Business & Insurance Litigation Newsletter for Indiana
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Diminution in Value of Property Not Covered Under the standard language of CGL policies, claims by property owners against insured contractors for restoration costs or diminution in value caused by faulty workmanship do not constitute claims for "property damage" as such claims do not arise from "physical injury to tangible property," and are, therefore, not covered. As one court put it, the typical CGL policy "does not cover an accidental fault in workmanship, but rather faulty workmanship which causes an accident." R.N Thompson & Associates, Inc. v. Monroe Guarantee, 686 N.E.2d 160 (Ind. Ct. App. 1997). |
