Construction Defects Are Occurrences

Abstract

This article explains the nascent majority view that Construction Defects Are Occurrences. Currently the majority view is that construction defects constitute "occurrences" with the Supreme Courts of Tennessee, Indiana, Florida, Alaska, Wisconsin, South Dakota, Mississippi, Georgia, Texas, South Carolina, Minnesota and Kansas. These states all find in favor of policyholders. Moreover Colorado, Arkansas, Hawaii and South Carolina have passed statutes that essentially mandate that construction defects are "occurrences."

The above majority courts have adopted the "subjective test" by applying the definition of "occurrence" to the facts of the case in reaching their conclusions.

Keywords: Insurance, Construction Defects, CGL Policy, Occurrences