Connecticut Insurers Hit With A Wave of Claims Relating to Defective Concrete – – Lawsuits Pile Up Addressing Issues of “Collapse” and “Ensuing Loss”
Property insurers in Connecticut are currently facing a deluge of claims and lawsuits relating to cracking and crumbling foundations. In recent years, many homeowners in the eastern section of the state have reported claims relating to the deterioration of the foundation of their home. As explained here, in a report by a local news affiliate, the foundation damage is allegedly caused by a defective aggregate concrete mix from a local concrete company.
The number of claims has steadily grown over the years and a significant number of lawsuits have been filed against insurers following denial of claims. Many of the lawsuits are originated by an attorney from Massachusetts with personal experience from his own fight over coverage for a deteriorating foundation.
Bob Laurie and Beth Ahlstrand are experienced with these foundation claims and recently obtained a favorable settlement involving a disputed insurance claim resulting from a crumbling foundation. Although dependent on specific policy language and circumstances, the claims and subsequent lawsuits generally include questions relating to whether a “collapse” has occurred and whether damage constitutes an “ensuing loss” triggering coverage. Connecticut law has been slow to evolve on these issues because many of the claims are resolved prior to a motion for summary judgment or trial.