Mass. Court Explains Limits to Exclusions in CGL, Homeowner Policies

LAWRENCE, Mass. - A Massachusetts Housing Court held June 28 that a homeowner relying on her policies' ensuing loss clauses could recover for mold damage blamed on leaks around a chimney but not for damage arising from construction defects. Pride v. Latham, Nos. 04-CV-00059 and 05-CV-00105 (Mass. N.E. Hsg. Ct.).

In the same ruling, the court rejected the contractor's insurer's reliance on pollution and business risk exclusions, finding that neither applied to the homeowner's claims against the contractor.

Plaintiff Sana Pride complained in her lawsuit that defendant contractor Francis Latham committed construction errors that led to leaks from her shower …