Water Damage From Defects Is An ‘Occurrence’ Under Insurance Policy, Panel Says

Mealey's (October 30, 2015, 1:06 PM EDT) -- DES MOINES, Iowa — Water damage and mold arising out of construction defects constitute an “occurrence” under an excess insurance policy, an Iowa appeals panel affirmed Oct. 28, also reversing an award of prejudgment interest (National Surety Corp. v. Westlake Investments, LLC, No. 14-1274, Iowa App.; 2015 Iowa App. LEXIS 982).

(Opinion available. Document #69-151204-001Z.)

In 2003, Westlake Investments LLC entered negotiations with MLP Management LLC to purchase a 300-unit apartment complex while the complex was under construction. Before the closing of the sale, Westlake and...
To view the full article, register now.