arising out of a home sale preclude coverage for claims by buyers for construction defects, a California appellate court affirmed Nov. 18. Davis v. Farmers Insurance Group, No. D044724 (Calif. App., 4th Dist.).

Cynthia and Daniel Davis were sued by Rick and Kristin Engebretsen in July 2001 for alleged latent construction defects and mold damage in a home the Davises sold to the Engebretsens in June 1998. The Engebretsens allege personal injuries as well as property damage, contending that Daniel Davis, as the home's general contractor, should have been aware of defects in …