A guest lecturer at the National Association of Public Insurance Adjusters Mid-Year Meeting last Friday predicted that courts will find at least some of the damage caused by Chinese drywall to be covered under a first party property insurance policy. Ed Eshoo gave the lecture, "First Party Property Insurance–Chinese Drywall Claims."
I felt his discussion of the commercial and homeowners policy forms was excellent. The points he made regarding the science of drywall, covered risks, ensuing or resulting damage, causation, and exclusions were clear and simple and should be replicated by other attorneys.
The one problem and question raised by those in attendance was the conclusion:
"Is there really coverage–what is the covered cause of loss that is not excluded or is an exception to an exclusion?"
I remind everyone that the FC&S Bulletin has concluded that there is coverage for Chinese drywall under the first party policy, as I noted in FC&S Says Ensuing Loss Coverage Applies to Chinese Drywall Claims. I will post more on Ed’s lecture and this topic later tonight. Regardless of the conclusion, the analysis up to that point was an excellent lecture. It made the cost of the conference worth the investment.
The PowerPoint presentation from the lecture is available here.